THE ATTACHED TABLES SHOW THE EFFECT OF PROPOSED RETIREMENT PLAN CHANGES ON TYPICAL EMPLOYEES NOW IN CSRS AND CIARDS.

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP89-00066R000400030010-7
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 5
• Document Creation Date: December 22, 2016
• Document Release Date: January 7, 2011
• Sequence Number: 10
• Content Type: MISC

Sanitized Copy Approved for Release 2011/01/07: CIA-RDP89-00066R000400030010-7
The attached tables show the effect of proposed retirement plan
changes on typical employees now in CSRS and CIARDS.
The benefit is projected for ten years to assure retirement in
1995. Benefits payable under the current systems are compared to the
benefits resulting frog the following reductions:
Change the high-three pay base to high-five,
Feduce the CFFS benefit by 52 for each year under age 65 at
retireser.t ; and the CIARDS benefit by 5' for each year under
age 60,
Eliminate the credit for unused sick leave.
Tr.e benefit w}: ch would result if all three reductions is eisc
The benefit is compared to the current contributions and the
er.r.itA that could be purchased bz those ccr.tributicns if the
lr.~:t':CLci were tc lease tcday, it Nes t the refund, and use those fLrds
tc ;-.; TchasE at ar.Luit) at the retirement age.
re sa:Er v ;7EE-ct_c,rc `cr? used or. ci:r:Er.t ecrr.ir.is of e:
a'eraie ird:v2C-.a_ in each grace. 71.ese were essLred tc grew b% 5i
each sear for the next ter.. Years. This assunrtion anticipates moderate
general wage growth and within grade increases. Proz:otiots were not
assured. If proaetions were to occur, the benefits, and reductions
would be larger.
Other assuaptions were that the average interest rate will be 6k,
the average inflation rate will be 4: and that unused sick leave is
accumulated at seven days a year.
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 Sanitized Copy Approved for Release 2011/01/07: CIA-RDP89-00066R000400030010-7
Table 1
Civil Service Retirement System Benefits
Effect of Various Changes in Formula
Employee now age 45 with 20 years of service
Retiring at age 55 with 30 years of service
11
15
SES
Ler.efit in current
Eystet
1?8
23632
42474
56142
Benefit reduced for
High-5 pay base
18,666
22733
40516
53553
5' under age 65
y
9784
11916
21237
2E:071
No sick leave credit
18,942
23069
41115
54345
All three
9,034
11U03
19610
2592(;
CL
rrent contributions
16469
20057
3574;
47250
-
uTChaSfd at
f:t
r
r
,
e?e 5= tti ccl::Tit .ticr_
147E.
1-9E
C1 -
ILLEGIB
L
IFETIME k\r.\UIT)' LOSS IF
252,816
3Q-,896
548,736
-49,325
A
LL THREE REDUCTIONS E'AACTEP
ILLEGIB
Sanitized Copy Approved for Release 2011/01/07: CIA-RDP89-00066R000400030010-7
 Sanitized Copy Approved for Release 2011/01/07: CIA-RDP89-00066R000400030010-7
Table 2
Civil Service Retirement System Benefits
Effect of Various Changes in Formula
Employee now age 50 with 20 years of service
Retiring at age 60 with 30 years of service
Grade
9
11
]5
SES
Btr,ef it in current
systen
1 19568
23632
42474
/56142
Benefit reduced for
High-5 pay base
3 18666
22733
40516
53553
5'^ under age 65
17122
20853
37164
49124
NC EiCk ItE E Cred.t
1E942
23O?
4111S
_) 54345
A12 three
S 15811
19257
34320
S- 45344
Ctrrer,t cor.trituticn.
16469
20017
35747
4725C
Efr.Ef:t PuTCI:aEEe: et
eg? 6C L,.? cor.tTitutionE 1661
204E
3E50
4624
LIFETINT ANNUITY LOSS IF
ALL 1}PEEE REDUCTIONS FN ACTED
75126 91496 163067 215542
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 Sanitized Copy Approved for Release 2011/01/07: CIA-RDP89-00066R000400030010-7
Table 3
CIA Retirement System Benefits
Effect of Various Changes in Formula
Eaployee tow age 45 with 20 years of service
Retiring at age 55 vith 30 years of service
9
11
15
SIS
Benefit in current
s)stea
/
20673
25420
45305
59664
Benefit reduced for
High-5 pay best
19910
24248
43217
57123
ur,der age 60
18263
22242
39641
52398
WC e:ck le&Ye credit
2
;C246
2465E
43946
6riE
111 three
j`
16901
20582
36683
4S488
5--
Ccrrer.t contribution!
16L.6~
20057
35~L7
47250
Et:(fi rLTchESEC 5.
ate 55 by ccr.tr:bt :.cr.s 1L7f 179E 3204 42:5
LIFETI-I ANN1JITi' LOSS 11
ALL TILE REDUCTIONS ENACTED
95327 116093 206905 273504
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 ! ! l l LIl C
Sanitized Copy Approved for Release 2011/01/07: CIA-RDP89-00066R000400030010-7
Table 6
CIA Retirement Systea. Benefits
Effect of Various Changes in Formula
Employee aov age 40 with 15 years of service
Retiring at age 50 with 25 years of service
Grade
Benefit in current
syster
Benefit reduced for
High-5 pay base
5' ur.ie: age 60
No sick lease credit
All three
CL'rreLt CCr trittt:C:T:E
Ber;ef it pLrchiased at
age 50 by contributions
LIFETIME ANJITY LOSS IF
ALL THREE REDUCTIONS ENACTED
9 11
sis
17394
21184
~b p
37755
49904
16592
20207
36014
4760?
6697
10592
So.a
IEE i7
2492
T7. !
1EE72
20546
36622
46407
8C L7
. -..
4 `1
9E. C'0
1747E
qG-3
17,467
3115i
230E-
4317-2.1
1147
1397
2490
3292
261,716
318,752
568,064
750,876
.23
32 3Z
2Z1 27
410 2 6'3 .5 ~/3
- Sanitized Copy Approved for Release 2011/01/07: CIA-RDP89-00066R000400030010-7