IMPACT OF PROPOSED RETIREMENT CHANGES ON FUTURE RETIREMENT ELIGIBLES

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP87-00868R000100110011-2
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 12
• Document Creation Date: December 22, 2016
• Document Release Date: September 8, 2009
• Sequence Number: 11
• Content Type: REPORT

Approved For Release 2009/09/08 :CIA-RDP87-008688000100110011-2
IMPACT OF PROPOSED RETIRII~IENT CHANGES
ON FC~TUFtE RETIRFJ'~NT "ELIGIBLES
1, Annuity Adjustment for Retirement Pz`or to Age 65 (60 Years 0Id in the Case of CIARDS),
This amendment would permit voluntary retirement at 55 years of age with 30 years of service for CSR
participants and 50 years of age with 20 years of service for CIARDS but imposes a 5% penalty. for each year the
individual is under the pxescribed "phase year" non-reduced annuity age (i.e, age 56 in 1984 to 65 in 1993).
Exem tions:
a, All current CSR participants who are already 55 years. old or older and CIARDS participants
at least 50 years old.
b. All disability retirements.
Application:
All current participants iaho are under 55 (CSR) or 50 (CIARDS) regardless of length of service,
Z. Increased Employee Deductions .for Retirement
This proposal would increase employee deductions from 7o to 9% in 19$4 and to llo in 1985,
Exem Lions:
^?one
A~lication:
..All employees on the rolls on effective dates of increases,
Approved For Release 2009J09/08 :CIA-RDP87-008688000100110011-2
 Approved For Release 2009/09/08 :CIA-RDP87-008688000100110011-2
3, Base lannuit Calculations on tfie Retirees Highest Five Years of Earnirig5 ;Instead of the Current Three Years.
This proposal would return to the pre-1969 formula and would result in a lower base for annuity
calculation.
Exemptions:
a, All individuals now fully eligible to retire (i,e,, 55 with 30 years in CSR or 50 with 20 in
CIARDS.
b. All individuals within three years o:f retirement eligibility (i,e,, either age or service),
Application:
A1.1 individuals not now eligible to retire nor those not within three :years of eligibility to retire,
4, Charts presented in Tabs A and B show the percentages of annuity benefit reductions of representational
combinations of current (1983) employees and projected retirement when fully eligible,
5, Tabs C through F present typical examples of comparison CSR benefits under current provisions vis a vis
proposed provisions.
Tabs G through J present typical comparisons for CIARDS eligibles,
Approved For Release 2009J09/08 :CIA-RDP87-008688000100110011-2
 Approved For Release 2009/09/08 :CIA-RDP87-008688000100110011-2
CIVIL SERVICE RETIP.Ei~~~NT
IMPACT ON FUTURE EARLY RETIREI+fENT
ItEhFRENCE: Proposals to Raise Voluntary Retirement Age Without. Reduction of Annuity to Age 65 (Phased in
Over 10 Year Period) with Sp Reduction of Annuity for Each Year Under Phase Year Age
ASSUMPTION: Enactment in 19$3
____ YEAR
.1983
1984
1985
1986:
1987
1988
1989
1990
1991
1992
1903
VO[,11N`1';1RY R1sTI1~l~isvtENi'
AG1; ZV/0 RIiDUCTIUN
S5
56
57
58
59
60
61
62
63
G4
65
ge and Service
in 1983
55 w/.30 --
5
}
/29
0%
'
~
i~
53
/28
5%
w
5?
/27
100
w
51
/26
15%
w
50
/25
ZO%
w
49 iv/24
25%
48 w/23
30
47 w/22
35%
46 w/21
400
45 w/20 -
45~
S0~
NQTE: No reduction in annuity if retiree is at or older than "Phase Year" age.,
Approved For Release 2009J09/08 :CIA-RDP87-008688000100110011-2
 Approved For Release 2009/09/08 :CIA-RDP87-008688000100110011-2
.IMPACT ON FUTURE EARLY RETIREMENT
P~FEt'tENCE: Proposals to Raise voluntary Retirement Age T~Vithout Reduction of Annuity to Age 60 (Phased in
Over 10 Year Period) with 5o Reduction of- Annuity for Each Year Under Please Year Age.
ASSUI~~PTION: Enactment in 1983,
YEAR
OLUNTARY RETIR~1EiVT
Ar,E W/O REDUCTION
1983
50
1984
5I
1985
52
1986
53
1987
54
1988
55
1989
56
1990
57
1991
58
1992
59
1993
60
'1ge and. Service
in 1983
50 w/20 or more
49 w/1
9 or more
0%
5%
.
48 w/18 or more
10%
47 iv/17 or more
-
15%
46 w/]6 or more
20%
45 w/15 or more
25~
44 w/14 or more
3Qo
43 w/13 or more
35%
42. w/12 or more
4p o
41 w/11 or more
45
40 w/10 or more
0
SO%
NOTE: No reduction in annuity if retiree is at or older than "Phase Year" age,
Approved For Release 2009J09/08 :CIA-RDP87-008688000100110011-2
 Approved For Release 2009/09/08 :CIA-RDP87-008688000100110011-2
CONIl'ARISONS OF P.ETI
1T BENEFITS
CTVIL SERVICE
_ -- _ System
55 lv'ith 30 Yearsk
Age an Years of Service
ASSi1i41PTI0N: Enactment in 1983 with Retirement in 1983
High 3 Average:
High 5 Average:
Basic Annuity:
Reduced Annuity Far
Survivor Benefit:
Survivor Annuity
TO SpoUSC:
Penalty for liarly
Retirement:
Current Provisions
$30,331 (GS-12/5)
Not Applicable
$17,061 per year
$ 1,421 per month
$15,624 per year
$ 1,302 per month
$ 9,383 per year
$ 781 per month
*Individual 55 years old with 30 years of service in 1983.
Proposed Provisions
$30,331 (GS-12/5)
Not Applicable
$17,061 per year
$ 1,421 per month
$15,624 per year
$ 1,302 per month
$ 9,383 per year
$ 781 per month
0%
0
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 Approved For Release 2009/09/08 :CIA-RDP87-008688000100110011-2
COIw1PARISONS OF P~TIRENIENT BENEFITS
CIVIL SERVICE
System
55 With 30 Years*
Age and Years o Service
ASSUMPTION: Enactment in 1983 with Retirement in 1984
High 3 Average:
EIigh 5 Average
Ba51C Annulty:
Reduced Annuity For
Survivor Benefit:
Survivor Annuity
To Spouse,
Penalty for Early
Retirement:
Current Provisions
$30,331 (GS-12/5).
Not Applicable
$17,061 per year
$ 1,421 per month
$15,624 per year
$ 1,302 per month.
$ 9,383 per year
$ 781 per month
Proposed Provisions
$30,331 (GS-1Z/5)
.Not Applicable x~
$16,231 per year
$.1,350 per month
$14,843 per year
$ 1,237 per month
$ 8,914 per year
$ 742 per month
Individual 54 with 29 years of serving in 1983,
f~Individual is exempt (i.e. within 3 years of eligibility at enactment.)
Approved For Release 2009J09/08 :CIA-RDP87-008688000100110011-2
 Approved For Release 2009/09/08 :CIA-RDP87-008688000100110011-2
CONII'ARISONS OF ItETI
NT BENEFITS
CIVIL SERVICE
System
55 With 30 Years*
Age an Years of Service
ASSUMPTION: Enactment in 19$3 with Retirement in 1987
Iligh 3 Average;
High 5 Average:
-Basic Annuity:
Reduced Annuity Far
Survivor Benefit:
Survivor Annuity
Ta Spouse:
Penalty for l;arly
Reti.remcnt:
Currenfi Provisions
$30,331 (GS-12/5)
Not Applicable
$17,061 per year
$ 1,421 per month
$15,624 per year
$ 1,302 per month
$ 9,383 per year
$ 781 per month
kIndividual 51 years old with 26 years of service in 1983.
Proposed Provisions
Not Applicable
$28,088 (GS=12/5)
$12,639 per year
$ 1,053 per month
$11,591 per year
$ 966 per year
$ b,951 per year
$ 579 per month
20%
Approved For Release 2009J09/08 :CIA-RDP87-008688000100110011-2
 Approved For Release 2009/09/08 :CIA-RDP87-008688000100110011-2
COT4PARISONS OF P~ETIREi~NT BENEFITS
CIVIL SERVICE
ystem
S5 With 30 Yearsk
Age an Years of Service
ASSf.J,'~TION: Enactment in 1983 with Retirement in 1993
Current Provisions
Proposed Provisions
high 3 Average:
$30,331 (GS-12/5)
Not Applicable
High S Average:.
Not Applicable
$28,088 (GS-12/5)
ilasic Annuity:.
$17,061 per year
$ 7,900 per year
$ 1,421 per month
$ 658 per month
Reduced Annuity For
$15,624 per year
$ 7,245 per year
Survivor Benefit:
$ 1,302 per month
$ 604 per month
Survivor Annuity
$ 9,383 per year
$ 4,345 per year
To Spo~~se:
$ 781 per month
$ 362 per month
Penalty for Early
Retirement:
*Individual 45 years old with 19 years of service in 1983,
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 Approved For Release 2009/09/08 :CIA-RDP87-008688000100110011-2
COi~~PARISONS OF P~ETIREI~NT BENEFITS
CIARDS.
y~stem
50 SVith 20 Years*
_--
Age an Years of Service
ASSIm11'TION; Enactment in 1983 with Retirement in 1983
fIigh 3 Average;
High 5 Average;
Basic flruiuity:
Reduced Annuity Far
Survivor Benefit;
Survivor Annuity
To Spouse: ?
Penalty for. Early
lteti.rement:
Current Provisions
$30,331 (GS-12/5)
Not Applicable
$12,132 per year
$ 1,011 per month
$11,188 per year
$ 932 per month
$ b,672 per year
$ 556 per month
.Proposed Provisions
$30,331 (GS-12/5)
Not Applicable Until 1987
$12,132 per year
$ 1,011 per month
$11,188 per year
$ 932 per month
$ 6,672 per year
$ 556 per month
*Individual 50 years old with 20 years of service in 1983.
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 Approved For Release 2009/09/08 :CIA-RDP87-008688000100110011-2
C~'~PARISONS OF RETI
CIARDS
NT BENEFITS
System
50 Years with 20 Years of Service*
11ge an cars o -Service
ASSiIi~lPTION: Enactment in 1983 with Retirement in 1984
high 3 Average:
l~Iigh 5 Average
Basic Annuity:
Reduced Annuity For
Survivor Benefit:
Survivor Annuity
To Spouse:
Penalty. for I;ar1y
Retirement:
Current Provisions
$30,331 (GS-12/5)
Not Applicable
$12,132 per year
$ l,Dll per month
$11,188 per year
$ 932 per month
$ 6,672 per year
$ 556 per rlonth
Individual 49 years old with 19 years of service in 1983.
Proposed Provisions
$30,331 (GS-12/5}
.Not Applicable
$11,526 per year
$ 960 per month
$10,629 per year
$ 885 per month
$ 6,338 per year
$ 528 per month
50 (e.g. Age 51 minimum for
non-reduced annuity.)
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 Approved For Release 2009/09/08 :CIA-RDP87-008688000100110011-2
COMPARISONS OF PSTIRI~IENT B~NBFITS
CIARDS'
system
5D With 20 Years*
Age anc~Years of Service
ASSII~~'TION: Enactment in 1983 with Retirement in 1987
Current Provisions
Proposed Provisions
high 3 Average:
$30,331 (GS-12/5)
Nat Applicable
High 5 Average:
Not Applicable
$28,088 (GS-12/5)
Basic Annuity:
$12,132 per year
$ 8,988 per year
$ 1,011 per month.
$ 749 per month
.Reduced Annuity For
$11
188 per year
$ 8,305 per year
Survivor Benefit:
,
$ g32 per month
$ 692. per month
Survivor Annuity
$ 6,672 per year
$ 4,843 per year
To Spouse:.
$ 556 per month
$ 411 per month
Penalty for 13arly
Retirement:
ZO% (e.g. Age 54 minimum for
non-reduced annuity)
Individual 46 years old with 16 years of service in 1983..
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 Approved For Release 2009/09/08 :CIA-RDP87-008688000100110011-2
COMPARISONS OF RETIREMENT BENEFITS
CIARDS
System
50 Years with 20 Years of Service
Age an Years of Service
A5SUi`~1PTION: Enactment in 1983 with Retirement in 1993
high 3 Average:
High 5 Average;
Basic Annuity:
P,educed Annuity Far
Survivor Benefit:
Survivor Annuity
`I'o Spot~sc:
Penalty for Early
Retirement:
Current Provisions
$30,331 (GS-12/5)
Not Applicable
$12,132 per year
$11,188 per year
$ 932 per month
$ 6,672 per year
$ 556 per month
0%
0
*:Individual 40 years old with 10 years service in 1983,.
Proposed Provisions
Not Applicable
$28,088 {GS-12/5')
$ 6,Olb per year
$ 5,594 per year
$ 466 per month
$ 3,336 per year
$ 278 per .month
SOa (e.g. Age 60 minimum for
non-reduced annuity.)
Approved For Release 2009J09/08 :CIA-RDP87-008688000100110011-2