LETTER TO BOB STUMP FROM WILLIAM J. CASEY

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP90B01390R000400550004-2
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 2
• Document Creation Date: December 23, 2016
• Document Release Date: June 20, 2011
• Sequence Number: 4
• Publication Date: October 30, 1986
• Content Type: LETTER

Sanitized Copy Approved for Release 2011/06/20: CIA-RDP90BO139OR000400550004-2
Central Intelligence /Agency
3 0 OCT 1986
The Honorable Bob Stump
Ranking Minority Member
Permanent Select Committee on
Intelligence
House of Representatives
Washington, D.C. 20515
Dear Mr. Stump:
Thank you for your letter of 18 July 1986 reflecting
your continued interest in the effect of tax reform
legislation on the number of Agency retirements. Because we
had provided information to your Committee on this issue in
mid-July, we have delayed responding to your letter until we
could provide a meaningful update. As you may recall, we
advised the Committee in our letter of 14 July of
significant increases in the number of Agency employees
retiring this year, owing in large part to the proposed
elimination of the three-year recovery rule.
Late changes in the law, however, have changed our
problem. The loss of key personnel due to early retirements
may be over. With the enactment of the Tax Reform bill,
repealing the three-year recovery rule, we fully expect
retroactivity will have a dampening effect on Agency
retirements. Our retirements in July, August, and September
1986 evidence a sharp decrease from earlier this year and
are more in line with what we experienced last year. We had
9 retirements in all grades in July, 37 in August, and 26 in
September 1986 versus 29, 44, and 27 for the same months,
respectively in 1985. Consequently, we are not anticipating
the need to replace large numbers of our most experienced
personnel as we had feared earlier.
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 Sanitized Copy Approved for Release 2011/06/20: CIA-RDP90B01390R000400550004-2
While we believe that our earlier concerns about new
retirements will not be realized, we now face a new
potential problem because of the new tax changes. We fear
that some potential Agency employees may view Federal
service as less attractive because of these changes and
choose to work elsewhere. We also believe that some current
Agency employees, especially those early in their career,
might choose to leave the Agency in increasing numbers in
favor of employment in the private sector. Such employees
could be motivated by the tax changes, as well as by the
fear that future legislation could further diminish benefits
for Federal service. As you are aware, the new Federal
Employees Retirement System, because of the portability of
many retirement benefits, will probably also encourage more
employees to leave the Federal government.
We continue to be concerned about the impact of recent
and pending legislation on employee retirements. We will
stay close to the effect that this legislation will have on
our ability to recruit and retain the numbers and kinds of
employees necessary to accomplish our missions. We
appreciate your interest and the concern that you have shown
about the potential loss of our experienced employees
because of changes in retirement benefits. We will keep you
advised of any adverse trends that we see resulting from
these recent legislative actions. A copy of this letter has
been forwarded to Chairman Hamilton.
Sincerely,
/s/ MINN J. Casey
STAT
STAT
STAT
William J. Casey
Director of Central Intelligence
Distribution:
1 - OCA Record
ADD/EBS/OP
retyped:OCA
retyped:OCA
lb~ (24 Sep 86)
(21 Oct 86)
(27 Oct 86)
Sanitized Copy Approved for Release 2011/06/20: CIA-RDP90B01390R000400550004-2