CIA RETIREMENT AND DISABILITY SYSTEM

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP78-03721A000300020007-8
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 82
• Document Creation Date: December 16, 2016
• Document Release Date: April 21, 2005
• Sequence Number: 7
• Publication Date: October 12, 1964
• Content Type: REPORT

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12 October 1964
CIA RETIREMENT AND DISABILITY SYSTril
TABLE OF CONI.E.NTS
SUBJECT PAGE
a. GENERAL 1
b. DEFINITIONS
((jd Adverse determination
Agency 1
1
p) Agency service 1
4) Annuitants 1
5 Career 1
6 Child 2
Director 2
Employee 2
9 Fund 2
10 Participant
3
11 Qualifying service 3
12 Qualifying duty 3
13 Service credit
is.
14 Widow 4
15 Dependent Widower 4
C. POLICY
(1 Eligibility to Participate 4
2 Opportunity to Be Heard by Retirement Board 5
3) Appeals 5
d. AUTHORITIES AND RESPONSIBILITIES
(1 Director of Personnel
6
(2 CIA Retirement Board 6
(3 Director of Finance 7
e. DESIGNATION OF PARTICIPANTS
(1 Initial Designation 7
(2 Periodic Review and Redetermination of Designation 7
(3) Designation of Employees on Duty at Date of Enactment of Act 8
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SUBJECT PAGE
f. NOTICE OF DETERMINATION AND OF RIGHT TO APPEAL
(1) Notice of Determination or Recommendation by the
Director of Personnel 9
(2) Notice of Determination by the Director 9
(3) Notice of Effective Date of Retirement 9
g. APPEAL PROCEDURE
Time Period for Appeal
2) Form and Content of Appeal
(1 Investigation by the Inspector General
(4 Notice of Decision
10
10
10
10
h. RETIREMENT FOR DISABILITY OR INCAPACITY
(1 Eligibility 11
(2 Initiation of Retirement Action 11
Supervisor's Statement 12
Medical Examination and Evaluation 12
5 Computation of Annuity 13
(6) Effective Date of Disability Retirement for Payment
of Annuity 14
(7) Periodic Review and Evaluation of Retirement Status 14
(: Allowable Expenses for Medical Examination 15
( Recovery from Disability 15
(10) Federal Employees Compensation Act Benefits 16
i. DEATH IN SERVICE
(1 Disposition of Contributions When No Annuity Is Payable 17
(2 Benefit to Surviving Widow or Dependent Widower 17
(3) Benefit to Surviving Child or Children 18
j. VOLUNTARY RETIREMENT
(1) Submission of Request
(2) Effective Date
k. DISCONTINUED SERVICE BENEFITS
18
18
(1) Election of Refund of Contributions or Deferred Annuity 19
(2) Death Prior to Receipt of Deferred Annuity 19
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SUBJECT PAGE
1. INVOLUNTARY RETIREMENT 19
m. MANDATORY RETIREMENT FOR AGE 20
n. CONTRIBUTIONS TO THE FUND
(1) Compulsory Contributions 20
(2) Voluntary Contributions 22
(3) Designation of Beneficiary for Lump-Sum Payment 24
o. PERIOD OF SERVICE FOR ANNUITIES
p.
Service as a Participant 25
2) Prior Service Credit 25
COMPUTATION OF ANNUITIES
(1) Basic Formula 30
V) Reduced Annuity with Benefit to Surviving Wife or Husband
30
Survivor Annuities to Child or Children 31
4) Survivor Annuity to Designated Beneficiary of an
Unmarried Participant 32
5) Offenses Barring Annuity Payments 33
6) Cost-of-Living Adjustment of Annuities 33
q. RECALL OF RETIRED PARTICIPANT 36
r. REEMPLOYMENT OF RETIRED PARTICIPANT
s. MONEYS
36
(1) Estimate of Appropriations Needed 37
(2) Investment of Moneys in the Fund 37
(3) Attachment of Moneys 37
t. LIMITATION ON NUMBER OF RETIREMENTS
(1) Numerical Limitations 37'
(23 Application of Limitation to Deferred Annuities 37
(3 Control 38
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CIA RETIREMENT AND DISABILITY SYSTEM
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12 October 1964
a. GENERAL
Sec. This regulation prescribes rules and policies governing the administration
101
of the Central Intelligenoe Agency Retirement and Disability System for a
limited number of employees, referred to hereafter as the System, authorized
Sec. by the Central Intelligence Agency Retirement Act of 1964 for Certain
201(a)
Employees, referred to hereafter as the Act, Only those employees who are
Sec. designated as participants in accordance with the provisions of this
201(b)
regulation will be covered by the System.
b, DEFINITIONS
As used in this regulation, the terms
(1) "Adverse determination" means any determination involving an action
other than one for which an employee, participant, or annuitant has applied.
ftw'Sec. (2) "Agency" means the Central Intelligence Agency as established
111(1)
effective 18 September 1947 by the National Seaurity Act of 1947.
(3) "Agency service" means service performed as an employee of the
Agency.
Sec,
204(a) (4) "Annuitants" means participants who are receiving annuities from
the Fund and all persons, including surviving wives and husbands, widows,
dependent widowers, children, and beneficiaries of participants or annuitants
who shall become entitled to receive annuities in accordance with the provi-
sions of this regulation.
(5) "Career" means the predominant and long-range orientation of an
employee's Agency service, past and present, as well as plani for his
future development and use.
3.
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Sec.
204(b)
(3)
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(6) "Child", for the purpose of annuity benefits, means an unmarried
child, including (a) an adopted child,and (b) a stepchild or recognized
natural child who received more than one-half of his support from and lived
with the participant in a regular parent-child relationship, under the age
of eighteen years, or such unmarried child regardless of age who because of
physical or mental disability incurred before age eighteen is incapable of
self-support or such unmarried child between eighteen and twenty-one years
of age who is a student regularly pursuing a full-time course of study or
training in residence in a high school, trade school, technical or voca-
tional institute, junior college, college, university, or comparable
recognized educational institution. A child whose twenty-first birthday
occurs prior to July 1 or after August 31 of any calendar years and while
he is regularly pursuing such a course of study or training, shall, be
deemed to have attained the age of twenty-one on the first day of July
following such birthday. A child who is a student shall not be deemed to
have ceased to be a student during any interim between school years IX the
interim does not exceed four months and if he shows to the satisfaction of
the Director of Personnel that he has a bona fide intention of continuing
to pursue a course of study or training in the sane or different school
during the school semester (or other period into which the school year is
divided) immediately following the interim.
Sec. (7) "Director" means the Director of Central Intelligence.
111(2)
(8) "Employee" means a civilian officer or employee of the Agency.
Sec. (9) "Fund" means the Central Intelligence Agency Retirement and
202
Disability Fund.
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Nme203
Sec.
111(3)
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--"(10) "Participant" means an employee who has been designated in accord-
ance with the provisions of this regulation to be covered under the System.
?(11) "Qualifying aervioe" means service performed as a participant in
the System or, in the case of Agency service prior to designation ass
participant, service determined by the Director of Personnel to have been
Sec0 performed in carrying out duties (a) in support of Agency activities abroad
203
hazardous to life or health or (b) so speoialized because of security
requirements as to be clearly distinguishable from normal government
employment.
--112) "Qualifying duty" means performance of duty as an Agency employee:
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(c) so specialized because of the unique nature of the clandestine
activities of the Agency as to be Clearly distinguishable from normal
government employment; or
(d) on a continuing basis which would place the individual at a
distinct disadvantage in Obtaining other employment either because
(1) the skills and knowledge are unique to the Clandestine activities
of the Agency and are not in demand elsewhere, or (2) the duties are so
highly Classified that his experience cannot be described in sufficient
detail to demonstrate his qualifications adequately to a prospective
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(13) "Service credit" means federal civilian or military service which
is creditable toward retirement under the System. Insofar as practicable,
pertinent rulings of the Civil Service Commission under the Civil Service
Retirement Act will be used as a guide to determinations regarding the
creditability of any military service and of civilian service performed
prior to designation as a participant.
Sec. ,(1/4) "Widow" means the surviving wife of a participant who was married
204(b)
(1) to such participant for at least two years immediately preceding his death
or is the mother of issue by marriage to the participant.
Sec. (15) "Dependent widower" means the surviving husband of a participant
204(b)
(2) who was married to such participant for at least two years immediately
preceding her death or is the father of issue by marriage to the partici-
pant, and who is incapable of self-support by reason of mental or physical
diaabilityi and who reoeived more than one-half of his support from such
participant.
0. POLICY
(1) Eligibility to Participate
(a) Only those employees who are citizens of the United States and
who are otherwise qualified in accordance with the provisions of this
regulation may be designated as participants in the System.
(b) Initial Designation: Participation in the System is reserved
exclusively for those employees who have accepted the obligation to
serve anywhere and at any time according to the needs of the Agency and
who are serving on a career basis in a field which normally requires
the performance of minimum periods of qualifying duty as an integral
part of a career in that field.
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(c) Continuance as a Participant: Following his initial designation
as a'participant, an employee may remain under the System only if he
continues to meet the criteria for participation, including the perfor-
mance of minimum periods of qualifying duty.
Seo. (d) Participant After Fifteen Years of Service: .Any participant
who has completed fifteen years of service with the Agency and whose
career at that time is adjudged by the Director of Perbonnel to be
qualifying for the System may elect to remain a participant in the
System for the duration of his employment by the Agency and such
election shall not be subject to review or approval by the Director.
(2) Opportunity to Be Heard by Retirement Board
Prior to recommending an adverse determination or any other finding
which adversely affects the entitlements of an employee under the System,
the CIA Retirement Board will notify the employee of its tentative conclu-
sion and of; his right to submit any pertinent information to the Board
within a specified period of time before making a final recommendation to
the Director of Personnel. The employee concerned shall have a reasonable
period of time in which to submit such information to the Board. The time
allowed will normally be not less than five nor more than thirty calendar
days but shall depend in any case on the circumstances of the case and the
location of the individual. Such information may be presented orally or
in writing at the discretion of the Board. The Board, in presenting its
recommendation to the Director of Personnel on any case, shall include a
report of any information which the employee has submitted.
(3) Appeals
Any determination made by the Director or by the Director of Personnel
pursuant to the Act or this regulation which affects the rights or benefits
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Sec.
201(c)
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under the System of an employee, participant, or annuitant may be appealed
by the individual affected to the Director in accordance with the appeal
procedure established in this regulation. Submission of such appeal shall
not suspend or defer the implementation of the determination except as may
be authorized in individual oases in the discretion of the Director. Deter-
minations made by the Director authorized by the provisions of the Act shall
be deemed to be final and conclusive and not subject to review by any court.
d. AUTHORITIES AND RESPONSIBILITIES
(1) Director of Personnel
The Director of Personnel shall be responsible for the general adminis-
tration of the System in accordance with the provisions of this regulation.
There is hereby delegated to the Director of Personnel all authorities as
are necessary for the administration of the System except those which are
specifically reserved to the Director in this regulation.
(2) CIA Retirement Board
(a) The CIA Retirement Boand is hereby established to assist and
advise the Director of Personnel' in the administration of the System.
The Board shall be oomposed of senior officials of the Agency recom-
mended by each of the Deputy Directors of the Agency. The Director
shall appoint the Chairman and members of the Boarde The Board shall
have available to it advisers from appropriate technical staffs.
(b) The Director of Personnel shall normally obtain the advice of
the Board before making determinations as to the eligibility of employees
to participate in the System or acting upon applications for disability
or voluntary retirement or recommendations for involuntary retirement.
He may also refer to the Board any other matter pertaining to the
administration of the System.
(0) Any member or adviser shall have the authority to submit a
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(3) Director of Finence
The Director of Finances shall be responsible for the administration of
the Fund. There is hereby delegated to the Director of Finanoe all authori-
ties as are necessary for the administration of the Fund except those which
are specifically reserved to the Director in this regulation.
e. DESIGNATION OF PARTICIPANTS
(1) Initial Designation
In order to qualify for initial designation as a participant, an
employee must:
Be at least 25 years of age;
Have successfully completed three years of Agency service;
Have signed a written obligation to serve anywhere and at any
time according to the needs of the Agency;
(d) Be serving on a career basis in a field which normally requires
the performance of qualifying duty as an integral part of a career in
that field; and
(e) Have performed qualifying duty or be under official orders for
an assignment requiring the performance of qualifying duty?
(2) Periodic Review and Redetermination of Designation
At intervals of not more than five years, the record of each participant
shall be reviewed to deternrine that he meets the criteria under this regula-
tion for continued coverage under the System. Normally, these reviews will
be made within 90 days of the fifth and tenth anniversary of initial desig-
nation as a? participant and a final review will be made six months prior to
the fifteenth anniversary of appointment in the Agency. Such review must
show that the individual, in addition to meeting the criteria for initial
designation, is performing minimum periods of qualifying duty throughout
his career in relation to the following standards:
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(a)
5th anniversary review:
18 months of qualifying duty;
(b)
10th anniversary review:
36 months of qualifying duty;
(0)
15th anniversary review:
60 months of qualifying duty.
Unless these minimum periods of qualifying duty have been performed, the
employee will not be eligible to remain a participant unless he is (1) then
serving on an assignment which will satisfy the qualifying duty requirement
indicated for the review period involved, or (2) he is under official orders
to serve in such an assignment within 90 calendar days. Exceptions may be
approved only by the Director based on satisfactory justification and assur-
ance that the employee shall perform an adequate period of qualifying duty,
(3) Designation of Employees on Duty at Date of Enactment of the Act
The records of all employees who are on duty at the date of enactment
of the Act and who are serving in a Career field which would normally re-
quire the performance of qualifying duty shall be reviewed to determine in
each case whether the individual (a) meets the criteria for initial designa-
tion and (b) has performed adequate periods of qualifying duty on the basis
of his years of Agency service in relation to the minimum standards provided
for the fifth, tenth, and fifteenth anniversary reviews. An employee who
has fifteen or more years of Agency service when the review of his case is ,
completed, who has met the provisions of subparagraph 0(2) above, and whose
career is adjudged by the Director of Personnel to be qualifYing for the
System may be designated a participant. Thereafter, such participant may
elect to remain a participant for the duration of his employment by the
Agency and such election shall not be subject to review or approval by
the Director?
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f. NOTICE OF DETERMINATION AND OF RIGHT TO APPEAL
(1) Notice of Determination or Recommendation by the Director of Personnel
(a) When the Director of Personnel makes a determination pursuant to
this regulation which affects the rights or benefits under the System of
an employee, participant, or annuitant, he shall notify the individual
affected in writing of his determination and, if there is an adverse deter-
mination, advise the individual of his right to appeal to the Director.
(b) When the Director of Personnel makes a recommendation to the
Director for an adverse determination, he shall notify the individual
affected of such recommendation. He Shall further advise the individual
that in the event of an adverse determination by the Director the indi-
vidual shall have the right to appeal such determination to the Director.
(2) Notice of Determination by the Director
When the Director makes a determination pursuant to the Act or this regu-
lation which affects the rights or benefits under the System of an employee,
participant, or annuitant, he shall advise the Director of Personnel of his
determination// The Director of Personnel Shall advise the individual in
writing of the determination and, if there is an adverse determination, of
his right to appeal to the Director.
(3) Notice of Effective Date of Retirement
When a determination has been made to approve the retirement of a parti-
cipant, the Director of Personnel shall give the participant written notice
of such determination. Except in the case of disability retirement at the
employee's request, such notice shall be given at least thirty calendar days
in advance of the date on wkich retirement shall become effective. The
Director of Personnel may, with the concurrence of the Deputy Director(s)
concerned and the consent of the participant, extend the effective date
except in oases of mandatory retirement for ago. Any extension in the
a ffIktfileriaietisiter4R6lamodE2081(0110arfahlaftDM-60216/191113134142.0.0417421e approval
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g. APPEAL PROCEDURE
(1) Time Period for Appeal
When a determination is made by the Director or by the Director of Per-
sonnel affecting the rights or benefits of an employee, participant, or annui-
tant under the System, the official making the determination shall, if there
is an adverse determination, specify the time to be allowed for the individual
to submit an appeal. The time allowed shall normally be not less than five
nor more than thirty calendar days but in any given case will depend en the
circumstances of the case and the location of the individual. When lestified
and upon request of the employee, the Director of Personnel may grant an
extension of time for the submission of an appeal. However, an extension of
more than thirty days to an appeal period established by the Director shall
require the approval of the Director.
(2) Form and Content of Appeal
An appeal made pursuant to this regulation shall be submitted in writing
to the Director. The appeal mast state, the basis on which review pf the
determination is requested and supply pertinent information in support of
such review.
(3) Investigation by the Inspector General
The Inspector General shall receive appeals made to the Director pursuant
to this regulation and shall make independent investigation and appropriate
recommendation to the Director. The Inspector General shall not be limited
in his investigation to matters raised by or contained in the appeal but
shall oonsider any information which he deems pertinent and appropriate,
(4) Notice of Deoieice
When the Director has acted on an appeal, he shall advise the individual
and the Director of Personnel of his decision. The Director of Personnel
shall institute any action which may be required to implement the decision,
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h. RETIREMENT FOR DISABILITY OR INCAPACITY
(1) Eligibility
Sec. Any participant who has five years of service credit toward retire -
231(a)
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ment under the System, excluding credit for military or naval service, and
who becomes totally disabled or incapacitated for useful and efficient
service by reason of disease, illness or injury not due to vicious habits,
intemperance or willful misconduct on his part shall be retired. When the
participant has made application, such retirement shall require the approval
of the Director of Personnel who shall also determine whether the disability
is permanent, When disability retirement action is initiated by the Director
of Personnel on behalf of the participant, such retirement shall be only upon
order of the Director who shall also make the determination as to whether
the disability is permanent,
(2) Initiation of Retirement Action
(a) By the Participant: Any participant who is of the opinion
that he may be eligible for retirement because of disability may apply
in writing to the Director of Personnel for such retirement. The appli-
cation must include a description of his disability and a full explana-
tion of the manner in which it affects the performance of his duties.
(b) By the Director of Personnels In the event a participant appears
to be totally disabled or incapacitated but fails or is unable to make
application for disability retirement, the Director of Personnel shall
institute such action on his behalf. In such cases the Director of
Personnel shall obtain the advice of the Board of Medical Examiners,
the Deputy Director having jurisdiction over the individual's Career
Service, and the CIA Retirement Board before making a recommendation to
the Director*
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(3) Supervisor's Statement
On request of the Director of Personnel, the supervisor responsible for
preparing the Fitness Report of a participant who applies for disability
retirement, or whose disability retirement is initiated by the Director of
Personnel, shall submit a statement describing the apparent nature of the
participant's disability and explaining the manner in which it affects the
performance of his official duties. On the basis of information available
to him, the supervisor shall also indicate whether, in his opinion, the
participant appears to be totally disabled or incapacitated for useful and
efficient service in his career field. He shall also indicate whether the
participant's disability or incapacity appears to be the result of his own
vicious habits, intemperance or willful misconduct. If the supervisor
desires, he may transmit this statement direct to the Director of Personnel
in a sealed envelope marked with the participant's nano and the worda
"Disability Retirement - Privileged - Private."
00 Medical Examination and Evaluation
(a) Board of Medical Examiners
(1) A Board of Medical Examiners is hereby established., This
Board shall be responsible for the conduct of medical examinations
and for evaluating the medical status of participants for whom an
application for disability retirement is under consideration and
for annuitante who have been retired for disability.
(2) The Chief, Medical Staff shall serve as Chairman of the
Board of Medical Examiners. He shall nominate two other members
(and alternates for each) to serve on the Board. Members and
alternates must be qualified physicians or surgeons. At least one
of these members and his alternate shall not be in active govern-
ment Joervice
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(2) The Chairman of the Board of Medical Examiners may
designate duly qualified physicians or surgeons to conduct medical
examinations of applicants for disability retirement or disability
annuitants and to submit reports of such examinations to the Board
for its evaluation.
Sec. (b) Conduct of Examinations
231(b)
Each participant considered for disability retirement shall be
given a medical examination by the Board of Medical Examiners or by a
duly qualified physician or surgeon designated by the Chairman of the
Board of Examiners.
(c) Report of Medical Examination
Based on the results of the medical examination, the Board of
Medical Examiners shall make a written report to the Director of Per-
sonnel setting forth the results of the examination. This report shall
be comprehensive, and shall incWe pertinent data on all disabling or
incapacitating conditions found or alleged to exist. In addition it
shall contain the Board's evaluation of the individual's medical status
in relation to the service requirements of his Career Service, whether
the disability is permanent, and the Board's recommendation as to
approval or disapproval of disability retirement of the partioipent.
Sec. (5) Computation of Annuity
231(a)
A participant retired on disability shall receive an annuity computed
in accordance with the provisions of this regulation. If he is under age
sixty and has less than twenty years of service credit toward his retire-
ment under the System at the time he is retired, his annuity shall be
computed on the assumption that he has had twenty years of creditable
service, but the additional service credit that may accrue to a participant
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under this provision shall in no case exceed the difference between his
age at the time of retirement and age sixty. Notwithstanding this pro-
vision, the annuity of any survivor shall be based only on the actual
service credit of such participant.
(6) Effective Date of Disability Retirement for Payment of Annuity
The effective date of separation for disability shall be the first
day following termination of pay status. The annuity shall commence as
of the first day of the month following the month in which the participant
is separated and is payable on the first day of the month following that
for which it accrued.
Sec. (7) Periodic Review and Evaluation of Retirement Status
231(b)
(a) Unless his disability is permanent, each annuitant who was
retired for disability or incapacity shall be given an annual medical
examination and his medical status evaluated by the Board of Medical
Examiners until he reaches mandatory retirement age for his grade.
The evaluation shall include a finding as to whether the annuitant
continues to be totally disabled or incapacitated for useful and
efficient service, and whether his disability is permanent. This
report shall be submitted to the Director of Personnel who shall make
the determination as to whether the annuitant continues to be totally
disabled or incapacitated for useful and efficient service.
(b) Whenever an annuitant's disability is determined to be of a
permanent character, he shall not again be given a medical examination
unless in .the opinion of the Director of Personnel, with the advice
of the Board of Medical Examiners, such examination is determined to
be warranted,,
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Sec. (o) When a disability annuitant fails to submit to examinations
Now 231(b)
as required, payment of annuity shall be suspended until continuance
of the disability is established to the satisfaction of the Director
of Personnel.
Sec. (8) Allowable Expenses for Medical Examination
231(b)
Reasonable and necessary travel, subsistence, and related expenses and
nedical fees may be incurred in connection with required medical examinations
and evaluations and shall be paid from the Fund.
Sec. (9) Recovery from Disability
231(b)
(a) Termination of Annuity: If the Director of Personnel determines
on advice of the Board of Medical Examiners that an annuitant has re-
covered to the extent that he can return to duty, payment of the annuity
shall continue until a date six months after the date of the examination
showing recovery or until the date of reemployment in the Agency, which-
ever is earlier.
See. (b) Reempl.oymentg An annuitant who is determihed to have recovered
231(b)
may apply for reemployment in the Agency within one year from the date
of his recovery as determined by the Director of Personnel.
Sec. (1) Upon application, the Director of Personnel may reinstate
231(b)
any such recovered disability annuitant in the grade in which he
was serving at time of retirement, or the Director of Personnel may,
taking into consideration the age, qualifications, and experience
of such annuitant, and the present grade of his contemporaries in
the Agency, appoint him to a grade higher than the one in which he
Nopoi
was serving prior to retirement.
Sec. (2) If a recovered disability annuitant whose annuity is die-
231(o)
continued is not reemployed in the Agency, he shall be considered to
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have been separated within the meaning of paragraph k as of the
*gale'
date he was retired for disability and he shall, after the discon-
tinuance of the disability annuity, be entitled to the benefits of
paragraph k or n(1)(c) and (d). In such case, if the individual
was otherwise qualified as of the date he was retired for disability,
he may elect voluntary retirement or may be considered to have been
involuntarily retired as of such date, and he shall, after the dis-
continuance of the disability annuity, be entitled to appropriate
benefits based on such retirement.
Sec. (10) Feder. Employees' Compensation Act Benefits
231(d)
(a) No participant shall be entitled to receive an annuity under
the Act and compensation for injury or disability to himself under the
Federal Employees' Compensation Act of September 7, 1916, as amended
(5 U.S.C. 751 at MO, referred to hereafter as FECA? covering the seam
period of time. Neither this provision nor any provision of FECA shall be
construed as to deny the right of any participant to receive an annuity
under the System by reason of his own services and to reoeive'concur-
rently any payment under FECA by reason of the death of any other person.
Sec. (b) The right of any person entitled to an annuity under the System
231(e)
shall not be'affebted because such person has reoeived an award of
compensation in lump-sum under section 14 of FECA, except that where
such annuity is payable on account of the same disability for which
compensation under such section has been paid, so much of such compen-
sation as has been paid for any period extended beyond the date suoh
annuity becomes effective, as determined by the Secretary of Labor,
shall be refunded to the Department of Labor, to be paid into the
Federal Employees' Compensation Fund. Before such person shall receive
such annuity he shall: ,L
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(1) Refund to the Department' of Labor the amount representing
such commuted payments for such extended period, or
(2) Authorize the deduction of such amount from the annuity
payable to him under the System, which amount shall be transmitted
to the Department of Labor for reimbursement to the Federal
Employees' Compensation Fund. Deductions from such annuity may be
made from accrued and accruing payments, or may be prorated against
and paid from accruing payments in such manner as the Secretary of
Labor shall determine, whenever he finds that the financial circum-
stemma of the annuitant are such as to warrant such deferred
refunding.
i. DEATH IN SERVICE
Sec. (1) Disposition of Contributions When No Annuity Is Payable
232(a)
If a participant dies and no claim for annuity is payable under the
System, his contributions to the Fund with interest at the rate prescribed
in subparagraphs n(1)(d) or n(2)(a) shall be paid in accordance with the
provision for refund of contributions in the order of precedence prescribed
in subparagraph n(3).
Sec.
232(b) (2) Benefit to Surviving Widow or Dependent Widower
If a participant who has at least five years of servioe credit toward
retirement under the System, excluding credit for military or naval service,
dies before separation or retirement from the Agency and is survived by a
widow or dependent widower, such widow or dependent widower shall be
entitled to an annuity equal to 55 percent of the annuity computed in accord-
ance with the provisions of subparagraph p(1)(a). The annuity of such widow
or dependent widower shall commence on the date following death of the
participant and shall terminate upon death or remarriage of the widow or
17
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Sec.
232(c)
(d)
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dependent widower, or upon the dependent widower's becoming capable of
self-support,
(3) Benefit to SurvivingChild or Children
If a participant who has at least five years of service credit toward
retirement under the System, excluding credit for military or naval service,
dies before retirement or separation from the Agency and is survived by a
child or children, each surviving child shall be entitled to an annuity
computed in accordance with the applicable provisions of subparagraph p(3),
depending upon whether the participant was also survived by a wife or
husband?
j, VOLUNTARY RETIREMENT
Sec.
233 Any participant who is at least fifty years of age and has rendered
twenty years of service may on his own application and with the consent
of the Director be retired from the Agency and receive benefits in accord-
ance with the provisions of this regulation provided he has not less than
ten years of service with the Agency of which at least five shall have been
qualifying service,
(1) Submission of Request
Any participant wishing to retire under this provision shall normally
submit his request to the Director of Personnel not less than 90 calendar
days prior to his desired retirement date,
(2) Effective Date
The effective date of the voluntary retirement of a participant for the
purpose of computing his annuity rate shall be the date of his separation
from the Agency. However, his annuity shall commence as of the first day
of the month following the month in which the participant was separated and
is payable on the first day of the month following that for which it acerUedo
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k. DISCONTINUED SERVICE BENEFITS
Sec. (1) Election of Refund of Contributions or Deferred Annuity
23h(e)
Any participant who separates from the Agency after having' performed
not less than five years of Agency service may upon separation from the
Agency or at any time prior to becoming eligible for an annuity elect
either:
Nue
Seo,
234(b)
Sec.
235(e)
(a) To have his contributions to the Fund returned to him in
accordanoe with the provisions of this regulation; or
(b) To leave his contributions in the Fund and receive a deferred
annuity, computed in accordance with the provisions of this regulation,
commencing at the age of sixty-two years. However, this option is not
available to a participant whose separation is determined by the Director
to be based in whole or in part on the ground of disloyalty to the
United States.
(2) Death Prior to Receipt of Deferred Annuity
If a participant who has elected to receive a deferred annuity ccamenc -
ing at the age of sixty-two dies before reaching age sixty-two, his contri-
butions to the Fund, with interest, shall be paid to his beneficiary as
prescribed in subparagraph n(3).
1. INVOLUNTARY RETIREMENT
(1) The Director may in his discretion place in a retired status any
participant who has completed at least twenty-five years of service, or who
is at least age fifty and has completed at least twenty years of servioe,
provided such participant has no less than ten years of Agency service of
which at least five shall have been qualifying service. If so retired,
such participant shall receive retirement benefits in accordance with the
provisions of this regulation.
19
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(2) Ordinarily, the recommendation to retire a participant under the
provisions of this paragraph shall originate with the Head of his Career
Service who shall provide a full statement of the reasons for such
recommendation* Hover, in appropriate eases the Director of Personnel
shall originate such recommendation..
(3) No provision of this regulation shall impair the authority of
the Director to terminate the employment of any participant pursuant to
the authority contained in section 102(c) of the National Security Act
of 1947, as amended?
m. MANDATORY RETIREMENT FOR AGE
Sec. Any participant receiving compensation at the rate of grade 05-18 or
235(b)
above shall be automatically separated from the Agency upon reaching the
age. of sixty-five. Any participant receiving compensation at a rate less
than grade 05-18 shall be automatically separated from the Agenoy upon
reaching the age of sixty. Such separation shall become effective on the
last day of the month in which the participant reaches age sixty cr ?
sixty-five, as specified in this subparagraph. However, whenever the
Director shall determine it to be in the public interest, he may extend
such participants service for a period not to exceed five years. A
participant separated in accordance with this provision who haa completed
five years of Agency service shall receive retirement benefits in accord-
ance with the provisions of paragraph p.
n. CONTRIBUTIONS TO THE FUND
(1) Compulsory Contributions
Sec. (a) Amount of Contribution: Six and one-half percent of the basio
211(a)
salary received by each participant shall be contributed to the Fund for
the payment of annuities, cash benefits, refunds, and allowances. An
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Sec.
211(b)
Sec.
23(b)
Sec.
241(a),
Seco
241(b)
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equal aura shall also be contributed from the respective appropriation
or fund which is used for payment of his salary. The amounts deducted
and withheld from basic salary together with the amount so contributed
from the appropriation or fund shall be deposited by the Director of
Finance to the credit of the Fund. Each participant Shall be deemed
to consent and agree to such deductions from his basic salary*
(b) Periods of Leave Without Pay and Military Service: Contribu-
tions shall not be made for any periods of leave without pay, or for
periods of leave of absence during which a participant is performing
active military or naval service in the Army, Navy, Air Force, Marine
Corps or Coast Guard of the United States, or for periods of audh
service prior to. becoming a participant.
(c) Refund of Compulsory Contributions: A refund of compulsory
oontributions is payable under the following circumstances:
(1) When a participant is separated from the System without
'becoming' eligible for an iremediate 'annuity or a deferred annuity
at age sixty-two ors if eligible for a deferred annuity, he elects
before reaching age sixty-two to have the refund in lieu of an
annuity.
(2) When a retired participant's total compulsory contribu-
tions, including any special contributions or deposits made to
obtain credit for prior service, with interest, exceed the total
of annuities paid to him or to an annuitant claiming through him,
the excess shall be paid in the order of precedence shown in sub-
paragraph n(3) below upon the establishing of a valid claim there-
for, and such payment shall be a bar to recovery by any other
person,
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Sec. (d) Interest on Refund of Compulsory Contributions
r 241(8)
Ime Interest on compulsory contributions refunded in accordance with
the provisions of this regulation shall be computed at four percent
per annum to 31 December 1947 and three percent per annum thereafter
to 31 December 1956. Such interest shall be compounded annually and
proportionately for the period served during the year of separation.
No interest is payable after 31 December 1956 except whbn the refund
covers Agency service of more than one year but less than five years?
Seco (2) Voluntary Contributions
281(a)
(a) Any participant may, at his option, deposit additional sums
in matiples of one percent of his basic salary, but not in excess of
ten percent of such salary, which amounts together with interest at
three percent per annum, compounded annually as of 31 December, and
proportionately for the period served during the year of his retire-
ment, including all contributions made during or for such periods
shall, at the date of his retirement and at his election, bet
returned to him in lump sum; or
used to purchase an additional life annuity; or
used to purchase an additional life annuity for himself
and to provide for a cash payment on his death to a beneficiary
who shall be designated in writing to the Director of
Personnel by the participant; or
used to purchase an additional life annuity for himself
and a life annuity commencing on his death payable to a beneficiary
whose name shall be notified in writing to the Direotor of Personnel
by the participant with a guaranteed return to the beneficiary or
his legal representative of an amount equal to the cash payment
referred to in subparagraph (1) above,
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Seco
281(b)
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(b) The benefits provided by aubparagraphs (2), (2), or
(h) of
subparagraphs n(2)(a) above shall be actuarially equivalent in value to
the paynent provided for by subparagraph n(2)(8)(1) above and shall be
calculated upon such tables of mortality as may be from time to time
prescribed for this purpose by the Director of Finance.
(c) Voluntary contributions may be made for current service as a
participant or covering any period of prior civilian servioe for which
a participant has purchased service credit under the System. Volun-
tary contributions covering such periods of prior service shall be in
multiples of one percent but not exceeding ten percent of the partici-
pant's basic salary during the period of service covered. Voluntary
contributions for current or prior service may be made by payroll
deduction or in such other manner as may be approved by the Director
of Finance.
(d) Contributions shall not be made for any periods of leave with-
out pay, or for periods of leave of absence during which a participant
is performing active military or naval aervice in the Army, Navy, Air
Force, Marine Corps, or Coast Guard of the United States, or for
periods of such service prior to becoming a participant.
Sec. (e) In case a participant shall become separated from the Agency
281(c)
for any reason exoept retirement on an annuity, the amount of any
voluntary contributions with interest at three percent per annum, com-
pounded as provided in subparagraph n(2)(a) above, made by him under
the provisions of subparagraph n(2)(a) above shall be refunded in the
manner provided in subparagraph n(1)(c) above for the return of com-
pulsory contributions and interest in case of death or separation from
the Agency.
23
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3eo. (f) Any benefits payable to a participant or to his beneficiary
ko!28l(d)
in respect to the voluntary contributions provided under this paragraph
shall be in addition to the benefits otherwise provided under the System.
(3) Designation of Beneficiary for Lump-Sum Payment
(a) A designation of beneficiary is only for purposes of lump-sum
payment of refunds of either compulsory or voluntary contributions. If
a participant elects to designate a beneficiary for this purpose, he
shall make such designation in writing to the Director of Personnel.
The designation of a beneficiary does not affect the right of any person
who qualifies to receive survivor annuity benefits which are payable
under the System.
(b) It is not necessary for any participant or former participant
to designate a beneficiary unless he wishes to establish a different
order of precedence for payment than that established below.
Seco (c) If there is no designated beneficiary livings any lump-sum
241(0
benefit which becomee payable after the death of a participant or a
former participant will be payable in the following order of precedence:
(1) To the surviving wife or husband of the participant.
(2) If there be no surviving wife or husband, to the child or
children of the participant and descendants of deceased children by
representation.
(3) If none of the above, to the parents of such participant
or the survivor of them.
(4) It none of the above, to the duly appointed executor or
administrator of the estate of such participant.
(k) If none of the above, to other next of kin of such parti-
cipant as may be determined by the Director of Personnel to be
legally entitled thereto. However, no payment shall be made in
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Sec,
251
Sec,
252(s)
Sec,
252(b)
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such case until after the expiration of thirty days from the
death of the retired participant or his surviving annuitant.
o, PERIOD OF SERVICE FOR ANNUITIES
(1) Service as a Participant
The period of service of a participant shall be computed from the date
he is designated a participant in the System. However, all periods of
separation from the Agency and so much of any leaves of absence without pay
as may exceed six months in the aggregate in any calendar year shall be
excluded, except leaves of absence while receiving benefits under FECA and
leaves of absence granted participants while performing active and honor-
able service in the Army, Navy, Air Force, Marine Corps, or Coast Guard
of the United States.
(2) Prior Service Credit
(a) General: A participant may, subject to the provisions of
this subparagraph, include in his period of services
(1) Civilian service in the executive, judicial, and legis-
lative branches of the Federal Government and in the District of
Columbia government, prior to becoming a participant; and
(2) Active and honorable military or naval service in the
Army, Navy, Air Force, Marine Corps, or Coast Guard of the United
States prior to the date of the separation upon which title to
annuity is based.
(b) Credit for Prior Civilian Service
(1) Purchase of Service Credit: A participant may obtain
prior civilian service credit in accordance with subparagraph
0(2)(a)(1) by making a special contribution to the Fund equal to
the percentage of his basic annual salary for each year of service
25
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for which credit is sought specified with respect to such year in
the table relating to employees contained in section 4(0) of the
Civil Service Retirement Act (as Shawn below), together with
interest computed as provided in section 4(0) of such Act as
described belay.
Contribution Required
Percentage of
Basic Salary
24
5
6
for Purchase of Prior Service Credit
Service Period
August 1, 1920, to June 30, 1926
July 1, 19260 to June 30, 1942
July 1, 1942, to June 30, 1948
July 1, 1948, to October 31, 1956
After October 31, 1956
(Interest on such contributions shall be computed from the mid-
point of each service period included in the computation to the
date of deposit or commenoing.date of annuity, whichever is earlier.
The interest shall be computed at the rate of four percent per
annum to 31 December 1947 and three percent per annum thereafter,
compounded annually. NO interest shall be charged for any period
of separation from the service which began before 1 October 1956.)
A participant may elect to purchase all or any part of his prior
civilian service. However, if he elects to purchase only a portion
of such prior service, he shall be required to purchase first the
most recent service immediately preceding his becoming a partici-
Seo. pant. A participant may make the contributions required to obtain
252(b)
Sec.
252(c)(1)
credit for prior civilian service by a lump-sum payment or, under
such conditions as may be determined in each instance by the
Director of Finance, by installments or payroll allotmenta of not
less than $25 or multiples thereof. Such installments or allot-
ments shall be applied first to the latest service prior to his
becoming a participant.
(2) Transfer of Contributions: When an employee under some
other Government retirement system is designated a participant in
26
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Seco
252(0)(2)
Sec.
252(o)(2)
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accordance with the provisions of this regulation, his total contri-
butions and deposits, including interest accrued thereon, except
voluntary contributions, shall be transferred to the Fund effective
as of the date he became a participant. The participant shall be
deemed to consent to the transfer of such funds and such transfer
shall be a complete discharge and acquittance of all olaima and
demands against the other Government retirement fund on account of
service rendered prior to his becoming a participant in the System.
(3) Limitation on Contributions and Refund of Contributions
for Period of Service Covered by Transfer of Contributions& No
participant whose contributions are transferred to the Fund in
accordance with the provisions of this regulation shall be required
to make pontributions in addition to those transferred for periods
of servite for which full contributions were made to the other Govern-
ment retirement fund, nor Shall any refund be made to such partici-
pant on account of contributions made during any period to the other
Government retirement fund at a higher rate than that fixed by sec-
tion 4(c) of the Civil Service Retiremen Act, as shown above, for
contributions to the Fund,
(4) Service Credit for Periods Covered by Refund of Contribu-
tions from Other Government Retirement Fund: No participant whose
contributions are transferred to the Fund in accordance with the pro-
visions of subparagraph o(2)(b)(3)? shall receive credit for periods
of service for which a refund of contributions has been made, or for
which no contributions were made to the other Government retirement
fund. A participant may, however, obtain credit for such prior
service by making a special contribution to the Fund in accordance
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Sec.
252(d)
Seco
252(e)
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with the provisions of subparagraph o(2)(b)(1) for the purchase of
prior service credit.
() Exclusion of Credit for Service Which Is Basis of Annuity
Under Another Government Retirement System: No participant may
obtain prior civilian service credit toward retirement under the
System for any period of civilian service on the basis of which he
is receiving or will in the future be entitled to receive any
annuity under another retirement system covering civilian personnel
of the Government.
(c) Credit for Military or Naval Service
(1) General: A participant may obtain prior military or
naval service credit as provided in this regulation by applying
for it to the Director of Personnel prior to retirement or separa-
tion from the Agency. However, in the case of a participant who is
eligible for and receives retired pay on account of military or
naval service, the period of service upon which such retired pay
is based shall not be included except when (1) such retired pay is
on account of service-connected disability incurred in combat with
an enemy of the United States or caused by an instrumentality of
war and inourre,d in line of duty during a period of war (aa that
term is used in Chapter 11 of Title 38, United States Code), or
(2) such retired pay is based on retirement from a reserve com-
ponent of the Armed Forces with twenty years of service at age
sixty as provided in Chapter 67 of Title 10 of the United States
Code. No contributions to the Fund shall be required in conneotion
with military or naval service credited to a participant in accord-
ance with this provision.
28
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(2) Exclusion of Military or Naval Service Establishing
Eligibility for Social Security Benefit: Notwithstanding any other
provision of this regulation, any military service (other than mili-
tary service covered by military leave with pay) performed by a par-
ticipant after December 1956 shall be excluded in determining the
aggregate period of service upon which an annuity payable under the
System to such participant or to his widow or child is to be based,
if such participant or widow or child is entitled (or would upon
proper application be entitled) at the time of such determination,
to monthly old-age or survivors' benefits under section 202 of the
Social Seburity Act, as amended, based on such participant's wages
and self-employment income. If in the case of the participant or
widow such military service is not excluded under the preceding
sentence, but upon attaining age sixty-two, he or she becomes
entitled (or would upon proper applioltion be entitled) to such
benefits, the aggregate period of service upon which such annuity
is based shall be redetermined, effective as of the first day of
the month in which he or she attains such age, so as to exclude
such service.,
(2) Credit for Service While on Military Leave: A partici-
pant who, during the period of any war, or of any national emergency
as proclaimed by the President or declared by the Congress, has left
or leaves his position to enter the military service shall not be
considered, for the purposes of this regulation, as separated from
his Agency position by reason of such military service, unless he
shall apply for and receive a refund of contributions under this
regulation. However, such participant shall not be considered as
retaining his Agency position beyond 31 December 1956 or the
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P.
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expiration of five years of such military service, whichever is
later. Contributions shall not be required covering periods of
leave of absence from the Agency granted a participant while per-
forming active military or naval service in the Army, Navy, Air
Force, Marine Corps, or Coast Guard of the United States',
COMPUTATION OF ANNUITIES
(1) Basic Formula
Sec. (a) The annuity of a participant shall be equal to two percent of
221(a)
his average basic salary for the highest five consecutive years of
service, for which full contributions have been made to the fund, multi-
plied by the number of years, not exceeding thirty-five, of service
credit obtained in accordance with the provisions of this regulation.
In determining the aggregate period of service upon which the annuity
is to be based, the fractional part of a month, if any, shall not be
counted.
(b) The "high-five salary" means the average basic salary of a
participant for his highest five consecutive years of service for which
full contributions have been made to the Fund. The high-five salary is
the highest salary obtainable by averaging the rate of basic salary in
effect during any five consecutive years of service, with each rate
weighted by the time it was in effect, including odd days.
Sec, (2) Reduced Annuity with Benefit to Surviving Wife or Husband
221(b)
(a) At the time of retirement, any married participant may elect to
receive a reduced annuity in order to provide for an annuity payable to
his wife or her husband, commencing on the date following such partici-
pant's death and terminating upon the death or remarriage of such surviv-
ing wife or husband. The annuity payable to the surviving wife or husband
after such participant's death shall be 55 percent of such amount of the
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participant's annuity as he may specify as the base for survivor benefits,
The annuity of the participant making such election shall be reduced by
2i percent of any amount up to $3,600 he specifies as the base for the
survivor benefit plus 10 percent of any amount over $3,600 so specified.
(b) A-participant eligible to receive a deferred annuity at age
sixty-two may also elect this type of annuity,
(c) A participant may not change his election under this provision
except that a retired participant who is subsequently reemployed under
the 'System may maks a new election at the tine of his retirement follow-
ing such reemployment,
(3) Survivor Annuity to Child or Children
Sec, (a) When There Is Surviving Wife or Husband: If an annuitant who
221(c)(1)
has retired under the System dies and is survived by a wife or husband
and by a child or children, in addition to the annuity payable to the
surviving wife or husband, each Child shall receive an annuity equal
to the smallest of:
(1) 4o percent of the annuitant's high-five salary divided
by the number of children;
(2) $600; or
(2) $1,800 divided by the number of children,
Sec, (b) When There Is No Surviving Wife or Husband: If an annuitant
221(c)(2)
who has retired under the System dies and is not survived by a wife or
husband but by a child or children, each child shall be paid an annuity
equal to the smallest of:
(1) 50 percent of the annuitant's high-five salary divided
by the number of Children;
31
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Sec.
232(c)&(d)
? Sec.
221(d)&(e)
Sec.
221(f)
Sec.
221(f)
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(2) $720; or
(2) $2,160 divided by the number of children.
(c) Recomputation of Annuity: If a surviving wife or husband dies
or the annuity of a child is terminated, the annuities of any remaining
children shall be. recomputed and paid as though such wife, husband, or
child had not survived the participant.
(d) Beginning and Ending Dates of Annuity: The annuity payable to
a child under this provision shall begin on the day after the partici-
pant dies, and such annuity or any right thereto shall terminate on the
last day of the month before (1) his attaining age eighteen unless in-
capable of self-support, (2) his becoming capable of self-support after
age eighteen, (3) his marriage, or (4) his death. However, the annuity
of a child who is a student as defined in this regulation shall terminate
on the last day of the month before (1) his marriage, (2) his death,
(2) his ceasing to be such a student, or (4) his attaining ago twenty-
one.
(14) Survivor Annuity to Designated Beneficiary of an Unmarried
Participant
Any unmarried participant retiring under the provisions of the System and
determined to be in good health may at the time of retirement elect a
reduced annuity and designate a beneficiary to receive an annuity after his
death.
(a) Designation of Beneficiary: The beneficiary must be designated
in writing to the Director of Personnel and must be a person having an
insurable interest (as that term is used in section 9(h) of the Civil
Service Retirement Act) in the participant?
32
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(b) Determination of Participant's Health: The determination
that the participant is in good health shall be made by the Director
of Personnel on advice of the Chief, Medical Staff following appropriate
medical examination,
Sec. (o) Reduction of Participant's Annuity: The annuity payable to
221(f)
the participant making such election shall be reduced by 10 percent of
his annuity computed in accordance with the .provisions of this regula-
tion and by 5 percent of an annuity so computed for each full five
years the person designated is younger than the participant, but such
total reduction shall not exceed 40 percent.
(d) Annuity to Beneficiary: The annuity of a survivor designated
under this provision shall be 55 percent of the reduced annuity payable
to the participant. The annuity payable to a beneficiary under this
provision shall begin on the first day of the next month after the
participant dies. Upon the death of the surviving beneficiary all
payments shall cease and no further annuity payments authorized under
this provision shall be due or payable.
(5) Offenses Barring Annuity Payments
The payment of annuity to a participant or to his survivor is barred
if such participant is convicted of certain Federal offenses or commita
certain actions as provided in 5 U.S.C. 2281 etay...3g. The payment of an
annuity is similarly barred under the provisions of 5 U.S.C. 2283(c) if
such participant remains outside the United States for more than one year
to avoid prosecution.
(6) Cost-of-Living Adjustrent of Annuities
Sec. (a) Basis of Adjustment: On the basis of determinations made by
291(a)
-.ewe the Civil Service Commission pursuant to section 18 of the Civil
Sec.
221(f)
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Service Retirement Act, ae mended, pertaining to per centura change
in the price index, the following adjustments in annuities shall be
made s
Sec. (1) Effective 1 April 1966, if the change in the price
291(a)(1)
index from 1961:. to 1965 shall have equaled a rise of at least
three percent, each annuity payable from the Fund which has a
commencing date earlier than 2 January 1965 shall be increased
by the percent rise in the price index adjusted to the nearest
one-tenth of one percent.
Sec. (2) Effective April 1 of any year other than 1966 after the
291(8)(2)
price index change shall have equaled a rise of at least three
percent, each annuity payable from the Fund which has a commenc-
ing date earlier than 2 January of the preceding year shall be
increased by the percent rise in the price index adjusted to the
nearest one-tenth of one percent.
Seco (b) Eligibility for Annuity Increase: Eligibility for an annuity
291(b)
Se o.
291(b)(1)
increase under this section shall be governed by the commencing date of
each annuity payable from the Fund as of the effective date of an
increase, sexcept as follows:
(1) Effective from the date of the first increase under this
provision, an annuity payable from the Fund to an annuitant's sur-
vivor (other than a child entitled undei subparagraph p(3) above),
which annuity con:lanced the day after the annuitant's death, shall
be increased in accordance with the provisions of this subparagraph
if the commencing date of annuity to the annuitant was earlier than
January 2 of the year preceding the first increase.
34
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Sec, (2) Effective from its commencing date, an annuity payable
Niny1291(b)(2)
from the Fund to an annuitant's survivor (other than a child
entitled under subparagraph p(3) ,above), which annuity commences
the day after the annuitant s death and after the effective date
of the first increase under this section, shall be increased by
the total percent increase the annuitant was receiving under this
section at death.
Sec. (1) For purposes of computing an annuity which commences after
291(b)(3)
the effective date of the first increase under this section to a
child under subparagraph p(3) above, the items $600, $720, $1,800,
and $2,160 appearing in subparagraph p(3) shall be increased by
the total percent increase allowed and in force under this seetion
and, in case of a deceased annuitant, the items 40 percent and
SO percent appearing in subparagraph p(3) shall be increased by
the total percent increase allowed and in force under this section
to the annuitant at death. Effective from the date of the first
increase under this section, the provisions of thia paragraph shall
apply as if such first increase were in effect with respect to
computation of a child's annuity under subparagraph p(3) which
commenced between January 2 of the year preceding the first
increase and the effective date of the first increase,
Sec. (o) Exclusion of Adjustment in Annuity Based on Voluntary Contri-
291(c)
butions: No increase in annuity under this provision shall be
computed on any additional annuity purchased at retirement by voluntary
contributions.
Sec. (d) Asuatatallinle The monthly
291( d )
*Noy installment of annuity after adjustment under this provision shall be
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S-E-CZ-E-T
Sec.
271
SOC.
272
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S-E-C-R-E-T
q. RECALL OF RETIRED PARTICIPANT
The Director may, with the consent of any retired participantprecall such
participant to duty in the Agency whenever he shall determine such recall
is in the public interest. Any such participant recalled to duty in the
Agency or reinstated or reappointed in accordance with the provisions of
subparagraph h(9)(b) shall, while so serving, be entitled in lieu of his
annuity to the full salary of the grade in which he is serving. During
such service, he shall make contributions to the Fund in accordance with
the provisions of this regulation. When he reverts to his retired status,
his annuity shall be determined anew in accordance with the provisions of
this regulation.
r, REEMPLOYMENT OF RETIRED PARTICIPANT
(1) Generals A participant retired under the System shall not, by
reason of his retired status, be barred from employment in Federal Govern-
ment service in any appointive position for which he is qualified. An
annuitant so reemployed shall serve at the will of the appointing officer,
Sec. (2) Reemployment Compensation:
273(a)
(a) Any annuitant who has retired under the System and who is
reemployed in the Federal Government service in any appointive position
either on a part-tine or full-time basis shall be entitled to receive
his annuity payable under the System, but there shall be deducted from
his salary a sum equal to the annuity allocable to the period of actual
employment.
Se00 (b) In the event of any overpayment under this provision, such
273(b)
Overpayment shall be recowered by withholding the amount involved from
the salary payable to such reemployed annuitant, or from any other
moneys, including his annuity, payable in accordance with the provi-
:dons of the Act,
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Nor,
Sec.
261
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so MONEYS .
(1) Estimate of Appropriations Needed
The Director of Finance shall prepare the estimates of the annual appro-
priations required to be made to the Fund and shall cause to be MAXIS actuarial
valuations of the Fund at intervals of five years, or oftener if deemed neces-
sary by him.'
Sec. (2) Investment of Moneys in the Fund
The Director may, with the approval of the Secretary of the Treasury, in-
vest from time to time in interesting-bearing securities of the United States
such portions of the Fund as in his judgment may not be immediately required
for the payment of annuities, cash benefits, refunds, and allowances, and the
income derived from such investments shall constitute a part of such Fund.
Sea. (3) Attachment of Moneys
263
None of the moneys mentioned in this regulation shall be assignable
either in law or equity, or be subject to execution, levy, attachment,
garnishment, or other legal process.
t. LIMITATION ON NUMBER OF RETIREMENTS
Sec. (1) Numerical Limitation
236
The number of participants retiring on an annuity for any reason except
disability shall not exceed a total of four hundred during the period ending
on 30 June 1969 nor a total of four hundred during the period beginning
1 July 1969 and ending on 30 June 1974.
(2) Application of Limitation to Deferred Annuities
In the case of a participant separated from the Agency after performing
five years of Agency service who is eligible for and elects to receive a
deferred annuity, such participant shall be regarded as "retiring" within
the meaning of this paragraph when he attains age sixty-two and begins to
262
receive annuity payments,
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S-E-C-R-E-T
(3) Control
The Director of Personnel shall be responsible for controlling the
number of retirements under the System to ensure that the numerical
limitation is not exceeded,
38
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Approved ForaNWHOR/22 :ETIAW/a67?21%003geONNOn454
MEMORANDUM FOR: Deputy Director for Support
SUBJECT
Proposed Regulation for Administration of the CIA Retire-
ment System
1. This memorandum transmits for your review and distribution for
appropriate coordination a draft regulation for the administration of the
proposed CIA Retirement and Disability System as described in HR 8427.
2. The complexity of a retirement program makes for a necessarily long
regulation. To assidt somewhat in its review, we have marked in red on the
attached draft those items which are not specifically stated in HR 8427.
The unmarked sections are, for the most part, stated in the language of HR
8427; in a few cases, paraphrasing to suit the context or modification to
reflect k delegation of authority (such as Director of Personnel for Direc-
tor of Central Intelligence) has been necessary.
3. Much of the marked material reflects requirements inherent in
HR 8427 or points on which our position was committed in our hearings before
the House Armed Services Committee. We believe the following comments will
be helpful in identifying such material.
a. Paragraph a, General, page 1: In our hearings before the
House Committee we made plain our intention of covering qualified
Staff-type careerists under the CIA system but of placing all per-
sonnel under Civil Service Retirement upon initial appointment.
We did not suggest the possibility of covering non-staff types under
the CIA system. However, the General Counsel has advised that there
is no legal objection to doing so and the Chief, Operational Serv-
ices has recommended on behalf of the Deputy Director for Plans that
there be provision for covering career-agents.
b. Paragraph b, Policy, pages 1 and 2:
(1) As indicated above, we are committed by our presenta-
tion to the House Committee to the early designation and
periodic review of participants.
(2) Although HR 8427 does not specify an appeal right,
the Committee made plain its expectation that appeals would
be permitted. The provision regarding the non-reviewability
of determinations outside of the Agency was added by the
Committee after establishing our intention to permit internal
appeals.
c. Paragraph c, Responsibilities and Authorities, pages 2 and 3:
HR 8427 provides for administration of the CIA Retirement system under
rules and regulations prescribed by the Director. This paragraph pro-
vides for delegations of authority consistent with normal functional
responsibilities in the Agency.
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?
ADMINISTRATIVE INTITaNAL USE ONLY,
APpe.opOrGeeeiRecidas8430115011212 136dAteRIDETIMOBE21Afie0313999.41007181 addi-
tion to the advisory responsibilities assigned to it in the proposed
regulation, the Board should provide an effective medium for the
identification of problem areas and the coordination of policies and
procedures for their solution.
d. Paragraph d, Definitions, pages 3 - 5: Additional definitions
have been included to simplify the use of certain terminology else-
where in the regulation.
Paragraph d(8), "Qualifying Service," on page 4, is one of the
most critical paragraphs in the regulation. It is the first attempt
to define with precision "qualifying service" as used in HR 8427.
The definition proposed is, we believe, consistent with the explana-
tion offered to the House Committee.
e. Paragraph e, Designation of Participants, pages 6 - 8: This
paragraph is also extremely critical. The criteria for designation
and the requirements for review were covered in our presentation to
the House Committee. The specific procedures have been developed
since that time.
f. Paragraph f, Retirement for Disability or Incapacity, pages
8 - 19: In developing procedures for this type of retirement, we have
drawn heavily on the Foreign Service Regulation. However, the provis-
ion for a Panel of Examiners and the designation of the Chief, Medical
Staff as Chairman of the Board of Medical Examiners are modifications
which we have proposed as desirable in light of Agency requirements.
g. Paragraph h, Voluntary Retirement, pages 21 - 22: The pro-
posed procedures are based on Foreign Service Regulations.
h. 'Paragraph j, Discontinued Service Retirement (Retirement at
the Discretion of the Director) pages 23 - 25: This prevision was the
subject of intensive study by the House Committee and the proposed
procedures are of major importance. We believe that they are consis-
tent with Agency policy and practice respecting other involuntary
separations.
i. Paragraph 1(2)(b), Voluntary Contributions based on Prior
Service, pages 28 - 29 and 1(2)(c), Withdrawal Restricted, page 30:
These provisions are not specifically covered in HR 8427 but are taken
from Foreign Service regulations based on identical legislative
authority.
4. In view of the 1 June target for submitting a coordinated draft regu-
lation, we have sent advance copies of this memorandum and of the draft regu-
lation to the other Deputy Directors, the Legislative Counsel, the Chief,
Medical Staff, and the Director of Finance.
Director of Personnel
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2-10 IttrTrr,RIAT, UST ant
FOIAB3B
DRAFT
%Nov
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THE CIA RETIREMENT AND DISABILITY SYSTEM
25X1A
a. GENERAL
(1) Staff personnel serving under career, career-provisional, or reserve
appointment are afforded retirement benefits either (a) under the provisions of the
Civil Service Retirement Act or (b) under the provisions of the Central Intelligence
Agency Retirement Act of 1964 for Certain Employees. Such personnel will normally
be covered under the Civil Service retirement system upon initial appointment. Those
who qualify for coverage under the CIA Retirement and Disability system will be so
designated in accordance with applicable provisions of this regulation.
(2) ,Certain other career-type employees who meet the criteria for coverage
under the CIA Retirement and Disability system and who are recommended for such
coverage by the Deputy Director concerned may be designated participants in the
CIA system upon approval of the Director of Central Intelligence.
b. POLICY
(1) The CIA Retirement and Disability System provides retirement, discontinued
service, disability and death benefits to employees whose duties are (a) in support
of Agency activities abroad hazardous to life or health or (b) so specialized
because of security requirements as to be clearly distinguishable from normal
government employment.
(2) In order to provide the death and disability benefits of the CIA Retirement
and Disability System to eligible employees at the earliest practicable time in
their careers, employees who meet the standards for initial designation as parti-
cipants shall be so designated as soon as their eligibility has been determined in
accordance with the provisions of this regulation.
(3) In order to reserve the benefits of participation in the CIA Retirement
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25X1A
and Disability System to those personnel for whom it is designed, an employee's
designation as a participant in the system will be contingent upon an initial
determination and periodic reaffirmation that his career with the Agenc is in
service qualifying him for such participation. However, a participant who has
completed 15 years of Agency service and whose career at that time is adjudged to be
qualifying for the system may elect to remain a participant of such system for the
duration of his employment by the Agency and such election shall not be subject to
review or approval.
(4) Employees may appeal determinations regarding their eligibility to
participate in the CIA Retirement and Disability System and affecting their entitle-
ment to benefits under the system to the Director of Central Intelligence.
Section 201(c) of the Central Intelligence Agency Retirement Act of 1964 for
**10i Certain Employees provides that determinations by the Director authorized by the
provisions of that Act shall be deemed to be final and conclusive and not subject
to review by any court.
c. RESPONSIBILITIES AND AUTHORITIES
ILLEGIB (1)'y The Director of Personnel shall be responsible for the administration
of the CIA Retirement and Disability System in accordance with the provisions of
this regulation and shall exercise all authorities pertaining to the designation
of participants, determinations of service credit, and approval of retirements
which are not specifically reserved herein to the Director of Central Intelligence.
(2) The CIA Retirement Board is hereby established to assist and advise the
Director of Personnel in the development of policies governing the administration
of the CIA Retirement and Disability System and to review and recommend action on
'gimp' all proposed retirements under the system. The Chairman of the CIA Retirement
2
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00300020007-8
Board shall be designated by the Director of Personnel. The Deputy Director for
Intelligence the Deputy Director for Plans, the Deputy Director for Science and
Technology
and the Deputy Director for Support shall each designate a senior
ILLEGIB
25X1A
officer to serve as Member and Alternate. The General Counsel; the Director of
Security, the Chief, Medical Staff, and the Chief, Central Cover Division shall ILLEGIB
each designate a senior officer and an alternate to serve as advisors to the Board
in their respective technical fields.
ILLE
(3) The Director of Finance shall be responsible for the administration o
the CIA Retirement and Disability Fund, hereafter referred to as the fund, and shall
exercise all authorities pertaining thereto except as specifically reserved herein
to the Director of Central Intelligence.
d. DEFINITIONS
Now
As used in this regulation:
(1) "Agency" means the Central Intelligence Agency as established by the
National Security Act of 1947, as amended, effective 18 September 1947.
(_(-2) "Director of Central' intelligence" means the-Dire-aor-of_Central intelligence
_ ? ___----
-
or the-Deputy Director of-Central Intelligence.
(3) "System", as Used herein, shall mean the CIA Retirement and Disability
System as established by the Central Intelligence Agency Retirement Act of 1964
for Certain Employees.
(4) "Participant" means an employee of the Agency who has been formally
designated in accordance with the provisions of this regulation to participate in
the CIA Retirement and Disability System.
(5) "Service credit" or "creditable service" means all Federal civilian and
3
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 I.
25X1C
25X1C
25X1A
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25X1A
military service which can be credited in accordance with the provisions of this
regulation for the purpose of determining a participant's eligibility for benefits
under this system.
(6) "Agency service" means civilian employment with the Central Intelligence
Agency.
(8) "Qualifying service" means:
(a) Al]. periods of service outside the several States and the District
of Columbia on either PCS or TDY assignment, including all periods of leave
(c) Service in a career field of specialization whicn requires uliu
performance of duties which are highly specialized or circumscribed by stringeW
security restrictions and which require the employee to acquire and utilize major
vocational skills which are unique to intelligence work with the result that the
employee is placed at a special disadvantage in attempting to obtain other
employment if his employment should be terminated involuntarily but not for cause.
(9) "Career Service" means a Career Service as defined in Agency regulation
(10) "Career" means an employee's record of service with the Agency, his
4
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25X1A
maw'
present assignment, and the intentions of his Career Service for his future
development and utilization.
? (11) "Annuitants" means participants who are receiving annuities from the
fund and all persons, including surviving wives and husbands, widows, dependent
widowers, children, and beneficiaries of participants or annuitants who shall
became entitled to receive annuities in accordance with the provisions of this Act.
(12) "Widow" means the surviving wife of a participant who was married to
such participant for at least two years immediately preceding his death or is the
mother of issue by marriage to the participant.
(13) "Dependent widower" means the surviving husband of a participant Who
was married to such participant for at least two years immediately preceding her
death or is the father of issue by marriage to the participant, and who is
%owl incapable of self-support by reason of mental or physical disability, and who
received more than one-half of his support from such participant.
(14) "Child" means an unmarried child, under the age of eighteen years, or
such unmarried child regardless of age Who, because of physical or mental disability
Incurred before age eighteen, is incapable of self support. In addition to the
offspring of the participant and his or her spouse, the term includes (a) an
adopted child and (b) a stepchild or recognized natural child who received more
than one-half of his support from the participant.
(15) "Lump-sum payment" means the return of contributions, with interest,
(a) to a participant Who is separated from the system without becoming eligible for
an annuity, or (b) to a participant wh9Clects to receive a refund of contributions
in lieu of an annuity, or (c) to a participant or annuitant claiming through him
the excess of contributions over the total of annuities paid through him.
5
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'raw
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e, DESIGNATION OF PARTICIPANTS
(1) Initial Designation
The initial designation of an employee as a participant in the system
may be made upon a presumptive finding that his career in the Agency shall be
performed under the conditions of service for which the system is designed. Such
25X1A
finding shall be based upon his meeting each of the following requirements:
(a) He has been selected for Career EMployee status as defined in
(b) He has formally and in writing undertaken an obligation to serve
anywhere and at any time according to the needs of the Agency.
(c) His career is determined by the Head of his Career Service to be
in a qualifying career field as defined above.
(d) He either has performed or is under official orders to perform
qualifying service as defined above.
(2) Periodic Review and Reaffirmation of Designation
The record of each participant shall be reviewed within 90 days of the
25X1A
fifth and tenth anniversary of his designation as a participant and of the fifteenth
anniversary of his entrance on duty with the Agency to determine that his career
With the Agency has continued in a qualifying field and that he is in fact
_performing reasonable periods of qualifying service.
(3) Special Provision for Employees with 15 or More Years of Agency
Service On the Effective Date of the CIA Retirement and Disability
Act of 1964 for Certain EPployees tr
}. ?rw) 14 .
Em serving ployees seing in qualifying career fields on the effective date of the ! v-cle(
4 ?* (e, ?
CIA Retirement and Disability Act of 1964 for Certain Epployees and who have 1 4
6
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NNW
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completed 15 or more years of Agency service as of that date may be designated
as participants in the system and such designation shall not be subject to further
review. Each employee designated a participant under this sub-paragraph must
meet the following standards in addition to those stated in paragraph e(1) above:
) He must have served for at least ten years in a qualifying career
field.
(b) He must have completed at least five years of qualifying service.
(4) Procedures
(a) The Director of Personnel, in collaboration with the Heads of
Career Services, will identify those Career Services in which the service require-
25X1C -
(b) The Director of Personnel will notify the Heads of the Career
Services so identified as promptly as practicable when employees under their
jurisdiction have been selected for Career Employee status. (In the case of
employees having 15 or more years of service on the effective date of the CIA
Retirement and Disability Act of 196)4 for Certain Employees, the Director of
Personnel shall promptly notify the Heads of Career Services of the names of
employees under their respective jurisdiction who have met this service require-
ment and who are Career Employees.
Now'
(c) The Heads of Career Services shall be responsible for reviewing
the record of each employee whose name is so reported to determine whether he
meets the standards prescribed in subparagraph e(1) or e(3) above as appropriate
and make notification of his findings in each case to the Director of Personnel.
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The Director of Personnel or his desinee shall independently
review the official personnel record of each employee recommended for designation
as a participant by the Head of his Career Service to confirm his eligibility for
participation in the system.
(e) The Director of Personnel will notify the Head of the Career Service
when an employee's eligibility for participation in the system has been confirmed
and the Head of the Career Service shall be responsible for obtaining from the
employee his formal acceptance of the obligation to serve the Agency anywhere and
at any time according to the needs of the Agency.
(f) Upon receipt of the employee's formal acceptance of this obligation,
the Director of Personnel shall approve his designation as a participant and issue
appropriate notifications to the administrative offices concerned.
.(g) The Director of Personnel shall similarly notify the Heads of Career
Services 90 days in advance of the anniversary dates of participants under the
schedule described in subparagraph e(2) above. The Heads of Career Services shall
be responsible for initiating an appropriate review of the service records of the
employees concerned and reporting their findings to the Director of Personnel.
(h) Upon review of the report of the Head of the Career Service, the
Director of Personnel, or his designee, shall notify the Head of the Career
Service the employee, and appropriate administrative offices of any case in
which it has been determined that the employee is no longer qualified for
participation in the system. No notification will be required if the employee's
continued participation is affirmed.
f. RETIREMENT FOR DISABILITY OR INCAPACITY
(1) Eligibility: Any participant (a) who has five years of service
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credit toward retirement under the system, excluding military or naval service
that is credited in accordance with the provisions of subparagraph m(2) below,
and (b) who becomes totally disabled or incapacitated for useful and efficient
service by reason of disease, illness, or injury not due to vicious habits,
intemperance or willful misconduct on his part shall be retired, upon his own
application or by order of the Director of Central Intelligence.
(2) Computation of Annuity: A participant who retires on disability shall
receive an annuity computed in accordance with subparagraph n below. If the
disabled or incapacitated participant has less than twenty years of service credit
upon his retirement under the CIA Retirement System, his annuity will be computed
on the assumption that he has had twenty years of creditable service. However,
the additional service credit that may accrue to a participant under this provision
shall in no case exceed the difference between his age at the time of retirement
and the mandatory retirement age applicable to his grade in the Agency.
(3) Initiation of Retirement Action
(a) By the Participant: Any participant who is of the opinion that
he might be eligible for retirement because of disability may apply in
writing to the Director of Personnel for such retirement. The application
must include a description of his disability and a full explanation of the
manner in which it affects the performance of his duties. Also, he must
inform his immediate supervisor that he has applied for disability retirement
and advise him of the date of his application. His supervisor shall be
responsible for notifying the Operating Official concerned and the Head of
the participant's Career Service. If the participant so desires, he may
enclose with his application a statement by a private physician describing
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his physical condition. His failure to enclose a physician's statement,
however, shall not adversely affect the consideration of his application.
(b) By the Agency: The Head of the Career Service concerned shall
initiate action by memorandum to the Director of Personnel to retire for
disability any participant:
(1) Whose service record (including performance and medical
reports and reports of supervisors, etc.) establishes a reasonable
assumption that he is totally disabled or incapacitated for useful and
efficient service; and
(2) Who has failed to make application for disability retirement
on his own behalf, or is mentally or physica unable to do so.
This memorandum shall include a request that the participant be given a
medical examination as provided below and shall provide a description of
his disability or incapacity as it affects the performance of his duties.
A copy of this memorandum shall be transmitted to the participant and to
the Operating Official concerned who shall be responsible for ensuring that
the employee's immediate supervisor is informed.
(4) Supervisor's Statement: On request of the Director of Personnel,
the immediate supervisor of any participant who applies for disability retirement,
or whose retirement for disability is initiated by the Head of his Career Service,
shall promptly prepare and transmit to the Board, a statement describing in detail
the apparent nature of the participant's disability and explaining the manner in
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which it affects the performance of his official duties. On the basis of
information available to him, the supervisor shall also indicate whether, in his
opinion, the participant appears to be totally disabled or incapacitated for
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useful and efficient service. He shall also indicate whether the participant's
disability or incapacity appears to be the result of his own vicious habits,
intemperance or misconduct. A copy of the supervisor's statement shall be
made available to the participant at the latter's request. The participant's
request for a copy of this statement shall be made in writing and addressed to the
Director of Personnel.
(5)
Medical Examination and Evaluation
(a) Board of Medical Examiners
(1) A Board of Medical Examiners is hereby established. This
Board shall be responsible for conducting medical examinations and
evaluating the medical status of participants for whom an application
for disability retirement is under consideration and, as provided
below, who have been retired for disability.
(2) The Chief, Medical Staff or, in his absence, his deputy,
shall serve as Chairman of the Board of Medical Examiners. He shall
nominate two other members and alternates for each to serve on the
Board. Members and alternates must be qualified physicians or
surgeons. At least one of these members and his alternate shall not
be in active government service except, however, that a physician or
surgeon providing intermittent consultant services to a government
agency shall not be considered to be in "active government service."
The Director of Personnel shall review the nominations of the Chief,
25X1A
Medical Staff and forward them with his recommendation to the Deputy
Director for Support for approval.
(2) The Board of Medical Examiners may in their discretion
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appoint a Panel of Examiners of qualified physicians or surgeons to
conduct medical examinations of applicants for disability retirement
or disability annuitants and to submit reports of such examinations
to the Board for its evaluation.
(4) Agency medical records and the supervisor's statement
concerning an applicant for disability retirement shall be made
available to the Board. Members of the Agency's Medical Staff shall
be made available to serve as advisors to the Board as requested by
the Board.
(b) Conduct of Examinations: Each participant considered for
disability retirement shall be given a medical examination by the Board
of Medical Examiners or by a member or members of a Panel of Examiners
appointed in accordance with paragraph f(5)(a)(3) above. The Chairman
of the Board of Medical Examiners shall be responsible for designating in
each case the Board or Panel Members to conduct this examination. When
upon determination of the Chairman of the Board or upon written request
of the participant only one physician or surgeon conducts the examination,
such physician or surgeon must be a Board member or Panel member who is
not in active government service.
(c) Report of Medical Examination: Based on the results of the
medical examination, the Board of Examiners shall make a written report
to the Director of Personnel setting forth the results of the examination.
This report shall be comprehensive, and shall include pertinent data on all
disabling or incapacitating conditions found or alleged to exist. In
addition it shall contain the Board's evaluation of the individual's medical
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status in relation to the requirements of his position and the Board's
recommendation as to approval or disapproval of disability retirement of
the participant.
(1) Whenever the Head of a Career Service initiates action to
retire a participant for disability and the participant contests such
retirement in writing, a copy of the report of medical examination
shall be made available to him, unless the Director of Personnel, on
advice of the Board of Medical Examiners, determines that his health
and welfare would be adversely affected thereby.
(2) If the Director of Personnel determines that the participant's
health and welfare would be adversely affected by his receiving the
medical report, the report shall be made available for review only
by a duly licensed physician or surgeon designated in writing by the
participant for that purpose.
(6) Determination of Disability: The disability of participants shall
be determined as follows:
(a) Initial Action - The Director of Personnel, with the advice
of the CIA Retirement Board, shall make two separate determinations:
(1) After reviewing the participant's medical file, the
application or memorandum which initiated action for disability retire-
ment, and the supervisor's statement, if any, the Director of Personnel
4.0m+
shall determine whether or not the participant is totally disabled or
incapacitated for useful service.
(2) Upon determining that the participant is totally disabled or
incapacitated, the Director of Personnel shall next determine whether
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such disability or incapacity was caused by disease or injury incurred
in line of duty, but not due to vicious habits intemperance or
. willful misconduct. If preliminary review suggests that a
determination may be made that the disability is due to vicious
habits intemperance, or willful misconduct, the participant shall be
given an opportunity to submit to the Board in writing any information
which may bear upon this determination.
_N._ Appeals - A participant who is dissatisfied with either or
Crier or 0 ersviint
both of the determinations made by thelimed as described above may request
that his case be reconsidered. His request shall be addressed to the
Director of Central Intelligence and forwarded to the Director of Personnel
within 30 days following the date of notification to him of the determination
or determinations made. His request shall contain a full statement of his
reasons for seeking reconsideration, including any data he may care to
submit in rebuttal. The Director of Personnel, with the assistance of
the CIA Retirement Board, shall review all such requests, taking into
account all of the data and information previously considered in the case
and shall make a recommendation to the Director of Central Intelligence.
The Director of Central Intelligence shall make a final determination of
the participant's disability or incapacity. The Director of Personnel
shall inform the participant, in writing, of the final determination made
by the Director of Central Intelligence.
(7) Effective Dates for Disability Retirement
(a) Date of Separation: When the Director of Personnel has approved
a disability retirement, he or his designee shall establish the effective
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date of separation for disabilit retirement as follows:
(1) If the participant is then on leave without pay, the
effective date of separation shall be the last day of the current
month.
(2) If the participant is then on annual leave, the effective
date of separation shall be the last day of the current month. The
participant shall continue on annual leave to which he is entitled
and/or leave without pay between the date of approval and the end
of the calendar month.
(2) If the participant is then on sick leave
the effective
date of separation shall be the last day of the month in which sick
leave expires. Annual leave to which the participant is entitled
and/or leave without pay shall be granted for the period between the
date on which the sick leave expires and the effective date of
separation.
(4) If the participant is at work on the date of approval, he
may, on application and with the approval of the Director of Personnel
or his designee, be granted the accrued and accumulated sick leave
to his credit.
The effective date of separation in such case shall
be the last day of the month in which sick leave expires. Annual
leave to which the participant is entitled and/or leave without pay
shall be granted for the period between the date on which the sick
leave expires and the effective date of separation. If separation
at the end of a particulnr month would cause a forfeiture of any
annwi,1 leave Which could not be included in a lump-sum payment, the
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participant may be granted to be carried on annual leave or a
combination of anniml leave and leave without pay to the end of the
following month. Since the annuity is payable only for full months
it may be in the interest of the participant to terminate his annual
or sick leave period at the end of a calendar month instead of
extending it into the following month.
In such case, the participant
shall be consulted if practicable in determining the effective date.
(b) Effective Date of Disability Retirement for Payment of Annuity:
The effective date of disability retirement for payment of annuity shall be the
first day of the month following termination of pay status unless the participant
becomes disabled While on leave without pay. In the latter case the effective
date of retirement for payment of annuity shall be the first day of the month
following the month in which the participant became disabled. Service credit
shall be allowed through the effective date of separation for disability retire-
ment, subject to the provisions of subparagraph m. The annuity shall accrue
monthly and is payable on the first day of the month following that for which it
accrued.
(8) Periodic Review and Evaluation of Retirement Status
(a) Unless his disability is permanent, each annuitant Who was
retired for disability or incapacity shall be given an annual medical
examination and his medical status evaluated as described in subparagraphs
(5)(b) and (c) above. In preparing its evaluation the Board of Medical
Examiners shall include a finding regarding whether the annuitant continues
to be totally disabled or incapacitated for useful and efficient service,
and whether his disability is permanent. This report shall be submitted
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to the Director of Personnel. The report of the Board of Medical Examiners
shall be made available to the annuitant upon written request to the Direc-
tor of Personnel.
(b) Whenever an annuitant's disability is determined to be of a
permanent character, he shall not again be given a medical examination
unless in the opinion of the Director of Personnel and with the advice
of the Board of Medical Examiners such examination is determined to be
warranted. When a disability annuitant fails to submit to examinations
as required, payment of annuity shall be suspended until continuance of
the disability is established to the Board's satisfaction.
(9) Allowable Expenses for Medical Examination - The following expenses may
be incurred in connection with the designation of physicians and surgeons and in
the medical examinations and evaluations required, and upon the approval of the
Chief, Medical Staff shall be paid from the fund:
(a) Fees for the examinations;
(b) Travel and subsistence expenses of the annuitant to and from the
place of examination when the annuitant is able to travel, or travel and
subsistence expenses of the designated physicians or surgeons to and from
the place of examination when the annuitant is physically unable to
travel, in either case without regard to the Standardized Government
Travel Regulations; and
(c) Such additional expenses in connection with the examinations as
are actually and necessarily incurred in the interest of the participant
or the annuitant as the case may be, e.g., superior travel accommodations,
hospitalization while undergoing examination, or travel expenses of an
attendant.
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(10) Recovery from Disability
(a) Termination of Annuity: If the Director of Personnel determines
on Advice of the Board of Medical Examiners that an annuitant has recovered
to the extent that he can return to duty, payment of the annuity shall con-
tinue until a date six months after the date of the examination showing
recovery or until the date of reemployment in the Agency, whichever is
earlier.
(b) Reemployment: An annuitant who is determined to have recovered
may apply fer reemployment in the Agency within one year from the date of
his recovery as determined by the Director of Personnel.
(1) The Director of Personnel may reinstate such recovered
disability annuitant in the grade in which he was serving at time
of retirement or, taking into consideration the age, qualifications,
and experience of such annuitant and the present grade of his con-
temporaries in the Agency, the Director of Personnel may appoint
such recovered disability annuitant to a grade higher than the
one in which he was serving prior to retirement.
(2) If such recovered disability annuitant is not reemployed,
he shall be considered to have been separated within the meaning of
subparagraph i (Discontinued Service) as of the date he was retired
for disability and be entitled to the benefits of that subparagraph
or of subparagraph 1(1) unless he qualifies for and elects voluntary
retirement in accordance with subparagraph h.
(11) Federal EmployeeS'Compensation
(a) No participant shall be entitled to receive an annuity under the
system and compensation for injury or disability to himself under the
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Federal Employees Compensation Act (FECA) covering the same period of
time. This provision shall not bar the right of any claimant to which-
ever benefit is greater for any part of time. Neither this provision,
nor any provision of FECA shall be so construed as to deny the right of
any person to receive an annuity under the system by reason of his own
services and to receive concurrently any payment under FECA by reason of
the death of any other person.
(b) The right of any person entitled to an annuity under the system
shall not be affected because such person has received an award of com-
pensation in lump-sum under Section 14 of FECA, except that, when such
annuity is payable on account of the same disability for which compensation
under such Section has been paid, so much of such compensation as has been
paid for any period extending beyond the date such annuity becomes effective,
as determined by the Secretary of Labor, shall be refunded to the Depart-
ment of Labor to be paid into the Federal Employees Compensation Fund.
Before such person shall receive such annuity he shall:
(1) Refund to the Department of Labor the amount representing
such computed payments for such extended period, or
(2) Authorize the deduction of such amount from the annuity
payable to him under the system which amount shall be transmitted
to the Department of Labor for reimbursement to the Federal Employees
Compensation Fund. Deductions from such annuity may be made from
accrued and accruing payments or may be prorated against and paid
from accruing payments in such manner as the Secretary of Labor
shall determine, whenever he finds that the financial circumstances
of the annuitant are such as to warrant such deferred refunding.
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g. DEATH IN SERVICE
(1) If a participant dies and no claim for annuity is payable under the
system, his contributions to the fund, with interest at the rates. prescribed in
subparagraph 1 (1)(c)(1) shall be paid in the order of precedence shown in
subparagraph 1 (1)(d).
(2) If a participant who has at least five years of service credit toward
retirement under the system, excluding military or naval service that is credited
in accordance with the provisions of subparagraph m(2), dies before separation or
retirement from the Agency and is survived by a widow or dependent widower, as
defined above, the widow or dependent widower, shall be entitled to an annuity
equal to 50 percent of the annuity computed in accordance with the provisions of
subparagraph g (5) below and of subparagraph n. The annuity shall begin on the
date following death of the participant and shall terminate upon death of the
widow or dependent widower, or upon the dependent widower's becoming capable of
self-support.
(3) If a participant who has at least five years of service credit toward
retirement under the system, excluding military or naval service that is credited
in accordance with the provisions of subparagraph m(2), dies before separation or
retirement from the Agency and is survived by a wife or a husband and a child or
children, each surviving child shall be entitled to an annuity computed in accord-
ance with subparagraph n. The child's annuity shall begin and be terminated
\
in accordance with the provisions or subparagraph
Upon the death of the ILLEGIB
surviving wife or husband or termination of the annuity of a child, the annuities
of any remaining children shall be recomputed and paid as though such wife or,
husband or child had not survived the participant.
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(4) If a participant who has at least five years of service credit toward
retirement under the system, exclilaing military or naval service that is credited
in accordance with the provisions of subparagraph m(2), dies and is not survived
by a wife or husband, but by a child or children, each surviving child shall be
entitled to an annuity computed in accordance with the provisions of paragraph
9f(2). The child's annuity shall begin and terminate in accordance with the
provisions of paragraph 9f(.). Upon termination of the annuity of a child, the
annuities of any remaining children shall be recomputed and paid as though that
child had never been entitled to the benefit.
(5) If, at the time of death, the participant had less than twenty years
of service credit toward retirement under the CIA Retirement System, the annuities
payable in accordance with paragraph b above shall be computed in accordance with
the provisions of paragraph 9, on the assumption that he or she had twenty years
of creditable service, but the additional service credit which may accrue to a
deceased participant under this provision shall in no case exceed the difference
between his or her age on the date of death and the mandatory retirement age
applicable to his or her grade in the Agency.
(6) In all cases arising under subparagraphs (2), (3), (4), and (5) above,
it shall be assumed that the deceased participant was qualified for retirement
on the date of his death.
h. VOLUNTARY RETIREMENT
Any participant who is at least 50 years of age and has 20 years of creditable
service including at least 5 years of Agency service may, on his own application
and with the consent of the Director, be retired from the Agency and receive
benefits in accordance with paragraph n.
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(1) Any participant wishing to retire under this provision should submit
his request to the Director of Central Intelligence at least three months prior
to his desired retirement date.
.(a) This request shall be forwarded to the Director of Personnel '
through the Head of his Career Service who shall add his endorsement to
the employee's request.
(b) The Director of Personnel shall add his recommendation and
forward the request to the Director who shall consider the endorsement
of the Head of the Career Service and the recommendations made by the
Director of Personnel in making his determination.
(c) The Director of Personnel shall give the employee written
notice of the Director's decision.
(2) The date of separation of a participant retiring voluntarily shall be
the last dPly of the month during which his service terminated. However, the
effective date of his voluntary retirement is the first day following separation.
His annuity commences as of the effective date of retirement and is payable
thereafter at the end of each month.
i. DISCONTINUED SERVICE RETIREMENT (Upon Separation from the Agency Before
Becoming Eligible for an Annuity)
Any participant who separates from the Agency after obtaining at least five
years of service credit toward retirement under the system, excluding military or
naval service that is credited in accordance with subparagraph m (2) may, upon
ILLEGIB
25X1A
? 9
separation or at any time prior to becoming eligible for an annuity, elect either;
/ (a) To have his contributions to the Fund returned to him in
accordance with the provisions of paragraph 4c or
(b) To leave his contributions in the Fund and receive an annuity,
computed as described inigmgraph commencing at the age of 60 years.
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If the participant should die before reaching age 60 after electing to
receive a deferred annuity at age 60, his contributions with interest
shall be paid in accordance with subparagraph 1. However, this option
is not available to a participant whose separation is determined by the
Director to be based in whole or in part on the ground of disloyalty to
the United States.
j. DISCONTINUED SERVICE RETIREMENT (Retirement at the Discretion of the Director)
(1) The Director may in his discretion retire participants in grade GS-14
and above. A participant retired under this subparagraph who has not less than
five years of qualifying service and a total of 10 years of Agency service shall
receive retirement benefits in accordance with the provisions of subparabraph n.
Any participant so retired who does not meet these service requirements shall
receive the benefits provided for individuals in grade GS-13 as provided in
subparagraph j (2) below.
(2) The Director may in his discretion retire
and below, and each such participant shall receive:
(a) One-twelth of a year's salary at his
participants
then current
in grade GS-13
salary rate
for each year of service and proportionately for a fraction of a year
but not exceeding a total one year's salary at his then current salary
rate, payable without interest from the Fund in three equal installments
on the first day of January following his separation and on the two
anniversaries of that date immediately following; provided, that in special
cases the Director of Personnel may, in his discretion, accelerate or com-
bine the installments; and either:
(1) A refund of the contributions made to the Fund, with interest
as provided in subparagraph 1 (1)(c)(3), or
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(2) In lieu of such refund, a participant who has at least five
years of service credit toward retirement under the system, excluding
military or naval service that is Credited in accordance with the
provisions of subparagraph m(2), may elect to receive retirement
benefits on reaching the age of sixty in accordance with the pro-
visions of subparagraph n.
(b) In the event that a participant who is separated from grade
GS-12 or 13, and who has elected to receive retirement benefits, dies before
reaching the age of 60, his death shall be considered a death in service
within the meaning of subparagraph g. In the event that a participant
who was separated from grade GS-11 or below dies before reaching the age
60, the total amount of his contributions made to the Fund shall be paid
as prescribed in subparagraph 1 (1)(c).
(e) A participant who is retired in accordance with the provisions of
subparagraph j(2) shall have the right to assign to any person or corpora-
tion the whole or any part of the benefits receivable by him pursuant to
subparagraph j(2)(a). Any such assignment shall be on Form , Which
shall be forwarded to the Comptroller.
(3) Ordinarily, the recommendation to retire a participant under the pro-
visions of this subparagraph shall originate with the Head of his Career Service.
However, in appropriate cases, the Director of Personnel shall originate suCh
reccanmendation. In any event, no provision of this shall impair the
authority of the Director to retire a participant under this subparagraph upon
his sole determination to do so.
(a) The Head of the participant's Career Service shall forward his
recommendation to the Director through the Deputy Director having cognizance over
that Ce.reeiePROVIelfc(rInetstimr201810022 :IttailREThlbs0A9P1Mbhiffekerd0flid
the Director
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25X1A
of Personnel.
(b) Upon receipt of the recommendation of the Head of the Career
Service the Director of Personnel shall notify the participant in writing
and give him a reasonable period of time (normally five workdays) to submit
in writing any statement which he desires to make regarding the recommenda-
tion.
(c) The Director of Personnel shall review the recommendation and
pertinent facts and will normally obtain the advice of the CIA Retirement
Board regarding his recommendation to the Director on the case.
(d) The effective date of retirement or of separation, as appropriate,
shall be established by the Director of Personnel in accordance with the
determination of the Director.
(e) The Director of Personnel shall notify the participant in writing
of thhirector's determination under the provision of this subparagraph.
A copy of this notice shall be sent to the Head of the participant's
Career Service.
k. MANDATORY RETIREMENT FOR AGE
(1) Any participant in the CIA Retirement System in grade GS-18 or above
shall, upon reaching the age of 65, be retired from the Agency and receive
retirement benefits in accordance with the provisions of subparagraph n. Whenever
the Director shall determine it to be in the public interest, he may extend such
a participant's service for a period not to exceed five years.
(2) Any participant in the system in other than grade G5-18 or above shall,
upon reaching the age of 60, be retired from the Agency and receive retirement bene-
fitS in accordance with the provisions of subparagraph n. Whenever the Director
%ape shall determine it to be in the public interest, he may extend such a participant's
service fdkipproVatt (PbrrR4letAselegSibeilinalffirtfigP78-03721A000300020007-8
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1. CONTRIBUTION TO THE CIA RETIREMENT AND DISABILITY FUND
(1) Compulsory Contributions
(a) Amount of Contribution: Six and one-half percent of the basic
salary received by each participant shall be contributed to the Fund for
the payment of annuities, cash benefits, refunds, and allowances. An equal
sum shall also be contributed from the respective appropriation or fund which
is used for payment of his salary. The amounts deducted and withheld from
basic salary, together with the amount so contributed from the appropriation
or fund, shall be deposited by the Director of Finance in the Treasury of the
United States to the credit of the Fund. Each participant shall be deemed to
consent and agree to such deductions from his basic salary.
(b) Periods of Leave Without Pay and Military Service: Contributions
shall not be made for any periods of leave without pay. Contributions are
not made for periods of leave of absence during which a participant is per-
forming active military or naval service in the Army, Navy, Air Force, Marine
Corps or Coast Guard of the United States, or for periods of such service prior
to becoming a participant.
(c) Refunds of Compulsory Contributions: A refund of compulsory con-
tributions is payable, upon submission of Form , "Application For
O.IMO..
Refund," to the Director of Personnel, under the following circumstances:
(1) When a participant is separated from the System without
becoming eligible for an annuity or deferred at age sixty, or, if
eligible for a deferred annuity, he elects before reaching age sixty
to have the refund in lieu of an annuity.
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(2) When a retired participant's total compulsory contributions,
including any special contributions or deposits made to obtain credit
for prior service, with interest exceed the total of annuities with
interest paid to him or to an annuitant claiming through him, the ex-
cess shall be paid in the order of precedence shown in paragraph (d)
below.
(a)
Interest: Interest on compulsory contributions returned to
a participant as provided in (1) or (2) above shall be at 4 percent per
annum, compounded annually as of 31 December, and proportionately for
the period served during the year of separation as the date annuity
payments cease under the terms of the annuity, as appropriate.
(d) Designation of Beneficiary for Lump-Sum Payment:
(2) A designation of beneficiary is only for purposes of lump-sum
payment of refunds of either compulsory or voluntary contributions. The
designation of a beneficiary does not affect the right of any person who
qualifies to receive survivor annuity benefits which are payable by law
or as a result of an election made by a retiring participant. A partici-
pant may designate a beneficiary by submitting a completed Form
"Designation of Beneficiary," to the Director of Personnel.
(2) It is not necessary for any participant or former participant
to designate a beneficiary unless he wishes to establish a different
order of payment than that established below.
(3) If there is no designated beneficiary living, any lump-sum
benefit which becomes payable after the death of a participant, or a
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former participant, will be payable to the first person or persons
listed below who are alive on the effective date of entitlement to the
payment:
(a) To the surviving wife or husband of the participant.
(b) If there be no surviving wife or husband, to the child
or children of the participant and descendants of deceased
children by representation.
(c) If none of the above, to the parents of such participant
or the survivor of them.
(d) If none of the above, to the duly appointed executor
or administrator of the estate of such participant.
(e) If none of the above, to other next of kin of such
participant as may be determined by the Director of Central
Intelligence, in his judgment, to be legally entitled thereto.
(2) Voluntary Contributions
(a) Payroll Deductions: A participant who wishes to obtain a larger
retirement annuity than is otherwise provided may make voluntary contributions
by payroll deductions to the Pund during any given year in amounts of multiples
of 1%, but not exceeding 10%, of his basic annual salary.
?
(b) Prior Service: A participant may also make voluntary contributions
covering any period of civilian Government service he has had between July 1,
1939, the date voluntary contributions became acceptable, and the date he
initiates payroll deductions. Such contributions, made preferably in a lump-
sum, shall be in multiples of 1%, but not exceeding 10%, of the participant's
basic annual salary earned during the period of service covered.
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(c) Periods of Leave Without Pay and Military Service: Voluntary
contributions may not be made for any periods of leave without pay, for
periods during which a participant is on military furlough, or for periods
of military service prior to becoming a participant, except that if a par-
ticipant, prior to April 1, 1948, made compulsory contributions for any
period of military service, he may make Voluntary contributions for such
period.
(d) Disposition of Voluntary Contributions: At time of retirement,
a participant may, upon execution of Form , "Distribution of Voluntary
Deposits and Designation of Beneficiary," elect one of the following options:
Option 1. Have his voluntary contributions, with interest to
date of retirement compounded annually at 3%, returned
to him in a lump-sum payment;
Option 2. Purchase an additional life annuity;
Option 3. Purchase an additional life annuity for himself and
provide for a cash payment on his death to a beneficiary
whose name he shall submit in writing to the Director
of Central Intelligence, or
Option 4. Purchase an additional life annuity for himself and a
life annuity commencing on his death, payable to the
beneficiary designated with a guaranteed return of an
amount equal to the cash payment referred to in option
3, to the designated beneficiary or his legal representa-
tive.
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6 ic.a1C-1.20
If annuities are elected, they will be cterp~ on the basis of
actuarial tables
63 rho be,
ri.
(e) Withdrawal Restricted: In no event can voluntary contributions
be withdrawn prior to the date of retirement, except in the case of a
participant who becomes separated from the system for reasons other than
retirement on annuity. In such event, the amount of his voluntary con-
tributions, with interest to date of separation compounded annually as of
31 December at 3%, will be refunded upon submission of Form "Appli-
cation for Refund".
m. CREDITMan SERVICE FOR ANNUITIES
(1) Service as a Participant
The period of service of a participant Shall be computed from the date
Nose'
he is designated a participant in the system. However, all periods of separation
from the Agency and so much of any leaves of absence without pay as may exceed
six months in the aggregate in any calendar year shall be excluded except (a)
leaves of absence while receiving benefits under the Federal Employees' Com-
pensation Act of September 7, 1916, as amended (5 U.S.C. 751 et seq.) and (b)
leaves of absence granted participants while performing active and honorable
service in the Army, Navy, Air Force, Marine Corps, or Coast Guard of the United
States.
(2) Prior Service Credit
(a) A participant may, as provided below, include in his period of
service:
(1) Civilian Seri/Ice in the executive, judicial, and legislative
branches of the Federal Government and in the District of Columbia
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government, prior to becoming a participant; and
(2) Active and honorable military or naval service in the Army,
Navy, Air Force, Marine Corps, or Coast Guard of the United States.
(b) Credit for Prior Civilian Service
(1) A participant may obtain prior civilian service credit in
accordance with subparagraph (2)(a)(1) above by making a special con-
tribution to the fund equal to 5 percent of his basic annual salary for
each year of service for which credit is sought prior to November 8,
1960, and at 6- percent thereafter with interest compounded annually
at 4 percent per annum to the date of payment. A participant may
elect to purchase all or any part of his prior civilian service. How-
ever, if he elects to purchase only a portion of such prior service, he
shall be required to purchase first the most recent service immediately
preceding his becoming a participant. A participant may make the con-
tribution required to obtain credit for prior civilian service by a
lump-sum payment or by installments or payroll allotments of not lens
than $25 or multiples thereof. Such contributions shall be applied
first to the latest service prior to his becoming a participant.
(0 Upon designation of an employee as a participant in the
system, his total contributions and deposits, including interest accrued
thereon but excepting voluntary contributions, shall be transferred from
Nsai
the Civil Service Retirement Fund to the CIA Retirements Fund. The
participant shall be deemed to consent to the transfer of such funds
and such transfer shall be a complete discharge and acquittance of all
claims and demands against the Civil Service Retirement Fund on account
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of service rendered prior to his becoming a participant in the
system.
(2) No participant whose contributions are transferred to the fund
in accordance with subparagraph (2) immediately above shall be required
to make contributions in addition to those transferred for periods of
service for which full contributions were made to the Civil Service
Retirement Fund, nor shall any refund be made to any such participant
on account of contributions made during any period to the Civil Service
Retirement Fund at a higher rate than that provided in subparagraph 1
of this regulation.
(9 No participant whose contributions are transferred to the fund
in accordance with subparagraph (2) immediately above shall receive credit
for periods of service for which a refund of contributions has been made
or for which no contributions were made to the Civil Service Retirement
Fund. A participant may, however, obtain credit for such prior service
by making a special contribution to the fund in accordance with the pro-
visions of subparagraph m(2)(b)(2) above.
No participant may obtain prior civilian service credit toward
retirement under the system for any period of civilian service on the
basis of which he is receiving or will in the future be entitled to
receive any annuity under another retirement system covering civilian
personnel of the Government.
(c) Credit for Prior Military Service
A participant may obtain credit under the system for prior active
service in the Army, Navy, Marine Corps, Air Force, or Coast Guard of the
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ILLEGIB
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United States by making claim for such service credit prior to his separation
or retirement from the Agency. A participant who receives retired pay on
account of military service may not receive credit for the period of military
service upon which such retired pay is based, unless (1) such retired pay
is on account of service-connected disability incurred in coMbat with an
enemy of the United States or caused by an instrumentality of war and in-
curred in line of duty during a period of war (as that term is used in Chapter
11 of Title 38, United States Code), or (2) such retired pay is based on
retirement from a reserve component of the Armed Forces with 20 years of
service at age 6o as provided in Chapter 67 of Title 10 of the United States
Code. No contributions to the fund shall be required in connection with
military or naval service credited to a participant in accordance with this
provision.
(d) Application for Prior Service Credit
Participants desiring to obtain credit for prior civilian or
military service are required to submit an original and one copy of Form ---
"Application for Service Credit," to the Director of Personnel.
(1) Upon receipt of Form , the Director of Personnel or his
designee shall obtain the necessary verification of all'service claimed
and will inform the participant, in writing, of the amount of any special
contribution he will be required to make in order to receive credit for
prior service.
(2) A participant desiring to pay such special contribution in
installments by payroll deductions shall submit an authorization for
such deductions to the Director of Finance through the Director of
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Finance through the Director of Personnel. A participant who desires
to Pay such installments by direct remittance shall forward his remittances
to the Director of Finance with a memorandum indicating that the remit-
tance is to "Purchase Service Credit in the CIA Retirement Auld for
(employee's name)."
n. COMPUTATION OF ANNUITIES
(1) Basic Formula
(a) The annuity of a participant shall be equal to 2 percent of his
average basic salary for the highest five consecutive years of service for
which full contributions have been made to the fund, multiplied by the number
of years, not exceeding 35, of service credit obtained; in accordance with the
provisions of paragraph m above. In determining the aggregate period of
service upon which the annuity is to be based, the fractional part of a
month, if any, shall not be counted.
(b) The "high-five salary" means the average basic salary of a parti-
cipant for his highest five consecutive years of service for which full con-
tributions have been made to the fund. The high-five salary is the highest
salary obtainable by averaging the rate of basic salary in effect during any
five consecutive years of service, with each rate weighted by the time it
was in effect, including odd days.
(2) Reduced Annuity with Survivor Benefit
(a) At the time of retirement, any married participant may elect to
receive a reduced annuity and to provide for an annuity payable to his wife
or her husband, commencing on the date following such participant's death
and terminating upon the death of such surviving wife or husband. The annuity
31.
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payable to the surviving wife or husband after such participant's death shall
be 50 per centum of the amount of the participant's annuity computed as pre-
scribed in subparagraph (1) above, up to the full amount of such annuity
specified by him as the base for the survivor benefits. The annuity of the
participant making such election shall be reduced by 2i per centum of any
amount up to $2,400 he specified as the base for the survivor benefit plus
10 per centum of any amount over $2,400 so specified.
(b) A participant eligible to receive a deferred annuity at age 6o may
also select this type of annuity.
(c) Monthly benefits to a widow or dependent widower begin on the day
following death of the participant and continue until the surviving widow or
widower dies, regardless of remarriage. Monthly benefits to a designated
beneficiary begin on the first day of the next month after the retired par-
ticipant's death and continue for the life of the beneficiary.
(d) Change of Type of Annuity Elected at Retirement: An annuitant
retired under the CIA Retirement System who is subsequently re-employed under
that system may make a new election at the time of subsequent retirement.
Other than in these circumstances, no change can be made in the election made
by the participant at time of retirement.
(3) Survivor Annuities to Child or Children
(a) If an annuitant dies and. is survived by a wife or husband and by
a child or children, in addition to the annuity payable to the surviving wife
or husband, each Child will receive an annuity equal to the smallest of:
(1) 4o per centum of the annuitant's "high-5" salary, as determined
under paragraph b above divided by the number of children,
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(.) $600, or
(a) $1800 divided by the number of children
(b) If an annuitant dies and is not survived by a wife or husband but
by a child or children, each child will be paid an annuity equal to the
smallest of:
(1)
50 per centum of the annuitant's "high-5" salary as determined
'under paragraph b above divided by the number of children,
(2) $720, or
(1) $2,160 divided by the number of children
(c) If a surviving wife or husband dies or the annuity of a child is
terminated, the annuities of any remaining children shall be recomputed and
paid as though such wife or husband or child had not survived the participant.
(d) The annuity payable to a child under paragraph (1) or (2) above
shall begin on the first day of the month after the participant dies and such
annuity or any right thereto shall be terminated upon death, marriage, or
attainment of the age of 18 years except that, if a child is incapable of
self-support by reason of mental or physical disability, the annuity shall
be terminated only when such child dies, marries or recovers from such dis-
ability.
(4) Survivor Annuity to Designated Beneficiary of an Unmarried Participant
At the time of retirement, an unmarried participant in good health may
elect to receive a reduced annuity and to provide for an annuity equal to 50% of
the reduced annuity payable after his or her-death to a designated beneficiary who
shall be named in writing to the Director of Personnel.
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(a) The determination that the participant is in good health shall be
made by the Director of Personnel on advice of the Chief, Medical Staff
following appropriate medical examination.
(b) The designated beneficiary must be a person having an insurable
interest (as that term is used in 5 U.S.C. 2259(h)) in the participant.
(c) The annuity payable to the participant making such election shall
be reduced by 10 percent of his annuity computed as provided in subparagraph
n(1) above and by 5 percent of such annuity for each full five years the
person designated is younger than the participant, but such total reduction
shall not exceed 40 percent.
(d) The annuity payable to a beneficiary under the provisions of this
subparagraph shall begin on the first day of the month after the participant
dies., Upon the death of the surviving beneficiary, all payments shall cease
and no further annuity payments authorized under this subparagraph shall be
due or payable.
(5) Offenses Barring Annuity Payments: The payment of annuity to employees
and to their survivors is barred where such employees are convicted of certain
Federal offenses or commtt certain actions as contained in 68 Stat. 1142; U.S.C.
740. The payment of annuity is similarly barred (70 Stat. 761; U.S.C. 740d) where
such employees remain outside the United States for more than one year in order
to avoid prosecution.
o. RECALL OF RETIRED PARTICIPANT
(1) The Director may recall any retired participant to duty in the Agency
whenever he shall determine such recall is in the public interest.
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(2) Any such participant recalled to duty in the Agency in accordance with
the provisions of paragraph (a) of this section or reinstated or reappointed in
accordance with the provisions of section 231 (b) shall, while so serving, be
entitled in lieu of his annuity to the full salary of the grade in which he is
serving. During such service, he shall make contributions to the fund in ac-
cordance with the provisions of subparagraph 1. When he reverts to his retired
status, his annuity shall be determined anew in accordance with the provisions
of subparagraph n.
p. REEMPLOYMENT OF RETIRED PARTICIPANT
(1) A participant retired under the system shall not, by reason of his
retired status, be barred from employment in Federal Government in any appointive
position for which he is qualified. An annuitant so reemployed shall serve at
the will of the appointing officer.
(2) Reemployment Compensation: An annuitant who is reemployed in the
Federal Government in an appointive position either on a part-time or full-time
basis, shall be entitled to receive the salary of the position in which Le is
serving plus so much of his annuity payable under this system which, when combined
with such salary, does not exceed during any calendar year the basic Salary such
annuitant was entitled to receive on the date of his retirement under the system.
Any such reemployed annuitant who receives salary during any calendar year in ex-
cess of the maximum amount which he may be entitled to receive under this paragraph
shall be entitled to such salary in lieu of annuity payments.
(3) Notice of Reemployment: When an annuitant is reemployed in the Federal
Government, he must notify the agency in which he is reemployed that he is an
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annuitant under the CIA Retirement System. That agency shall notify the Central
Intelligence Agency of the annuitant's reemployment. When consideration of security
precludes such notice, the Agency -will arrange for the employee to report his re-
employment directly to the Agency. In either case, the Central Intelligence Agency
will adjust the annuity payments accordingly.
(4) In the event of any overpayment under this section, such overpayment
shall be recovered by withholding the amount involved from the salary payable to
such reemployed annuitant, or fram any other moneys, including his annuity, payable
in accordance with the provisions of this Act.
Nsir
q.?
MONEYS
(1) Estimate of Approriations Needed
The Director of Finance shall prepare the estimates of the annual appro-
priations required to be made to the fund and shall cause to be made actuarial
valuations of the fund at intervals of five years or oftener if deemed necessary
by him.
(2) Investment of Moneys in the Fund
The Director may, with the approeal of the Secretary of the Treasury,
authorize the Director of Finance to invest from time to time in interest-bearing
securities of the United States such portions of the fund as in his judgment may
not be immediately required for the payment of annuities, cash benefits, refunds,
and allowances, and the income desired from such investments shall constitute a
part of such fund.
(3) Attachment of Moneys
None of the moneys mentioned in this paragraph shall be assignable either
in law or equity, or be subject to execution, levy, attachment, garnishment, or
other legal process, except as provided in subparagraph j(2)(e).
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