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FORM N0. REPLACES FORM 36-8 (47)
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? ~~
Office of the Press Secretary
For Immediate Release September 28, 1983
~ jl~~ iC,~i Ji~~ ` .~U _V
STAT
By the authority vested in me as President of the
United States of America by Section 292 of the Central
~' Intelligence Agency Retirement Act of 1964 for Certain
Employees, as amended (50 U.S.C. 403 note), and in order. to,
conform further the Central Intelligence Agency Retirement.
and Disability System to certain amendments in the Civil
Service Retirement and Disability System pursuant to Public
Laws 97-253, 97-346, and 97-377, it is hereby ordered as
follows:
Section 1. Section 231(b)(2) of the Central Intelli-
gence Agency Retirement Act of 1964 for Certain Employees,
as amended, shall be deemed to he amended to read as follows:
"(b)(2) If the annuitant receiving disability retire-
ment annuity is restored to earning capacity, before becoming
sixty years of age, payment of the annuity terminates on
reemployment by the Government or 180 days after the end of
the calendar year in which earning capacity is restored,
whichever is earlier. Earning capacity is restored if in
any calendar year the income of the annuitant from wages or
self-employment or both equals at least 80 per centum of the
current rate of pay of the position occupied at the time of
retirement.".
Sec. 2. Section 5 of Executive Order No. 12326 of
September 30, 1981, which previously amended the Central
Intelligence Agency Retirement Act of 1964 for Certain
Employees, as amended, shall be deemed to be amended to
read as follows:
"(a) The Secretary of Defense or the Secretary's
designee shall provide information on retired or retainer
pay provided under Title 10 of the United States Code;
"Sec. 5. For the purpose of ensuring the accuracy of
information used in the administration of the Central
Intelligence Agency Retirement and Disability System, the
Director of Central Intelligence may request, from the
Secretaries of Defense, Health and Human Services, and
Labor, and the Administrator of Veterans Affairs, such
information as the Director deems necessary. To the extent
permitted by law:
"(b) The Administrator of Veterans Affairs shall
provide information on pensions or compensation provided
under Title 38 of the United States Code;
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"(c) The Secretary of Health and Human Services or the
Secretary's designee shall provide information contained in
the records of the Social SESCUrity Administration; and
"(d) The Secretary of Labor or the Secretary's designee
shall provide information on benefits paid under subchapter I
of Chapter 81 of Title 5 of the United States Code.
"The Director, in consultation with the officials fx-om
whom information is requested, shall ensure that informai:;ion
made available under this SE~ction is used only for the
purposes authorized.".
Sec. 3. Section 281(a) of the Central Intelligence
Retirement Act of 1964 for Certain Employees, as amended,
shall be deemed to be amer_ded by inserting after "at 3 per
centum per annum" the following: "through December 31,
1984, and thereafter at the rate computed under Section
8334(e) of Title 5 of the United States Code."
Sec. 4. Section 221 (k) of the Central Intelligence
Agency Retirement Act of 1964 for Certain Employees, as
amended, shall be deemed to be amended to read as follow:~~:
"(k) For the purpose of an annuity computed under this
section, the total service of any participant shall not
include any period of civilian service on or after October 1,
1982, for which retirement deductions or deposits have not
been made under section 252(b), unless the participant makes
a deposit for such period a~~ provided in section 252, or no
deposit is required for such service as provided under
Section 8334(g) of Title 5 of the United States Code, or
under any statute.".
Sec. 5. Section 241(a) of the Central Intelligence
Agency Retirement Act of 1964 for Certain Employees, as
amended, shall be deemed to be amended to read as follows:
" (a) Whenever a participant becomes separated from th.e:
Agency, or is transferred to a position in which he is not
subject to this Act, for at least thirty-one consecutive
days without becoming eligible for an annuity in accordance
with the provisions of this Act, the total amount of contri-
butions from his salary witYi interest thereon at 4 percent
per year to December 31, 1947, and 3 percent per year there-
after compounded annually to December 31, 1956, except as
provided in section 281, shall, upon application, be return:E~d
to him. The return of contributions sha:Ll be made. only if
the participant is not reemployed in a position in. which he:
is subject to this Act at the time he fi:Les the application
for refund and will not become eligible :Eor an annuity
within thirty-one days after- filing such application. The
receipt of the payment of the lump-sum credit by the partici-
pant voids all annuity rights under the Act based on the
service on which the lump-sum credit is based, until the
participant is reemployed iri the service subject to the Act:..
The payment of the lump-sum credit shall include amounts
deposited by a participant covering earlier service as well-
as any amounts deposited under section 252(h)"."
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Sec . 6 . Section 291 (f) of the Central Intelligence
Agency Retirement Act of 1964 for Certain Employees, as
amended, shall be deemed to be amended by striking out
"fixed at the nearest" and inserting "rounded to the next
lowest" in lieu thereof.
Sec. 7. Section 221 (a) of the Central Intelligence
Agency Retirement Act of 1964 for Certain Employees, as
amended, shall be deemed to be amended by adding the follow-
ing at the end thereof
"Each annuity shall be stated as an annual amount, one
twelfth of which, rounded to the next lowest dollar, cons ti-
tutes the monthly rate payable on the first business day of
the month after the month or other period for which, it has
accrued.".
Sec. 8. Section 221 (i) of the Central Intelligence
Agency Retirement Act of 1964 for Certain Employees, as
amended, shall be deemed to be amended to read as follows:
" (i) Except as otherwise provided, the annuity of a
participant shall commence on the first day of the month
after separation from the service, or on the first day of
the month after pay ceases and the service and age require-
men is for ti tle to an annuity are met. With respect to
those participants who serve three days or less in the month
of retirement, the annuity will commence on the day after
separation or the day after pay ceases and the service and
age requirements for ti tle to an annuity are met. The
annuity of a participant involuntarily separated from the
service, except for removal for cause on charges of mis-
conduct or delinquency, or of a participant retiring due~to
a disability shall commence on the day after separation from
the service or the day after pay ceases and the service-and
age or disability requirements for title to an annuity are
met. Any other annuity payable from the Fund shall commence
on the first day of the month after the occurrence of the
event on which payment thereof is based.".
Sec. 9. Section 252 (e) of the Central Intelligence
Agency Retirement Act of 1964 for Certain Employees, as
amended, shall be deemed to be amended by inserting " (1) "
before the first sentence thereof, by inserting " (2) " before
the second sentence thereof and by striking out "chapter ll"
and inserting "section 301" in lieu thereof, by deleting the
last sentence thereof and by adding the following paragraph (3)
"(3) Except as provided in paragraphs (1) and (2) of
this subsection, the service of an individual who first
becomes a Federal employee before October 1, 1982 shall
include credit for each period of military service performed
before the date of the separation on which the entitlement
to an annuity under this subsection is based, subject to
section 252(f); and the service of an individual who first
becomes a Federal employee on or after October 1, 198?. shall
include credit for
"(i) each period of military service performed before
January 1, 1957, and
"(ii) each period of military service performed after
December 31, 1956, and before separation on which the
entitlement to annuity under this section is based, only if
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a deposit (with interest, if any) is made with r.e:>pect to
that period as provided in subsection (h) of this section.",.
Sec. 10. Section 252(f) of the Central Int:e]Lligence
Agency Retirement Act of 1964 for Certain EmployeE~s, as
amended, shall be deemed to be amended by insert:irig "(1)"
after "(f)" and adding new paragraphs (2) and (3) as follows:
" (2) ThP provisions of paragraph (1) abovE~ relating t:o
credit for military service shall not apply to -?
"(A) any period of military service of a pari~icipant
with respect to which he or she has made a deposit: with
interest, if any, under section 252 (e) of this Ac1=; or
"(B) the military service of any participant who has
been awarded retired pay on account of a service-c:onnect.ed
disability caused by an instrumentality of war and incurred
in the line of duty during a period of war as that= term is
defined in section 301 of Title 38 of the United States
Code.".
"(3) The annuity reco:mputation required by paragraph (1)
above shall not apply to any individual who was entitled to
an annuity under this section on or before September 8,
1982. Instead of an annuity recomputation, the annuities cif
such individuals shall be reduced at age 62 by an amount
equal to a fraction of their Social Security bene~Eit. This
reduction shall be computed by multiplying their rnonthly
Social Security benefit by a fraction, the numerator of
which is their total military wages that were subject to
Social Security deductions and the denominator of which is
their total lifetime wages, including military wages, that
were subject to Social Security deductions. The reductions
so computed shall not be permitted to be greater than the
reductions that will be required by paragraph (1) if that
paragraph applied to the individual for that period. The
new formula shall be applicable to all annuity payments
payable after October 1, 1982, including annuity payments to
those individuals who had previously reached age X02 and
whose annuities had already been recomputed.".
Sec. 11. Section 252 of the Central Intelligence
Agency Retirement Act of 1964 for Certain Employees, as
amended, shall be deemed to be amended by adding .a new
subsection (h) as follows:
"(h)(1) Each participant who has ~>erformed military
service before the date of separation or.~ which the entitle-
ment to any annuity under this secticn i.s based may pay, in
accordance with rules issued by the Director, to the Agency
an amount equal to 7 percent of the amount of basic pay paid
under section 204 of Title 37 of the United State Code to
the participant for each period of military service after
December 1956. The amount of such payments shall be based
on such evidence of basic pay for military service as the
participant may provide, or if the Director or his designee.
determines sufficient evidence has not been provided to
adequately determine basic pay for military service, such
payment shall be based upor.~ estimates of such basic pay
provided to the Director ur.~der paragraph ( 4) . " .
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"(2) Any deposit made under paragraph (1) of this
subsection more than two years after the later of -
(A) October 1, 1982; or
(B) the date on which the participant making the .
deposit first becomes an employee of the Federal govern-
ment - shall include interest on such amount computed and
compounded annually beginning on the date of expiration of
the two-year period. The interest rate that is applicable
in computing interest in any year under this paragraph shall
be equal to the interest rate that is applicable for such
year under subsection (b) of this section.".
"(3) Any payment received by the Agency under this
subsection shall be immediately remitted to the Office of
Finance for deposit in the Treasury of the United States to
the Credit of the CIARDS Fund.
"l4) The Secretary of Defense, the Secretary of Trans-
portation, the Secretary of Commerce, or the Secretary of
Health and Human Services, as appropriate, shall furnish
such information to the Director as the Director may deter-
mine to be necessary for the administration of this subsection.".
Sec. 12. Section 261(d)(2) of the Central Intelligence
Agency Retirement Act of 1964 for Certain Employees, as~
amended, shall be deemed to be amended by adding after the
words "allowed for military service" the following: ", less
an amount determined by the Director to be appropriate to
reflect the value of the deposits made to th.e credit of the
Fund under section 252(e), and".
Sec. 13. Section 235(a) of the Central Intelligence
Agency Retirement Act of 1964 for Certain Employees, as
amended, shall be deemed to be amended by deleting the final
sentence thereof and substituting the following wording:
"A participant who is separated involuntarily from
service, except by removal for cause on charges of miscon-
duct or delinquency, is entitled to an annuity only if the
participant has not declined a reasonable offer of another
position for which he or she is qualified, which is not
lower than two grades below his or her current position and
which ~.s in the same commuting area. Voluntary early
retirements will be permitted only if a major reorganization,
reduction in force, or transfer of function will result. in a
significant number of participants being separated or
immediately reduced in pay. Participants retired under this
subsection shall receive retirement benefits in accordance
with the provisions of section 221.".
Sec. 14. Section 291 of the Central Intelligence
Agency Retirement Act of 1964 for Certain Employees, .as
amended, shall be deemed to be amended by adding a new
subsection (g) as follows:
"(g)(1) An annuity shall not be increased by reason of
an adjustment under this section to an amount which exceeds
the greater of --
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^
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" (A) the maximum pay payable for GS-15 thirty days
before the effective date of the adjustment under this
section; or
"(B) the final pay (or average pay, if higher) of the
participant with respect t:o whom the annuity ins paid,
increased by the overall ainnual average percentage adji:ist-
ments (compounded) in ratE:s of pay of the General Schedule
under subchapter I of chapter 53 of title 5 of the Unii::ed
States Code during the pez?iod --
(i) beginning on the date the annuity commenced (c:~r, in
the case of a survivor of the participant, the date of the
participant's annuity commenced), and
(ii) ending on the effective date of the adjustment
under this section.
"~2) For the purposes of pargraph (1) of this sub-
section, 'pay' means the rate of salary or basic pay as
payable under any provision of law, including any provision
of law limiting the expenditure of appropriated funds.".
Sec. 15. Section 252 (g) of the Central Intelligence
Agency Retirement Act of 1.964 for Certain Employees, as
amended, shall be deemed t:o be amended by deleting "para-
graph (b) " 2.nd inserting "paragraphs (b) , (c) (4) , and (h) "
in lieu thereof.
Sec. 16. The amendments made by this Order shall be
effective as follows:
(a) Sections 2, 5, 9, 19, 12 and 13 shall be effective
October 1, 1982.
(b) Section 1 shall be effective October 1, 1982 but
shall apply only with respect to income earned after Decem-
ber 31, 1982.
(c) Section 3 shall apply with respect to deposits
for service performed on or after October 1, 1982, and with
respect to funds for which. application is received on or
after such date. The provisions of section 252, as in
effect on September 7, 1982, shall continue to apply with
respect to periods of service and refunds for which appli-
cation was received on or before September 30, 1982.
(d) Section 4 shall apply with respect to deposits for
military service performed. on or after October 1, 1982 and
military service performed. on or after January 1, 1957 and
with respect to refunds for wh~_ch applications are received
by the Agency on or after October 1, 1982. The provisions
of section 221(k), as in effect on September 7, 1982 shall
continue to apply with respect to periods of civilian
service occurring before October 1, 1982.
(e) Section 6 and Section 7 shall. apply with respect
to any annuity commencing on or after October 1, 1982, and
with respect to any adjustment or redetermination of any
annuity made on or after such date.
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(f) Section 8 shall apply to annuities which commence
on or after January 1, 1983.
(g) Section 11 shall take effect October 1, 1982
except that any participant who retired after September 8,
1982 and before October 1, 1983, or is entitled to an
annuity under the CIA Retirement Act of 1964 for Certain
Employees, as amended, based on a separation from service
occurring during such period, or a survivor of such indi-
vidual, may make a payment under section 252(h).
(h) Section 14 shall not cause any annuity to be
reduced below the rate that is payable on September 8, 1982
but shall apply to any adjustment occurring on or after this
date under section 291, or to any annuity payable from the
Central Intelligence Agency Retirement and Disability Fund,
whether such annuity has a commencing date before, on, or
after September 8, 1982.
(i) Section 15 Ghall bP effective as of September 8,
THE WHITE HOUSE,
September 27, 1983.
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