RETIREMENT LEGISLATION

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP75B00380R000700100004-4
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 51
• Document Creation Date: December 16, 2016
• Document Release Date: May 19, 2005
• Sequence Number: 4
• Publication Date: October 8, 1969
• Content Type: MFR

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B f,
8 October 1969
MEMORANDUM FOR THE RECORD
SUBJECT: Retirement Legislation
1. This date a meeting was held to identify the amendments to the
CIA Retirement Act to be proposed to our legislative committees and to
review for recommendation to Colonel White the various courses of action
available to us in connection therewith. Attending were Messrs. Maury,
Coffey, Warner,
2. The attached package was distributed to the attendees prior to
the meeting.
3. It was agreed that:
a. The five Daniels /McGee bill benefits were of overriding
importance and that no other substantive provisions should be proposed
lest they "muddy up the waters. "
b. The procedural administrative authority proposal should be
broached informally with the committees because:
(1) the Daniels/McGee bill development offers a unique
opportunity to illustrate that it would be an efficient and effective
method for picking up the five Daniels/McGee bill benefits and
the five specific liberalizations to the Civil Service system
enacted subsequently to the CIA Retirement Act,
(2) it would facilitate for the Agency and the committee
the updating of the CIA Act to future liberalizing amendments
to the Civil Service Act by avoiding the lengthy delays associated
with the processing of legislation, and
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(3) it would reduce, if not eliminate, the foreseeable need
for bringing CIA legislation to the floor with the attendant risks
of generating ungermane controversy.
c. It would not be counterproductive to the Agency's interests,
however, to review with senior staff members on our legislative committees
those specific changes in the CIA Act not covered under "a" and "b" above
but which we may like to see adopted some time in the future (item "c" of
attachment). In this connection said that in three years we
would probably exhaust the 400 statutory limit on retirements which expires
30 June 1974.
d. It would be premature to contact BOB at this time since we
do not know what their recommendation to the President will be on the
Daniels/McGee bill.
STAT
4. Funding. The question of whether the funding provisions of the
Daniels/McGee bill should apply to the CIA retirement fund was discussed
with inconclusive results. Generally, it was felt that the funds were not
comparable in view of the differences in the magnitude of the funding problem
and in normal costs (the required five year acturarial study of the CIA fund
will not be completed before the end of the month). It was tentatively
concluded that, aside from political considerations, it was possibly pre-
mature to determine the type of funding needed to assure that the fund has
a sound financial basis. Mr. Coffey agreed to look into this area further.
5. Summary. It was agreed that Mr. Maury would seek a meeting
with Colonel White, with Messrs. Warner, and attendinITAT
to review the outcome of the meeting and to obtain his views on t e courses
of action outlined in para
STAT
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8 October 1969
1. The attached package is for use in our meeting this afternoon,
and includes:
a. H. R. 9825 (Daniels/McGee bill) as sent to the President;
b. Amendments to the CIA Retirement Act paralleling the
benefits of H. R. 9825 and the increase in contribution
rates;
c. Listing of ten specific amendments to the CIA Retirement
Act, exclusive of H. R. 9825, on which internal agreement
had been reached earlier this year.
d. Omnibus bill which includes alternate approaches to
obtaining administrative authority to adopt certain subsequent
amendments to the Civil Service Retirement Act for the
benefit of the CIA Retirement Act as well as the six specific
amendments identified in the above list of ten which could
not be picked up under said administrative authority;
e. Proposed amendments necessary to pick up the remaining
four from the above list of ten if the administrative authority
provision is dropped.
2. Also included for your convenience are copies of the CIA Retire-
ment Act and the cost-of-living amendment.
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Ocrobet' 7, 1969 CONGRESSIONAL RECORD -HOUSE 119163
?bike nut all after the clinot'llig Cimino and
invert: That this Act may be oik'd as the
"Civil Service Retirement Amendments of
1969".
TITLE I-CIVIL SERVICE RETIREMENT
FINANCING
Sec. 101. Section 8331 of title 6, United
States Code, is amended-
(1) by striking out "and" at the end of
paragraph (15);
(2) by striking out the period at the end
of. paragraph (16) and inserting a semicolon
in lieu thereof; and
(3) by adding immediately below para-
graph ,(16) the following new paragraphs:
" (17) 'normal cost' means the entry-age
normal cost computed by the Civil Service
Commission in accordance with generally ac-
cepted actuarial practice and expressed as a
level percentage of aggregate basic pay;
"(18) 'Fund balance' means the sum of-
"(A) the investments of the Fund calcu-
lated at par value; and
"(B) the cash balance of the Fund on the
books of the Treasury; and
"(19) 'unfunded liabilty' means the esti-
mated excess of the present value of all
benefits payable from the Fund to employees
and Members and former employees and
Members, subject to this subchapter, and to
their survivors, over the sum of-
"(A) the present value of deductions to be
withheld from the future basic pay of em-
ployees and Members currently subject to
this subchapter and of future agency con-
tributions to be made in their behalf; plus
"(B) the present value of Government
payments to the Fund under section 8348(f)
of this title; plus
"(C) the Fund balance as of the date the
unfunded liability is determined.".
Sex. 102, (a) Section 8334 of.title 5, United
States Code, is amended-
(1) by amending subsection (a) to read,
its follows:
"(a) (1) The employing agency shall de-
duct and withhold 7 percent of the basic pay
of an employee, 71/2 percent of the basic pay
of a Congressional employee, and 8 percent
of the basic pay of a Member, An equal
amount shall be contributed from the ap-
propriation or fund used to pay the employee
or, in the case of an elected official, from an
appropriation or fund available for payment
of other salaries of the same office or estab-
lishment. When an employee in the legis-
lative branch is paid by the Clerk of the
House of Representatives, the Clerk may pay
from the contingent fund of the House the
contribution that otherwise would be con,,,
tributed from the appropriation or fund
used to pay the employee.
"(2) The amounts so deducted and with-
held, together with the amounts so contrib-
uted, shall be deposited in the Treasury of
the United States to the credit of the Fund
under such procedures as the Comptroller
General of the United States may prescribe.
Deposits made by an employee or Member
also shall be credited to the Fund."; and
(2) by amending subsection (c) to read as
follows:
"(c) Each employee or Member credited
with civilian service after July 31, 1920, for
which retirement deductions or deposits
have not been made, may deposit with in-
terest an amount equal to the following
percentages of his basic pay received for
that service:
"Percentage of basic pay:
Employee: Service period
21/2 ----- August 1, 1920, to June 30, 1926.
31/2__-_. July 1, 1926, to June 30, 1942.
5------- July 1, 1942, to June 30, 1948.
6------- July 1, 1048, to October 31,
1966.
61/2--__- November r I056_ to Decem.-
(2) Paragraph (1) of this subsection shall
not be held or considered to continue in
effect after the enactment of this Act the
provisions of section 8348(g) of title 5,
United States Code, as in effect immediately
prior to such enactment.
SEC. 104. Section 1308(c) of title 5, United
States Code, is amended by striking out
"on a normal cost plus interest basis".
SEC. 105. The proviso under the heading
"Civil Service Commission" and under the
subheading "Payment to Civil Service Re-
tirement and Disability Fund" in title I of
the Independent Offices Appropriation Act,
1962 (75 Stat. 345; Public Law 87-141), is
repealed.
TITLE II-CIVIL SERVICE RETIREMENT
BENEFITS
SEC. 201. (a) Paragraph (4) (A) of sec-
tion 8331 of title 5, United States Code, is
amended to read as follows:
"(A) over any 3 consecutive years of cred-
itable service or, in the case of an annuity
under subsection (d) or (o) (1) of section
8341 of this title based on service of less
than 3 years, over the total service; or".
(b) Subsection (c) of section 8333 of
title 6, United States Code, is amended to
read as follows:
"(c) A Member or his survivor is eligible
for an annuity under this subchapter only
if the amounts named by section 8334 of
title 5 have been deducted or deposited with
respect to his last five years of civilian serv-
ice, or, in the case of a survivor annuity
under section 8341(d) or (e) (1) of this chap-
ter, with respect to his total service."
SEC. 202. Subsection (g) of section 8334 of
title 5, United States. Code, is amended-
(1) by striking out the word "or" at the
end of paragraph (3);
(2) by striking out the period at the end of
paragraph (4) and inserting In lieu thereof
a semicolon and the word "or"; and
(3) by adding the following new paragraph
immediately below paragraph (4) : .
"(5) days of unused sick leave credited
under section 8339 (m) of this title.
SEC. 203. Section 8339 of title 5, United
States Code, is amended-
(1) by striking out of subsection (b) the
words "so much of his service as a Congres-
sional employee and his military service as
does not exceed a total of 15 years" and in-
serting in lieu thereof "his service as a Con-
gressional employee, his military service not
exceeding 5 years,";
(2) by amending subsection (c) (2) to read
as follows:
"(2) his Congressional employee service;'
(3) by striking out the last full sentence
of subsection (f);
(4) by striking out "(excluding any in-
crease because of retirement under section
8337 of this title)" in subsection (1); and
(5) by adding at the end thereof the fol-
lowing new subsection:
"(m) In computing any annuity under
subsections (a)-(d) of this section, the total
service of an employee who retires on an im-
medi5te annuity or dies leaving a survivor or
survivors entitled to annuity includes, with-
out regard to the limitations imposed by sub-
section (e) of this section, the days of un-
used sick leave to his credit under a formal
.leave system, except that these days will not
-
- -- -
Member or employee for congressional em- cent for 1979; and 100 percent for 1980 and
ployce service: for each fiscal year thereafter. The Commis
sion shall report to the President and to the
21/2 ~.____ August 1, 1020, to June 30, 1926. Congress the sums credited to the Fund un-
31/2----- July 1, 1926, to June 30, 1042. der this subsection.".
13------- July 1, 1942, to June 30, 1948. (b) (1) The provisions of subsection (g)
0------- July 1, 1948, to October 31, of section 8348 of title 5, United States
1956. Code, as contained In the amendment made
61/Z----- November 1, 1956, to Decem- by subsection (a) (2) of this section, shall
ber 31, 1969. become effective at the beginning of the
71/2----- After December 31, 1989. fiscal year which ends on June 80, 1971.
Member for Member service:
21/2_____ August 1,1920, to June 30, 1926,
31/2 _-_-- July 1, 1926, to June 30, 1942.
6__- --- July 1, 1942, to August 1, 1946.
6------- August 2, 1946, to October 31,
1956.
71/2 ----- November 1, 1956, to Decem-
bor 31, 1969.
8------- After December 31, 1969.
Notwithstanding the foregoing provisions of
this subsection, the deposit with respect to a
period of service referred to in section 8332
(b) (6) of this title performed before Janu-
ary 1, 1969, shall be an amount equal to 55
percent of a deposit computed in accordance
with such provisions.".
(b) The amendment made by subsection
(a) (1) of this section shall become effective
at the beginning of the first applicable pay
peSriod beginning after December 31, 1969.
States Code, is amended-
(1) by amending subsection (a) to read
as follows:
"(a) There Is a Civil Service Retirement
and Disability Fund. The Fund-
(1) is appropriated for the payment of-
"(A) benefits as provided by this sub-
chapter; and
"(B) administrative expenses incurred by
the Civil Service Commission in placing in
effect each annuity adjustment granted un-
der section 8340 of this title; and
"(2) is made available, subject to such an-
nual limitation as the Congress may pre-
scribe, for any expenses incurred by the
Commission in connection with the admin-
istration of this chapter and other retire-
ment and annuity statutes."; and
(2) by striking out subsections (f) and
(g) and Inserting in lieu thereof:
"(f) Any statute which authorizes-
"(1) new or liberalized benefits payable
from the Fund, including annuity increases
other than under section 8340 of this title;
"(2) extension of the coverage of this sub-
chapter to now groups of employees; or
"(3) increases in pay on which benefits
are computed;
is deemed to authorize appropriations to the
Fund to finance the unfunded liability
created by that statute, in 30 equal annual
installments with interest computed at the
rate used in the then most recent valuation
of the Civil Service Retirement System and
with the first payment thereof due as of the
end of the fiscal year in which each new or
increase In pay is effective.
"(g) At the end of each fiscal year, the
Commission shall notify the Secretary of the
Treasury of the amount equivalent to (1)
interest on the unfunded liability -computed
for that year at the Interest rate used in the
then must recent valuation of the System,
and (2) that portion of disbursement for an-
nuities for that year which the Commission
estimates is attributable to credit allowed for
military service. Before closing the accounts
for each fiscal year, the Secretary shall credit
to the Fund, as a Government contribution,
out of any money in the Treasury of the
United States not otherwise appropriated,
the following percentages of such amounts:
10 percent for 1971; 20 percent for 1972; 30
percent for 1973; 40 percent for 1974; 50 per-
per ai, iaoa. ..,a ... .., ....,~_ _.,. _..._ ... _
-
7--_ After DeA iclglt 6For Rele~secg20~&~O?/ 6r4e~IAe~F~ 7 X38 Oa0~iIrEY~E~?O a thie subchapter.".
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.-,r.,.Trrnr,ccrr)'T-TAT nr.rnRr-HOUSE October 7, 1969
?nc. 204. (a) Subsection (h) of section -(n) 50uu; or
version is with respect to
831u of title 5, United States Code, is amend- "(C) $2,700 divided by the number of chil- louse-passed cversi n applicable to
ed by inserting "1 percent plus" Immediately dren; subject to section 8340 of this title. If ]O rate ion
the employee or Member is not survived by a embers of Congress. The House version
p.ft r the word "by".
(b) subsection (c) (2) of such section is spouse, each surviving child is entitled to an c \ob es the Members' contribution
amended to read as follows annuity equal to the smallest of- rthe present 7.5 percent whereas
"(2) For the purpose of computing the an- ?'(1) 75 percent of the average pay of the rate version raises percent 8 pea
nutty of a child under section 8341(e) of employee or Member divided by the number tSenate attempt being made in the Sen rs
-cen no dthis title that commences on or after the first of children; ao retain the rate of 7.5 percent.
ay of the first month that begins on or "(ii) $1,080; or
after the date of enactment of the Civil "(iii) $3,240 divided by the number of enate amendment made changes
Service Retirement Amendments of 1060, the children; subject to section 8340 of this title." ir respects, as to costs of crediting
$900, $1, 080, $2,700, and 83,240 ap- Sian, 207. (a) The amendments made by items y service, surviving spouses' bene-
pee.ring In section 8341(e) of this title shall sections 201, 202, 203, and 206(a) of this Act fid surviving Children's benefits.
be increased by the total pecent increases shall not apply hf the cases of persons re- respect to costs, the total con-
.._ , ?
t
_
it
pert n
nt
after such clay and, in case of a deceased an- of enactment of this Act, and the rights of Arid U or the, Sei]ate-pilSSed amend-
nuitalrt, the items co percent and 75 percent such persons and their survivors shall con-
appearing in section 8341(e) of this title shall tinue in the same manner and to the same merits t e normal costs Will come to 13.98
be Increased by the total percent Lallowed extent as if such sections had not been percent ; caving surplus of 0.02 percent.
T7r,Aor ..ha nrasc nt. cost onerating sys-
ties on or aiver sw r ,.nj. i=, .. o .....,........._. -.- --- - -
Sec. 205. The provisions of subsection (b) 204(a) of this Act to section 8340 of title 5, and, by vii \ue of the change made by the
f
the case of any widow or widow- - der such section 8340 after the date o
nt of this Act. Cosest of of px'es
(1) of an employee who died, retired, or enact,(
p
18
Jul
f
ti
y
ore
on
)
, i The amendment made by sec
was otherwise finally separated be
However, t
1968; 200 (b) of this Act shall become effective on
a, an have remarried on or after the firs+ day of the first month which begins add thirteen
house provisions would
e-hundredths of i per-
irtue of the liberalized
Service Retirement and Disability Fund; who, i, ediately prior to the effective date of 1 percent, We,
fplth and in reliance on erroneous in o shall not opera e
?tton provided by Government authority prior ft, DANIELS of New Jersey (during starting in 1971, increa ing by an adds-
, .., __+ ,,.,,,,. ,. ?n ,,+il in 1 Qafl
o
t
widower described in such sentence was en- included in the compu a on p
tered into by the widow or widower in good tion of any such annuity.. This paragraph existing unfunded liab lity. Ten percent
f rma- t to reduce any annuity. of such costs would egin to be paid
i
tello,o of th s Be
nutty for any period prior to the enactment , effective an such date, or computed from from. the Treasuryout of money not
of this section, in any case in which the Civil commencing date if later, in accordance .otherwise appl'Opria d, to the retire-
Service Commission determines that- with such amendment. No increase allowed
(1) the remarriage of any widow or and in force prior to such date shall be ment fund in the sa a manner as it is
recom uta,- proposed to finance t e interest on the
tl
shall be ter,ninatea solely oy ~-,.=. - ?-.- slvu ,n -Y 1....,. .,?,., --- ---
I pro-
enactanent of this section. Notwithstanding comes. entitled to receive annuity under the The Senate amerl meat to title
the prohibition contained in the first een- Act of May 29, 1930, as amended fro,n and vides that the cost f crediting military
+ ion on the pavment of an- after February 28, 1948, shall be recomputed service be financed y annual transfers
e
i,ion (,) o
sitptes Code, is amended to read as follows: Mr. GRO, Mr. Speaker, reserving tem. By so funding, the no dal cost of
"ft an employee of Member dies after com- the right to o ect, and I do so in order
t' the benefit structure of the loll service
f the
ber.ause of the remarriage, the request f the gentleman from New g e `
Uer,. 206. (a) The first sentence of subsec- performed or 1956 will, enerally, be
ction 8341 of title 5, United Jersey (Mr. erlrr:;LS) ? creditable under the social ` ecurity sys-
t f s
thon payment of annuity may be made by is so ordc ed. million. Thereafter, vile e costs will
reason of this section in such case, beginning There w s no objection.
as of the effective date of the termination The SPI KER. Is (here objection to gradually decline to a re 0 lively negli-
ibl mount since military service
marriaf;e; and 01 sin. oena,,v ~c.~=~?_~._??~..~ ~~ u ments would begin at ab lit 4i xu r?lillull,
(2) such annuity was terminated by law with al. I that it be printed in the'Rtccoan.
because of that remarriage; The FAKER. Without objection, it . rise proportionately ove the next 20
years and peak at appr ximately $300
plating at least 18 months of civilian service, that we may h.,, a all explana ion
o retirement system will be educed by
the widow or dependent widowyer of the em- action of the of . r body with respect to 0 22 percent of payroll, redue g present
ployee or Member, except that in the compu- O billion.
tation. of the annuity under such section, the other body put into t s bill and whether
annutt.y of the employee or Member shall be the costs of the adds nal benefits are Under existing law an empl yes who
at least the smaller of (1) 4o percent of his covered? retires on disability-after co plating
average pay, or (ii) the sum obtained under Mr. DANIELS of N W Jersey. Mr, at least 5 years of service-is flu ranteed
such section after increasing his service of Speaker, will the gentle an yield? a minimum benefit of the smalle(< of (A)
+ha over.n. r, sa1arv1.or (I3)
1
,
under section 8339 (a)-(e) and ( ) ? particularly, Mr:ttt, pecker, I would like
tI1;1e as may apply with respect to the em- t know what add tonal benefits the the system's unfunded distill by $4.7
ployee or Member is entitled to an annuity this legislation all to ask a few questions ?
equal to 85 percent of an annuity computed of the gentleman rain New Jersey. normal cost from 13.86 Peres'. t to 13.64
]crcent It will also result i reducing
f tills
1
bel;v;een the Kato of cream Kilo, ,,.,~ ?a- --- Mr. DANIELS of New J Bey. 1 Snan tSie i i' ,,~ __?~- u--~ _ ___ -_
let -we become 80 years of age." mula after increasing the actual ervice
?
n
vivgd by a spouse, each surviv g c the provisions of the House-p.., { ,
entitt,a to an annuity equal to the smallest excei]t minor technical and per' ing rate is payable only to the disabled ]-
~~,: .,, , In Aolnrm
a n
7
service, or an employee or Member dies after the language Of S. 2 5 , as x
retiring under this subchapter, and is sur- The Senate amendment retaixi', all of virtue of his. actual service: Iiow ver,
Ild is i se bill the law stipulates that such guaran eed
i
"(e) (1)- if an employee or Member dies H.R. 98 , y s g
after rting dument ce s age 60, if either (A) or (l3) ,pxo-
completing at least 18 months of civilian lowing the enacting clause and., lse
tI ed ds a greater rate than is earn by
4
u
w
(b) Subsection (e) (1) of such section is be happy to explain.
,nenctcct to read as follows: The Senate amended the ouse bill, by the time remaining between th date
e
25 b trikin all lani age fol- of disability retirement and the a Vain-
"(A) 00 percent 'el4 ft >,v4 ~a &St~V lv0&t 41QA ~svarar~vre~r? ~fr' ivor xtttc. ,~~a w~?.
of mechanism added by the Senate amen t is b pe c m y his earned r~ e.
of children; or Membe vii'"bb h n ds Tx a
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To amend the Central Intelligence Agency Retirement Act of 1964
for Certain Employees, as amended, and for other purposes.
1 Be it enacted by the Senate and House of Representatives
2 . of the United States of America in Congress assembled,
3 SECTION 1. Section 211 (a) of the Central Intelligence
4 Agency Retirement Act of 1964 for Certain Employees, as
5 amended, (78 Stat. 1043; 50 U. S. C. 403 note) is further
amended by striking out "Six and one-half per centum" in. the
7 first sentence and inserting "Seven per centum".
8 SEC. 2. Section 221 of the Central Intelligence Agency
9 Retirement Act (50 U. S. C. 403 note) is amended as follows:
11
(a) by striking out in paragraph (a) "five consecutive
years of service" and inserting "three consecutive years of
. 12 service".
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1 (b) by striking out from the first sentence of paragraph
2 (b) "or remarriage of such surviving wife or husband. " and
3 inserting:
4 "or upon remarriage prior to attaining age sixty of such
5 surviving wife or husband. "
6 (c) by striking out in paragraph (c) the items "40 per centum",
(d) by adding new paragraph (g) vthich reads as follows:
"(
"$600", "$1, 800", "50 per centum", "$720", and "$2, 160", and
inserting "60 per centum", "$900", "$2, 700", "75 per centum, ",
"$1,'080", and "$3, 240".
g) In the case of remarriage on or after age sixty an annuity
12 shall be payable if remarriage has occurred on or after July 18,
13 1966, and if the surviving wife or husband, immediately before
1:4 such remarriage, was receiving an annuity from the Central
15 Intelligence Agency Retirement and Disability Fund. The annuity
16
17
of a surviving spouse terminated as a result of remarriage which
occurred prior to age sixty and on or after July 18, 1966, shall
18 be restored at the same rate commencing on the day the
19 remarriage is dissolved by death, annulment, or divorce,. if--
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1 "(1) the surviving spouse elects to receive this annuity
2 instead of a survivor benefit to which he may be entitled, under
3 this or another retirement system for Government employees,
4 by reason of the remarriage; and
LEXPLANATION:
"(2) any lump sum paid on termination of the annuity is
returned to the fund.
"No annuity shall be paid by reason of this paragraph for any
Insert enactment date of Daniels/McGee bill. / No annuity
shall be terminated solely by reason of the enactment of this
11 paragraph."
12 (e) by adding new paragraph (h) which reads as follows:
13 "(h) In computing an annuity under this section the service
14 credit of a participant who retires, except under section 231,
15 on an immediate annuity or dies leaving a survivor or survivors
16 entitled to annuity includes, without regard to the limitations
17 imposed by paragraph (a) , the days of unused sick leave to
18 his credit under a formal leave system, except that these days
19 will not be counted in determining average basic salary or
20 annuity eligibility. The special contribution specified in
21 section 252 may not be required for days of unused sick leave
22 credited under this paragraph. ".
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SEC. 3. Section 231 (a) of the Central Intelligence Agency
Retirement Act (50 U. S. C. 403 note) is amended by striking
", but this provision shall not increase the annuity of any survivor"
from the last sentence.
SEC. 4. Section 232 (b) of the Central Intelligence Agency
Retirement Act (50 U. S. C. 403 note) is amended by striking all
that follows "221 (a)" and inserting the following:
" except that the computation of the annuity of the participant
under. such section shall be at least the smaller of (i) 40 per centum
of the participant's average basic salary, or (ii) the sum obtained
11 under such section after increasing the participant's service of
12 the type last performed by the difference between his age at the
13 time of death and age sixty. The annuity of such widow or dependent
14 widower shall commence on the date following death of the participant
18
and shall terminate upon death or upon remarriage prior to attaining
age sixty of the widow or dependent widower (subject to. the payment
and restoration provisions of section 221 (g) ), or upon the dependent
widower's becoming capable of self-support."
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 Approved For Release 2005/06/06 : CIA-RDP75B00380R000700100004-4
1
SEC. 5. Section 291 of the Central Intelligence Agency
2
Retirement Act (50 U. S. C. 403 note) is amended as follows:
3
(a) by inserting " 1 per centum plus" immediately after the
4
word "by" in paragraph (a) (2).
5.
(b) by deleting paragraphs
(b) (2) and (b) (3) and
6
inserting the following:
7
"(2) For the purpose of computing the annuity of a child
tion 221 (c) that commences after
d
8
er sec
un
/EXPLANATION: Insert date immediately preceeding first
10 -day of first month beginning on or after enactment date of
Daniels /McGee bill/ the items $900, $1, 080, $2, 700, and
$3, 240 appearing in section 221 (c) shall be increased by the
13 total per centum increases allowed and in force under this
14 section on or after such day, and, in case of a deceased
15 annuitant, the items 60 per centum and 75 per centum appearing
in section 221 (c) shall be increased by the total per centum
17 allowed and in force to the annuitant under this section on or
18 after such day. "
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 Approved For Release 2005/06/06 : CIA-RDP75B00380R000700100004-4
6
1 (c) by amending paragraph (c) as follows:
2 "(c) The annuity of each surviving child receiving an annuity
3 under section 221 immediately prior to
4 /EXPLANATION: Insert date of the first day of the first month
beginning on or after the enactment of the Daniels/McGee bill/
6 shall be recomputed effective
/EXPLANATION:
Insert date of the first day of the first month beginning on or
after the enactment of the Daniels/McGee bill/ in accordance
9 with paragraph (b) (2). No increase allowed and in force prior
10 to such date under section 291 shall be included in the recomputa-
11 tion of any such annuity, and this paragraph shall not operate to
12 reduce any annuity. "
13 SEC. 6. (a) The amendments made by section 1 shall become
14 effective at the beginning of the first applicable pay period beginning
15 after December 31, 1969.
16 (b) The amendments made by sections 2 (a), 2 (b), 2 (d),
17 2 (e), 3, and 4 shall become effective
18 /EXPLANATION: Insert enactment.date of Daniels /McGee bill/
19 (c) The amendments made by section 2 (c) shall become
20 effective /EXPLANATION: Insert date of
21 first day of first month which begins on or after the date of
22 enactment of Daniels /McGee bill/
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 Approved For Release 2005/06/06 : CIA-RDP75B00380R000700100004-4
7
1 (d) The amendment made by section (5) (a) shall apply only
2 to annuity increases which become effective under section 291
3 after /EXPLANATION: Insert date
4 of enactment of Daniels/McGee bill./
5 (e) The amendments made by sections 2 (a), 2 (e), and
6 4 shall not apply in the cases of persons retired or otherwise
7 separated prior to /EXPLANATION:
Insert date of enactment of Daniels/McGee bill.and the
9 rights- of such persons and their survivors shall continue in
10 the same manner and to the same extent as if such sections
11 had not been enacted.
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 Approved For Release 2005/06/06 : CIA-RDP75B00380R000700100004-4
ADDENDUM
The following amendments would be required to incorporate provision
for death in service benefits following 18 months service.
SEC. Section 232 of the Central Intelligence Agency
Retirement Act (50 U. S. C. 403 note) is amended as follows:
(a) by striking "five years" in paragraph (b) and inserting
" 18 months".
(b) by striking "five years" in paragraphs (c) and (d)
and inse-sting "18 Months".
SEC. . The amendment made by paragraph (a) shall
become effective on /EXPLANATION:
Insert date of enactment of Daniels/McGee bill/
SEC. . The amendment made by paragraph (b) shall
become effective /EXPLANATION:
Insert date of first day of the first month which begins on or after
the date of enactment of Daniels/McGee bill/
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 Approved For Release 2005/06/06 : CIA-RDP75B0038OR000700100004-4
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 II
Purpose
CIA Retirement
Act Section
Eliminate requirement that step- Sec. 204(b)(3)
child or recognized natural child
be dependent upon retiree to
qualify for survivor annuity.
Raise eligibility age for student Sec. 204(b)(3)
survivor annuitant from 21 to 22
and increase authorized maximum
absence from school from 4 to 5
months.
Permit natural child to share in Sec. 204(b)(3)
the distribution of any money
(lump-sum) left in the CIARDS
fund.
I. Permit annuity of a widow or a
dependent widower to continue
in the event of remarriage.
Civil Service
P.L. 89-504, Sec.
Civil Service
P. L. 89-407
502
89th Congress: Cleared BOB,
passed House (H.R. 16306,
Sec. 202(3) ).
90th Congress: Cleared BOB,
introduced in H. R. 7315
89th Congress: Cleared BOB,
passed House (H. R. 16306,
Sec. 202 & 204).
90th Congress: Cleared BOB,
introduced in H. R. 7315
89th Congress: Cleared BOB,
passed House (H. R. 16306,
Sec. 202).
90th Congress: Cleared BOB,
introduced in H. R. 7315
Foreign Service Act and 89th Congress: Cleared BOB,
Civil Service for concept passed House (H. R. 16306,
at age 60 and above Sec. 203).
P.L. 89-504, Sec. 506 90th Congress: Cleared BOB,
introduced in H. R. 7315
Approved For. Release 20?5106/C:: CIA-RDP75B0038OR000700100004-4
.Sec. 221(b)
Sec. 232(b)
AID PI - ~V_~_o V, - ?'
PROPOSED AMEND ?NTS TO THE CIA RETIREMENT ACT OF 1964
;Approved For Release' 2005/06106: CIA-RDP75B0038OR000700100004-4
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 Approved For Release 2005/06/06 : CIA-RDP75B0038OR000700100004-4
Approved For Release 2005/06/06 : CIA-RDP75B0038OR000700100004-4
 Approved For Release 2005/06/06 : CIA-RDP75B0038OR000700100004-4
To amend the Central Intelligence Agency Retirement Act of
1964 for Certain Employees, as amended, and for other
purposes.
Be it enacted by the Senate and House of Representa-
1 tives of the United States of America in Congress assembled,
TITLE I
2
3 SEC. 101. This title may be cited as the "Central
4 Intelligence Agency Retirement Act Amendments of 1969".
5 SEC. 102. The Central Intelligence Agency Retirement
6 Act of 1964 for Certain Employees, as amended, (78 Stat.
7 1043; 50 U. S. C. 403 note) is further amended by adding to
8 section 201 the following new paragraph :
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 Approved For Release 2005/06/06 : CIA-RDP75B0038OR000700100004-4
1 "(d) Unless otherwise provided by law enacted after
2 the date of enactment of this Act, the Director of Central
3 Intelligence may (in order to achieve or maintain parity
4 with provisions relating to Civil Service Retirement in
.5 Subchapter III of Chapter 83 of Title 5, United States Code
6 which have been amended subsequent to the enactment of
.71 the Central Intelligence Agency Retirement Act of 1964
8 for Certain Employees (50 U. S. C. 403 note)) adjust
9 comparable provisions of the Central Intelligence Agency
10 Retirement Act of 1964 for Certain Employees, as
11 amended (50 U. S. C. 403 note). Adjustments by the
12 Director of Central Intelligence shall have the force and
13 effect of statute and shall be published in the Statutes at
14 Large in the same volume as the public laws and shall
15 be printed in the Federal Register. ".
16
.17
SEC. 103. Section 221 of the Central Intelligence Agency
Retirement Act (50 U. S. C. 403 note) is amended by deleting
the last two sentences of paragraph (f), and adding the
following new paragraphs (g), (h), and (i)
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 Approved For Release 2005/06/06 : CIA-RDP75B0038OR000700100004-4
A BILL
To amend the Central Intelligence Agency Retirement Act of
1964 for Certain Employees, as amended, and for other
purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
TITLE I
SEC. 101. This title may be cited as the "Central
Intelligence Agency Retirement A.ct Amendments of 1969".
SEC. 102. The Central Intelligence Agency Retirement
7 Act of 1964 for Certain Employees, as amended, (78 Stat.
8 - 1043; 50 U. S. C. 403 note) is further amended by adding to
section 201 the following new paragraph
10 "(d) The Director of Central Intelligence may (in order
11 to achieve or maintain parity with provisions relating to
12 Civil Service Retirement in Subchapter III of Chapter 83 of
13 Title 5, ,United States Code which have been amended
14 subsequent to the enactment of the Central Intelligence Agency
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 Approved For Release 2005/06/06 CIA-RDP75B0038OR000700100004-4
2
1 Retirement Act of 1964 for Certain Employees (50 U. S. C.
2 403 note)) recommend the adjustment of comparable pro-
3 visions of the Central Intelligence Agency Retirement Act
4 of 1964 for Certain Employees, as amended (50 U. S. C.
5 403 note) by transmitting to Congress the adjustment to be
6 made together with his findings. The adjustment shall have
7 the force and effect of statute at the end of the first period
of 60 calendar days of continuous session of Congress after
9 the date on which the transmittal is received unless, between
10 the date of transmittal and the end of the 60-day period
11 either House passes a resolution stating in substance that
12 the House does not favor the adjustment. The Director of
13 Central Intelligence shall have the transmittal delivered to
14 both Houses on the same day and to each House while it is
15. in session.` Adjusted provisions shall be printed in the
16 Statutes at Large in the same volume as the public laws and
17 shall be printed in the Federal Register.
18 SEC. 103. Section 221 of the Central Intelligence Agency
19 Retirement Act (50 U. S. C. 403 note) is amended by deleting
20 the last two sentences of paragraph '(f), and adding the
21 following new paragraphs (g), (h), and (i)
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 Approved For Release 2005/06/06 : CIA-RDP75B0038OR000700100004-4
after date of enactment of this provision shall commence on
10 the day after the occurrence of the event on which payment
11 thereof is based.
12 "(h) An annuity payable from the fund on or after date
13 of enactment of this provision shall terminate (1) in the
14 case of a retired participant, on the day death or any other
15. terminating event occurs, or (2) in the case of a survivor,
16 on the last day of the month before death or any other
17 terminating event occurs.
18 "(i) The annuity computed under this section is reduced
19 by 10 percent of a special contribution described by section
20 252(b) remaining unpaid for civilian service for which retire-
21 ment deductions or deposits have not been made, unless the
22 participant elects to eliminate the service involved for the
4pPXw*Maa- R l Q03r96MDI~tAiRRD"75B00380R000700100004-4
""(g) Except as otherwise provided, the annuity of a
participant shall commence on the day after separation
3 from the service, or on the day after salary ceases and the
4 participant meets the service and the age or disability
5 requirements for title thereto. The annuity of a participant
6 under section 234 shall commence on the day after the
7 occurrence of the event on which payment thereof is based.
8e An annuity otherwise payable from the fund allowed on or
 'Approved For Release 2005/06/06 : CIA-RDP75B0038OR000700100004-4
SEC. . Section 221 (b) of the Central Intelligence
Agency Retirement Act (50 U. S. C. 403 note) is amended by
deleting the words "or remarriage" from the first sentence,
and section 232 (b) is amended by deleting the words "or
remarriage" from the second sentence.
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 Approved For Release 2005/06/06 CIA-RDP75B0038OR000700100004-4
1 SEC. 104. Section 236 of the Central Intelligence Agency
2 Retirement Act (50 U. S. C. 403 note) is amended by placing a
3 period after "June 30, 1969" and deleting the remainder of the
4 paragraph.
5 SEC. 105. Section 252 of the Central Intelligence Agency
6 Retirement Act (50 U. S. C. 403 note) is amended by deleting
paragraph (c)(1): renumbering paragraphs (c)(2) and (c)(3)
to read (c)(3) and (c)(4) ; and inserting the following new
paragraphs (c)(1), (c)(2), and (g) :
10 "(c)(1) If an officer or employee under some other
11 Government retirement system becomes a participant in the
12 system by direct transfer, the Government's contributions
13 (including interest accrued thereon computed at the rate of
14 3 percent a year compounded annually) under such retirement
15 system on behalf of the officer or employee shall be trans-
16 ferred to the fund and such officer or employee's total
17 contributions and deposits (including interest accrued thereon),
18 except voluntary contributions, shall be transferred to his
19 credit in the fund effective as of the date. such officer or
20 employee becomes a participant in the system. Each such
21 officer or employee shall be deemed to consent to the trans-
22 fer of such funds and such transfer shall be a complete
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 Approved For Release 2005/06/06 : CIA-RDP75B0038OR000700100004-4
I discharge and acquittance of all claims and demands against
2 the other Government retirement fund on account of service
3 rendered prior to becoming a participant in the system.
4 "(c) (2) If a participant in the system becomes an employee
5 under another Government retirement system by direct transfer
6 to employment covered by such system, the Government's
contributions (including interest accrued thereon computed at the
rate of 3 percent a year compounded annually) to the fund on his
9 behalf may be transferred to the fund of the other system and
10 his total contributions and deposits, including interest accrued
11 thereon, except voluntary contributions, shall be transferred
12 to his credit in the fund of such other retirement system effective
13 as of the date he becomes eligible to participate in such other
14 retirement system. Each such officer or employee shall be
15 deemed to consent to the transfer of such funds and such transfer
16 shall be a complete discharge and acquittance of all claims and
17 demands against the fund on account of service rendered prior
18 to his becoming eligible for participation in such other system.
19 "(g) For the purpose of survivor annuity, special
20 - contributions authorized by paragraphs (b) and (c)(4) of this
21 section may also be made by the survivor of a participant. ".
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 Approved For Release 2005/06/06 : CIA-RDP75B0038OR000700100004-4
6
1' SEC. 106. Section 273 of the Central Intelligence Agency
2 Retirement Act (50 U. S. C. 403 note) is amended by deleting
3 paragraph (a) ; renumbering paragraph ,(b) to read (c) ;
4 and inserting the following new paragraphs (a) and (b)
5 "(a) Notwithstanding any other provision of law, any
6 annuitant who has retired under this Act and who is reemployed
in the Federal Government service in any appointive position
either on a part-time or full-time basis shall be entitled to
9 receive the salary of the position in which he is serving plus
10 so much of his annuity payable under this Act which when
11 combined with such salary does not exceed during any calendar
12 year the basic salary such officer or employee was entitled,
13 to receive on the date of his retirement or separation from
14 the Agency. Any such reemployed officer or employee who
15 receives salary during any calendar year in excess of the
16 maximum amount which he may be entitled to receive under
17 this paragraph shall be entitled to such salary in lieu of
18 benefits hereunder.
19 "(b) When any such annuitant is reemployed, the
20 employer shall notify the Director of Central Intelligence
21 of such reemployment and shall provide all pertinent infor-
22 mation relating thereto. ".
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 Approved For Release 2005/06/06 : CIA-RDP75B00380R000700100004-4
7
TITLE II--MISCELLANEOUS
Z SEC. 201. Section 5541 of Title 5 of the United States
3 Code is amended by striking out "or" immediately preceding
4 "(xiii)" and by inserting before the period at the end thereof
5 !'; or (xiv) an employee of the Central Intelligence Agency".
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 Approved For Release 2005/06/06 : CIA-RDP75B0038OR000700100004-4
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 Approved For Release 2005/06/06: CIA-RDP75B0038OR000700100004-4
r i
-`~i,c!, l ,'.I'11o C1 " i;r,~l xr1~r~]ligt u10,0, A. alloy . kc~tai'crr~or~t
J, .1~1ACt 41f G~1 iilr V(li'Ii1111 +;Ial'11U~~CCS,, cis r1xL1C1l(78' Sti1t?,
riu1~1;OC1'io31. c~k;,,~lul ~~,$) ,~xau; x~asoa' ua I 1o11QWvln )n~ 11'ui
`Glu hi', for' Llko Lauraoscs: of,.,sootions 221'and 232 ~..
~N,~,o i?i s.cl~~Ct, mon,il$."am',ualm"u'iod chilLd, iriclu(lmg (i)
p011i1(1 or, rocobnirocl nat111?nl
''~ clo ltocl cllilcl, mn i ?,(ii) , C6. stol
~~l rO;11]iil'-j~;lrcxit~0hild
0h1,47 who hood ldl.tho p rLiolpalnt. in
~,~"11'(!]113Ji)1']fi1111~ und~t' (laC'.Fi~''t]',tii ,i31al1il~JC11'Gtb1'S, or such 1111-
h,"~, Y'r~~a?1?ioii child rog .r(11o s oL 'ngo who ijoonuso , or'11 rsical or.
~;~llOl~tla.1 clisltib1hty, 1i1C1 'i'ed ,boforc ado oiblltC(~al is i7lclalxal~lo
MI, '1
tNvolity-two yo,a-rs o-0 who is, t sWctoait rogularly Durs11ing
(y'! ()1' i;l';Li1ai11;? ill 1 Jenco ill 06 ,hig11
school, trado 8011001, toohllic(ul c-i'1 ii-~1-1~-1~1-1t~ --r ?(t~~--{r-~~i'fnrti~
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1
4 His1 11, 4-1
(2 } his becoming capable of 'self-support aster attaining aye ? "., z ;
a ~ studont, . ', , ? , ,~; ? ,,, ? ,, ;,.-
' oiBhtoel~ unloss ho 18 tlaon "'such '(3) his attain
i
~'lflt ` +~. ,, ~~ ' ,y''i
~ 1,11; (1~?~11 ~iv'(thl~~-'191ii~1~1f i 114# ;ifs 1;'Ii it F4U(3I ~~ ~f~ilit~l~ll~l ~bC'I ~:
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 Approved For Release 2005/06/06 : CIA-RDP75B0038OR000700100004-4
inic>,pn,blo 0i, soli-support, (4) his ' coa,siimg to ' bo 'such a stu-"
dons aftor nttaininn ,ado oihtoon u11los's he is then inaap~blo~',,
Qf self-support, (5) I his, ma~?z7a~~o: nor. '(C) .I bls'doath. ~whach~'; .:~; ;;~,
o\Ox' 000ara.~~~
7H'
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 Approved For Release 2005/06/06 : CIA-RDP75B0038OR000700100004-4
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 Approved For ReIi AQ@W.Q6 6i A-RDP75B00380R000700100004-4
88th Congress, H. R. 8427
October 13, 1964
21n act
To provide for the establishment and maintenance of a Central Intelligence
Agency Retirement and Disability System for a limited number of employees,
and for other purposes.
Re it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SEE. 101. This Act may be cited as the "Central Intelligence Agency Central Intelli-
Retirement Act, of 1964 for Certain Employees". gene Agency Re-
tirement Act of
PART B-DEFINITIONS 1964 for Certain
Employees.
Si:c. 111. When used in this Act, the term-
(1)
"Agency" means the Central Intelligence Agency;
(2)
and
"Director" means the Director of Central Intelligence;
(3) "Qualifying service" means service performed as a par-
ticipant in the system or, in the case of service prior to designa-
tion, service determined by the Director to have been performed
in carrying out duties described in section 203.
TITLE II-THE CENTRAL INTELLIGENCE AGENCY
RETIREMENT AND DISABILITY SYSTEM
SEC. 201. (a) The Director may prescribe rules and regulations for
the establishment and maintenance of a Central Intelligence Agency
Retirement and Disability System for a limited number of employees,
referred to hereafter as the system ; such rules and regulations to
become effective after approval by the chairman and ranking minority
members of the Armed Services Committees of the House and Senate.
(b) The Director shall administer the system in accordance with
such rules and regulations and with the principles established by this
Act..
(c) In the interests of the security of the foreign intelligence
activities of the United States and in order further to implement the
proviso of section 102(d) (3) of the National Security Act of 1947,
as amended (50 U.S.C. 403(d) (3) ), that the Director of Central 61 Stat. 498.
Intelligence shall be responsible for protecting intelligence sources
and methods from unauthorized disclosure, and notwithstanding the
provisions of the Administrative Procedure Act (5 U.S.C. 1001 et
seq.) or any other provisions of law, any determinations by the 60 Stat. 237.
Director authorized by the provisions of this Act shall be deemed
to be final and conclusive and not subject to review by any court.
SEc. 202. There is hereby created a fund to be.known as the Central
Intelligence Agency Retirement. and Disability Fund which shall be
maintained by the Director. The Central Intelligence Agency
Retirement and Disability Fund is referred to hereafter as the fund.
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 Approved For ~ebea a20gW. 6 : CIA-R[~P75B00388F o(~0 TOQ 00~$g44
Sir. 203. The Director may designate from time to time such
Agency officers and employees whose duties are determined by the
Director to be (i) in support of Agency activities abroad hazardous
to life or health or (ii) so specialized because of security requirements
as to be clearly distinguishable from normal government employ-
ment, hereafter referred to as participants, who shall be entitled to
the benefits of the system. Any participant who has completed
fifteen years of service with the A ency and whose career at that time
is adjudged by the Director to be qualifying for the system may
elect to remain it participant of such system for the duration of his
eniploymnent by the Agency and such election shall not be subject to
review or approval by the Director.
SE c. 201. (a) Annuitants shall be participants who are receiving
annuities from the fund and all persons, including surviving wives
and husbands, widows, dependent widowers, children, and bene-
ficiaries of participants or annuitants who shall become entitled to
receive annuities in accordance with the provisions of this Act.
Definitions. (b) When used in this Act the term-
(1) "Widow" means the surviving wife of a participant who
was married to such participant for at least two years imme-
diately preceding his death or is the mother of issue by marriage
to the participant.
(2) "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 incapable of self-
support, by reason of mental or physical disability, and who
received more than one-half of his support from such participant.
(3) "Child", for the purposes of sections 221 and 232 of this
Act, means an unmarried child, including (i) an adopted child,
and (ii) 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 eight-
een 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 vocational institute, junior
coVlege, 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 year, and while he is
regularly pursuing such a course of study or training, shall be
deemed for the purposes of this paragraph and section 221(u) of
this Act 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 if the interim doers not exceed four months
and if lie shows to the satisfaction of the Director that he has a
bona fide intention of continuing to pursue a course of study or
training in the same or different school during the school semester
(or other period into which the school year is divided) imme-
diately following the interim.
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78 STAT. 1045.
PART B-COMPULSORY CONTRIBUTIONS
SEC. 211. (a) Six and one-half per centum 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 amounts
so contributed from the appropriation or fund shall be deposited by
the Agency to the credit of the fund.
(b) Each participant shall be deemed to consent and agree to such
deductions from basic salary, and payment less such deductions shall
be a full and complete discharge and acquittance of all claims and
demands whatsoever for all regular services during the period covered
by such payment, except the right to the benefits to which he shall be
entitled under this Act, notwithstanding any law, rule, or regulation
affecting the individual's salary.
PART C-COMPUTATION ox ANNUITIES
SEc. 221. (a) T 21unnuity of a participant shall be equal to 2 per
centum of his a 'rage basic salary for the highest five consecutive ' ~~? 2 01
years of service or which full contributions have been ma e to the
unc, mu tTip[ie y the number of years, not exceeding thirty-five,
of service credit obtained in accordance with the provisions of sections
251 an . 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) At the time of retirement any married participant may elect
to receive a reduced annuity an~ 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 Qr remarriage of
sue surviving wife or~h d. The annuity payable to the surviivvg
wi . or or usanT> ~er such participant's death shall be 55 per centum
of the amount of the participants annuity computed as prescribed
in paragraph (a) of this section, 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 21/2 per
centum of any amount, up to $3,600 lie specified as the base for the
survivor benefit plus 10 per centum of any amount over $3,600 so
specified.
(c) (1) If an annults dies and is survived by a wife or husband
and by a child or c Ilildren, in addition to the annui y,,payable to the
surviving wife or husband, there shall be paid to or on behalf of
each child an annuity equal to the smallest of: (i),44 per centum of
the annuitant's average basic salary, as determined under paragraph
(a) of this section, divided by the number of children; (ii 600; or
(iii) $1,800 divided by the number of children. --2,7 Q
(2) If an annuitant dies and is not survived by a wife or husband
but by a child or children, each surviving child shall be paid an l
annuity equal to the smallest: of: (i) 40 per centum of the annuitant's
average basic salary, as determined under paragraph (a) of this
section, divided by the number of children; (ii) $720; or (iii) $2,160 10
divided by the number of children.
(d) If a surviving wife or husband dies or the annuity of a child
is terminated, the annuities of any remaining children shall be recom-
puted and paid as though such wife, husband, or child had not
survived the participant.
(e) The annuity payable to a child under paragraph (c) or (d)
of this section shall begin on the day after the participant dies, and
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Pub. Law 88-643 4 - October 13, 1964
78 STAT. 1046.
such annuity or any right thereto shall terminate on the last day of
the month before (1) his attaining age eighteen unless incapable of
self-support, (2) his becoming capable of self-support after age
eighteen, (3) his marriage, or (4) his death, except that the annuity
of a child who is a student as described in section 204(b) (3) of this
Act shall terminate on the last. day of the month before (1) his
marriage, (2) his death, (3) his ceasing to be such a student, or (4)
his attaining age twenty-one.
(f) Any unmarried participant retiring under the provision.,; of
this Act and found by the Director to be in good health may at the
time of retirement elect a reduced annuity, in lieu of the annuity
as hereinbefore provided, and designate in writing a person having
an insurable interest (as that term is used in section 19(h) of the Civil
70 Stat. 752. Service Retirement Act (5 F.S.C. 2250(h))) in the participant to
receive an annuity after the participant's death. The annuity pay-
able to the participant making such election shall be reduced by 10
per centum of an annuity computed as provided in paragraph (a) of
this section, and by 5 per centum 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 per centum. The annuity
of a survivor designated under this paragraph shall be 55 per centum
of the reduced annuity computed as prescribed above. The annuity
payable to a beneficiary under the provisions of this paragraph 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 paragrap
shall be due or payable.
RETIREMENT FOR DISABILITY OR INCAPACITY-::4IEDICAL EXAMINATION-
RECOVERY
SEC. 231. (a) Any participant who has five years of service credit
toward' retirement under the system, excluding military or naval
service that is credited in accordance with provisions of section 251
or 252(a) (2), 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, upon his own application or upon order of the Director, be
retired on an annuity computed as prescribed in section 221. Af the
disabled or incapacitated participant is under sixty and has less
than twenty years of service credit. toward his retirement under the
system at the time he is retired, his annuity shall be computed on
the assumption that he has had twenty years of service, but 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 age sixtytbut this vision shall not i se
of nni c~~r, c,nr.,
tlm.axinuit
I In each. case, the participant shall be given a medical exami-
nation by one or more duly qualified physicians or surgeons desig-
nated by the Director to conduct examinations, and disability shall
be determined by the Director on the basis of the advice of such
physicians or surgeons. Unless the disability is permanent, like
examinations shall be made annually until the annuitant has reached
the. statutory mandatory retirement age for his grade as provided
in section 235. If the Director determines on the basis of the advice
of one or more duly qualified physicians or surgeons conducting such
examinations that an annuitant has recovered to the extent that he
can return to duty, the annuitant may apply for reinstatement or
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reappointment; in the Agency within one year from the date his
recovery is determined. Upon application the Director may reinstate
any such recovered disability annuitant in the grade in which he was
serving at time of retirement, or the Director may, taking into con-
sideration 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 was serving prior to
retirement. Payment of the annuity shall continue until a date six
months after the date of the examination showing recovery or until
the date of reinstatement or reappointment in the Agency, which-
ever is earlier. Fees for examinations under this provision, together
with reasonable traveling and other expenses incurred in order to
submit to examination, shall be paid out of the fund. If the annui-
tant fails to submit to examination as required under this section,
payment of the annuity shall be suspended until continuance of the
disability is satisfactorily established.
(c) If a recovered disability annuitant whose annuity is discon-
tinued is for any reason not reinstated or reappointed in the Agency,
lie shall be considered to have been separated within the meaning of
paragraphs (a) and (b) of section 234 as of the date he was retired
for disability and lie shall, after the discontinuance of the disability
annuity, be entitled to the benefits of that section or of section 241 (a)
except that, he may elect voluntary retirement in accordance with
the provisions of section 233 if he can qualify under its provisions.
(d) No participant shall be entitled to receive an annuity under
this 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 et seq.), covering the same period of time. 39 Stat. 742;
This provision shall not bar the right of any claimant to the greater 63 Stat. 854.
benefit conferred by either Act for any part of the same period of
time. Neither this provision nor any provision of the said Act of
September 7, 1916, as amended, shall be so construed as to deny the
right of any participant to receive an annuity under this Act by rea-
son of his own services and to receive concurrently any payment under
such Act of September 7, 1916, as amended, by reason of the death of
any other person.
(e) Notwithstanding any provision of law to the contrary, the right
of any person entitled to an annuity under this Act shall not be affected
because such person has received an award of compensation in a. lump
sum under section 14 of the Federal Employees' Compensation Act
of September 7, 1916 as amended (5 U.S.C. 764), 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 com-
pensation as has been paid for any period extended beyond the date
such 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 Conditions.
receive such annuity he shall (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 this Act, which amount shall be trans-
mitted to such Department for reimbursement to such fund. Deduc-
tions from such annuity may be made from accrued and accruing
payments, or may be prorated against and paid from accruing pay-
ments 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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SEC. 232. (a) In case a participant dies and no claim for annuity
is payable under the provisions of this Act, his contributions to the
fund, with interest at the rates prescribed in sections 241(a) and
281(a), shall be paid in the order of precedence shown
241(b). Q. _u a n
(b) If a participant who has at least fiv of service credit
toward retirement under the system, exc u mg military or naval
service that is credited in accordance with the provisions of section
251 or 252(a) (2), dies before separation or retirement from the
Agency and is survived by a widow or a dependent widower, as defined
in section 204, such widow or dependent widower shall be entitled to
an annuity equal to 55 per centum of thYtbe nuity computed in accord-
ance with the provisions of section 221(aThe annuity of such widow
or dependent widower shall commence date following death of
the participant and shall terminate upon death or remarriage of the
widow or dependent widower, or upon the dependent widower's
becoming capable of self-support. ; q~
(c) If a participant who has-at least five years of service credit
toward retirement under the system, exclu mg -military or naval serv-
ice that is credited in accordance with the provisions of section 251
or 252(a) (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 accordance
with the provisions of section 221 c The child's annuity shall
begin and be terminated in acco < nee with the provisions of section
221(e). Upon the death of the surviving wife or husband or termina-
tion 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. 9 q,a,
(d) If a participant who has at least of service credit
toward retirement under the s stem, exclu ing military or naval
service that is credited in accordance with the provisions of section
251 or 252(a) (2), dies before separation or retirement from the
Agency 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 section 221(c) 2) . The child's
annuity shall begin and terminate in accordance wi i the provisions
of section 221(e). 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.
VOLUNTARY RETIREMF.Nr
SEC. 233. Any participant in the system who is at least fifty years
of age and has rendered twenty years of service may on his own appli-
cation and with the consent, of the Director be retired from the Agency
and receive benefits in accordance with the provisions of section 221
provided he has not less than ten years of service with the Agency of
which at least five shall have been qualifying service.
DISCONTINUED SERVICE BENEFITS
SEC. 234. (a) Any participant who separates from the Aggency after
having performed not less than five years of service with the Agency,
may, upon separation from the Agency or at any time prior to becom-
ing eligible for an annuity, elect to have his contributions to the fund
returned to him in accordance with the provisions of section 241, or
(except in cases where the Director determines that separation was
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78 STAT. 1049.
based in whole or in part an the ground of disloyalty to the United
States.) to leave his contributions in the fund and receive an annuity,
computed as prescribed in section 221, commencing at the age of sixty-
two years.
(b) If a participant who has qualified in accordance with the pro-
visions of paragraph (a) of this section to receive a deferred annuity
commencing at the age of sixty-two dies before reaching the age of
sixty-two his contributions to the fund, with interest, shall be paid in
accordance with the provisions of sections 241 and 281.
SEC. 235. (a) 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 fifty years of age and has completed at
least twenty years of service, provided such participant has not less
than ten years of service with the Agency 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 sec-
tion 221.
(b) Any participant in the system receiving compensation at the
rate of grade GS-18 or above shall be automatically separated from
the Agency upon reaching the age of sixty-five. Ahy participant in
the system receiving compensation at a rate less than grade GS-18
shall be automatically separated from the Agency upon reaching the
age of sixty. Such separation shall be effective on the last day of the
month in which a participant reaches age sixty or sixty-five, as spec-
ified in this section, but whenever the Director shall determine it to
be in the public interest, he may extend such participant's service for
a period not to exceed five years. A participant separated under the
provisions of this section who has completed five years of Agency
service shall receive retirement benefits in accordance with the pro-
visions of section 221 of this Act.
SEC. 236. The number of participants retiring on an annuity pur-
suant to sections 233, 234 and 235 of this Act shall not exceed a total
of four hundred during tie period ending on June 30 1969, nor a total
of four hundred during the period beginning on July 1, 1969, and
ending on June 30, 1974.
PART E-DISPOSITION OF CONTRIBUTIONS AND INTEREST IN EXCESS Or
BENEFITS RECEIVED
SEC. 241. (a) Whenever a participant becomes separated from the
Agency without becoming eligible for an annuity or a deferred annuity
in accordance with the provisions of this Act, the total amount. of con-
tributions from his salary with interest thereon at 4 per centum per
annum to December 31, 1947, and 3 per centum per annum thereafter
compounded annually to December 31, 1956 (or, in the case of a partici-
pant. separated from the Agency before lie has completed five years of
service, to the date of separation) and proportionately for the. period
served during the year of separation including all contributions made
during or for such period, except as provided in section 281, shall
be returned to him.
(b) In the event that. the total contributions of a retired participant,
other than voluntary contributions made in accordance with the pro-
visions of section 281, with interest at the rates provided in paragraph
(a) of this section added thereto, exceed the total amount returned to
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78 STAT. 1050.
such participant or to an annuitant claiming through him, in the form
of annuities, the excess of the accumulated contributions over the
accumulated annuity ppayments shall be paid in the following order
of precedence, upon the establishment of a valid claim therefor, and
such payment shall be a bar to recovery by any other person :
(1) To the beneficiary or beneficiaries designated by such par-
ticipant in writing to the Director;
(2) If there be no such beneficiary to the surviving wife or
husband of such participant;
(3) If none of the above, to the child or children of such par-
ticipant and descendants of deceased children by representation;
(4) If none of the above, to the parents of such participant or
the survivor of them;
(5) If none of the above, to the duly appointed executor or ad-
ministrator of the estate of such participant;
(6) If none of the above, to other next of kin of such participant
as may be determined by the Director in his judgment to be
legally entitled thereto.
(c) No payment shall be made pursuant to paragraph (b) (6) of
this section until after the expiration of thirty days from the death
of the retired, participant or his surviving annuitant.
COMPUTATION OF LENGTH OF SERVICE
SEC. 251. For the purposes of this Act, the period of service of a
participant shall be computed from the date he becomes a participant
under the provisions of this Act, but 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 the
Federal Emplo ees' Compensation Act of September 7, 1916, as
39 Stat. 742; amended (5 U.S.C. 751 et seq.), and leaves of absence granted par-
53 Stat. 554. ticipants while performing active and honorable military or naval
service in the:Army, Navy. Air Force, Marine Corps, or Coast Guard
of the United States.
SEC. 252. (a) A participant may, subject to the provisions of this
section, include in his period of service-
(1) civilian service in the executive. judicial, and legislative
branches of the Federal Government and in the District of Colum-
bia 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) A participant may obtain prior civilian service credit in accord-
ance with the provisions of paragraph (a) (1) of this section by
making a special contribution to the fund equal to the percentage of
his basic annual salary for each year of service for which credit is
sought specified with respect to such year in the table relating to
employees contained in section 4(c) of the Civil Service Retirement
70 Stat. 747. Act (5 U.S.C; 2254(c) ), together with interest computed as provided
in section 4(e) of such Act (5 U.S.C. 2254(e) ). Any such participant
may under such conditions as may be determined in each instance by
the Director, pay such special contributions in installments.
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(c) (1) If an officer or employee under some other Government
retirement system becomes a participant in the system by direct
transfer, such officer or employee's total contributions and, deposits,
including interest accrued thereon, except voluntary contributions,
shall be transferred to the fund effective as of the date such officer or
employee becomes a participant in the system. Each such officer or
employee 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 other Government retirement fund
on account of service rendered prior to becoming a participant in the
system.
(2) No participant, whose contributions are transferred to the
fund in accordance with the provisions of paragraph (c) (1) of this
section, shall be required to make contributions in addition to those
transferred for periods of service for which full contributions were
made to the other Government retirement fund. nor shall any refund
be made to any such participant on account of contributions made
during any period to the other Government retirement fund at a
higher rate than that fixed for employees by section 4(c) of the Civil
Service Retirement Act (5 U.S.C. 2254(c)) for contributions to the 70 stet. 747.
fund.
(3) No participant, whose contributions are transferred to the
fund in accordance with the provisions of paragraph (c) (1) of this
section, 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 with the provisions of para-
graph (b) of this section.
(d) 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.
(e) A participant may obtain prior military or naval service credit
in accordance with the provisions of paragraph (a) (2) of this section
by applying for it to the Director prior to retirement or separation
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 that in the case of a participant who is eligible
for and receives retired pay on account of a service-connected dis-
ability incurred in combat with an enemy of the United States or
caused by an instrumentality of war and incurred in line of duty
during a period of war (as that term is used in chapter 11 of title 38,
United States Code), or is awarded under chapter 67 of title 10 of 38 USC 301-360.
the United States Code, the period of such military or naval service 10 USC 1331-
shall be included. No contributions to the fund shall be required in 1337.
connection with military or naval service credited to a participant in
accordance with the provisions of paragraph (a) (2) of this section.
(f) Notwithstanding any other provision of this section or section
253 any military service (other than military service covered by mili-
tary leave with pay) performed by a participant after December 1956
shall be excluded in determining the aggregate period of service upon
which an annuity payable under this Act 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 tinder
section 202 of the Social Security Act, as amended (42 U.S.C. 402), 49 stet. 623.
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78 STAT. 1052.
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 application 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.
CREDIT FOR SERVICE WHILE ON MYLITARY LEAVE
SEC. 253. (a) A participant 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 Act, as sepa-
rated from his Agency position by reason of such military service,
unless lie shall apply for and receive a refund of contributions under
this Act: Provz ed, That such participant shall not be considered as
retaining his Agency position beyond December 31, 1956, or the expira-
tion of five years of such military service, whichever is later.
(b) Contributions shall not be required covering periods of leave
of absence from the Agency granted a participant while performing
active military or naval service in the Army, Navy, Air Force, Marine
Corps, or Coast Guard of the United States.
ESTIMATE OF APPROPRIATIONS NEEDED
SEC. 261. The Director shall prepare the estimates of the annual
appropriations 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.
SEC. 262. The Director may, with the approval of the Secretary of
the Treasury, 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 bene-
fits, refunds, and allowances, and the income derived from such invest-
ments shall constitute a part of such fund.
SEC. 263. None of the moneys mentioned in this Act shall be assign-
able either in law or equity, or be subject to execution, levy, attach-
ment, garnishment, or other legal process.
PART H-RETIRED PARTICIPANTS RECALLED.. REINSTATED, OR REAP-
POINTED IN THE AGENCY, OR REEMPLOYED IN THE GOVERNMENT
SEC. 271. (a) The Director may, with the consent of any retired
participant, recall such participant to duty in the Agency whenever
lie shall determine such recall is in the public interest.
(b) Any such participant recalled to duty in the Agency in accord-
ance with the p rovisions of paragraph (a) of this section or reinstated
or reappointed in accordance with the provisions of section 231(b)
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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 section 211. When he reverts to his retired status, his annuity shall
be determined anew in accordance with the provisions of section 221.
SEC. 272. Notwithstanding any other provision of law, a participant
retired under the provisions of this Act shall not, by reason of his
retired status, be barred from employment in Federal Government
service in any appointive position for which he is qualified. An
annuitant so reemployed shall serve at the will of the appointing
officer.
SEC. 273. (a) Notwithstanding any other provision of law, any
annuitant who has retired under this Act and who is reemployed in
the Federal Government service in any appointive position either on
apart ime or full-time basis shall be entitled to receive his annuity
payable under this Act, but there shall be deducted from his salary
a sum equal to the annuity allocable to. the period of actual
employment.
(b) In the event of any overpayment under this section, such over-
payment shall be recovered 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-
sions of this Act.
PART I-VOLUNTARY CONTRIBUTIONS
SEC. 281. (a) Any participant may, at his option and under such
regulations as may be prescribed by the Director, deposit additional
sums in multiples of 1 per centum of his basic salary, but not in excess
of 10 per centum of such salary, which amounts together with interest
at 3 per centum per annum, compounded annually as of December 31,
and proportionately for the period served during the year of his retire-
ment, including all contributions made during or for such period,
shall, at the date of his retirement and at his election, be-
t) returned to him in lump sum;
2 used to purchase an additional life annuity ;
3) used to purchase an additional life annuity for himself and
to provide for a cash payment on his death to a beneficiary whose
name shall be notified in writing to the Director by the partici-
pant; or
(4) used to purchase an additional life annuity for himself
and a life annuity commencing on his death payable to a bene-
ficiary whose name shall be notified in writing to the Director 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 (3) above.
(b) The benefits provided by subparagraphs (2), (3), or (4) of
paragraph (a) of this section shall be actuarially equivalent in value
to the payment provided for by subparagraph (a) (1) of this section
and shall be calculated upon such tables of mortality as may be from
time to time prescribed for this purpose by the Director.
(c) In case a participant shall become separated from the Agency
for any reason except: retirement on an annuity, the amount of any
additional deposits with interest at 3 per centum per annum, com-
pounded as is provided in paragraph (a) of this section, made by him
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78 STAT. 1054.
nuclei- the provisions of said paragraph (a) shall be refunded in the
manner provided in section 241 for the return of contributions and
interest in the case of death or separation from the Agency.
(d) Any benefits payable to a participant or to his beneficiary in
respect to the additional deposits provided under this section shall be
in addition to the benefits otherwise provided under this Act.
PART J-COST-or-LIvINO ADJUSTDIENT OF ANNUITIES
SEC. 291. (a) On the basis of determinations made by the Civil
Service Commission pursuant to section 18 of the Civil Service Retire-
76 !Stat. 369. merit Act, as amended, perta`.ning to per centum change in the price
5 USC 22x3. index, the following adjustments shall be made:
(1) Effective April 1, 1960, if the change in the price index from
1964 to 1965 shall have equaled a rise of at least 3 per centum, each
annuity payable from the fund which has a commencing date earlier
than January 2, 1965, shall be increased by the per centum rise in the
price index adjusted to the nearest one-tenth of 1 per centum.
(2) Effective April 1 of any year other than 1966 after the price
index change shall have equaled a rise of at least 3 per centum, each
annuity payable from the fund which has a commencing date earlier
than January 2 of the preceding year shall be increased by the per
centum rise in the price index adjusted to the nearest one-tenth of 1
per centum.
(b) Eligibility for an annuity 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 increaeeI except as follows:
(1) Effective from the date of the first increase under this section,
an annuity payable from the fund to an annuitant's survivor (other
than a child entitled under section 221(c) ), which annuity com-
menced the day after the annuitant's deathj shall be increased as
provided in subsection (a) (1) or (a) (2) if the commencing date of
annuity to the annuitant was earlier than January 2 of the year
preceding the first increase.
(2) Effective from its commencing date, an annuity payable from
the fund to an annuitant's survivor (other than a child entitled under
section 221(c)), which annuity commences the day after the annui-
tant's death and after the effective date of the first increase under this
section, shall be increased by the total per centum increase the annui-
tant was receiving under this section at death.
(3) For purposes of computing an annu:.ty which commences after
the effective date of the first. increase under this section to a. child under
section 221 (c), the items $600, $ i 20, $1,800, and $2,160 appearing in
section 221 (c) shall be increased by the total per centum increase
allowed and in force under this section and, in case of a deceased
annuitant, the items 40 per contum and 50 per centum appearing in
section 221(c) shall be increased by the total per centum 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 pro-
visions of this paragraph shall apply as if such first increase were
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in effect with respect to computation of a child's annuity under section
221 (c) which commenced between January 2 of the year preceding
the first increase and the effective date of the first increase.
(c) No increase in annuity provided by this section shall be com-
puted on any additional annuity purchased at retirement by volun-
tary contributions.
(d) The monthly installment of annuity after adjustment under this
section shall be fixed at the nearest dollar.
Approved October 13, 1964.
LEGISLATIVE HISTORY:
HOUSE REPORT No. 763 (Comm. on Armed Services).
SENATE REPORT No. 1569 (Comm. on Armed Services).
CONGRESSIONAL RECORD:
Vol. 109 (1963): Oct. 30, considered and passed House.
Vol. 110 (1964): Sept. 25, considered and passed Senate,
amended.
Oct. 1, House concurred in Senate amendment.
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Public Law 90-539
90th Congress, H. R. 18786
September 30, 1968
RD act
To amend the Central Intelligence Agency Retirement Act of 1964 for Certain
Employees, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, That section 291 of Central Intelli-
the Central Intelligence Agency Retirement Act of 1964 for Certain gene Retirement
Employees (78 Stat. 1043; 50 U.S.C. 403 note) is amended to read as Act of 1964,
follows: amendment.
"SEC. 291. (a) Onthe basis of determinations made by the Director
pertaining to per centum change in the Price Index, the following
adjustments shall be made:
" 1 Each annuity payable from the fund on January 1, 1967. shall 82 STAT. 902
be increased on that date by (a) 12.4 per centum for annuities which 82 AT. 903
commence on or before January 1, 1966, or (b) 4.9 per centum for
annuities which commence on or between January 2, 1966, and Jan-
uary 1, 1967.
"(2) Each month beginning with November 1966, the Director shall
determine the per centum change in the price index. Effective the first
day of the third month which begins after the price index all have
equaled a rise of at least 3 per centum far three consecutive months
over the price index for the base month, each annuity payable from
the fund which has a commencing date not later than such effective
date shall be increased by the per centum rise in the price index (calcu-
lated on the highest level of the price index during the three consecutive
months) adjusted to the nearest one-tenth of 1 per centum.
"(b) Eligibility for an annuity 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, except as follows:
"(1) Effective from its commencing date, an annuity payable from
the fund to au annuitant's survivor (other than a chile) entitled under
section 221(c) ), which annuity commences the day after annuitant's
death and after January 1, 1967, shall be increased by the total per
centum increase the annuitant was receiving under this section at
death; or if death occurred between January 1, 1967 and date of
enactment, the per centum increase the annuitant would have received.
"(2) Effective from its commencing date, an annuity payable from
the fund to a child under section 221(c), which annuity commences
the day after annuitant's death and after January 1? 1967, shall be
increased by (a) 2 per centum if the annuity from which it is derived
commenced on or before January 1, 1966, or (b) 1 per centum if the
annuity from which it is derived commenced on or between January
2, 1966, and January 1, 1967.
"(3) For the purposes of computing an annuity which commences
after January 1, 1967, to a child under section 221(e), the items $600,
$720, $1,800, and $2,160 appearing in section 221(c) shall be increased
by 10.2 per centum plus the total per centum increase allowed and in
force under section 291 (a) (2) for employee annuities, and, in the case
of a deceased annuitant, the items 40 per centum and 50 per centum
appearing in section 221(c) shall be increased by the total per centum
increase allowed and in force under this section to the annuitant at
death ; or if death occurred between January 1, 1967, and date of enact-
ment, the per centum increase the annuitant would have received.
"(c) Any annuity increased under this section shall be decreased by
the amount of increase in force and effect with respect to that annuity
under section 291 prior to the date of enactment of this subsection.
11(d) v d-E1 term index' shall mean the, Consumer Q38OFO"Price
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Pub. Law 90-539 - 2 - September 30, 1968
82 STAT. 903
"Base moritth." Bureau of Labor Statistics. The term `base month' shall mean the
month of October 1966 for the first increase under section 291 (a) (2)
and thereafter the month for which the price index showed a per
centum rise forming the basis for a cost-of-living annuity increase.
"(e) No increase in annuity provided by this section shall be com-
puted on any additional annuity purchased at retirement by voluntary
contributions.
"(f) The monthly installment of annuity after adjustment under
this section shall be fixed at the nearest dollar, except that such install-
ment shall, after adjustment, reflect an increase of at least $1."
Approved September 30, 1968.
LEGISLATIVE HISTORY:
HOUSE REPORT No. 1766 (Comm. on Armed Services).
SENATE REPORT No. 1504 (Comm. on Armed Services).
CONGRESSIONAL RECORD, 114 (1968):
July 25: Considered and passed House.
Sept.192 Considered and passed Senate.
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