CIVIL SERVICE RETIREMENT ACT
Document Type:
Collection:
Document Number (FOIA) /ESDN (CREST):
CIA-RDP75B00380R000700120034-9
Release Decision:
RIFPUB
Original Classification:
K
Document Page Count:
2
Document Creation Date:
December 16, 2016
Document Release Date:
June 1, 2005
Sequence Number:
34
Case Number:
Content Type:
STUDY
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Body:
Approved F c " Rel pe 05/06/09: CIA-RDP 5B ` 80F$O0700120034-9
ANALYSIS OF INCREASES GRANTED UNDER P. L. 89-205 and P. L. 89-314
(Participants in the CIA retirement system were first designated in
April 1965. Thus this analysis deals with increases accruing to
contemporary retirees and survivors under. CCSRA.)
I. Initial Adjustment
All existing annuities with a commencing date on or before 31 December
1965 were increased by 6. 1 percent.
II. Subsequent Adjustment
All existing annuities commencing on or before 1 January 1967 were
increased by 3. 9 percent and this is the increase in force for annuities
commencing on or between 1 January 1966 and 1 January 1967. However,
the increase in force for existing annuities with a commencing date earlier
than 1 January 1966 is 10.2 percent, r(6. 1 x 3. 9) + 6.1 + 3.9_7
III. Exception for Survivors
Generally the eligibility for cost of living increases is governed by the
commencing date of each annuity payable as of the effective date of
each increase. Exceptions for survivors do apply however.
a. A retiree s ,rvivnr (other than a child) receives whatever percentage
increase the retiree had been allowed at time of death.
1. If the survivor annuity is derived from a retiree's annuity commenc-
ing on or before 31 December 1965, the increase in force would be
10. 2 percent to date. If it is derived from an annuity commencing
on or between 1 January 1966 and 1 January 1967, the increase in
force would be 3. 9 percent to date.
Approved For Release 2005/06/09 : CIA-RDP75B00380R000700120034-9
Approved Forele05/06/09 CIA-RDP7EQQ
b. Child survivor. All cost of living increases are built into the
annuity benefit formula. The fixed dollar factors in the formula
are increased in all cases by the total percentage increase
granted under the adjustment plan. The formula factor dealing
with the percentage of five year average salary is increased in
deceased retiree cases by the total percentage of increase the
retiree was receiving at time of death.
1. For example, the total percentage increase in force under
P. L. 89-205 is 10. 2 percent so that the dollar fixed factors
$1, 800, $600, $2, 160, and $720 are increased to $1, 983. 60,
$661.20, $2, 380.32 and $793.44.
2. However, the average salary factor is raised only by the per-
cent of cost-of-living increase allowed the deceased retiree
while he was receiving an annuity. (See I and II above for
specific percentages.)
The difference in b. 1. and b. 2. above is that average salary reflects
living cost pay increments to the point of retirement whereas the
fixed dollar factor does not.
IV. Summary
For annuities commencing*
Increase in force
Effective date
1. a. before 1 January 1966
6. 11 6.
Dec 1965 -
31 Dec 1965
b. before 1 January 1966
10.2%
1 Jan 1967
2, on or between 1 Jan 66- 1 Jan 67
3. 9%
1 Jan 1967
* including derivative survivor annuities
Approved For Release 2005/06/09 : CIA-RDP75B0038OR000700120034-9