COMPARISON OF TEXTS OF PROPOSED CENTRAL INTELLIGENCE AGENCY RETIREMENT ACT AND PERTINENT PROVISIONS OF THE FOREIGN SERVICE ACT AND THE CIVIL SERVICE RETIREMENT ACT

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Approved For Release 2007/01/20: CIA-RDP75B00380R000700150015-7 COMPARISON OF TEXTS OF PROPOSED CENTRAL INTRUJGENCE AGENCY RETIREMENT ACT AND PERTINENT PROVISIONS OF THE FOREIGN SERVICE ACT AND THE CIVIL SERVICE RETIREMENT ACT Proposed CIA Retirement Act ymeign Service, Act TITLE I - SHORT TITLE AND DEFINITIONS Part A - SHORT TITLE Civil Service Retirement Let Sec. 101. This Act may be cited as the Se00 1010 Titles I to X, inclusive, of Sec. 19. This Act may be cited as "Central Intelligence Agency Retirement this Lot may be cited as the 'Foreign the 'Civil Service Retirement Acted. Act of 1963 for Certain Employees". Services Act of 19h6w. Part B - DEFINITIONS Sec. 111. When used in this Act, the (Provisions not oemparible) term -- (1) "Agency" means the Central Intel- ligence Agency; and (2) "Director" means the Director of Central Intelligence and the Deputy Director of Central Intelligence. TITLE II - THE CENTRAL INTELLIGENCE AGENCY RETIREMENT AND DISABILITY SYSTEM Part A - ESTABLISHMENT OF SYSTEM Rules and Regulations Sec. 201.(a) The Director may pre- scribe rules and regulations for the establishment and maintenance of a Central Intelligence Agency Retire- ment 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 chairmen and ranking minority members of the Armed Services Committees of the House and Senate. TITLE VIII - THE FOREItIN SERVICE Rg- MGM AND oisenzirr MST= Seo. 8014(a) no President may pre- scribe rules and regulations for the maintenance of a Foreign Service Retire- ment and tamability System, origtodly established by section 18 of the Act of Nay 24, 1924 (43 Stat0144), referred to hereafter as the Systeme (Provisions not comparable) Chapter 30. Civil Service Retirement Program Soo. 16.00 This Act shall be admin- istered by the Commission, Eroept as otherwise specifically provided herein, the Commission is hereby authorized and directed to perform, or cause to be performed, any and all acts and to make such rules and regulations as may be necessary and proper for the purpose of carrying the provisions of this Act into full force and effect* ylORICDF1 Approved For Release 2007/01/20: CIA-RDP75B00380R000700150015-7 Approved For Release 2007/01/20: CIA-RDP75B00380R000700150015-7 Proposed CIA Retirement Act Sec. 201. (b) The Director shall administer the system in ascordance with such rules and regulations and with the principles established by this Acto Foreign Service Act Sec. 801. (b) The Secretary 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 (No comparable provision in of the foreign intelligence activities Foreign Service Act.) of the United States and in order fur- ther to implement the proviso of sec- tion 102(d)(3) of the National Security Act of 1947, as amended, (50 U.S.C. 403 (d)(3)) that the Director of Central 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 Director authorized by the provisions of this Act shall be deemed to be final and conclusive and not subject to review by any court. the Civil Service Retirement Act Sec. 16, (a) (See immediately above,) (b) Applications under this Act shall be in such form as the Commis- sion Shall prescribe, and shall be supported by such certificates from departments or agencies as the Com- mission may dem necessary to the determination of the rights of applicants, The Commission shall adjudicate all Claims under this Act. (c) Questions of dependency and disability arising under this Act shall be determined by the Commis- sion and its decisions with respect to such matters shall be final and conclusive and shall not be subject to review. The Commission may order or direct at any time such medical or other examinations as it shall deem necessary to determine the facts relative to the disability or dependency of any person reeeiving or applying for annuity under this Act, and may suspend or deny any such annuity for failure to submit to any such exandnation. (d) An appeal to the Commission shall lie from any administrative action or order affecting the rights or interests of any person or of the United States under this Act, the procedure on appeal to be prescribed by the Commission. Approved For Release 2007/01/20: CIA-RDP75B00380R000700150015-7 Approved For Release 2007/01/20: CIA-RDP75B00380R000700150015-7 Proposed CIL Retirement Act Isteblishment and Maintenance of Fund Sec. 202. There is hereby created a fund to be known as the Central In- telligence Agency Retirement and Disability Fend mhith Shall be main,. tained by the Director. The Central Intelligence Agency Retirement and Disability Fund la referred to here- after in this title as the fund. Foreign Service Act Sec. 802. The Secretary of the Trea- sury shall maintain the special fund, known as the Foreign Service Retire- ment and Disability Fund, referred to hereafter as the FunAs originally constituted by seetien 18 of the Act of Ifay 2/4, 1924 043 State We -3. CivilAervice Retirement Act See. 1. (f) The term "fund* shall mean the civil service retirement and disability fund created by the Aot of May 22A 1920. Approved For Release 2007/01/20: CIA-RDP75B00380R000700150015-7 Approved For Release 2007/01/20: CIA-RDP75600380R000700150015-7 Proposed CIA Retirement Act Participants Sec. 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 employment, hereafter refer- red to as participants, who shall be entitled to the benefits of the system. Any participant who has completed 15 years of service with the Agency and whose career at that time is adjudged by the Director to be qualifying for the system may elect to remain a par- ticipant of such system for the duration of his employment by the Agency and such election shall not be subject to review or approval by the Director. Foreign Service Act See. 803.60The following persons, hereafter referred to as participants, shalI be entitled to the benefits of the System (1) All Foreign Service officers; (2) All other persons making contri- butions to the Fund on the effective date of this Act; (3) Any chief of mission who is not otherwise entitled to be a participant end who fUllalls the conditions of paragraph (b) of this section; (b) A person to become a participant in accordance with the provisions of paragraphs (OW of this section must- (1) have served as chief of Jetsam for an aggregate period of twenty years or more, exclusive of extra ser- vice credit in accordance with the provisions of section 853; and (2) have paid into the Fund a spe- cial contribution for each year of such service in accordance with the provi- sions of section 852(b). (c)(1) In accordance with such regulations as the President may pre- scribe, any Foreign Service staff officer or employee appointed by the Secretary of State who has cmpleted at least ten years of continuous ser. vice in the Department's Foreign Service, exclusive of military ser- vice, shall become a participant in the System and shall make a special contribution to the Fund in accord- ance with the provisions of section 8 . L!ec. 803(c)(2) & (3) relate to the retirement of participants under section 8O3(c)C07 -4? Approved For Release 2007/01/20: CIA-RDP751300380R000700150015-7 Civil Service Retiresent Act Sec. 2. (a) This Act shall apply to each employee and *Mbar, except as hereinafter provided. 1(a). The term "employee' mean a civilian offline' or our. ploys. in or ander the Goverment and, except for purposes of &potion 2, ehall means person tothemi this Act applies. (b) The term Memberm shall man the Tice President, a United States Senator, Representative in Congress, Delegate from a Territory, or the Resident Commissioner from Puerto Rico, and, except for purposes of section 2, shall mean a Maher to whaa this Act applies. (e) -Defies "congressional employee's.; (b) This Act shall not apply to the President, to any judge of the United States as defined under sec- tion 451 of title 28 of the United States Code, or to any eoployee of the Government subject to another retirement system for Government supplied) and (i) eammontibmbers and congressional employees, &ba- tten 2(e) enahmrimmicantesien of tomPererY or lmlarmLIMMmdl ployees. Section 2(f) excludes specified categories of temporary or intermittent employees. Section 2(g) applies to Civil Service Commissioners. Section 2(h) applies to specified persons who are employed by county eammittees umdar the Sell Omemmmnddon and Demestie Allotment ketj Approved For Release 2007/01/20: CIA-RDP75600380R000700150015-7 Proposed CIA Retirement Act Annuitants Sec. 204. (a) Annuitants shall be participants who are receiving an- nuities from the fund and all per- sons, including surviving -wives and husbands, widows, dependent widowers, children, and benefici- aries of participants or annui- tants who shal) become entitled to receive annuities in accordance with the provisions of this Act. (b) When used in this Act the term-- (1) "Widow" means the surviving wife of a participant who was mar- ried to such participant for at least two years immediately preced- ing his death or is the mother of issue by marriage to the partici- pant. (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. Foreign Service Act Sec. 804. (a) Annuitants Shall be persons who are receiving annuities from the Fund and all persons, in- cluding surviving wives and husbands, widows, dependent widowers, children and beneficiaries of participants or annuitants who shall become entitled to receive annuities in accordance with the provisions of this Act, as amended, or in accordance with the provisions of section 5 of the Act of May 1, 1956 (70 Stat. 125). (b) When used in this title the tem-. (1) "Widow m means the surviving wife of a participant who was mar- ried to such participant for at least two years inmediately preced- ing his death or is the mother of issue by such marriage? (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 such marriage, 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. 4. civil Service Retirement Act Sec. 1. (n) The term "annuitant' shall mean any former employee err NeMber who, on the basis of his service, has net all requirements of the Act for title to annuity and has filed ?Labe therefor. (e) The term "survivor" shall mean st mesa who is entitled to annuity meder this Act based on the service of a deceased employee or Member or of a deceased annuitant. (p) The term *survivor annuitent" shall an a survivor who has filed olein for annuity. See. 1. (h) The term "widow" for purposes of section 10, Shall mese the surviving wife of an employee or Member who was married to such individual for at least two years immediately preceding his death or is the mother of issue by such marriage, (i) no tern *widower", for pur- poses of section 10, shall mean the surviving husband of an em- ploy., or Member who wee married to such employee or Member for at least two years immediately pre- ceding her death or is the father of issue by such marriage. The term "dependent widower", for pur- poses of section 10, shall seam a *widower" who is incapable of self- support by reason of mental or phy- sical disability, emit who received more than .me-half his support from such employee or Member, Approved For Release 2007/01/20: CIA-RDP751300380R000700150015-7 Approved For Release 2007/01/20 : CIA-RDP75B00380R000700150015-7 Proposed CIA Retirement Act Sec. 204. (b) (cont'd) (3) "Child" means an unmarried child, under the age of eighteen years, or such unmarried child re- gardless of age who, because of phy- sical or mental disability incurred before age eighteen, is incapable of self-support. In addition to the offspring of the participant and his or her spouse, the term includes (i) an adopted child, and (ii) a stepchild or recognized natural child who received more than one- half of his support from the participant. Foreign Service Act See. 8014, (b)(coutld) (3) *Child? *mane an unmarried child, under the age of eighteen years or such unmarried child re- gardlilles of age who because of phy- sical or mental disability incurred before age eighteen is incapable of self-support. In addition to the offspring of the participant and his or her spouse ,the term includes (a) an adopted child, and (b) a stop-child or recognized natural child who received more than one- half of his support from the the participant. Civil Service Retirement Act Sec. 1, (contid) (j) The term 'child', for pur- poses of section 10, shall mean an unmarried child, including (1) an adopted child, and (2) a stepchild or recognized natural child who reoeived acre than ons-half his support from and lived with the MeMber or employee in a regular parent-child relationship, under the age of eighteen years, or such unmarried child regardless of ago who because of physical or mental disability incurred before age eighteen is incapable of self- support, or such unmarried child between eighteen and twenty- years of age who is a student regularly pursuing a bill-time course of study or training in residence in a high school, trade school, technical or vocational institute, junior college, odllege, university, or comperatae recog- nized 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 10(d) 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 sdhool years if the interim does not exceed four months and if he Shwa to the satisfaction of the Commission that he has a (conttd on page 7) Approved For Release 2007/01/20: CIA-RDP75600380R000700150015-7 Approved For Release 2007/01/20: CIA-RDP75B00380R000700150015-7 Proposed CIA Retirement Act Part B - COMPUWORT CONTRIBUTIONS Sec. 211. (a) Six and one-hPlf per centum of the basic salary received by each participant shall be contri- buted to the fund for the payment of annuities, cash benefits, refunds, and allouances. An equal sum *hall also be contributed from the respec- tive 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 de- posited by the Agency to the credit of the fund. Foreign Service Act Sec. 811. (a) Six and one-half per cent= of the basic salary received by each participant shall be contri- buted to the Fund for the payment of annuities, cash benefits, refunds, and allowances. An equal sae shall also be contributed from the respec- tive appropriation or fuad which is used formulist et kis salary. The amounts deducted and withheld true bogie salary together with the amounts so ?attributed tram the appro. priation or fUnd* shall be deposited by the Department of State in the Treasury of the United States to the credit of the Fund. 4., Civil Service Retirement Act Sec. 10 (j)(oowt'd) bons fide intention of continuing to pursue a course of study or training in the use or different school dur- ing the school semester (or other period into which the school year is divided) immediately following the interim. See. 4. (a) From and after the first day of the first pay period whioh begins on or after the effective dote of the Civil Service Retirement Act amendments of 1956, there shall be deducted and withheld from each em- ployee's basic salary an amount equal to 61 per centun of such basic salary and from each Member's basic salary an amount equal to 71 per oentum of such basic salary, From and after the first day of the first pay period which begins after Juno 30, 1957, an equal sum shall also be con- tributed from the respective appro- priation or fund which is used for payment of his salary, pay or com- pensation, or in the case of an elected official, from each appro- priation or fund as may be available for payment of other salaries of the same office or establishment? The amounts so deducted and withheld by each department or agency, together pith the amounts so contributed, shall, in accordance with such pro- cedurmas may be prescribed by the Comptroller General of the United States, be deposited by the deport- ment or agenoy in the Treasury of the United States to the credit of (continued an page 8) Approved For Release 2007/01/20: CIA-RDP75B00380R000700150015-7 Approved For Release 2007/01/20: CIA-RDP75B00380R000700150015-7 Przposed CIA Retirement Act Sec. 211, (b) Each pertilipeat shall be deemed to oonsent and agree to such deductions from basic* salary, and payment less such deductions shall be a full and complete dis- charge and acquittance of all claims and demands whatsoever for all regu- lar 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. Foreign Service Act Sec. 811. (b) Each participant ahall be deemed to consent and agree to such deductions from basic salary, and payment less such deduction* shall be a full and complete die- Charge and acquaintance (sic) 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 be shall be entitled under this Act, notwithstanding any law, rule, or regulation affecting the individ- uales salary. civil Service Retirement Act Sec. 4. (a) (conted) the fUmd. There shall also be credited all deposits made by sm. ployees or Members under this motion. ffeo, 1(d). The term "basic salary" shall not include bonuses, allow- anoes, overtime pay, military pay, or salary, pay, or compensation given in addition to the ben pry of the position an fixed by law or regulation: Provided, That for emp. ployees paid on a fee basis, the maximum amount of basic salary which may be used shall be $10,000 per annum. --remainder of (di defines basic salary' for a Mamberg (b) Each employee or Member shall be deemed to consent and agree to such deductions from basic salary, and payment less such deductions shall be a full and complete dis- charge and aoquittanoe 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, Approved For Release 2007/01/20: CIA-RDP75B00380R000700150015-7 Approved For Release 2007/01/20: CIA-RDP75B00380R000700150015-7 Proposed CIA Retirement Act PART C - compurwriam CV ANNUrIES Sect, 221. (a) The annuity of a par- ticipant shall be equal to 2 per cents* of his average basic salary for the highest five consecutive years of service, for which contributions have been made to the fund, multiplied by the nuiber of years, not exceeding thirty-five, of service credit obtained in so- Gardenao with the provisions of sections 251 and 252. In deter- mining the aggregate period of service upon which the annuity is to be based, the fractional part of a month, if any, shell not be wonted, Foreign Service Act Sec. 821. (a) The annuity of a par- ticipant shall be equal to 2 per oentne of his average basic salary for the highest five consecutive years of service, for which full contributions have been mode to the fund, multiplied by the number of years, not expeeding thirty-five, of service credit obtained in ao- cordance with the provisions of sections 851, 852, and 853. How. ever, the highest five years of servioe for which full contribu- tions have been mods to the Fund shall be used in computing the annuity of any participant who serves as chief of mission and whose continuity of service as such is interrupted prior to retirement by appedntment or assignment to any other position determined by the Semetary to be of semparehle importance. In deteesining the aggregate period of wreak epos ihisk the annuity is Ube based, the fractional part of a month, if any, shall not be counted. -9? Civil Service Retirement Act 27oo. 1. (e) The term "average salary* shall mean the largest annual rate resulting trout aver- aging, over any period of five consecutive years of creditable malls!, or at a Member's' option 6*V-ill periods of Member ser- vice subsequent to the date of enactment of the Legislative Re- organization Act of 1946 used in the computation of an annuity under this Act, a Member's or an employeete rates of basic salary in effect during such yeriod, with each rate weighted by the time it was in effect. (Omderscoring supplieCy See. 9. (a) Except as otherwise provided in this section, the annuity of an employee retiring under this Act shell be (1) the larger of (A) l per centum of the average salary multiplied by so mnch of the total service as does not emceed five years, or (B) 1 percentnm of the average salary, plus $25, multiplied by so mumh of the total service as does not exceed five year., plus (2) the larger et (A) 1 3/4 per cent= of the average salary multiplied by gm Amok of the total service as =seeds tile years bet does not exceed tan years, or (B) 1 per =Ann of the oversee salary, plus 1125, multiplied by so much of the total envies as exceeds five years but does not exceed ten years, plus (3) the larger (cont'd on page 10) Approved For Release 2007/01/20: CIA-RDP75B00380R000700150015-7 Approved For Release 2007/01/20: CIA-RDP75600380R000700150015-7 Proposed CIA Retire:want Act Foreign Service Act Civil Service Retirement Act Sec. 9(a) (castid) of (1.) 2 per cents' of the average salary multiplied by so much of the total service as exceeds ten years, or (B) 1 per oentun of the average salary, plus $25, multiplied by so much of the total service as ex- ceeds ten years: Provided, That the annuity shall not exceed 80 per cent= of the average salary: Pro- vided further, That the annuity of an employee retiring under section 7 taxability retirement shall be at least (1) 40 per of the average salary or (2) the sun ob- tained under this subsection after increasing his total service by the period elapsing between the date of separation and the date he attains the age of sixty years, whichever is the lesser, but this proviso shall not increase the annuity of any survivor? ffection 9(b) deals with the annuity of a congressional em- ployee. Section 9(c) deals with the annuity of a Member. Section 9(d) deals with the reduction in annuity of an employee retiring under age 60. Section 9(e) deals with the annuity of an employee retiring =der :motion 6(c) whiak melees epeoial provision for ?FBI- type" employeeo (f) The annuity as hereinbefore provided shall be reduced by ID per centun of any deposit deseribed in section 4(c) remaining =Mid* unless the employee or Member shall elect to eliminate the for- , vice involved for the purposes of 40- annuity computation Approved For Release 2007/01/20: CIA-RDP751300380R000700150015-7 Approved For Release 2007/01/20: CIA-RDP75B00380R000700150015-7 Proposed CIA Retirement Act Foreign Service Act Civil Service Retirement Act Sec. 3. (f) An employee must have completed at least five years of civilian service before he shall be eligible for annuity under this Act. (g) An employee or Member must have, within the two-year peR7 preceding any separation from ser- vice, other than a separation by reason of death or disability, com- pleted at least one year of credi- table civilian service during which he was subject to this Act before he or his survivors shall be eligi- ble for annuity under this Act based on such separation. If any employee or Member, other than an employee or Member separated from the service by mason of death or disability, fails to meet the service require- rent of the preceding sentence, the amounts deducted from his salary during his period of service for which no eligibility for annuity is established based on such separation shall be returned to him upon such separation. Failure to meet this service requirement shall not deprive the individual or his survivors of any annuity rights which attached upon a previous separation. (Underscoring supplied) Approved For Release 2007/01/20: CIA-RDP75B00380R000700150015-7 Approved For Release 2007/01/20: CIA-RDP75B00380R000700150015-7 Proposed CIA Retirement Act Foreign Service Act Civil Service Retirement Act ? No comparable provision. No comparable provision. Sec. U. (h)(1) Any amounts de- ducted and withheld from the basic salary of an employee or Member from the first day of the first month which begins after he shall have Performed sufficient service (exclu- sive of any service which the em- ployee or Member elects to elimi- nate for purposes of annuity com- putation under section 9) to entitle him to the maximum annuity provided by section su together with interest an such amounts at the rate of 3 per cent= per annum compounded annually from the date of such deductions to the date of retirement or death, shall be applied toward any deposit due under section 4, and any balance not so required shall be deemed to be a voluntary contribution for the purposes of seotion 12. (Under- scoring supplied.) Approved For Release 2007/01/20: CIA-RDP75B00380R000700150015-7 Approved For Release 2007/01/20: CIA-RDP75600380R000700150015-7 Proposed CIA Retirement Act Sec. 221. (b) At the time of retire- ment, any married participant may elect to receive a rednoed annuity and to provide for an annuity pay- able to his wife or her husband, commencing on the date following such participant's death and terminating upon the death of such surviving mite or husband. The annuity payable to the surviving elle or husband after such parti- cipant's death shall be 50 per centum of the amount of the par- ticipant's annuity computed as prescribed in paragraph (a) of this section, up to the fall amount of such annuity specified by Mates the base for the sur- vivor benefits, The annuity of the participant making such election shall be reduoed by 2i per oentum of any amount up to S2,400 he specified as the base for the survivor benefit plus 10 per cent= of any amount over $2,400 so specified. Foreign Service Act Sec. 821. (b) At the time of retire- ment, any married participant may elect to reosive a reduced annuity and to provide for an annuity payable to his wife or her husband, commenc- ing on the date fellowing such par- ticipent's death and termineting upon the death of such surviving wife or husband. The annuity payable to the surviving wife or husband after such participant's death Shall be 50 per oentua of the amount of the participant's 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 2i per centum of any amount up to $2,400 he specifies as the base for the survivor benefit plus 10 per aentua of any amount o'er $2,400 so specified. Civil Service Retirement Act Sec. 10. (a)(1) If an employee or Sober dime after having retired under any provision of this Act and is survived by a wife or husband to whoa the employee or &Mbar was mar- ried at the time of retimment, such wife or husband shall be paid an annuity equal to 55 per cent= of an annuity computed an provided in subsections (a), (b), (c), (d), (e), and (f) of station 9, as may apply with respect to the annuitant, or of such portion thereof as may have been designated in writing for such purpose by the employee or Member at the time of retirement, unless the employee or Member has notified the Commission in writing at the time of retirement that he does not desire his wife or husband to re- ceive such annuity. (2) An annuity computed under this subsection shall commerce on the day after the retired employee or member dies, and such annuity or any right thereto shall terminate an the last day of the month before the survivor's death or remarriage. Sect, 9. (g) The annuity as herein-. before provided (excluding any in- crease because of retirement under section 7 laisability retirems47 for any married employee or Member retiring under this Act, or for any portion of such annuity designated in limiting for purposes of section 10(a)(1), shall be reduced by 21 per centum of so much thereof as does not exceed $30600 and by 10 per centum of so much thereof as (cont'd on page 12) Approved For Release 2007/01/20: CIA-RDP751300380R000700150015-7 Approved For Release 2007/01/20: CIA-RDP75B00380R000700150015-7 Proposed CIA Retirement Act Sec. 221, (e)(2) If an annuitant dies and is survived by a wife or husband and by a child or children, in addition to the annuity payable to the surviving wife or husband, there than be paid to or on behalf of each child an annuity equal to the smallest of: (i) 40 per oentum of the annuitant's average basic salary, as determined under pars- graph (a) of this section, divided by the number of children; (ii)$600; or (iii) $1,800 divided by the num- ber of children. (2) If an annuitant dies and is not survived by a mile or husband but by a Child or children, each surviv- ing child Shall be paid an annuity equal to the smallest of (i) 50 per centum of the annuitant's average basio salary, as determined under paragraph (a) of this motion, di- vided by the number of children; (ii) $720; or (iii) $2,160 divided by the number of Children, Foreign Service Act Sec, 821. (c)(1) If an annuitant dies and is survived by a wife or husband and by a child or children, in addition to the annuity payable to the surviving wile or husband, there shall be paid to or on behalf of each child an annuity equal to the emellest of:(i) 40 per centum of the annuitant's average basis salary, as determined under para- graph (a) of this section, divided by the number of children; (ii)$600; or (iii) $1,800 divided by the num- ber of children." (2) If an annuitant dies and is not survived by a wife or husband but by a Child or Children, each surviv- ing child Shill be paid an annuity equal to the smallest of: (i) 50 per centum of the annuitant's average basic salary, as determined under paragraph (s) of this section, di- vided by the number of Children; (ii) $720; or (iii) $2,160 divided by the number of Children. -12- Civil Service Retirement Act Sec, 9(g) (contld) exceeds $3,600 unless the employee or Member notifies the Commission in writing at the time of retire- ment that be does not desire his wife or husband to receive an annuity as provided in section 10(a)(1), Sec, 10. (d) If an employee or a Member dies after completing at least five years of civilian ser- vice, or an employee or a Masher dies after having retired under any provision of the Act, and is survived by a vibe or by a hatband, each surviving child who received mmme than one-half of his support from such employee or Member shall be paid an annuity equal to the smallest of (1) 40 per mut= of the employee's or Member's average salary divided by the number of children, (2) $600, or (3) $1,800 divided by the number of children. If such employee or Member is not survived by a wife or husband, each surviving child shall be paid an annuity equal to the smallest of (1) 50 per cent= of the employee's or Member's average salary divided by the number of Children, (2) $720, or (3) $2,160 divided by the number of Children, The child's annuity WW2 commenee an the day after the employee or Member dies:, and such annuity granted under this Act or under the Act of May 29, 1930, ea amended from and after February 28, 1948, or any right thereto Shan terminate an the last day of the (cont'd on page 13) Approved For Release 2007/01/20: CIA-RDP75B00380R000700150015-7 Approved For Release 2007/01/20: CIA-RDP75B00380R000700150015-7 Proposed CIA Retirement Lot Sec. 221. (d) If a surviving wife or husband dies or the annuity of a Oland is terminated, the annuities of any remaining children Shall be recomputed and paid as though sudh vile, husband, or child had net sur- rived the participant. (e) The annuity payable to a child under paragraph (c) or (d) of this section shall begin on the first day of the next eolith after the partial- pant dies and such annuity or any right thereto shall be terminated upon death, marriage, or attainment of the age of eighteen years, exoept that, if a child is incapable of self-support by reasons of mental or physical die- ability, the annuity shall be termi- nated only when such child dies, marries, or recovers from such dis- ability. Foreign Service Act Sec. 821. (d) If a surviving wife or husband dies or the annuity of a child is terminated, the annuities of any remaining children ahall be re- computed and paid as though such wife, husband, or child had not ear- rived the participant. (e) The annuity payable to a child under paragraph (c) or (d) of this section shall begin on the first day of the next month after the partici- pant dies and such annuity or any right thereto shall be terminated upon death, marriage, or attainment of the age of eighteen years, except that, if a child is incapable of self-support by reasons of mental or physical die- abiJity, the annuity shall be termi- nated may when such child dies, marries, or recovers from such dis- ability. 43- Civil Service Retirement Act Sec. 10(d)(contid) month before (1) his attaining age eighteen unless incapable of self- support, (2) his becoming capable of self-support after age eighteen, (3) his earriage, or (4) his death, except that the annuity of a child who is a student as described in section 1(j) shall terminate on the last day of the month before (1) his marriage, (2) his death, (3) his ceasing to be each a student, or (4) his attaining age twenty-one. Upon the death of the surviving wife or husband or termination of the annuity of the child, the annuity of any other child or children shall be recomputed and paid as though such wife, husband, or child had not survived the employee or Nether. ffee Sec. 10(d) above beginning an page 12 at 'The thild's annuity shall commence on the day after the employee or Member dies" and continuing through g(3) his missing to be a student, or (4) his attain- ing age twenty-one immediately labored Approved For Release 2007/01/20: CIA-RDP75B00380R000700150015-7 Approved For Release 2007/01/20: CIA-RDP75600380R000700150015-7 Proposed CIA Retirement Act Sec. 221. (f) Any unmarried partici- pant retiring under the provisions 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 hereinbe- fore provided, and designate in writing a person having an insurable interest (as that term is used in 5 U.S.C. 2259(h)) in the partici- pant to receive an annuity after the participant's death. The annuity payable 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 50 per centum of the reduced annuity com- puted as prescribed above. The annuity payable to a beneficiary under the provisions of this para- graph shall begin on the first day of the next month after the parti- cipant dies. Upon the death of the surviving beneficiary all pay- ments shall cease and no further annuity payments authorised under this paragraph shall be dos or payable. Foreign Service Act Sec. 821. (f) At the time of retire- ment an unmarried participant may elect to receive a reduced annuity and provide for an annuity equal to 50 per centum of the reduced annuity payable after his or her death to a beneficiary whose name shall be designated in writing to the Secre- tary. The annuity payable to a par- ticipant 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 mixt= of an annuity so computed for each full five years the person designated is younger than the retiring participant, but such total reduction shall not ex- ceed 40 per contain. No such elec- tion of a reduced annuity payable to a beneficiary shall be valid until the participant shall have satisfactorily passed a physical examination as prescribed by the Secretary. 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 bene- ficiary all payments shall cease and no further annuity payments authorized under this paragraph shall be due or payable. 114 Civil Service Retirement Act Sec. 9. (h) Any unmarried employee or Member retiring under section 6 or 8, and found by the Commission 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 in- surable interest in the employee or Member to receive an annuity after the retired individual's death. The annuity payable to the employee or Member making such election shall be reduced 10 per centum of an annuity computed as provided in section 9 and by 5 per centum of an annuity so computed for each full five years the per- son designated is younger than the retiring employee or *mbar, but such total reduction shall not exceed 40 per oantum. Sec, 10. (b) The annuity of a sur- vivor designated under section 9(h) shall be 55 per centum of the re- duced annuity computed as provided in subsections (e), (b), (Os (d), (e), (f), and (h) of section 9 as may apply with respect to the annuitant. The annuity of such survivor shall commence on the day after the retired employee or Member dies, and such annuity or any right thereto shall terminate on the last day of the month be- fore the survivor's death. Approved For Release 2007/01/20: CIA-RDP751300380R000700150015-7 Approved For Release 2007/01/20: CIA-RDP75B00380R000700150015-7 Propeeed CIA, Retirement Act PART D - BENEFITS ACCRUING TO CUTLIN PARTICIPANTS Retirement for Disability or Incapa- city--Medical Examination--Recovery Sec. 231. (a) Any participant who has five years of service credit toward retirement under the system, exclud- ing military or naval service that is credited in accordance with provi- alone of section 251 or 252(a)(2), and who becomes totally disabled or incapsoitated for useful and effi- cient service by reason of disease, I llness, 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 competed as prescribed in section 221. If the disabled or incapacitated partici- pant has less than twenty years of service credit toward his retire- ment under the system at the time he is retixesishis annuity hall 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 oaae ex- ceed the difference between his age at the tine of retirement and the mandatory retirement age applicable to his grade in the Agency, Foreign Service Act See. 831. (a) Any participant who hae five years of service credit toward retirement under the System, exclud- ing military or naval service that is credited in accordance with provi- sions of section 851 or 852(0(2), and who becoaes totally disabled or incapacitated for useful and effi- cient 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 Secretary be re- tired on an annuity computed as prescribed in section 821. If the disabled or incapacitated partici- pant has less than twenty years of service credit toward his retire- ment under the System at the time he is retired, his annuity shall be oomputed 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 the mandatory retirement age applicable to his class in the Servioe. qpil Sardis Retireneat Art Sec. 1. (g) The terms mcktembled* and sability* shall mean totally dis- abled for useful and efficient service in the grade or class of position last occupied by the employee or Member by reason of disease or injury not due to vicious habits, intemperance, or will- fel misconduct on his part within the five years next prior to becoming so disabled. Sec. 7. (a) Any employee who completes five years of civilian service and 'who is found by the Commission to have be- gone disabled shall, upon his own application or upon application by his department or agency, be retired an an amnnity computed as provided in sec- tion 9. Any Amber who completes five years of Member service and who is femnd by the Commission to have become disabled shall, upon his own applica- %loft, be retired on an annuity can, rated as provided in section 9. (b) No claim shall be allowed under this section unless the application is flied with the Commission prior to separation of the employee or Member from the service or within one year thereafter. This time limitation may be waived by the Commission for an individual who at the date of separa- tion from service or within one year thereafter is mentally incompetent, if the application is filed with the Commission within one year from the at. of restoration of such indivi- dual to competenoy or the appointment if a fiduciary, whichever is the earlier. , (canted on page 26) Approved For Release 2007/01/20: CIA-RDP75B00380R000700150015-7 Approved For Release 2007/01/20: CIA-RDP75600380R000700150015-7 Proposed CIA Retirement Act Sec. 231. (b) In each case, the par- ticipant shall be given a medical examination by one or more duly qualified physicians or surgeons designated by the Director to conduct examinations, an 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 in the Agency. If the Direc- tor determines an the basis of the (cont'd on page 17) Foreign Service Act Sec. 831. (b) In each case, the participant shall be given a phYsical examination by one or more day qual- ified physicians or surgeons desig- nated by the Secretary to conduct examinations, and disability shall be determined by the Secretary an the basis of the advice of such physicians or surgeons. Unless the disability is permanent, like examinations Shall be made anmnally until the annuitant has reached the statutory mandatory re- tirement age for his class in the Service. If the Secretary determines, on the basis of the (cont'd page 17) Civil Service Retirement Act /gee. 9(5) concerning the computation "af annuities (quoted opposite Sec. 221 (a) of the Proposed CIA Retire- ment Act above) specifically pro. vides as follows for disability annuities: wProvided further, That the annuity of an employee retiring under section 7 shall be at least (3) 40 per oentum of the average salary or (2) the BUR obtained under this sabeection after increasing his total service by the period elapsing between the date of separation and the date he attains the age of sixty years whichever is the lesser, but this Proviso shall not increase the annuity of any serviver.5 igen. 16(c), quoted in full above opposite sec. 201(c) of the Proposed CIA Retirement Act, provides that disability determinations by the Commission are final and conclusive and not subject to reviewa7 Sec. 7. (c) Each annuitant retired under this section or under sec- tion 6 of the Act of May 29, 1930, as amended, unless his disability is permanent in character, shall at the expiration of one year from the date of such retirement and annually thereafter, until reaching age sixty, be examined under the direction of the Commission. If the annuitant fails to submit to examination an required under this section, payment of the annuity shall be suspended until continuance of the disability is satisfactorily established. (cont'd on page 17) Approved For Release 2007/01/20: CIA-RDP751300380R000700150015-7 Approved For Release 2007/01/20: CIA-RDP75B00380R000700150015-7 Proposed CIA Retirement Act Sec. 231. (b) (contid) advice of one or mere duly qualified physicians or surgeons conducting such examinations that an annuitant has re- covered to the extent that he can return to duty, the annuitant may apply for reinstatement or reappoint- ment in the Agency within ane year fram the date his recovery is deter- mined. Upon application the Direc- tor may reinstate any such recovered disability annuitant in the grade in which he was serving at time of re- tirement, or the Director may, tak- ing into consideration the age, qualifications, and experience of such annuitant, and the present grade of his contemporaries in the Agency, appoint him to a grade higher than the one in which he was serving prior to retirement. Pay- ment of the annuity shall continue until a date six months after the date of the examination showing recovery or until the date of re- instatement or reappointment in the Agency, whichever is earlier. Fees for examinations under this provision, together with reasomable traveling and other expenses in- curred in order to submit to exam- ination, shall be paid out of the fund. If the annuitant 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. Foreign Service Act See, 834 (b) (oentfd) advise of one or more duly qualifled pride= or surgeons conducting sunk exambiationa thnt an annuitant has re- covered to the extent that he can return to duty, the annuitant nay apply for reinstatement or reappointment in the Service within one year from the date his recovery is determined. Upon appli- cation the Secretary shall reinstate any such recovered disability anmuitant in the dines in whieh he was serving at time of retirement, or the Secretary spy, taking into consideration the age, qualifications* and experience of such annuitant, and the preesnt class of hie contemporaries in the Service, appoint him or, in the case of an annuitant mho is a Arear Foreign Service officer, reconmend that the President appoint him, by and with the advice and consent of the Senate, to a class 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 show- ing recovery or until the date of rein- statement or reappointment in the Ser- vice, whichever is earlier. Fees for examinations under this provision, to- gether with reasonable traveling and other expanses occurred in order to submit to examination, shall be paid cue of the Fund. If the annuitant fails to submit to examination as re- quired under this section, paymemt of the annuity shall be suspended until continuance of the disability is satis- factorily established. Civil Service Retirement Act See. 7. (d) If such annuitant, before reaching age sixty, recovers from his disability, payment of the annuity shall 00S98 upon reemployment by the Government or one year from the date of the medical examination showing each recovery, whichever is earlier. If such annuitant, before reaching age sixty, is restored to en earning capacity fairly comparable to the current rate of compensation of the position occupied at the time of re- tirement, payment of the annuity shall cease upon reemployment by the Govern- ment or one year from the end of the calendar year in which earning capa- city is so metered, whichever is ear- aier. Earning capacity shall be deemed restored if, in sash of two succeeding calendar years, the income of the annuitant from wages or self- employment, or both, shall equal at least 80 per centum of the current rate of compensation of the position eacepied immediately prier to retirement. Sen. 16. (a) Fees for emanations made under the provisions of this Act, by physicians or surgeons who are pat medical officers of the United States, shall be fixed by the Corn.. mission, and such fees, together with reasonable traveling and other expenses incurred in connection with end' examinations, shall be paid out of the appropriations for the cost of administering this Act. Approved For Release 2007/01/20: CIA-RDP75B00380R000700150015-7 Approved For Release 2007/01/20: CIA-RDP75B00380R000700150015-7 Proposed CIA Retirement Act Sec. 231. (c) If a recovered disability annuitant whose annuity is discontinued is for any reason not reinstated or re- appointed in the-Agency, he shall be considered to have been separated with- in the meaning of peragraphs (a) and (h) of notion 234 as of the date he was retired for disability and he shall, after the discontinuance of the dis- ability annuity, be entitled to the benefits of that section or of sec- tion 241(a) except that he way elect voluntary retirement in accordance with the provisions of section 233 if he can qualify under its provi- sions. Foreign Service Act Sec. 831. (c) If a recovered disability annuitant whose annuity is discontinued is for any reason not reinstated or re- appointed in the Service, he shall be considered to have been separated with- in the meaning of section 834 as of the date be was retired for disability and he shall* after the discontinuance of the disability annuity, be entitled to the benefits of that section or of section 841(a) except that he may elect voluntary retirement in accord- ance 'with the provisions of section 636 if he can qualify under its provisions. Civil Service Retirement Act Sec. 7. (e) If such annuitant whose annuity is discontinued under subsec- tion (d) is not reemployed in any position included in the provisions of this Act* he shall be considered except for service credit, as having been involuntarily separated from the service for the purposes of this Act as of the date of discontinuance of the disability annuity and shall, after such discontinuance* be en- titled to annuity in accordance with the applicable provision of this Act. In the case of an annuitant whom annuity is heretofore or hereafter discontinued because of an earning capacity provision of this or any prior ism and such annuitant is not reemployed in any position included in tIva provisions of this Act, annuity at the same rate shall be restored effective the first of the year following any calendar year in 'hi& his income from males or self- emplAymeat, or both, is lees thee 80 par costae of the carnet rate of compensation of the position occupied immediately prior to retirement, if he has not recovered from the disabil- ity for which he was retired. In the case of an annuitant whose annuity is heretofore or hereafter discontinued because of a medical finding that the annuitant has recovered from disabil- ity and such annuitant is not mem.. ployed in any position included in the provisions of this Act, annuity at the same rate shall be restored ef- fective from the date of medical exam. ination showing a recurrence of such (contid on page 19) Approved For Release 2007/01/20: CIA-RDP75B00380R000700150015-7 Approved For Release 2007/01/20: CIA-RDP75B00380R000700150015-7 Proposed CIA Retirement Act Sec. 231. (d) No participant shall be entitled to receive an annuity under this Act and compensation for injury or disability to himself un- der the Federal Employees' Compen- sation Act of September 7, 1916, as amended, (5 U.S.C. 751 et 2210 covering the same peridrof time. This provision shall not bar the right of any claimant to the greater benefit conferred by either Act for any part of the same period of time. Neither this provision nor any pro- vision of the said Act of Septem- ber 7, 1916, as amended, shall be so construed as to deny the right of any person to receive an annuity under this Act by reason of his own services and to receive concurrently any payment under such Act of Septem- ber 7, 1916, as amended, by reason of the death of any other person. Foreign Service Act Sec. 831. (d) NO participant shall be entitled to receive an annuity under this Act and compensation for ingnry or disability to himself under the Federal EnOloyees' Compensation Act of September 7, 1916, as amended, covering the same period of tine. This provision Shill not her the right of any olaimant to the greater benefit conferred by either Act for any pert of the same period of time? Neither this provision nor any pro- vision of the Act of Sestember 7, 1916, as amended, Shill be so con- strued as to deny the right of any person to receive an annuity under this Act by reason of his own elerio vices and to receive concurrently any payment under such Act of Septem- ber 7$ 1916, as amended, by reason of the death of any other person, Civil Service Netirenant Act Sec. 7(0)(oontid) disability. Neither the second nor third sentence of this subsection shall be applicable in the ease of any person receiving or eligible to receive annuity under the first sen- tence hereof and who has reached the age of sixty-two years. Sec. 7. (f) No person shall be en- titled to receive an annuity under this Act and compensation for in- jury or disability to himself under the Federal Employees' Compensation Act of September 7, 1916, as amended, covering the same period of time. This provision Shall not bar the right of any dlaimant to the greater benefit conferred by either lot for any part of the same period of time. Neither this provision nor any pro- visionin such Act of September 7, 1916, as amended, shall deny to mAY person an annuity accruing to such person under this Act on ado:Aunt of service rendered by him, or deny any concurrent benefit to such person under such Act of September 7, 1916, as amended, on account of the death of any other person. Approved For Release 2007/01/20: CIA-RDP75B00380R000700150015-7 Approved For Release 2007/01/20: CIA-RDP75600380R000700150015-7 Proposed CIA Retirement Act Sec. 231. (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 re. oeived an award of compensation in a lump /Maunder 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 sale disability for which compensa- tion under such section has been paidt so much of such compensation as has been paid for any period extended be- yond the date such annuity becomes effective, as determined by the Sec- retary of Labor, shall be refunded to the Department of Labor, to be paid into the Federal employees' (sampan- :intim fUnd. Before such person shall receive such annuity he shall (1) refund to the Department of Labor the amount representing such com- muted payments for such extended period, or (2) authorize the deduc- tion of such amount from the annuity payable to him under this Act, which amount shall be transmitted to such Department for reimbursement to such fund. Deductions from such annuity may be made from accrued and accruing payments, or may be prorated against and paid from accruing payments in such manner as the Secretary of Labor shall determine, whenever he finds that the financial circumstances of the annuitant are such as to warrant such deferred refunding. Foreign Service Act Sec. 831. (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 re- oeived an award of compensation in a lump sum under section 14 of the Act of September 7, 1916, as amended, except that where such annuity is payable on account of the same dis- ability for which compensation under such section has been paid, so mach of such compensation 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 De- partment of Labor, to be paid into the Federal Employees' Compensation Fund. Before such person shall re- ceive such annuity he shall (1) re- fund to the Department of Labor the amount representing such computed payments for such extended period, or (2) authorize the deduction of such amount from the annuity payable to him under this Act, which amount shall be transmitted to such Depart- ment for reimbursement to such Fund. Deductions from such annuity may be made from accrued and accruing pay- ments, or may be prorated against and paid from accruing payments in such manner as the Secretary of Labor shall determine, whenever he finds that the financial circum- stances of the annuitant are such as to warrant such deferred refunding, Civil Service Retirement Act see. 7. (g) Notwithstanding any pro- vision 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 re- ceived an award of compensation in a lump sum under section 14 of the Act of September 7, 1916, as amended, ex- cept that where such annuity is payable on account of the sane disability for which compensation under such section has been paid, so much of such compen- motion as has been paid for any period extended beyond the date such annuity becomes effective, as determined by the Deportment of Labor, shall be re- funded to the Deportment of Labor, to be covered into the Federal Employees' Compensation Fund. Before such person shall receive such annuity he shall (1) refund to such Department the amount representing such commuted pay- ments 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 transmitted to such Department for reimbursement to such fund. Deductions from such annuity may be made from accrued and accruing payments, or may be prorated against and paid from accruing payments in such manner as the Department of Labor shall deter- nine, whenever it finds that the financial circumstances of the annui- tant are such as to warrant such deferred refunding. Approved For Release 2007/01/20: CIA-RDP75600380R000700150015-7 Approved For Release 2007/01/20: CIA-RDP75B00380R000700150015-7 Proposed CIL Retirement Act Death in Service Sec, 232, (a) In case a participant dies and no claim for annuity is pay- able under the provisions of this Act, his contributions to the famd, With interest at the rates prescribed in sections 2141(8) and 281(a), shall be be paid in the order of precedence ahawn in section 241(b). Foreign Service Act Sec. 832, (a) In case a participant dies and no claim for annuity is pay- able under the provisions of this Act, his contributions to the Fund, with interest at the rates prescribed in gentians 8141(a) and 881(a), shall be paid in the order of precedence mho= in section 841(b), .21- %ma Service Retirement Aft ape, um (d) If an conloyee or Mosher dies (1) without a survivor, or (2) with a survivor or survivors and the right of all survivors shall terminate before claim for survivor amenity is filed, or if a former emOloyee or Member not retired dies, the Inmp-sum credit shall be paid, Aka. The tern ItImq.maa =edits shall alma the =refunded amount consisting of (L) the re- tiemeent deductions =de fres the beide salary of an emplegee or Mbeflar, (2) any sums deposited by ma employee or Member covering prior service, and (3) interest an suah deductions and deposits at h percent= per annum to Decelber 31, 2017, and 3 per centum per annum thereafter compounded annually to Dumber 31, 1955, ar, in the case of an employ= or MemAer separated or transferred to a position not etthin the purview of this Act be- fore he has completed five years of eivilian service, to the date of the separation or transfer, The lump-sum credit shall not include Interest if the service covered thereby aggregates one year or less, mer =all it include interest for the fractional part of a acniii in the total sereligV Zt:71 11(c), quoted in fell opposite section 241(b) of the Proposed CIA Retirement Act, specifies the order of precedence for papent of a lump sum benefit47 Approved For Release 2007/01/20: CIA-RDP75B00380R000700150015-7 Approved For Release 2007/01/20: CIA-RDP75B00380R000700150015-7 Proposed CIA Retirement Act Sec. 232. (b) If a participant, who has at least five years of service credit toward retirement under the system, excluding military or navel service that is credited in accord- ance with the Provisions of section 251 or 252(a)(2)? dies before aspi- ration or retirement from the Agana and is survived by a widow or depen- dent widower, as defined in section 204, such widow or dependent widower shall be entitled to an annuity equal to 50 per centum of the annu- ity computed in accordance with the provisions of paragraph (e) of this section and of section 221(a), The annuity of such widow or dependent widower shall commenoe on the date fallowing death of the participant and shall terminate upon death of the widow or dependent widower, or upon the dependent widower's becom- ing capable of self-support. Foreign SorAm Act ftse ext. (a) if a participant vb. has at least five years of service credit toward retirement under the System, excluding military or naval service that is credited in accordance with the provisions of section 851 or 852(a)(2), dies before separation or retirement fron the Service and is survived by a widow or a dependent widower, as defined in section 804, such widow or dependent widower shall be entitled to an annuity equal to 50 per oentum of the annuity computed in accordance with the provisions of paragraph (e) of this Bootie& and of section 821(a). The annuity of such widow or dependent widower Shall commence on the date fallowing death of the participant and &all termi- nate upon death of the widow or dependent widower, or upon the de- pendent widower's booming culpable of self-support. Civil Service Retirement Act Soo. 10. (c) If an employee or a Member dies after completing at least five years of civilian ser- vice, the widow or dependent widower of such employee or Member shall be paid an annuity equal to 55 per ?lantana an annuity computed as provided in sUbsections (a), (b), (c), (e), and (f) of section 9 as may apply with respect to the es- ployee or Member. The annuity of such widow or dependent widower shall commence an tin day after the employee or Member dies, and such annuity or any right thereto shall terminate on the last day of the month before (1) death or re- marriage of the widow or widower or (2) the widower's becoming capable of self-support. Approved For Release 2007/01/20: CIA-RDP75B00380R000700150015-7 Approved For Release 2007/01/20: CIA-RDP75B00380R000700150015-7 Privosed CIA RetireggeAd See. 232. (c) If a participant eho has at least five yearn of service credit toward retirement under the syetes, ex- cluding military or naval service that is credited in accordance with the pro- visions of section 251 or 252(0(2), dies before separation or retirement from the Agency and is survived by a wile or a husband and a child or chil- dren, each surviving child shall be entitled to an annuity computed in accordance with the provisions of section 221(c)(1). The ohildlo an- nuity shall begin and be terminated in accordance with the preelsions of section 221(0. Upon the death of the surviving wile or hmsbemd or termina- tion of the annuity of a child, the annuities of any remaining children shall be recomputed and paid as though such wile or husband or child had not survived the participant. Foreign Service Act Sec. 832. (c) If a participant who has at least five years of service credit toward retirement under tho System, ex- cluding military or naval service that is credited in accordance with the pro- visions of section 851 or 852(e)(2), dies before separation or retirement from the Service and is survived by a wife or a husband and a child or chil- dren, each surviving child shall be entitled to an annmity somputed in accordance with the provisions of section 821(c)(1). The Obildte ewe- ity shall begin and be terminated in accordance with the provisions of section 821(e). Upon the death of the surviving mite 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. Civil Service Retirement Act Sect. 10. (d) If an employee or a &Inbar dies after completing at least five years of civilian ser- vim, or an employee or a ReMber dies after having retired under any provision of the Act, and is sur- vived by a Idle or by a husband, each surviving Child who received more than one-half of his support from such employee or Meiber shall be paid an annuity equal to the smallest of (1) 40 per cant= of the employees or Member's average salary divided by the number of children, (2) $600, or (3) $1,800 divided by the number of children. I.Z:cntinned on page 24 opposite sec. 232 (d) of the Proposed GLA Retirement lag Approved For Release 2007/01/20: CIA-RDP75B00380R000700150015-7 Approved For Release 2007/01/20: CIA-RDP75B00380R000700150015-7 Propelled CIL Retileeent kat. Soo. 232. (d) If a participant who has at least five years of service credit toward retirement under the system, ex- cluding military or naval service that is credited in accordance with the pro- visions of section 251 or 252(a)(2), dies before separation or retirement from the Agency and is not survived by a mile or husband, but by a ohild or children, each surviving child shall be entitled to an annuity computed in accordance with the previsions of sec- tion 221(0(2). The child's annnitY shall begin and termanate in accord- ance with the provisions of section 221(3). Upon termination of the annu- ity of a child, the annuities of any remaining children shall be recom- puted and paid as though that child had never been entitled to the benefit. Foreign Service Act See. 832. (d) If a participant 'who has at least five years of service credit toward retirement under the System, ex- eluding military or navel service that is credited in accordance with the pro- visions of section 851 or 852(a)(2), dies before separation or retirement from the Service and is not survived by a wife or husband, but by a Child or children, each surviving child shell be entitled to en annul*, owWwtedliw aseordance with the provisions of see- time 521(o)(2), the chi1d6s amity ehall begin and texednate in awar4 amp with the provisions of egotism 821(e). Upon termination of the annu- ity of a child, the annmities of any remaining Children shall be recomputed and paid as though that Child had never been entitled to the benefit. -24- Civil Service Retirement Act Sec. 10. (d) (oont'd) If such employee or Meeberis not survived by a wife or husband, each surviving child shall be paid an annuity equal to the =Meet of (1) 50 per ?antis of the employee's or Menbees average salary divided by the Dunbar of childrem# (2) $7200 or (3) $2,160 divided by the member of children. The Child's annuity shall commence on the day after the employee or &Aber dies, and en& annuity granted under this Act or under the lot of May 29, 1930, as amended tram and after February 28# 1948, or any right thereto shall terminate an the last dry of the month before (1) his attaining age eighteen unless incapable of self- support, (2) his becoming capable of solf-enpport after age eighteen, (3) his marriages or (4) his death, except that the annuity of a child who is a student as described in section 1.(j) shall terminate am the last day of the month before (1) his marriage, (2) his death, (3) his ceasing to be such a stu- dent, or (4) his attaining age twenty-one. Upon the death of the surviving wife or husband or termination of the annuity of the Child, the annuity of any other Child or children shall be recom- puted and paid as though such wife, huiband, or child had not survived the empaoyee or Member. Approved For Release 2007/01/20: CIA-RDP751300380R000700150015-7 Approved For Release 2007/01/20: CIA-RDP75B00380R000700150015-7 Proposed CIA Retirement Act Sec. 232. (e) If, at the time of his or her death, the participant had less than -bounty years of service credit toward retirement under the system, the annuities payable in accordance with paragraph NI of this section abill be computed in accordance with the previsions of section 221 an the assumption he or she has had twenty years of servios, but the additional -service credit that may accrue to a deceased participant under this pro- vision shall in no case emoted the difference between his or her ago on the date of death and the mandatory retire/montage applicable to his or her grade in the Agenoy. In all cases arising under paragraphs (b), (c), (d), or (e) of this section, it shall be assumed that the de- ceased participant was qualified fOr retirement 03 the data of his death. Voluntary ibtirement Sec. 2330 Any participant in the system who is at least fifty years of age and has rendered twenty years of service my on his own applica- tion and with the consent of the Director be retired from the Agency and receive benefits in accordance with the provisions of section 222 provided he has not less than five years service with the Agency. For.i?Service Lc Sec. 832. (8) If, at the time *this or her death, the participant had less than twenty years of service credit toward retirement under the System, the annuities payable in accordance with paragraph (b) of this section shall be computed in accordance with the provisions of emotion 821 on the assumption he or she has bad twenty years of service, but the additional service credit that may accrue to a deceased participant under this pro- vision shall in no case exceed the difference between his or her age an the date of death and the mandatory retirement age applicatae to his or her class in the Service. In all .L cases arising under paragraphs (b,? (c), (d), or (e) of this section, it shall be assumed that the deceased participant was qualified for retire- ment on the date of his death. Sea. 636. Any participant in the Foreign Service Retirement and Dis- ability System who is at least fifty years of age and has rendered twenty years of service, including service within the meaning of section 853, may an his own application and with the consent of the Secretary be re- tired from the Service and receive benefits in accordance with the provisions of mai& 821. Civil Service Retirement Act No comparable provision. jeffece 10(e) of the CSRA is a special provision for Membervg see. 6. (e) kffi 114110,0 who ? etteime the age of sixty years sod completes thirty years of service shall, upon separation from the service be paid an annuity computed as provided in section 9. (b) Any employee who attains the age of fifty-five years and Qom. pastes thirty years of service ehall, upon separation from the service prior to attainment of the age of sixty years, be paid a reduced an- nuity computed as provided in section 9. (contid on page 26) Approved For Release 2007/01/20: CIA-RDP75B00380R000700150015-7 Approved For Release 2007/01/20: CIA-RDP75B00380R000700150015-7 Proposed CIA Retirement Act Foreign Service Act Civil Service Retirement Act (contld) ffec. 6(c) is a special provision for Any employee the duties of whose position are primarily the investigation, appreheniion, or detention of persons suspected or convicted of offenses against the criminal laws of the United States, including any employee engaged in such activity who has been trans- ferred to a supervisory or admin- istrative position." The section provides for retirement of such employees at age 5O with twenty years of service without reduction in annuity; ffec. 6(d) concerns involuntary separation and is quoted below opposite section 234(c) of the Proposed CIA Retirement Act; Sec. 6. (e) Any employee who attains the age of sixty-two years and completes five years of ser- vice, shall, upon separation from the service, be paid an annuity computed as provided in seo- tion 9. -26- ffac. 6(f) is a special provision relating to 'Webers and their retirement at age 62 with five years of service, at age 60 with ten years of service, eto; Approved For Release 2007 01 20 : CIA-RDP75B00380R000700150015-7 Approved For Release 2007/01/20: CIA-RDP75B00380R000700150015-7 Proposed CIA Retirement Act Discontinued Service Retirement Sec. 234. (a) Any participant who separates from the Agency after ob- taining at least five years of ser- vice credit toward retirement under the system, excluding military or naval service that is credited in accordance with the provisions of section 251 or 252(a)(2), may, upon separation from the Agency or at any time prior to becoming eli- gible for an annuity, elect to have his contributions to the fund re- turned to him in accordance with the provisions of section 241, or (ex- cept in cases where the Director determines that separation was based in whole or in pert 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, commenc- ing at the age of sixty years? Foreign Service Act Sec. 834. (a) Any participant who voluntarily separates from the Service after obtaining at least five years of service credit toward retirement under the systems excluding military or naval service that is credited in accordance with the Provisions of section 851 or 852(a)(2), may, upon separation from the Service or at any time prior to becoming eligible for an annuity, elect to have his contributions to the Fund returned to him in accord- ance with the provisions of section 841, or to leave his contributions in the Fund and receive an annuity, com- puted as prescribed in section 821, commencing at the age of sixty years. Sec. 637. (b) Any participant in the Foreign Service Retirement and Dis- ability System separated ueder the pro- visions of paragraph (a) of this section shall receive a refund of the contribu- tions mode to the Foreign Service Re- tirement and Disability Fund, with in- terest, as provided in section 841(a) except that in lieu of such refund such officer may (except in oases where the Secretary determines that separation was based in whole or in part an the ground of disloyalty to the United States) if he has at least five years of service credit toward retirement under this System, excluding military or naval service that is credited in accordance with the provisions of sec- tion 851 or 852(a), elect to leave his contributions in the Fund and receive an annuity, computed as prescribed in section 821 coamenetng at the age of (cont'd on page 27a) Civil Servioe Retirement Act Sec. 8. (a) Any employee who is separated from the service or trans- ferred to a position not within the purview of this Act after completing five years of civilian service may be paid an annuity beginning at the age of sixty-two years computed as provided in section 9. 27ec. 8(b) is a provision appli- cable only to Members; Approved For Release 2007/01/20: CIA-RDP75B00380R000700150015-7 Approved For Release 2007/01/20: CIA-RDP75B00380R000700150015-7 Proposed CIA Retirement Act Sec. 234. (b) If a participant who has qualified in accordance with the provisions of para- graph (a) of this 'action to re- ceive a deferred annuity com- mencing at the age of sixty dies before reaching the age of sixty his contributions to the fund, with interest, shall be paid in accordance with the provisions of sections 241 and 281. Foreign Service Act Sec. 637(b) (contld) sixty years. In the event that an officer who has elected under the provisions of this section to re- ceive a deferred annuity dies before reaching the age of sixty, his con- tributions to the Fund, with inter- est, shall be paid in accordance with the provisions of sections 841 and 881. Sec. 834. (b) If a participant who has qualified in accordance with the provisions of paragraph (a) of this section to receive a deferred annuity commencing at the age of sixty dies before reaching the age of sixty his contributions to the bind, with interest, shall be paid in accord- ance with the provisions of Mc- tions 841 and 881. Civil Service Retirement Act Sec. Il. (d) If an employee or Member dies (1) without a survivor, or (2) with a survivor or survivors and the right of all survivors shall terminate before claim for annuity is filed, or if a former employee or Member not retired dies, the lump- sum credit shall he paid. (under- scoring supplied) ffump-sum credit is defined in sec. 1(1) quoted in full above opposite sec,. 232(a) of the Pro- posed CIA Retirement Act17 Approved For Release 2007/01/20: CIA-RDP75B00380R000700150015-7 Approved For Release 2007/01/20: CIA-RDP75600380R000700150015-7 Proposed CIA Retirement Act Sec. 234. (c) The Director may in his discretion retire participants in grade GS-14 and above. If so retired they shall receive retirement benefits in accordance with the provisions of section 221, provided they hav_: in each case, not less than five years' qualifying and ten years total serv- ice with the Agency. Any indiviclual so retired who does not meet these service requirements shall receive the benefits provided for individu- als in grade GS-13 as set out in (d) of this section. (d) The Director may in his dis- cretion retire participants in grade GS-13 and below and each such participant shall receive-- (1) one-twelfth of a year's salary at his then current salary rate for each year of service and proportion- ately for a fraction of a year, but not exceeding a total of one year's salary at his then current salary rate, payable without interest, from the fund, in three equal installments on the 1st day of January following the participant's retirement and an the two anniversaries of this data immediately followings Provided, That in special cases, the Director may in his discretion accelerate or combine the installments; and (cont'd on page 29) Foreign Service Act Sec. 634. (a) Any Foreign Service officer in classes 1, 2, or 3 who is retired from the Service in ac- cordance with the provisions of section 633 shall reoeive retire. sent benefits in accordance with the provisions of section 821. See. 633. (b) Any Foreign Service officer below the. class of career minister who does not receive a promotion to a higher class within the specified period or who fails to meet the standard of performance required of officers of his class shall be retired from the Service and receive benefits in accordance with the provisions of section 634. Sec. 634. (b) Any Foreign Service of- ficer in classes L, 5, 6, or 7 who is retired from the Service in accord- ance with the provisions of section 633 shall receive-- (1) one-twelfth of a year's salary at his then current salary rate for each year of service and proportion- ately for a fraction of a year, but not exceeding a total of one year's salary at his then current salary rate, payable without interest, from the Foreign Service Retirement and Disability Fund, in three equal in- stallments on the 1st day of January following the officer's retirement and on the two anniversaries of this date immediately following: Provided, That in special cases, the Seoretary may in his discretion acoelerate or combine the installments; and (cont'd on page 29) Civil Service Retirement Act Sec. 6. (d) Any employee who com- pletes twenty-five years of service or who attains the age of fifty years and completes twenty years of service shall upon involuntary separation from the service not by removal for cause on charges of misconduct or delinquency, be paid a reduced annuity computed as pro- vided in section 9. Lgec. 9. (d) The annuity as here- inbefore provided, for an employee retiring under section 6(b) or 6 (d) or a Member retiring under the second or third sentenoe of section 6(f) or the third sentence of section 8(b) shall be reduced by one-twelfth of 1 per centum for each full month not in excess of sixty, and one-sixth of 1 per centum for each full month in excess of sixty, such employee or Member is under the age of sixty years at date of separation. (Under- scoring supplied) (No comparable provision.) Approved For Release 2007/01/20: CIA-RDP751300380R000700150015-7 Approved For Release 2007/01/20: CIA-RDP75B00380R000700150015-7 Proposed CIA Retirement Act Sec. 234(d) (contld) (2) a refund of the contributions made to the fund, with interest as provided in section 241(a), except that in lieu of such refund such par- ticipant, if he has at least five years of service credit toward re- tirement under the system, exclud- ing military or naval service that is credited in accordance with the provisions of section 251 or 252(a)(2),mey elect to receive re- tirement benefits on reaching the age of sixty in accordance with the provisions of section 221. In the event that a participant who was separated frca grade GS-13 or GS-12 and who has elected to reoeive re- tirement benefits dies before reaching the age of sixty, his death shall be considered a death in service within the meaning of section 232. In the event that a participant who was separated from grade GS-11 or below and who has elected to receive retirement bene- fits dies before reaching the age of sixty, the total amount of his contribution a made to the fund, with interest as provided in sec- tion 241(5), shall be paid in accordance with the provisions of section 241(b). Foreign Service Act Seco 634(b)(cont1d) (2) a refund of the contributions mmde to the Foreign Service Retire-. int and Disability Pend, with inter. eat as provided in section 841(a), except that in lieu of such refund such officer, if he has at least five years of service credit toward retiree slant under the Foreign Service Retire- ment and Disability System, excluding military or naval service that is ore-. .ted in accordance with the provisions of section 851 or 852(a), may elect to receive retirement benefits on reaching the age of sixty in accordance with the provisions of section 821, In the event that an officer who was separated frost class h or 5 and who has elected to receive retirement benefits dies before reaching the age of sixty, his death shall be considered a death in service within the meaning of section 832. In the event that an officer who was sepa- rated from class 6 or 7 and who has elected to receive retirement benefits dlas before reaching the age of sixty, the total amount of his contributions made to the Foreign Service Retirement and Disability Fund, with interest as provided in section Shl(a), Shall be paid in accordance with the provisiohs of section 841(b). -29 Civil Service Retirement Act Dee Sections 6(d) and 9(di quoted immediately aboved Approved For Release 2007/01/20: CIA-RDP75B00380R000700150015-7 Approved For Release 2007/01/20: CIA-RDP75B00380R000700150015-7 Proposed CIA Retirement Act tiec. 234. (e) Notwithstanding the provisions of section 3477 of the Revised Statutes, as amended, (31 U.S.C. 203) or the provisions of any other law, a participant who is retired in accordance with the provisions of paragraph (d) of this section shall have the right to assign to any person or corporation the whole or any pert of the benefits reoeivable by him pursuant to paragraph (d)(1) of this section. Mandatory Retirement for Age Seco 235. (a) Any participant in the system in grade as-18 or above Shall upon reaching the age of sixty-five be retired from the Agency and receive retirement bene- fits in accordance with the provi- sions of section 221, but whenever the Director shall determine it to be in the public interest, he may extend such a participant's ser- vice for a period not to excised five years. Foreign Service Act See. 634(c) Notwithstanding the pro- visions of section 3477 of the Revised Statutes, as amended (31 U.S.C. 203) or the provisions of any other law, a Foreign Service officer who is retired in accordance with the provisions of section 633 shall have the right to assign to any person or corporation the whole or any part of the benefits receivable by him pursuant to para- graph (b)(1) of this section. Any such assignment shall be on a form approved by the Secretary of the Treasury and a copy thereof shall be deposited with the Secretary of the Treasury by the officer executing the assignment. Sec. 631. Any Foreign Service offi- cer who is a career ambassador or a career minister, ether than one ooce- pying a position as chief of mission or any other position to which be has been appointed by the President, ay amd with the advice and consent of the Senate, shall upon reaching the age of sixty-five, be retired from the Service and receive retirement benefits in accordance with the provisions of section 821, but whenever the Secretary shall de- termine it to be in the public interest, he may extend such an officer's service for a period not to amused time years. -30- Civil Service Retirement Act No comparable provision Sec. 5. (a) &wept as hereinafter provided, an employee who shall have attained the age of seventy years and completed fifteen years of service shall be automatically separated from the service. Such separation shall be effective on the last day of the month in which such employee attains the age of seventy years or completes fifteen years of service if then beyond such age, and all salary shall cease from that day. (b) Each employing office shall notify each employee under its direction of the data of such separation from the service at least sixty days in advance thereof& Provided, That aubsec- tion (a) shall not take effect without the consent of the (contld on page 31) Approved For Release 2007/01/20: CIA-RDP75B00380R000700150015-7 Approved For Release 2007/01/20: CIA-RDP75600380R000700150015-7 Proposed CIA Retirement Act Sec. 235. (b) Any participant in the system, other than in grade GS-18 or above, Shall upon reambine the age of sixty be retired from the Agency and receive retirement benefits in accordance with the provisions of section 221, but whenever the Director shall de- termine it to be in the public interest, he may extend such a participant's service for a period not to exceed five years. Foreign Service Act Sec. 632. Any participant in the Foreign Service Retirement and Dis- ability System, other than one oc- cupying a position as chief of mission or any other position to which he has been appointed by the President, by and with the advice and consent of the Senate, who is not a career ambassador or a career minister shall, upon reaching the age of sixty, be retired from the Service and receive retirement benefits in accordance with the pro- visions of section 821, but whenever the Secretary shall determine it to be in the public interest, he may extend such participant's service for a period not to exceed five years. Civil Service Retirement Act Sec. 5(b) (continued) employee until sixty days after he has been so notified. (c) The President may, by Executive Order, exempt from automatic separa- tion under this section any employee when, in his judgment, the public in- terest so requires. (d) The automatic separation pro- visions of this section shall not apply to any person named in any Act of Congress providing for the continu- ance of such person in the service, to any Member, to any congressional em- ployeepor to any employee in the judicia branch who has been appointed to hold office for a definite term of years. gee, 5(e) is a special provision for employees of the Alaska Rail- ways Territory of Alaska, certain employees of the Panama Canal Com- pany or the Canal Zone Governmentg Zgee Sec. 5(a) through (d) abovej Approved For Release 2007/01/20: CIA-RDP751300380R000700150015-7 Approved For Release 2007/01/20: CIA-RDP75B00380R000700150015-7 Proposed CIA Retirement Act PART E - DISPOSITION OF CONTRIBUTIONS AND INTEREST IN EXCESS OF BENEFITS RECEIVED Sec. 241. (a) Whenever a participant becomes separated from the Agency with- out becoming eligible for an annuity or a deferred annuity in accordance with the provisions of this Acts the total amount of contributions from his salary with interest thereon at 4 per centum per annum, compounded annually as of December 31, and proportionate- ly 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. Foreign Service Act Sec. al. (a) Whenever a participant becomes separated from the Service with- out becoming eligible for an annuity or a deferred annuity in accordance with the provisions of this Act, the total amount of contributions from his salary with interest thereon at 4 per centime per annum, compounded annually at the end of each fiscal year through June 30, 1960; semiannually as of December 31, 1960; annually thereafter as of December 31, and proportionately for the period served during the year of separation including all contribu- tions made during or for such period, except as provided in erection 881, shall be returned to him. Civil Service Retirement Act Sec. 1. (1) The term "lump-sum credit" shall mean the unrefunded amount consisting of (1) the retire- ment deductions made from the basic salary of an employee or Member, (2) any sums deposited by an employee or Member covering prior service, and (3) interest on such deductions and deposits at 4 per oentum per annum to December 31, 1947, and 3 per centum per annum thereafter com- pounded annually to December 31, 1956, or, in the case of an employee or Member separated or transferred to a position not within the pur- view of this Act before he has com- pleted five years of civilian ser- vivo, to the date of the separation or transfer. The lump-sum credit shall not include interest if the service covered thereby aggregates one year or less, nor shall it in- clude interest for the fractional part of a month in the total ser- vice. Sec. 11. (a) Any employee or Member who is separated from the service, or is trmnsferred to a position wherein he does not continue subject to this Act, shall be paid the lump-sum credit provided his separation or transfer occurs and application for payment is filed with the Commission at least thirty-one days before the earliest oommencing date of any annuity for which he is eligible. (contld on page 32a) Approved For Release 2007/01/20: CIA-RDP751300380R000700150015-7 Approved For Release 2007/01/20: CIA-RDP75B00380R000700150015-7 Proposed CIA Retirement Act Foreign Service Act -32a- Civil Service Retirenent Act Selo. 11(a) (contld) The receipt of payment of the lump- sum credit by the individual shall void all annuity rights under this Act, unless and until he shall be reemployed in the service subject to this Act, This subsection shall also apply to any employee or Mem- ber separated prior to the effective date of the Civil Service Retirement Act Amendments of 1956 after com- pleting at least twenty years of civilian service. Approved For Release 2007/01/20: CIA-RDP751300380R000700150015-7 Approved For Release 2007/01/20: CIA-RDP75B00380R000700150015-7 Proposed CIA Retirement Act Sec. 241. (b) In the event that the total contributions of a retired participant, other than voluntary contributions made in accordance with the provisions of section 281, with interest at 4 per centum per annum compounded annually as is pro- vided in paragraph (a) of this sec- tion added thereto, exceed the total amount returned to such parti- cipant or to an annuitant claiming through him, in the form of annui- ties, accumulated at the same rete of interest up to the date the annn- ity payments cease under the terms of the annuity, the excess of the accumulated contributions over the accumulated annuity peymenta 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: (L) To the beneficiary or bene- ficiaries designated by such parti- cipant in writing to the Director; (2) If there be no such benefici- ary, to the surviving wife or hus- band of such participant; (3) If none of the above, to the child or children of such partici- pant and desoendants of deceased children by representation; (4) If none of the above, to the parents of such participant or the survivor of them; (continued on page 34) Foreign Service Act Sec. 841. (b) In the event that the total contributions of a retired par- tioipent, other than voluntary contrie butione made in accordance with the provisions of section 881, with inter- est at 4 per centum per annum coma- pounded annually as is provided in paragraph (a) of this section added thereto, exceed the total amount re. turned to such participant or to an annuitant claiming through him, in the form of annuities, accumulated at the same rata of interest up to the date the annuity payments cease under the terms of the annuity, the excess of the accumulated contribu- tions over the accumulated annuity payments shall be paid in the follow- ing order of precedence, upon the establishment of a valid claim there- for, and such payment ahall be a bar to recovery by any other person: (1) To the beneficiary or be:An- ciaries designated by the retired participant in writing to the Secretary; (2) If there be no such benefi- ciary, to the surviving wile or husband of each participant; (3) If none of the above, to the ehild or children of such partici- pant and desoendanta of deceased children by representation; (4) If none of the above, to the parents of each participant or the survivor of them; (continued on page 34) -33- Civil Service Retirement Act ffor definition of "lump-sum credit", see sec. 1(1) quoted immediately above opposite sec. 241(a) of the Proposed CIA Retirement Actj Sec. 11. (e) If all annuity rights under this Act based on the service of a deceased employee or Member shall terminate before the total annuity paid equals the lump-eum credit, the difference shall be paid. (f) If an annuitant dies, any annu- ity accrued and unpaid shall be paid. (c) Lump-sum benefits authorized under subsections (d), (e), and (f) of this section shall be paid in the following order of precedence to such person or persons surviving the employee or Member and alive at the date title to the payment arises, and such payment Shall be a bar to recovery by any other person: First, to the beneficiary or bene- ficiaries designated by the employee or Member in a writing received in the Commission prior to his death; Second, if there be no such bene- ficiary, to the widow or widower of the employee or Member; Thirds if none of the above, to the dhild, or nhildren of the em- ployee or Member and descendants of deceased children by representation; Fourth, if none of the above, to the parents of the employee or Mem- ber or the survivor of them; (continued on page 34) Approved For Release 2007/01/20: CIA-RDP751300380R000700150015-7 Approved For Release 2007/01/20: CIA-RDP75B00380R000700150015-7 Proposed CIA Retirement Act See. 241(b) (contld) (5) If none of the above, to the duly appointed executor or adminis- trator of the estate of such par- ticipant; (6) If none of the above, to other next of kin of such partici- pant 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 ex- piration of thirty days from the death of the retired participant Or his surviving annuitant. Foreign Service Act See. 841(b) (contid) (5) If none of the above, to the day appointed executor or adminis- trator of the estate of such parti- cipant; (6) If none of the above, to other next of kin of such participant as may be determined by the Secretary in his judgment to be legally entitled thereto. (e) No payment shall be made pur- suant to paragraph (b)(6) of this section until after the expiration ef thirty days from the death of the retired participant or his surviving annuitant, Civil Service Retirement Act Sec. 11(c) (contld) Fifth, if none of the above, to the duly appointed executor or ad- ministrator of the estate of the employee or Member; Sixth, if none of the above, to other next of kin of the employee or Member as may be determined by the Commission to be entitled under the lama of the domicile of the individual at the time of his death. No comparable provision. Approved For Release 2007/01/20: CIA-RDP75B00380R000700150015-7 Approved For Release 2007/01/20: CIA-RDP75B00380R000700150015-7 Proposed CIA Retirement Act PART F - PERIOD OF SERVICE FOR ANNUITIES 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 aggre- gate in any calendar year shall be excluded, except leaves of absence while receiving benefits under the Federal Employees Compensation Act of September 7, 1916, as amended, (5 U.S.C. 751 Q1 seq.) and leaves of absence granted participants while performing active and honorable mili- tary or naval service in the Army, Navy, Air Force, Marine Corps, or Coast Guard of the United States. Foreign Service Act Sec. 851. For the purposes of this title, the period of service of a participant shall be computed from the effective date of appointment as a Foreign Service officer, or, if appointed prior to July 1$ 1924, as an officer or employee of the Diplo- matic or Consular Service of the United States or from the date he becomes a participant under the provisions of this Act, as amended, but all periods of separation from the Service and so much of any leaves of absence without pay as mmy exceed six months in the aggre- gate in any calendar year shall be excluded, except leaves of absence while receiving benefits under the Federal Employees' Compensation Act of September 7, 1916, as amended, and leaves of absence granted participants while per- forming active and honorable mili- tary or naval service in the Army, Navy, Air Force, Marine Corps, or Coast Guard of the United States, -35- Civil Service Retirement Act Sec, 3. (a) An employee's service for the purposes of this Act includ- ing service as a substitute in the postal service shell be credited from the date of original employ- ment to the date of the separation upon which title to annuity is based in the civilian service of the Government. Credit shall similarly be allowed for service in the Pan American Sanitary Bureau. No credit shall be allowed for any period of separation from the service in excess of three calendar days. (b) Quoted below opposite see. 252(e) ef the Proposed CIA Retirement Act? (e) Credit shall be allowed for leaves of absence granted an em- ployee while performing military service or while receiving bene- fits under the Federal Employees' Compensation Act of September?, 1916, as amended. Except for a substitute in the postal service, there shall be excluded from credit so much of any other leaves of absence without pay as may exceed six months in the aggregate in any calendar year. (d) An employee 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 eonsidereds (eant'd on pg 36) Approved For Release 2007/01/20: CIA-RDP75B00380R000700150015-7 Approved For Release 2007/01/20: CIA-RDP75B00380R000700150015-7 Proposed CIA Retirement Act Foreign Service Act Civil Service Retirement Act Sec. 3(d) (contid) for the purposes of this Act, as separated from his civilian position by reason of such prilitary service, unless he shall apply for and re- ceive a lump-sum benefit under this Act: Provided, That such employee shall not be considered as retain- ing his civilian position beyond December 31, 1956, or the expira- tion of five years of such military service, whichever is later. (e) The total service of an employee or Msmber shall be the full years and twelfth parts thereof, excluding from the aggre- gate the fractional pert of a month, if any. (f) An employee must have com- pleted at least five years of civilian service before he shall be eligible for annuity under this Act. (g) An employee or Member mist have, within the two-year period preoeding any separation from ser- vice, other than a separation by refit:son of death or disability, com- pleted at least one year of credi- table civilian servioe during which he was subject to this Act before he or his survivors shall be eligi- ble for annuity under this Act based on such separation. If any employee or Mamber, other than an employee or Member separated from the service by reason of death or disability, fails to net the service requirement of the preceding sentence, the amounts deducted from his salary during his -36- (contid on pg 37) Approved For Release 2007/01/20: CIA-RDP75B00380R000700150015-7 Approved For Release 2007/01/20: CIA-RDP75B00380R000700150015-7 Proposed CIA Retirement Act Prior Service Credit Sec. 252. (a) A participant may, subject to the provisions of this section, include in his period of service-- (1) civilian service in the exe- cutive, judicial, and legislative branches of the Federal Government and in the District of Columbia government, prior to beooming a participant; and (2) active and hamoratae mili- tary or ravel service in the Are, Navy, Air Force, Marine Corps, or Coast Guard of the United States, Foreign Service Act Sec. 852. (a) A participant mays subject to the provisions of this section, include Ln his period of servios? (1) civilian service in the exe- cutive, judicial, and legislative branches of the Federal Government and in the District of Columbia government, prior to becoming a participant; and (2) active and honorable mili- tary or naval service in the Army, Navy, Marine Corps, Air Force, or Coast Guard of the United States. -37- Civil Service Retirement Act Sec. 3(g) (contld) period of service for which no eligibility for annuity is estab- lished based on such separation shall be returned to him upon such separation. Failure to net this service requirement shall not de- prive the individual or his survi- vors of any annuity rights which attached npon a previous separa- tion. .06c. 3(h) excludes Member service of an employee under certain einem- stances. Sec. 3(1) is concerned with service of U.S. Commissioneraj CCe 1 . 3(a) quoted above opposite sec. 251 of the Proposed CIA Retirement Act; Sec. 3(j) quoted below opposite sec. 252(e) of the Proposed CIA Retirement Act; Sec. 4(0, (e), and (g) quoted below opposite sec. 252(b) of the Proposed CIA Retirement Act; Sec. 4(d) quoted below opposite pee. 252(b) of the Proposed CIA Retirement Act47 Approved For Release 2007/01/20: CIA-RDP75B00380R000700150015-7 Approved For Release 2007/01/20: CIA-RDP75600380R000700150015-7 Proposed CIA Retirement Act Sec. 252. (b) A participant may obtain prior civilian service credit in accordance with the provisions of paragraph (a)(1) of this section by making a special contribution to the fund equal to 5 per centum of his basic annual salary for each year of service for which credit is sought prior to November 8, 1960, .and at 6i per centum thereafter with interest compounded annually at I. per centum per annum to the date of payment. Any such par- ticipant may, under such conditions as may be determined in each instance by the Director, pay such special contributions in installments. Foreign Service Act Sec. 852. (b) A person may Obtain prior civilian service credit in accordance with the provisions of paragraph (a)(1) of this section by making a special contribution to the Fund equal to 5 per centum of his basic annual salary for each year of service for which credit is sought subsequent to July 1, 1924, and prior to the effective date of the Foreign Service Act Amendments of 1960, and at 6i per centum thereafter with interest compounded annually at 4 per centum per annum to the date of payment. Any such person may, under such conditions as may be deterAined in each in-. stance by the Secretary, pay such special contributions in install- ments, Civil Service Retirement Act gt: . 3(a) quoted above opposite sec. 251 of the Proposed CIA Retirement Act; Sec. 3(3) quoted below opposite sec. 252(e) of the Proposed CIA Retirement Act,7 Sec. 4. (c) Each employee or Member credited with civilian service after July 31, 1920, for which, for any reason whatsoever, no retirement deductions or deposits have been made, may deposit with interest an amount equal to the following per- centages of his basic salary re- oeived for such service: Employee: Percentage of basic salary Service Period August 1, 1920, to June 30, 1926 July 1, 1926, to June 30, 1942 5 July 1, 1942, to June 30, 1948 6 July 1, 1948, to October 31, 1956 6i After October 31, 1956 Member: N-11;;Etage of basic salary Service Period 21 August 1, 1920, to June 30, 1926 July 1, 1926, to June 30, 1942 5 July 1, 1942, to August 1, 1946 6 August 2, 1946, to October 31, 199 7i After October 31, 1956 (oontld on page 39) Approved For Release 2007/01/20: CIA-RDP75600380R000700150015-7 Approved For Release 2007/01/20: CIA-RDP75B00380R000700150015-7 Proposed CIA Retirement Act Foreign Service Act Civil Service Retirement Act ?39? Sec. 4. (d) Each employee or Member who has received a refund of retirement deductions under this or any other re- tirement system established for em- ployees of the Government covering service for which he may be allowed credit under this Act may deposit the amount received, with interest. No credit shall be allowed for the far- vice covered by the refund until the deposit is made, See. 4. (e) Interest under subseation (c) or (d) shall be computed from the midpoint of each service period in- cluded in the computation, or from the date refund was paid, to the date of deposit or commencing date of annuity, whichever is earlier. The interest shall be computed at the rate of 4 per centum per annum to December 31, 1947, and 3 per centum per annum thereafter compounded annually. Such deposit may be made in one or more installments. No interest shall be charged for any period of separation from the service which began before October 1, 1956. ffiec. 4(f) provides for entering de- posits for prior service credit on individual retirement recordsj (g) No deposit shall be required for any SerVIAS prior to August 1, 1920, for periods of military service or for any service for the Panama Railroad Company prior to January 1, 1924. (1) For purposes of survivor annuity, deposits authorised by subsections (c) and (d) may also be made by the survivor of an employee or Member. Approved For Release 2007/01/20: CIA-RDP75B00380R000700150015-7 Approved For Release 2007/01/20: CIA-RDP75B00380R000700150015-7 Proposed CIL Retirement Act Sec. 252(c)(1) If an officer or employee under SOBS other Govern- ment 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 par- ticipant 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 'yetis. (2) No participant, whose oon- tributions are transferred to the fund in accordance with the provi- sions 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 retire- ment 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 by motion 211 of this Act for con- tributions to the fund. Foreign Service Act See. 852. (c)(1) If an officer or employee under some other Government retirement system, becomes a parti- cipant in the System by direct trans- fer, such officer or employee's total contributions and deposits, includ- ing 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 de- mands against the other Government retirement fund on account of ser- vice rendered prior to becoming a participant in the System. (2) No officer or employee, whoae contributions are transferred to the Fund in accordance with the provi- sions 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 retire- ment fund, nor Shall any refund be made to such officer or employee on account of contributions made during any period to the other Government retirement fund, at a higher rate than that fixed by section 811 of this Act for contributions to the FUndo Civil Service Retirement Act No comparable provision. No comparable provisione Approved For For Release 2007/01/20: CIA-RDP751300380R0007001 50nl Approved For Release 2007/01/20: CIA-RDP75B00380R000700150015-7 Proposed CIA Retirement Act Sea. 252. (c)(3) No participant, whose contributions are trans- ferred to the fond 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 provi- sions of paragraph (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. Foreign Service Act Soo. 852. (c)(3) No officer or em- playlets, whose contributions are trans- ferred to the Fund in accordance with the provisions of paragraph (c)(1) of this section, shall receive credit for periods of service subseqment to July 1, 1924, for which a refund of contribution 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 provi- sions of paragraph (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 milder another retirement system covering civilian personnel of the Government. Civil Service Retirement Act Sec. 4. (d) Each employee or Member who has received a refund of retireaent deductions under this or any other retirement system established for employees of the Government covering service for which he may be allowed credit under this Act may deposit the amount received, with interest. No credit shall be allowed for the service covered by the refund until the deposit is made. eprevision precisely compere- ; however, provisions of sec. 2(b) and 4(c) and (4) operate to exclude such serviced tiso. 3(j) quoted below opposite sec. 252(e) of the Proposed CIA Retirement Act relates also to credit for certain Pawn Corps valenteer serviRtg ffiee note on page 42 concerning exclusion of service on which entitlement to Social Security benefit is basedj Approved For Release 2007/01/20: CIA-RDP75B00380R000700150015-7 Approved For Release 2007/01/20: CIA-RDP75B00380R000700150015-7 Proposed CIL Retire:lent Act Foreign Service Act Civil Service Retirement Act 2n: Sec. 5, Social Security 11 mendments of 1954: Covered Employment Not Counted Under Other Federal Retirement Systems Notwithstanding any other provi- sion of law, in determining eligi- bility for or the amount of any benefit (other than a benefit under title II of the Social Secur- ity Act or under the Railroad Re- tirement Act of 1937, as amended) under any retirement system estab- lished by the United States or any instrumentality thereof, there shall not be taken into account any service which, by reason of the amendments to section 201(a) of the Social Security Act made by section 101(0) of this Act, constitutes employment as defined in such section 210(0:7 Approved For Release 2007/01/20: CIA-RDP75B00380R000700150015-7 Approved For Release 2007/01/20: CIA-RDP75B00380R000700150015-7 Proposed CIA Retirement Act Sec. 252. (e) A participant may ob- tain prior military or naval service credit in accordance with the provi- sions 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, exaept that in the case of a participant who is eligible for and reoeives retired pay on account of a service-connected disability incurred in combat with an enemy of the United States or caused by an instrumentality of war and in- curred in line of duty during A, period of war (as that term is used in chapter 11 of title 38, United States Code), or is awarded under chapter 67 of title 10 of the United States Code, the period of such military or naval service shall be included. No contributions to the fund shall be required in connection with military or naval service credited to a participant In accordance with the provisions of paragraph (a)(2) of this section. Foreign Service Act Sec. 852. (e) A participant may Ob- tain prior military or naval service credit in accordance with the provi- sions of paragraph (a)(2) of this section by applying for it to the Secretary prior to retirement or separation from the Service. 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 oh account of a servioe-ocaneoted disability incurred in combat with an enemy of the United States or caused by an instrumentality of war and in- curred in line of duty during a period of war (as that tem is used in chapter 11 of title 38, United States Code), or is awarded under chapter 67 of title 10 of the United States Code, the period of such military or naval service shall be included* No contribus tioneto the Fund shall be required in connection with military or naval service credited to a participant in accordance with the provisions of paragraph (a)(2) of this section. 44,3- Civil Service Retirement Act Seco 3. (b) An employee or Member shall be allowed credit for periods of military service prior to the data of the separation upon which title to annuity is based; hoover, if an employee or Member is awarded retired pay an account of military servioe, his military service shall not be included, unless such retired pay is awarded on account of a :ser- vice-connected disability (1) in- curred in combat with an enemy of the United States or (2) caused by an instrumentality of war and in- curred in line of duty during a period of war (as that term is used in Chapter 11 of title 38, United States Code), or is awarded under title III of Public Lew 810, Eightieth Congress, except that for purposes of section 9(c)(1), a Member (k) shall be allowed credit only for periods of military ser- vice not exceeding five years, plus any military service performed by the member upon leaving his office, for the purpose of performing such service, during any war or national emergency proclaimed by the Presi- dent or declared by the Congress and prior to his final separation from service as Member and (B) may not receive credit for military service for which credit is allowed for purposes of retired pay under any other provision of law. Nothing in this Act shall affect the right of an employee (contld an pg Approved For Release 2007/01/20: CIA-RDP75B00380R000700150015-7 Approved For Release 2007/01/20: CIA-RDP75600380R000700150015-7 Proposed CIA Retirement Act Sec. 252. (f) Notwithstanding any other provision of this section any military service (other than military service covered by military 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 under Section 402 of Title 42 based on such participant's wages and self-employ- ment income. If in the case of the participant or widow such military service is not excluded under the preceding sentence, but upon attain- ing age 62, he or she becomes entitled (or would upon proper application be entitled) to such benefits, the ag- gregate period of service upon which such annuity is based, shrill be re- determined, effective as of the first day of the month in which he or she attains such age, so as to exclude such service. Foreign Service Act 444_ Civil Service Retirement Act Sec. 3(b) (contld) or a Member to retired pay, pension, or compensation in addition to the annuity herein provided, ffieo. 10 Cr) The tern "military ser- vice" shall mean honorable active service in the Army, Navy, Air Fords, Marine Corps, or Coast Guard of the United States, or after June 30, 1960, in the Regular Corps or Reserve Corps of the Public Health Service or, after June 30, 1961, as a conmassioned officer of the Coast and Geodetic Survey, but shall not include service in the National Guard except when ordered to active duty in the service of the United Stateaj See, 3. (j) Notwithstanding any other provision of this section or section 5(f) of the Peace Corps Act, any military eervioe (other than military service covered by mili- tary leave with pay from a civilian position) performed by an individual after December 1956 and any period of service by an individual as a volunteer under the Peace Corps Act, shall be excluded in determining the aggregate period of service upon which an annuity payable under this chapter to such individual or to his widow or child is to be based, if such individual or widow or child is entitled (or would upon proper application be entitled) at the time of such determination, (cont'd on pg 45) Approved For Release 2007/01/20: CIA-RDP751300380R000700150015-7 Approved For Release 2007/01/20: CIA-RDP75B00380R000700150015-7 Proposed CIA Retirement Act Credit for Service While on Military Leave Sec. 253. (a) Notwithstanding Subsection (f) of Section 252 a participant who leaves his position to enter the military service shall not be considered, for the purposes of this Act, as separated from his Agency position by reason of such military service, unless he shall apply for and receive a lump sum benefit under this Act: Provided, That such participant shall not be considered as retaining his Agency position beyond December 31, 1956, or the expiration of five years of. such military service, which ever is later. Foreign Service Act Sac. 854. Contributions shall not be required covering periods of leave of absence from the Service granted a participant while per- forming active military or naval service in the Army, Navy, Marine Corps, or Coast Guard of the United States. Civil Service Retirement Act Sec? 3(j) (oontld) to monthly old-age or survivors benefits under section 202 of the Social Security Act, as amended (42 U.S.C. 402), based an such individual's wages and self-employ- ment income. If in the case of the individual or widow such military service, or service under the Peace Corps Act is not excluded under the preceding sentence, but upon attain- ing age sixty-two, be or she becomes entitled (or would upon proper appli- cation be entitled) to such benefits, the Commission shall redetermine the aggregate period of service upon which such annuity is based, effeo- tive as of the first day of the month in which he or she attains such age, so as to exclude such service. The Secretary of Health, Education, and Welfare shall, upon the request of the Commission, inform the Commission whether or not any such individual or widow or child is entitled at any speci- fied time te such benefits? Sec. 4. (g) No deposit shall be required for any service prior to August 1, 1920, ...:52.11..agli_2f military service-c-F??f?aictorny service for the Panama Railroad Company prior to January 1, 19214. Approved For Release 2007/01/20: CIA-RDP751300380R000700150015-7 Approved For Release 2007/01/20: CIA-RDP75B00380R000700150015-7 Proposed CIA Retirement Act Sec. 253. (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. Foreign Service Act Civil Service Retirement Act Approved For For Release 2007/01/20: CIA-RDP75600380R000700150015-7 Approved For Release 2007/01/20: CIA-RDP75600380R000700150015-7 Proposed CIA Retirement Act PART G--MONEYS Estimate of Appropriations Needed Sec. 261. The Director shall pre- pare 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 Foreign Service Act Sec. 861. The Secretary of the Treasury shall prepare the esti- mates of the annual appropriations required to be made to the hand, and shall make actuarial valuations of such funds at intervals of five years, or oftener if deemed neces- sary by him. The Secretary of State may expend from money to the credit of the Fund an amount not exceeding $5,000 per annum for the incidental expenses necessary in administering the provisions of this title, including actuarial advice. Sec. 862. The Secretary shall sub- mit annually to the President and to the Congress a comparative report showing the condition of the Fund and estimates of appropriations necessary to continue this title in full force. Civil Service Retirement Act Sec. 17. (e) The Commission shall submit estimates of the appropria- tions necessary to finance the fund on a normal cost plus interest basis and to continue this Act in full force and effect? Sec. 16, (I) The Commission shall publish an annual report upon the operations of this Act and shall include in each such report a statement with respect to the status of the fund on a normal cost plus interest basis. (g) The Commission is hereby au- thorized and directed to select three actuaries, to be known as the Board of Actuaries of the Civil Ser. vice Retirement System. It shall be the duty of such Board to report annually upon the actuarial status of the system and to furnish its advice and opinion on matters re- ferred to it by the Commission, and it shall have the authority to recommend to the Commission and to the Congress such changes as in the Board's Judgment may be deemed necessary to protect the public interest and maintain the system upon a sound financial basis. The Commission shall keep or cause to be kept such records as it deems necessary for making periodic actuarial valuations of the Civil Service Retirement Systemy and (cont'd on pg 47) Approved For Release 2007/01/20: CIA-RDP751300380R000700150015-7 Approved For Release 2007/01/20: CIA-RDP75B00380R000700150015-7 Proposed CIA Retirement Act Investment of Moneys in the Fund 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 benefits, refunds, and allowances, and the income derived from such investments shall constitute a part of such fund, Foreign Service Act Sec, 863. The Seoretary of the Treasur, shall invest from time to time in interest-bearing securities of the United States such portions of the Fund as in his judgment may not be immediately required for the payment of annuities, cash benefits, refunds, and allowances, and the income derived from such investments shall constitute a part of such Fund. ..147. Civil Service Retirement Act Sec. 16(g) (ccettd) the Board shall make such valuations at intervals of five years, or of- tener if deemed necessary by the Commission. The compensation of the members of the Board of Actuaries, exclusive of such members as are in the employ of the United States, shall be fixed by the Commission. Sec. 17. (c) The Secretary of the Treasury shall immediately invest in interest-bearing securities of the United States, such currently available portions of the fund as are not immediately required for payments from the fund, and the income derived from such invest- ments shall constitute a part of the fund. Sec. 17. (a) The bind is hereby appropriated for the payment of benefits as provided in this Act. (b) The Secretary of the Treasury is hereby authorized to accept and credit to the fund moneys received in the form of donations, gifts, legacies, or bequests, or otherwise contributed for the benefit of civil service employees generallys7 Sec, 17, (d) The purposes for which obligations of the United States may be issued under the Second Liberty Bond Act, as amended, are hereby extended to authorise the issuance at par of pdblie-dobt Obligations (contld on pg 48) Approved For Release 2007/01/20: CIA-RDP75B00380R000700150015-7 Approved For Release 2007/01/20: CIA-RDP75600380R000700150015-7 Proposed CIA Retirement Act Foreign Service Act Civil Service Retirement Act Sec. 17 (d) (canted) for purchase by the fund. Such obligations issued for purchase by the fund shall have maturities fixed with due regard for the needs of the fund and bear interest at a rate equal to the average market yield computed as of the end of the calen- dar month next preceding the date of such issue, borne by all marketable interest-bearing obligations of the United States then forming a part of the public debt that are not due or callable until after the expiration of four years from the end of such calendar month, except that where such average market yield is not a multiple of one-eighth of 1 per centum, the rate of interest on such obligations shall be the multiple of one-eighth of 1 per centum nearest such average market yield. The Secretary of the Treasury may purchase other interest- bearing obligations of the United States, or obligations guaranteed as to both principal and interest by the United States, on original issue or at the market price only if he determines that such purchases are in the public interest. Approved For Release 2007/01/20: CIA-RDP751300380R000700150015-7 Approved For Release 2007/01/20: CIA-RDP75B00380R000700150015-7 Proposed CIA Retirement Act Attachment of Mbneys Sec. 263. None of the moneys men- tioned 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, except as provided in sec- tion 234 (00 Foreign Service Act Sec, 864. None of the moneys men- tioned in this title shall be assign- able either in law or equity, or be subject to execution, levy, attach- ment, garnishment, or other legal process, except as provided in section 634 (c). -49- Civil Service Retirement Act Sec. 150 (a) None of the moneys mentioned in this Act shall be assignable either in law or equity, or be subject to execution, levy, attachment, garnishment, or other legal process, (a) Notwithstanding any other provision of law, there shall be no recovery of any payments under this Act from any person when, in the judgment of the Commission, such person is with fault and such recovery would be contrary to equity and good conscience; nor shall there be any withholding or recovery of any moneys mentioned in this Act on account of any certification or payment made by inry former employee of the United States in the dis- charge of his official dirties unless the head of the department or agency on behalf of which the certification or payment was made certifies to the Commission that such certification or payment involved fraud on the part of such employee, Approved For Release 2007/01/20: CIA-RDP75B00380R000700150015-7 Approved For Release 2007/01/20: CIA-RDP75B00380R000700150015-7 Proposed CIA Retirement Act PART H.-RETIRED PARTICIPANTS RECALLED, REINSTATED, CR RE- APPOINTED IN THE AGENCY, CR REEMPLOYED IN THE GOA:BEMENT Beeall Sec. 271. (a) The Director may re- call any retired participant to duty in the Agency whenever he shall de- termine such recall is in the public interest. (b) Any such participant recalled to duty in the Agency in accordance with the provisions of paragraph (a) of this section or reinstated or re- appointed in accordance with the provisions of section 231(b) shall, while so serving, be entitled in lieu of his annuity to the full salary of the grade in which he is serving. During such service, he shall make contributions to the fund in accordance with the provi- sions of section 211. When be re- verts to his retired status, his annuity shall be determined anew in accordance with the provisions of sec. 221. Foreign Service Act Sec. 520. (b) The Secretary may re- call any retired Foreign Service offi- cer temporarily to duty in the Service whenever be shall determine such recall is in the public interest. Sea. 871. Any annuitant recalled to duty in the Service in accordance with the provisions of section 520(b) or reinstated or reappointed in ac- cordance with the provisions of sec- tion 831(b) shall, while so serving, be entitled in lieu of his annuity to the full salary of the class in which he is serving. During such service, be shall make contribu- tions to the Fund in accordance with the provisions of section 811. When be reverts to his retired sta- tus, his annuity shall be deter- mined anew in accordance with the provisions of section 821. Approved For For Release 2007/01/20: CIA-RDP75600 Civil Service Retirement Act ffithough there is not a provision in the Civil Service Retirement Act for "recall" of an annuitant, the provisions of sec. 13 (b), quoted immediately below, are analogous to the provisions of sec. 271(b) of the Proposed CIA Retirement Act for purposes of determining compensation, addi- tional service credit, recompu- tation of annuity, etc; Sec. 13(b). If an annuitant under this Act (other than (1) a disability annuitant whose annuity is terminated by reason of his recovery or res- toration of earning capacity, (2) an annuitant whose annuity was based upon an involuntary separation from the service, excluding a separation under the automatic separation pro. visions of this Act, or (3) a Member retired under this Act) hereafter becomes employed, or on the date of enactment of the Civil Service Re- tirement Act Amendments of 1956 is serving, in an appointive or elect- ive position, his service on and after the date he was or is so employed shall be covered by this Act. No deductions for the fund shall be withheld from his salary, but there shall be deducted from his salary, except for lump-sue leave payment purposes under the Act of December 21, 1944, a sum equal to the annuity allocable to the period of actual employment, and this provision concerning (cont'd on pg 51) 80R000700150015-7 Approved For Release 2007/01/20: CIA-RDP75B00380R000700150015-7 Proposed CIA Retirement Act Foreign Service Act Civil Service Retirement Act Sec. 13(b) (contld) the lump-sum leave payments shall also be effective in the case of each retired employee separated from reemployment after Decem- ber 15, 19532 and before the effec- tive date of the Civil Service Re- tirement Act Amendments of 1956: provided, That if such annuitant serves an a f1111-time basis for at least one year in employment not excluding him under section 2(b) from coverage, (1) his annuity upon termination of eaFloyment shall be increased by an annuity computed under subsections (a), (b), (d), (e), and (f) of section 9 as may apply based upon the period of and the basic salary (before deduction) averaged during such employment, and (2) his lump-sum credit shall not be reduced by annuity paid during such employment. The emu. ployment of an annuitant under this subsection shall not operate to create an annuity for or in any manner affect the annuity of any survivor. Any such annuitant whose described employment continues for at least five years may elect, in lieu of the benefit authorised by the proviso herein, to have his rights redetermined under the provisions of this Act upon depo- sit in the fund of an amount con,. puted under section 4(c) covering such employment. A similar right to redetermination after deposit (contld on pg 52) Approved For Release 2007/01/20: CIA-RDP75B00380R000700150015-7 Approved For Release 2007/01/20: CIA-RDP75B00380R000700150015-7 Proposed CIA Retirement Act Reamloymnt Sec, 272. Notwithstanding any other provision of limo a parti- cipant retired under the provi- sions of this Act shall net, by reason of his retired status, be tarred from employment in Feder- al Government service in any ap- pointive position for which he is qualified. An annuitant BO re- employed shall serve at the will of the appointing officer. Foreign Service Act See. 520. (c) Notwithstanding the provisions of title 5, United States Code, section 62, and title 5, United States Code, section 715a, a Foreign Service officer heretofore or here-- after retired under the provisions of section 631 or 632 or a Foreign Ser- vice staff officer or employee here- after retired under the provisions of section 803 shall not, by reason of his retired status, be barred from employment in Federal Government ser- vice in any appointive position for whiohhe is qualified. An annuitant so reemployed shall serve at the will of the appointing officer, -52- Civil Service Retirement Act Sec. 13(b) (contld) shall be applicable to an annuitant (1) whose annuity is based on an Involuntary separation from the service, and (2) who is separated, an or after the date of enactment of this sentence, after a period of reemployment on a full-time basis which began before October 1, 1956. 2rp-ec. 13(c) is concerned with the reemployment of a retired Memberg Sec. 13. (a) Notwithstanding any other provision of law, an annuitant hereto- fore or hereafter retired under this Act shall not, by reason of his re- tired status, be barred from employ- ment in any appointive position for which he is qualified. An annuitant so reemployed shall serve at the will of the appointing officer. Approved For Release 2007/01/20: CIA-RDP751300380R000700150015-7 Approved For Release 2007/01/20: CIA-RDP75B00380R000700150015-7 Proposed CIA Retirement Act Reemployment Compensation Sec. 273. (a) Notwithstanding any other provision of law, any annui- tant 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 receive the salary of the posi- tion in which he is serving plus so mach of his annuity payable wader this Act which when combined with such salary does not exceed during any calendar year the basic salary such annuitant was entitled to re- ceive on the date of his retirement from the Agency. Any such reem- ployed annuitant who receives sala- ry during any calendar year in ex- cess of the maximum amount which he may be entitled to receive under this paragraph shall be entitled to such salary in lieu of benefits hereunder. Foreign Service Act Sec. 872. (a) Notwithstanding any other provision of law, any officer or employee of the Service, who has retired under this Act, as amended, and is receiving an annuity pursuant thereto& and who is reemployed in the Federal Government service in any appointive position either an a part-time or full-time basis, shall be entitled to receive the salary of the position in which he is serving plus so much of his annuity payable under this Act, as amended, which when combined with such salary does not exceed during any calendar year the basic salary such officer or employee was entitled to receive under sections 412 or 415 of the Act, as amended, on the date of his retirement from the Service. Any such reemployed officer or employee who receives salary during any calendar year in excess of the maxi- mum amount which he may be entitled to receive under this paragraph shall be entitled to such salary in lieu of benefits hereunder. Civil Service Retirement Act Lgee sec. 13(b) quoted above opposite sec. 271 of the Proposed CIA Retire- ment Act which provides in part as follows: "...but there shall be deducted from his salary., .a sum equal to the annu- ity allocable to the period of actual employment.") Approved For Release 2007/01/20: CIA-RDP75B00380R000700150015-7 Approved For Release 2007/01/20: CIA-RDP75B00380R000700150015-7 Proposed CIA Retirement Act Sec. 273. (b) When any such re- tired annuitant is reemployed, the employer shall send a notice to the Agency of such reemployment together with all pertinent infor- mation relating thereto, and shall pay directly to such annuitant the salary of the position in which he is serving. (c) In the event of any over- payment under this section, such overpayment shall be recovered by withholding the amount invol- ved from the sslary payable to such reemployed annuitant, Jr from any other moneys, including his annuity, payable in accord- ance with the provisions of this Act. Foreign Service Act Sec. 8/2. (b) When any such retired officer or employee of the Service is reemployed, the employer shall send a notice to the Department of State of such reemployment together with all pertinent information re- lating thereto, and shall pay direct- ly to such reemployed officer or em- ployee the salary of the position in which be is serving. (c) In the event of any overpayment under this section, such overpayment shall be recovered by withholding the amount involved from the salary pay- able to such reemployed officer or employee, or from any other moneys, including his annuity, payable in aocerdance with the provisions of this title. Civil Service Retirement Act No comparable provision. No comparable provision. However, es?. 15(b) provides in pert: Notwithstanding any other provi- sion of law, there shall be no recovery of any payments under this Act from any person when in the judgment of the Commission, such person is without fault and such recovery would be contrary to equity and good conscience30.0 (Sec. 1$(b) is quoted in full above opposite sec. 263 of the Proposed CIA Retirement Act.) Approved For Release 2007/01/20: CIA-RDP75B00380R000700150015-7 Approved For Release 2007/01/20 : CIA-RDP75B00380R000700150015-7 Proposed CIA Retirement 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 BUMS in multiples of 1 per centum of his basic salary, but not in excess of 10 per centum of such salary, which amounts toge- ther 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 retirement, including all oartributions made during or for such period, shall, at the date of his retirement and at his elec- tion, be-- (1) returned to him in a lump sum; or (2) used to purchase an addi- tionallite annuity; or (3) need to purchase an addi- tional lib, annuity for himself and to provide for a oash payment on his death to a beneficiary whose name shall be notified in writing to the Director by the participant; or (4) used to purchase an addi- tional life annuity for himself and a life annuity commencing on his death payable to a beneficiary whose name shall be notified in writing to the 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, Foreign Service Act Sec. 881, (a) Any participant may, at his option and under such regulations as may be prescribed by the President, 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 at the end of each fiscal year through June 30, 1960; semi- annually as of December 31, 1960; anew- ally thereafter as of December 31, and proportionately for the period served during the year of his retirement, in- cluding all contributions made during or for such period, shall, at the date of his retirement and at his election be-- (1) returned to him in a lump sun; or (2) used to purchase an additional life annuity; or (3) used to purchase an additional life annuity for himself and to pro- vide ter a cash payment on his death to a beneficiary whose nano shall be noti- fied in writing to the Secretary by the participant; or (4) used to purchase an additional life annuity for himself and a life annuity commeneing on his death payable to a beneficiary whose name shall be notified in writing to the Secretary 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 paragraph 3. -94- Civil Service Retirement Act Sec. 12, (a) Any employee or Member nays under regulations prescribed by the Commission, voluntarily con- tribute additional swamis multiples of $25, but the total may not eXps ceed 10 per centum of his basic salary for his creditable service from and after August 1, 1920, The voluntary contribution account in each ease shall be the sum of such unrefunded contributions, plus interest at 3 per centum per annum compounded annually to date of separation or transfer to a position not within the purview of this Act or in case of an individual who is separated with title to a deferred annuity and does not claim the voluntary contribution account, to the comm3ncing date fixed for such deferred annuity or date of death, whichever is earlier, (b) Such voluntary contribution account shall be used to purchase at retirement an annuity in addi- tion to the annuity otherwise pro- vided. For each $100 in such vol- untary contribution account, the additional annuity shall consist of $7, increased by 20 cents for each full year, if any, such em- ployee or Member is over the age of fifty-five years at the date of retirement, (c) A retiring employee or Member may elect a reduced additional annuity in lieu of the additional annuity described in subsection (b) (continued on page 55) Approved For Release 2007/01/20: CIA-RDP751300380R000700150015-7 Approved For Release 2007/01/20: CIA-RDP75B00380R000700150015-7 Proposed CIA Retirement Act Sec. 261. (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 sec- tion and shall be calculated upon such tables of mortality as may be from tine 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 an an annuity, the amount of any additional deposits with interest at 3 per comitum per annum, comp- pounded as is provided in para- graph (a) of this section, made by him under the provisions of said paragraph (a) shall be refunded in the same manner provided in sec- tion 241 for the return of contri- butions and interest in the case of death or separation from the Agency. Foreign Service Act Sec. 881. (b) The benefits provided by subparagraphs 2, 3, or 4 of para- graph (a) of this section shall be actuarially equivalent in value to the payment provided for by para- graph (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 Secretary of the Treasury. (c) In case a participant shall become separated from the Service for any reason except retirement on an annuity, the amount of any additional deposits with interest at 3 per cent= per mama, compounded as is provided in paragraph (a) of this section, made by him under the provisions of this paragraph shall be refunded in the manner provided in section 841 for the return of contributions and interest in the case of death or separation fraa the Service. -55- Civil Service Retirement Act Sec. 12(c) (contld) and designate in writing a person to receive after his death an annuity of 50 per oentum of his reduced addi- tional annuity. The additional annu- ity of the employee or Member making such election shall be reduced by 10 per centum? and by 5 per centum for each full five years the person designated is younger than the retiring employee or Member, but such total reduction shall not exceed 10 per centime Sec. 12(b) and (c) quoted immedi- ately above specify the benefits provided under the comparable pro- visions of the Civil Service Re- tirement Actg (d) Any present or former seams* or Member ahall be paid the volun- tary contribution account provided application for payment is filed with the Commission prior to receipt of any annuity, but such account shall not in any case include interest be- yomd date of payment. Such individual ahall thereafter be eligible to de- posit additional sums under this sec- tion only if he again becomes subject to this Act after a separation from the service of more than three calen- dar days. (e) If any present or former em- ployee or Member not retired dies, the voluntary contribution account shall be paid under the provisions of election 11(c). If all additional annuities or any right thereto based an the voluntary contribution account (contld on page 56) Approved For Release 2007/01/20: CIA-RDP75B00380R000700150015-7 Approved For Release 2007/01/20: CIA-RDP75B00380R000700150015-7 Proposed CIA Retirement Act Sec. 281. (d) any benefits payable to a participant or to his benefi- ciary in respect to the additional deposits provided under this sec- tion shall be in addition to the benefits otherwise provided under this Act. Foreign Service Act Sec. 881. (d) Any benefits payable to an officer or to his beneficiary in respect to the additional depo- sits provided under this paragraph shall be in addition to the bene- fits otherwise provided under this title. -56- Civil Service Retirement Act Sec. 12(e) (contld) of a deceased employee or Member terminate before the total additional annuity paid equals such account, the difference shall be paid under the provisions of section 11(c). Lgeo. 12(b) quoted in full acme opposite sec. 281(a) of the Proposed CIA Retirement Act states in part: Such voluntary contribution account shol be used to purchase at retire- ment an annuity in addition to the annuity otherwise provided. (Under- scoring supplied.) Sec, 12(c), quoted in fall above, similarly refers to a "reduced addi- tional annuityS Approved For Release 2007/01/20: CIA-RDP75B00380R000700150015-7