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

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP78-03721A000200030021-2
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 63
• Document Creation Date: December 12, 2016
• Document Release Date: May 24, 2002
• Sequence Number: 21
• Content Type: REGULATION

Approved For Release 2002/06/26( CIA-RDP78-03721A000200030021-2
COMPARISON OF TEXTS OF PROPOSED CENTEAL INTRLLTGENCE AGENCY RETIREMENT
ACT AND PERTINENT PROVISIONS OF THE FOREIGN SERVICE ACT AND THE CIVIL SKRVICE RETIREMENT ACT
Proposed CIA Retirement Act
TITLE I - SHORT TITLE AND DEFINITIONS
Part A - SHORT TITLE
Foreigin Service Act
Cilvil Service Retirement Act
Sec. 101. This Act may be cited as the Sec. 1010 Titles I to; inclusive, of Sec. 19. This Act may be cited as
"Central Intelligence Agency Retirement this Act may be Cited as the !Foreign the "Civil Service Retirement Act".
Act of 1963 for Certain Employees". ' Service Act of 19460.
Part B - DEFINITIONS
Sec. 111. When used in this Act, the
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 - TEE CENTRAL INTELLIGENCE
AGENCY RETIREMENT AND DISABILITY
SYSTEM
Part A - ESTABLISHMENT OF SYSTEM
Rules and Regulations
Sec. 201.(s) 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.
(Provisions net comparable)
TITLE VIII - THE FOREIGN SERVICE RE-
TIREMENT AND inac.rurr SISTER
Sec. Bal,(a) The President may pre-
scribe rules and regulations for the
maintenance of. Foreign Service Retire-
ment and Dissbility System, originally
established by section 18 of the Act of
May 24, 1924 (43 Stato144), referred to
hereafter as the System.
(Provisions not comparable)
Chapter 30. Civil Service
Retirement Program
Sec. 16.(a) This Lot shall be admin-
istered by the Commission, Except
as otherwise specifically provided
herein, the Ccemiesion is hereby
authorized and directed to performy
or cause to be performed, any and
all sots 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.,
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Proposed CIA Retirement Act
Sec. 201. (b) The Director shall
administer the system in accordance
with such rules and regulations and
with the principles established by
this Act.
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
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.
in the
Civil Service Retirement Act
Sec. 16. (a) (See immediately above.)
(b) Applications under this Act
shall be in such form as the COMMi8
sion shall prescribe, and shall be
supported by such certificates from
departments or agencies as the Corgi.
mission may deem 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 tins such
medical or other examinations as it
shall deem neoessary to determine
the facts relative to the disability
or dependency of any person receiving
or applying for annuity under this
Act, and may suspend or deny any such
annuity for failure to submit to any
such examination.
(d) An appeal to the Commission
shall lie from any adbinietrative
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 Conniesion.
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Approved For Release 2002/06/4: CIA-RDP78-03721A000200030021-2
Proposed CIA. Retirement Act
Establishment and ifaintenenoe of Fund
Sec. 202, There is hereby created a
fund to be known as the Central In-
telliganee Agency Retiimeemut and
Disability hind 'high Shill be maw.
tained by the Director. The Central
Intelligence Agency Retirement and
Disability Fund is referred to here-
after in this title as the fund.
Foreign Service Act
Sec. 802. The Secretary of the Trea-
sury &Ail maintain the special funds
known as the Foreign Service Retire-
ment and Disability Fund, referred to
hereafter as the Fixed, originally
constituted by section 18 of the Act
of Nig als 1924 (43 Stat. 144).
Civil Service Retirement Act
See. 1. (f) The tern *fund* ahall
mean the civil service retirement
and disability fund created by the
Ast Of May 22* 1920.
-3-
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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 subje2t to
review or approval by the Director.
Foreign Service Act,
See. 80344The following persons,
hereafter referred to as participants,
shalI be entitled to the benefits of
the System
(1) All Foreign Service officers;
(2) All other parsons making contri-
butions to the Fund on the effective
date of this lot;
(3) Any chief of mission who is not
otherwise entitled to be a participant
and who fulfills the conditions of
paragraph (b) of this section;
(b) A person to become a participant
in accordance with the provisions of
paragraphs (a)(3) of this section, must-
(i) have served as Chief of mission
for an aggregate period of twenty
years or more, exclusive of extra ser-
vice eredit in accordance with the
provisions of section 853; and
(2) have paidiinto the Flied a spe-
cial contribution for each year of such
service in accordance with the provi-
sions of section 852(b).
(c)(1) In accordant* with such
regulations as the my pre-
scribe, amy Foreign Service staff
officer or employee appointed by the
Secretary of State who has completed
at least ten years of continuous ser..
vice in the Department's Foreign
Service, exclusive of military ser-
vice, shall beocue a participant in
the System and shall se a special
contribution to the Fund in accord-
ance with the previsions of section
852.
c. 860(o)(2) & (3) relate to the
retirement of participants under
section 8031011L7
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Civil Service Retirement Act
Sec. 2. (s) This Act shall apply to
each employee and Member, except as
hereinafter provided.
et1(a). The tern *employee
mean a civilian effieer er em-
ployee in or under the Government
and, except for purposes of section
2, shell neensperson tombola this
Act applies.
(b) The term Member" shall mean
the Vice President, a United States
Senator, Representative in Congress,
Delegate from a Territory, or the
Resident Commissioner from Puerto
Rico, and, *inept for purposes of
section 2, shall mean a Mather to
wham this Act applies.
(e) --Defines "congressional
employee;
CO 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 employee of
the Government subject to another
retirement qstea for Government
supplied)
and (4) ecnoern Mashers
and cangressional employees. Sea-
tion 2(e) authorises osetesisa of
temperer, or intermittent emo
pleyees. Section 2(f) excludes
specified categories of temporary
or intermittent employees. &lotto's
2(g) applies to Civil Service
Commissioners. Section 2(h) applies
te specified persons who are
emaoyed by =lusty eemoittees under
the Sell Comeoreotion and Doomotie
OMerrb Altai7
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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 shall became entitled
to receive annuities in accordance
with the provisions of this Act.
(b) When used in this Act the
term--
(1) Nidow" 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
fraa the Fend and all persons, in-
cluding survivizarvdmes and husbands,
widows, dependent adAmers, 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 Way 1, 1956 (70 Stet? 12)*
(b) When used in this title the
tem.
(1) Widow" means the surviving
wife of a participant who was mar-
^ed to such participant for at
least two years immediately preced-
ing his death or is the mother of
issue by such narriageo
(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?
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Civil Service Retirement Act
Sec, 1. (it) The term "sammItant"
shall mean agy former employee or
Member who, on the basis of his
service, has net all requirements
of the Act for title to annuity and
has filed Claim therefore
(One term "survivor" shall mean
st parses who is entitled to annuity
ender this Act based on the service
of a deceased employee or Member or
of a deceased annuitant.
(p) The tern ?survivor annuitant"
shall mean a survivor who hie filed
claim for annuity.
Seo. 1. (h) The term "widow", for
purposes of section 10, shall mean
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) The term *widower", for pur-
poses of section 10, Shall mean
the surviving husband of an em-
pleyee or Walther who mas 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 mean a
*widower" who is incapable of self-
support by reason of mental or phy-
sical dimmbilitr, and who received
more than ene-hilf his support from
such employee or amber.
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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.
Persian Service Act
See. 804. (b) (conttd)
(3) *Child' means &unmarried
child, under the age of eighteen
years, or such unmarried child re-
gardless of age who because of phy-
sioal 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
(s) an adopted child, and (3) a
step-ohild or recognized natural
child who received more than one-
half of his support from the
the participant.
civil Service Retirsamit Act
Sec. 1. (contld)
(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
received more than one-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 age
who because of physical or mental
disability incurred before age
eighteen is incapable of pelf-
support, or such unmarried child
between eighteen and twenty-
years of age who is a student
regularly paretrim a full-tie
course of study or training in
residence in a high school, trade
school, technical or vocational
institute, junior college, college,
university, or comparable recog-
nized educational institutica. 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 school years if the
interim does not exceed four months
and if he shows to the satisfaction
of the Ccaidesion that he has a
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Civil Service Retirement Act
Sec. 1. (i)(eontld)
bona fide intention of continuing to
pursue a course of study or training
in the same or different school dur-
ing the school semester (or other
period into which the school year is
divided) immediately following the
interim.
Proposed CIA Retirement Act Foreign Sergio.: Act
Part B - COMPULSOWY CONTRIBUTIONS
Sec. 211. (a) Six and one-4130f 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 allowances. An equal sum shall
also be contributed from the respec-
tive appropriation or fund which is
used for payment of his salary. The
amounts deducted and withheld from
basil) 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.
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 beosfits, refunds,
and snowshoes. An equal-sulis shell
also be crantributed from the respec-
tive appropriation or fend whichis
used for payment et him salary. Me
amounts deducted end withheld from
basic' salary together with the
amounts so omnsibuted from theappro-
priation or fund, shall be deposited
by the Department of State in the
Treasury of the United States to the
credit of the Fund.
Sec. 4. (a) From and after the first
day of the first pay period which
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 oentum of such basic
salary and from each Member's basic
salary an amount equal to 7i per
centum of such basic salary. From
and after the first day of the first
pay period which begins after June 30,
1957, an. equal BUR shall also be con-
tributed from the respective appro-
priation or fund which is used for
payment of his salary, pay or oar
pensation, or in the case of an
elected officials from such 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
with the amounts 150 contributed,
shall, in accordance with such pro-
oaduresas may be proscribed by the
Comptroller General of the United
States, be deposited by the depart-
ment or agency in the Treasury of
the United States to the credit of
.7- (continued an page 8)
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Proposed CIA Retirement Act
Sec. al. (b) Each partiAlvant shall
be deemed to consent and agree to
such deductions from basic salary,
and paynent less such deductions
than be a full and complete dis-
charge and acquittance of all claims
and demands whatsoever for all regu-
lar services daring 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 shall
be deemed to consent and agree to
such deductions from basic salary,
and payment less such deductions
shall be a fall and complete dis-
charge and acquaintance (sic) of all
claims and demands whatsoever for .
all regular services daring 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 individ-
ual's salary.
Civil Service Retirement Act
Sec. 4. (a) (contld)
the fund. There shall also be
credited all deposits made by
pleyees or Members under this section?
5.0. 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 base pay
of the position as fixed by law or
regulation: Provided, That for em-
ployees paid on a fee basil:, the
mamba:ma amount of basic salary
which mey be used shall be $10,000
per annum. --remainder of (di defines
*basic galore for a MeiherA,
(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 fall and complete dis-
charge and acquittanoe of all
claine 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 Intl notwithstanding
any law, rule, or regulation
affecting the individualls
salary.
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Proposed CIA Retirement Act
PART C - =MAME OF ANNUM
Seco 221. (a) The annuity of a par-
ticipant shall be equal to 2 per
?ratan of his average basic salary
for the highest five consecutive
years of service, for which full
contributions have been made to the
fund, multiplied by the number of
years, not exceeding thirty-five,
of service credit obtained in ac??
()ardente with the provisions of
sections 251 and 2520 In deter-
mining the aggregate period of
service upon which the annuity is
to be based, the fractional part
of a month, if any, shall not be
counted,
Foreign Service Act
Sec. 821. (a) The annuity of a par-
ticipant shall be equal to 2 per
oentaa of his average basic salary
for the highest five consecutive
years of service, for which full
contributions have been made to the
fund, multiplied by the number of
years, not exceeding thirty-five,
of service credit obtained in ac-
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 made to the Fund
shall be used in computing the
annuity of any participant who
aims as chief of mission and
whose oontinnity of service as each
is interrupted prior to retirement
by appointment or assignment to
any other position determined by
the Seeretery to be of oemperehlo
importemoe. In determining the
aggregate period of service elm
White the annuity is to be based,
the fractional pert of a month, if
anyi shall not be counted,
Civil Service Retirement Act
ffec, 1. (e) The tern "average
salary" shall mean the largest
annual rate resulting froe aver-
aging, over any period of five
consecutive years of creditable
lige3g1221, or at a Miemberfs option
over all periods of Nember 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 Neither' s or
an employeets rates of basic
salary in effect during such
period with each rate weighted
by The time it was in effect,
(Dnderecoring supp1ied.1)
Seco 9. (a) Except as otherwise
provided in this section, the
annuity of an employee retiring
under this Act shall be (1) the
larger of (1) per centue of
the average salary multiplied by
se much of the total service as
does not exceed five years, or
(B) 1 percent= of the average
salary, plus $25, multiplied by
so much of the total service as
does not exceed five years p plus
(2) the larger at (A) 1 3/4 per
cent= of the average =limy
multiplied by so mmeh at the
total service as =mode five
years bat does not exceed tan
years, or (B) 1 per cent= of
the oversee salary, plus $25,
multiplied by so muoh of the
total 'aryl= as exoeeds five
years but does not exceed
ten years, plus (3) the larger
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Prsposed CiA Retirement Act
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Foreign Servism Act Civil Servioe Retirement Act
Seco 9(a) (contid)
of (A) 2 per maim of the average
salary multiplied by so mach of the
total service as exceeds ten years,
or (B) 1 per centua of the average
salary, plus $25, multiplied by so
much of the total service as ex-
oeeds ten years: Provided, That the
annuity shall not exceed 80 per
mut= of the average salary: Pro-
vided further, That the annuity of
rgarlit7=11:ntraFi:i:
at least (1) 40 per rn
average salary or (2) the sum 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
77174::! le:41:17:;ilts7th
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 section 6(c) Aid&
makes *pedal provision for 'P81.
.,I*' sliPloYeeei
(f) The ennui as hereinbefere
provided shall be reduced by 10
per centum of any deposit described
in section h(o) remaining unpaid,
unless the employee or Member
shall elect to eliminate the ser-
/volved for the purposes of
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Proposed CIA Retirement Act
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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 period
preceding any separation from ser-
vice!, other than a separation by
reason of death or diaabilitys com-
pleted at least one year of credi-
table civilian service during whidh
he was subject to this Act before
he or his survivors shall be eligi-
ble for annuity under this Act based
on sudh separation. If any employee
or Members other than an employee
or Member separated from the service
by reason of death or disabilitys
fails to meet the service require-
ment of the preceding sentences the
amounts deducted from his salary
during his period of service for
which no eligibility for annuity
is established based an 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)
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Proposed CU Retirement Act
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Foreign Service Act Civil Service Retirement Act
No comparable provision. No comparable provision.
Sec. 11. (h)(1) Auy 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-WcWrga-
by section .24 together with interest
on such amounts at the rate of 3 per
centum 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 ssotion 4, and any balance
not so required shall be deemed to
be a voluntary contribution for the
Purposes of section 12. (Under-
sowing supplied.)
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Approved For Release 2002/06/26 CIA-RDP78-03721A000200030021-2
ECTE: COST -OFZIVING ADJUSTMENT OF
ANNUITIES
Section 18 of the Civil Service Re-
tirement Act, quoted below, makes
special prevision for automatic cost-
of living increases in annuities. In
addition, under Part III of the Act
of October 11, 1962, each annuity in
effect as of 1 January 1963 was in-
creased by 5 per centuple Part III
of the Act of October 11, 1962 fur-
ther provided for an increase of 4
per eentum in each annuity (except
any purchased by voluntary contri-
butions) commencing between 2 Janu-
ary and 31 December 1963, of 3 per
centum in annuities beginning during
calendar yearr1964, of 2 percentua
in annuities beginning during calen-
dar year 1965, and of 1 per centum
in annuities beginning during eel-
ender year 1966. There are no came
parable previsions in either the
Pereign Service Act or the ?reposed
CIA Retirement Act.
Sec. 18. (a) After January 1, 1964,
and after each succeeding January 1,
the Commission shall determine the
per centum change in the price index
from the later of 1962 or the year
preceding the mast recent cost-ofe
living ad3ustment to the latest Qom.
Plate year. On the basis of such
Commission determinetion, the fallow-
ing adjuetments shill be made:
(1) Effective April 1, 1961s, if the
change in the price index from 1962
.to 1963 Shall have equaled a rise of
at least 3 per centum, each annuity
payable from the fund which has a
commencing date earlier than January 2,
1963 shall be increased by the per con.
tum rise in the price index adjusted to
the nearest one-tenth of 1 per centum.
(2) Effective April 1 of any year
ether than 1964 after the price index
change shall have equaled a rise of at
least 3 per centum, each annuity payable
from the fund which has a commencing date
earlier than January 2 of the preceding
year shall be increased by the per centum
rise in the price index adjusted to the
nearest ane-tenth of 1 per centum.
(b) Eligibility for an annmitY inarease
under this section shall be governed by
the communing date Of each annuity pay-
able fram the fund as of the effective
date of an increase, except as follows:
(1) Effective from the date of the
first increase under this section, an
annuity payable from the fund to an
annuitant's survivor (other than a
child entitled under section 10(d)),
which annuity commenced the day after
the annuitant's death, shall be in-
creased as provided in subsection (a)(1)
or (a)(2) if the commencing date of
annuity to the annuitant was earlier
than January 2 of the year preceding
the first increase.
(2) Effective from its commencing
date, an annuity payable from the fend
to an annuitant's survivor (other than
a child entitled under section 10(d)),
which annuity commences the day after
the annuitant 's death and after the
effective date of the first increase
under this section, shall be increased
by the total per centum increase the
annuitant was receiving under this
section at death.
(3) For purposes of computing an
annuity which commences after the
effective date of the first increase
under this section to a child under
section 10(d), the items $600, $720?
$1,800, and $2,160 appearing in sec-
tion 10(d) shall be increased by the
total per centum increase allowed and
in force under this section, and, in
case of a deceased annuitant, the
items 40 per canton and 50 per con-
tum appearing in section 10(d) shall
be increased by the total per cent=
increase allowed and in force under
this motion to the annuitant at
death. Effective from the date of
the first increase under this sea-
tion, the provisions of this para-
graph shall apply as if such first
increase were in effect with respect
to computation of a child's annuity
under section 10(d) which commenced
between January 2 of the year preced-
ing the first increase and the effeo-
tive date of the first increase.
(c) No increase in annuity pro-
vided by this section shall be
computed on any additional annuity
purohased at retirement by volun-
tary contributions.
(d) The monthly installment of
annuity after adjustment under
this section shall be fixed at
the nearest dollar.
27.c. 1(0. The term "price index"
shall mean the annual average over
a calendar year of the Consumer
?rice Index (all items--United
States city average) published
monthly by the Bureau of Labor
Statistics.27
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Proposed CIA Retirement Act
Sec. 221. (b) At the time of retire-
ment, any married participant may
elect to receive a reduced annuity
and to provide for an annuity pay-
able to his vile or her husband,
commencing on the date following
such participant's death and
terminating upon the death of such
surviving sidle or husband. The
annuity payable to the surviving
wife 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 full
amount of such annuity specified
by him as the base for the sur-
vivor benefits. The annuity of
the participant making such
election shall be reduced by 2i
per cent= of any amount up to
$2,400 he specified as the base
for the survivor benefit plus
10 per cent = of any amount over
$2,400 so specified.
Foreign Service Act
See. 821. (b) At the time of retire-
ment, any married participant may
elect to receive a reduced annuity
and to provide for an annuity payable
to his wife or her husband, commenc-
ing on the date following such par-
ticipant's death and laminating
upon the death of such surviving
wife or husband. The annuity payable
to the survimdmvidle or husband
after such participant's death shall
be 50 per centum 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
$2,140 he specifies as the base for
the auxidlnu.temefit plus 10 per
contuse of any amount over $2,400
so specified.
Civil Service Retirement Act
Sec, 10. (a)(1) If an employee or
Member dies after having retired
under any provision of this Act and
is survived by a wife or husband to
whom the employee or Member was mar-
ried at the time of retirement, such
wife or husband shall be paid an
annuity equal to 55 per centum of
an annuity ccmputed as provided in
subsections (a), (b), (0), (02 (OP
and (f) of section 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 Hasher
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 commence on
the day after the retired employee
or member dies, and such annuity or
any right thereto shall laminate
on the last day of the month before
the survivor's death or remerriagew
See. 9. (g) The annuity as herein-
before provided (excluding any in-
creasee because of retirement under
section 7 LAisability retirement
for any married employee or Member
retiring under this Act, or for any
portion of such annuity designated
in writing for purposes of section
10(a)(1), shall be minced by 2i7 per
centum of so much thereof as does
not exceed $35,600 and by 10 per
?entail of so much thereof as
(Eont'd on page 12)
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Proposed GIL Retirement Act
Sec. 221. (e)(2) If an annuitant
dies and is survived by a wife or
hatband and by a child or children,
in addition to the annuity payable
to the surviving wife or husband,
there shall be paid to or an behalf
of each child an annuity oval to
the smell:est of: (i) 40 per oentum
of the annuitant's average basic
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 dhildren, each surviv-
ing child Shall be paid an annuity
equal to the smallest of (i) 50 per
cent= of the annuitant's average
basic salary, as determined under
paragraph (a) of this section, di-
vided by the number of children;
(ii) $720; or (iii) $2,160 divided
by the number of Children,
Foreign Service Act
Sec. 821. (e)(1) If an annuitant
dies and is survived by a wile or
husband and by a child or children,
in addition to the annuity payable
to the surviving wife or husband,
there shall be paid to or an behalf
of each child an annuity equal to
the smallest 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 eland or children, each surviv-
ing Child &ail be paid an annuity
equal to the smallest of: (i) 50 per
centum of the annuitant's average
basic salary, as determined under
paragraph (a) of this section, di-
vided by the number of children;
(ii) $720; or (iii) $2,160 divided
by the number of children.
Civil Service Retirement Act
Sao. 9(g) (canted)
exceeds $3,600 unless the employee
or Member notifies the Commission
in writing at the tine of retire-
ment that he 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 Member
dies after having retired under
any provision of the Act, and is
survived by a wife or by a husband,
each surviving child who received
more than one-half of his support
from such employee or Member shall
be paid an annuity equal to the
smallest of (1) 40 per centum 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 =Am 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
shall coaraenee an the day after the
employee or Member dies, and such
annuity granted under this Act or
under the Act of May 29, 1930, as
amended from and after February 28,
1948, or any right thereto shall
terminate on the last day of the
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Proposed CIA Retirement Act
Sc 221. (d) If a surviving wife or
husband dies or the annuity of a
child is terminated, the annuities
of any remaining children shall be
recomputed and paid as though such
wife, husband, or child had not sur-
vived the participant.
(e) The annuity payable to a child
under paragraph (c) or (d) of this
section shell begin an 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 ealf-support
by reasons of mental or physical dis-
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 wile
or husband dies or the annuity of a
child is terminated, the annuities of
any remaining dhildren shall be re-
computed and paid as though such
wife, husband, or child had not sur-
vived the participant?
(40 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 agy
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 dis-
ability, the annuity shall be termi-
nated only when such child dies,
marries, or recovers from such dis-
ability,
Civil Service Retirement Act
Sec. 10(d)(cont'd)
month before (1) his attaining age
eighteen unless incapable of self-
support, (2) his becoming capable
of self-support after age eighteen,
(3) his marriage, or (4) his death,
except that the annuity of a child
who is a student as described in
section 1(3) shill terminate on
the last day of the month before (1)
his marriage, (2) his death, (3) his
ceasing to be such a student, or
(4) his attaining age twenty-.
Upon the death of the surviving
wife or husband or termination of
the annuity of the dhild, 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 Master.
ffee Sea. 10(d) above beginning on
page 12 at "The child's annuity
shall commence on the day after
the employee or &Aber diesw and
eontinuing through "(3) his ceasing
to be a student, or (4) his attain-
ing age twenty-one" immediately
abeveal
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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 tine 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 awll 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 Ito 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 bather
annuity payments authorised under
this paragraph shall be due 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 =Aux 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 centum. 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.
Civil Service Retirement Act
Sec. 9. (h) Any unmarried employee
or Member retiring under section 6
or 80 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
cent= 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-.
sondesignated is younger than the
retiring employee or Member, but
such total reduction shall not
exceed 40 per oentum.
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 (a)? (b), (c), (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.
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Proposed CIA Retirement Act
PARTD- BENEFITS ACCRUING TO CERTAIN
PARTICIPANTS
Retirement for Disability or In2apa-
city--Medical Examinati7n?Recovery
Sea. 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-
sions of section 251 or
and who becomes 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 Director, be
retired on an, annuity computed 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 retired, his annuity shall be
computed on the assumption that he
has had twenty years of service, but
the additional service credit that
may accrue to a participant under
this provision Shall in no ease ex-
ceed the differenoe between his age
at the time of retirement and the
mandatory retirement age applicable
to his grade in the Agency.
Foreign Service Act
See. 831. (a) Any participant who baa
five years of service credit toward
retirement under the System, exclud-
ing military or naval service that Li
credited in accordance with provi-
sions of section 851 or 852(a)(2),
and who becomes 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
computed on the assumption that he
has had twenty years of service,
but the additional service credit
that may accrue to a participant
under this provision shall in no
case exceed the difference between
his age at the time of retirement
and the mendatory retirement age
applicable to his class in the
Servios.
Civil Servies Retirememt lot
Sea. 1. (g) The terms *disabled' amd
sability? shall mean totally dis-
abled for useful and efficient service
in the grade or class of position last
occupied by the employee or Nether by
reason of disease or injury not due to
vicious habits, intemperance, or will-
fa misconduct an his part within the
five years next prior to becoming so
disabled.
-15-
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Sec. 7. (a) Any employee who completes
five years of civilian service and who
is found by the Commission to have be-
ams disabled obeli, upon his own
application or upon application by his
department or agency, be retired an an
annuity computed as provided in sec-
tion. 9. Any Yhmber who completes five
years of Member service and who is
feand by the Commission to have become
disabled ehall, upon his own applica-
tion, be retired on an annuity com-
puted as provided in section 9.
(b) No claim shall be allowed under
this Exaction unless the application is
filed with the Commission prior to
separation of the employee or Nether
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 gapers-
tion from service or within one year
thereafter is mentally incompetent,
if the application is filed with the
Commissio*i within one year from the
dete of restoration of such indivi-
dual to campeteney or the appointment
SC a fiduciary, whichever is the
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Proposed CIA Retirement Act
Sec. 231. (b) In each as, the paz%-
ticipent Shall be given a medical
examination by one or mace duly
qualified physicians or surgeons
designated by the Director to conduct
sonmlnations, an0 disability Absal be
determined by the Director an the
basis of the advice of such physicians
or surgeons. Unless the disability
is permanent, like examinations
!hall be made annually until the
annuitant has method the statutory
mandatory retirement age for his
grade in the Agency. If the Direo-
ter determines an the basis of the
Foreign Service Act Civil Service Retirement Lot
/gen. 9(a) concerning the computation
Zr annuities (quoted opposite Sec.
221 (a) of the Proposed CIA Retire-
ment Act above) specifically pro-
vides as fallows for disability
annuities: *Provided farther, That
the annuity of an employee retiring
under section 7 Shall be at least
(1) 40 per centum of the average
salary or (2) the sum obtained under
this subsection after increasing his
total service by the period elapsing
between the date of separation and
the date be attains the age of sixty'
years whichever is the lesser, but
this proviso shall .not increase the
annuity of any sorvivor.g
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 review.27
Sec. 831. (b) In each case, the
participant shall be given a Arnica.
examination by one or more duly qual-
ified physicians or surgeons desig-
nated by the Secretary to conduct
examinations, and disability shall be
determined by the Secretary on the
basis of the advice of such physicians
or surgeons. Unless the disability is
permanent, like examinations shall be
mode annually 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 (contld page 17)
Sea. 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 as
required under this section, payment
of the annuity shall be suspended
until oontinuance of the disability
is satisfactorily established.
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Proposed CIA Retirement Act
Sec. 231. (b) (contld)
advice of one or more duly qualified
physicians or surgeons conducting sn4b
examinations that an annuitant has re-
covered to the extent that be can
return to duty, the annuitant may
apply for reinstatement or reappoint-
ment in the Agency within one year
from 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 emperience of
such annuitant, and the present
grade of his contemporaries in the
Agency, appoint him to a grade
higher than the one in which be was
serving prior to retirement. Pay-
want of the annuity shall continue
until a date six months after the
date of the examination shading
recovery or until the date of re-
instatement or reappointment in
the Agency, whichever is earlier.
Fees for examinations under this
provision, together with reasonable
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, peyment of the
annuity shall be suspended until
continuance of the disability is
satisfactorily established.
Foreign Service Act
Bee. 834 (b) (00ittd)
advise of one armors duly qualified
ehrticians or surgeons condom:ding sunk
enmentnetiens that an *nazi:tin* has re-
covered to the extent that he can return
to duty, the annuitant may 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 annuitant
in the Class in which he was serving at
time of retirement, or the Secretary
mgy, taking into consideration the age,
qualifications, and experience of such
annuitant, and the present class of his
contenporaries in the Service, appoint
bin or, in the came of an anmilmartmho
is a former Foreign Service officer,
recommend that the President appoint
bin, 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. Pees far
examinations under this provision, to-
gather with reasonable traveling and
other expenses occurred in order to
submit to examination shall be paid
out of the Fund. If the annuitant
fails to submit to examination as re-
quired under this section moment of
the annuity shall be susp:nded until
continuance of the disability is satin..
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 cease upon reemployment by the
Goverment or one year frozatle date
of the medical examination showing
such recovery, whichever is earlier.
If such annuitant, before reaching
age sixty, is restored to an 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
mese upon reemployment by the Govern-
ment or one year from the end of the
oihmahniyeer in which earning capa-
city is so rewtered, whichever is ear-
l:Liar. Kerning capacity shell be
deemed restored if, in each of two
succeeding calendar years, the income
of the annuitant from wages or self-
esployeent, or both, shall equal at
least 60 per cent= of the current
rate of ()compensation of the position
occupied imedintely prier to
retirement.
Sash 16. (e) Fees for emminatione
as under the provisions of this
Act, by physicians or smrgeonsvdm'are
net medical ?Moors of the United
States, shall be fixed by the Cow.
mission, and ouch fees, together
eith reasonable traveling and other
expenses incurred in connection with
snob examinations, shall be paid out
of the appropriations for the cost
of administering this Act.
-17-
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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 the4geeey, he shall he
considered to have been separated with-
in the meaning of paragraphs (a) and
(h) of section 234 as of the date he
mas retired for disability and he ethane
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 may 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 he 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.
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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 frima
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 whose
annuity is heretofore or hereafter
discontinued because of an earning
capacity provision of this or any
prior law and such annnitant is not
reemployed in any position included
in the provisions of this Act,
annuity at the same rate shall be
restored effective the first of the
year following any calendar year in
which his income frogs wages or self-
emPloymemts or both, is lees thee
80 par cent= of the cermet rote 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-
played in any position included in
the provisions of this Acts annuity
at the same rate shall be restored ef-
fective from the date of medical exam-
ination showing a recurrence of such
(contld on page 19)
0030021-2
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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 2220
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 Derspn.
Foreign Service Act
Sec. 831. (d) No participant Shell be
entitled to receive an annuity under
this Act and compensation for intnry
er disability to himself under the
Federal ROOloyeest Campnsatim Act
of September 7, 1916, as amended,
covering the same period of time.
This provision Shill 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-
of the Act of Sentember 7,
1916, as amended, Shall be so con-
strued as to deny the right of any
person to receive an annuity under
this Act by reason of his own ser-
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 perycne
Civil Service Retirement Act
Sec. 7(i)(conted)
disability. Neither the second nor
third sentence of this subsection
Shall be applicable in the case of
any person receiving or eligible to
receive annuity under the first senq.
tones hereof and who has reached the
ago of sixty-two years.
Sec. 7. (f) No person Shill 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 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 in such Act of September 7,
1916, as amended, Shall deny to any
person an annuity accruing to such
person under this Act on account 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.
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Approved For Release 2002/06/2t: CIA-RDP78-03721A000200030021-2
Proposed CIA Retirement Act
Sec. 231. (e) Notwithstanding 81,47
prevision 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
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
sass disability for which compensa-
tion under such section has been paid,
so much of such compensation as has
been paid for any period extended be-
yond the data such annuity becomes
effective, as determined by the Sec-
retary of Labor, shall be refunded to
the Deportment of Labor, to be paid
into the Federal employees' coupon-
station fund. Before such person
shall receive such annuity be shall
(1) refund to the Department of Labor
the amount representing such cam-
muted payments for such extended
period, or (2) authorize the deduct-
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
Sea. 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-
ceived an award of compensation in a
lamp sum under section 111 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 much
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 Deportment 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
Seco 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
an account of the same disability for
which compensation under such section
has been paid, so much of such compen,-
sation as has been paid for any period
extended beyond the date such annuity
becomes effective, as determined by
the Department of Labor, shell 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
(I) refund to such Department the
amcont representing such commuted pay-
ments for such extended period, or
(2) authorize the deduction of such
amount from the annuity payable to
Maunder this Lot, 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 circumstanoes of the annui-
tant are such as to warrant such
deferred refunding.
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Approved For Release 2002/06/26 CIA-RDP78-03721A000200030021-2
Proposed CIA Retirement Act
Death in Service
Sec, 232, (a) In case a participant
dies and no Clain for annuity is pay-
able under the provisions of this
Act, his contributions to the fund,
with interest at the rates prescribed
in sections 241(a) and 281(a), shall be
be paid in the order of precedence
sham 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 oontributions to the Fund, with
interest at the rates prescribed in
sections 841(a) and 681(a), shall be
paid in the order of precedence mho=
in section 841(b).
(
Civil Service Ratiremort 460
See, 22, (d) If an employee or
Washer 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
emaoyee or Member not retired dies,
the lump-sum credit Shall be paid.
Aka. 1(1). The term alump.som
erediti shell seen the Inrefunded
01104Mt connieting of (1) the me-
tireient deductions node tram the
haste salary of an employee or
Milber, (2) any suns deposited by
ma employee or Member covering
prior service, and (3) interest an
smoh deductions and deposits at It
per centum per annum to LboeMber 31,
3947, and 3 per centum per annum
thereafter =impounded annually to
Doeember 31, 1556, or, in the case
of an employee or Neuter separated
or transfbrred to a position not
malhin the purview of this Act be-
fere he has completed five years of
oiwilian service, to the date of
the separation or transfer, The
laip-eux credit shall not include
interest if the service covered
thereby aggregates one year ar_less,
nor shall it include interest for
the fractional part of a month in
the total seraceg
a73401 WO, quieted in fell
opposite section 241(b)
of the Proposed CIA Retirement
Act, specifies the order of
precedence far parent of a
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Approved For Release 2002/06/26(: CIA-RDP78-03721A000200030021-2
Proposed CIL Retirement Act
Sec. 232. (0) 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(0(2), dies before *ope-
ration or retirement &cattle Agency
and is survived by a widow or demon-
dent widower, as defined in section
204 such widow or dependent widower
Obeli be entitled to an annuity
equal to 50 per mat= of the annu-
ity computed in accordance with the
provisions of paragraph (e) of this
motion and of section 221(a). The
annuity of such widow or dependent
widower shall commence 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 salt-support.
YOMOAR Ser4010 Mot
Miley 832, (b) Ifapartiolient who has
st least five years of service credit
toward retirement under the Systemo
excluding military or naval service
that in credited in accordance with
the provisions of section 851 or
852(a)(2), dies bob:we separation or
retirement froze the Service and is
survived by a widow or a dependent
widower, as defined in section 80h,
such widow or dependent widower Obeli
be entitled to an annuity equal to
50 per mat= of the annuity computed
in accordance with the provisions of
paragraph (e) of this arectioh and of
motion 821(a). The annuity of such
widow or dependent widower shall
commence an the date following death
of the participant and Mall termi-
nate upon death of the widow or
dependent widower, or upon the de-
pendent widower's beaming capable
of self-support.
Civil Service Retirement Act
Sec. 10. (c) If an employee or a
Mhmber dies after oompleting at
least five years of civilian per-
vice, the widow or dependent
widower of such employee or Nember
shall be paid an annuity equal to
55
per oenton of an annuity computed
as provided in subsections (a), (b),
(Os (0), and (f) of section 9 as
may apply with respect to the snob
ployee or Maher. The annuity of
such widow or dependent widower
shall commenoe on the 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.
-22-
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Approved For Release 2002/06/26( CIA-RDP78-03721A000200030021-2
!reposed CIA Retireampt
See. 232. (c) If a participant who has
at least five years of service credit
toward retirement under the systmm, ex-
cluding military or naval service that
is credited in accordance with the pro-
'visions of motion 251 or 252(a)(2),
dies before separation or retirement
from the Agency and is survived by a
vile 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(0(1). 'fbe child', an-
nuity Whell begin and be terminated
in accordance with the provisions of
section 221(e). Upon tie death of the
surviving vile 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 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 the Systemy ex-
cluding military or naval service that
is credited in accordance with the pro-
visions of section 851 or 852(0(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 annuity computed in
accordance with the provisions of
section 821(c)(1). The child's annu-
ity shall begin and be terminated in
accordance with the provisions of
section 821(e). Upon the death of the
surviving wife or husband or termina-
tion of the annuity of a child, the
annuities of any remaining children
shall be recomputed and paid as
though such wife or husband or
child had not survived the participant.
Civil Service Retirement Act
Sea. 10. (d) If an employee or a
Member dies after completing at
least five years of civilian ser-
vice, or an employee or a *Mbar
dies after having retired under any
provision of the Act, and is sur-
vived by a wife or by a husband,
each surviving child who received
more than one-half of his support
from such employee or Member *hell
be paid an annuity equal to the
smallest of (1) 40 per cant= of
the employee's or Neiber's average
salary divided by the number of
children, (2) $600, or (3) 81,800
divided by the number of children.
gontinewl on page 24 opposite
sec. 232 (d) of the Proposed
CIA Retirement Acg
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Approved For Release 2002106/26(: CIA-RDP78-03721A000200030021-2
Proposed CIA Retirment
Sec. 232. (d) if a participant Idle 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
froa the Agency and is not survived by
a wife or husband, but by a child or
children, each surviving child shall
be entitled to an annuity computed in
accordance with the previsions of sec-
tion 221(c)(2). The child's annuity
shall begin and terminate in accord-
ance with the provisions of motion
271(e). Upon termination of the annu-
ity of a child, the annuities of any
remaining children shall be recom-
puted and mid as though that Child
had never been entitled to the
benefit,
Foreign Service Act
Secs 832, (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 motion 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 shin
be entitled to an annuity acemputed in
aleordance math the provisions of see.
tten 821(o)(2). The ehild.e enmity
shall begin aved terminate in seamy&
use with the previsions of section
821(e). Upon termination of the annu-
ity of a child, the annuities of any
remaining Children shall be reoempated
and paid as though that Child had
never been entitled to the benefits
Civil Service Retirement Act
Sec, 10. (d) (oont'd)
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 oentum of the employee's
or Maeber's average salary divided
by the number of children, (2) WM
or (3) $2,160 divided by the simhor
of childrem. The child's annuity
shall convenes on the day after the
employee or Member dies, and such
annuity granted =der this Act or
under the Act of May 29, 1930, as
amended from and after Pebruary 28,
1948, or any right thereto shall
terminate on the last day of the
month before (1) his attaining age
eighteen unless incapable of self-
support, (2) his becoming capable
of self-support after age eighteen,
(3) his marriage, or (4) his death,
except that the annuity of a child
who is a student as described in
section 1(j) shall terminate an
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
tmenty-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 shell he recom-
puted and paid as though mediwi/O,
husband, or child had not survived
the employee or Member.
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Approved For Release 2002/06/7 : CIA-RDP78-03721A000200030021-2
Proposed CIA Retirement Act
See. 232. (e) If, at the time aide
or her death, the participant had less
than twenty years of service credit
toward retirement under the system,
the annuities payable in acoerdance
with paragraph NI of this section
than be computed in accordance with
the provisions of section 221 on the
assumption he or she has had twenty
years of service, but the additional
service credit that mey accrue to a
deceased participant under this pro-
vision shell in no case exceed the
difference between his or her age an
the date of death and the mandatory
retirement age 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 far
retirement on the date of his death.
Voluntary Retirement
Sec, 2334 Any participant in the
system who is at least fifty years
of age and has rendered twenty years
of service mey on his own applies-
tics and with the consent of the
Director be retired from the Agency
and receive benefits in accordance
with the provisions of section 221
provided he has not less than five
years service with the Agency.
Foreign Service Act
See. 832. (e) If, at the tine of his
or her death, the participant had less
than twentg, 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 section 821 on the
assumption he or she has had 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 on
the date of death and the mandatory
retirement age applicable to his or
her class in the Service. In all
oases arising under paragraphs 00,
(c), (d), or (a) of this section it
shall be assumed that the decegs:d
participant wee qualified for retire-
ment on the date of his death.
See. 636. Any participant in the
Foreign Service Retirement and Die-
ability Sywtem who is at least fifty
years of age and has rendered twenty
years of service, including service
within the meaning of section 853,
mey on 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 sectidh 821.
Civil Service Retirement Act
He comparable provision?
LNG. 10(e) of the CSRA is a
special provision for Members;
See. 6. (s) salaire Ike
*Maims the age of silt, Years 100
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 ogle.
Oletes thirty years of service shells
upon separation from the service
prior to attainment of the age or
sixty years, be paid a reduced an-
nuity computed as provided in
section 9.
-25. (center' an page 26)
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Approved For Release 2002/06/26 CIA-RDP78-03721A000200030021-2
Proposed CIA Retirement Act
Foreign Service Act Civil Service Retirenent Act
(cant' d)
foree, 6(c) is a special provision
"Any employee the duties of
whose position are primarily the
investigation, apprehension, or
detention of persons suspected or
convicted of offenses against the
criminal lawn 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 50 with twenty
years of service without reduction
in annuityA7
igeo? 6(d) concerns involuntary
separation and is quoted below
opposite section 234(c) of the
Proposed CIA Retirement AotY7
See. 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.
igeo? 6(f) is a special provision
relating to Members and their
retirement at age 62 with five
years of service, at age 60 with
ten years of service, etcs7
4-26-
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Approved For Release 2002/06/26(: CIA-RDP78-03721A000200030021-2
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), mays
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 (am-
oept in cases where the Director
determines that separation was based
in whole or in part on the ground of
disloyalty to the United States) to
leave his contributions in the fund
and receive an annuity, computed as
prescribed in section 2210 commenc-
ing at the age of sixty years.
Approve
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 system, excluding military or naval
service that is credited in accordance
with the Provisions of section 851 or
852(8)(2). may, upon separation from
the Servioe 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.
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.
ffec. 8(b) is a provision
cable only to Memberej
Sec. 637. (b) Any participant in the
Foreign Service Retirement and Dis-
ability System separated under the pro-
visions of paragraph (a) of this section
shall receive a refund of the contribu-
tions made 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 cases where the
Secretary determines that separation
was based in whole or in part on the
ground of disloyalty to the United
States) if he has at least five years
of service credit toward retirement
under this Systems excluding military
or naval service that is credited in
accordance with the provisions of sec-
tion 851 or 852(8), elect to leave his
contributions in the Fund and receive
an annuity, computed as prescribed in
section 821 commencing at the age of
(cont'd an page 27a)
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appli-
Approved For Release 2002/06/26 : CIA-RDP78-03721A000200030021-2
Proposed CIA Retirement Act
Sec. 234. (b) If a participant
who has qualified in accordance
with the provisions of para-
graph (a) of this section to re-
ceive a deferred annuity com-
mencing at the age of sixty
dies before reaching the age of
sixty his contributions to the
AIM, 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 Fund, with
interest, shall be paid in accord-
ance with the provisions of sec-
tions 841 and 881.
Civil Service Retirement Act
Sec. 11. (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 forner employee or
Member not retired dies, the lump-
SUR credit shall be 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 CIL Retirement Act17
-27-a-
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Approved For Release 2002/06/261 CIA-RDP78-03721A000200030021-2
g(
Foreign Service Act
Sec. 634. (a) Any Foreign Service
officer in classes ls 2, or 3 who
is retired from the Service in so-
cordence with the provisions of
section 633 obeli receive retire-
ment hematite 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.
Proposed CIA Retirement Act
Sec. 234. (c) The Director may in his
discretion retire participants in
grade G6-14 and above. If so retired
they shgll receive retirement benefits
in accordance with the provisions of
section 221, provided they halt:: f.11
each case, not less than five years'
qualifying and ten years total serv-
ice with the Agency. Any indivic]aal
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 sich
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 let day of January following
the participant's retirement and on
the two anniversaries of this data
immediately following: Provided
That in special cases, the Director
may in his discretion accelerate or
combine the installments; and
(cont'd on page 29)
Sec. 634. (b) Any Foreign Service of-
eider in classes 14, 5, 6, or 7 who is
retired from the Service in accord-
ance with the previsions 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 Secretary
may in his discretion accelerate or
combine the installments; and
(cont'd on page 29)
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Civil Service Retirement Act
SOC. 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.
fgec. 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 sentence of section 6(f) or
the third sentence of section 8(b)
shall be reduced by one-twelfth of
1 per cent un for each full month not
in excess of sixty, and one-sixth of
1 per oentun for each full month in
excess of sixty, such employee or
Member is under the age of sixty
pars at data of separation, (Under-
scoring supplied)
(No comparable provision.)
Approved For Release 2002/06/26(: CIA-RDP78-03721A000200030021-2
Proposed CIA Retirement Act
Sec. 234(d) (conttd)
(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),may elect to receive re-
tirement benefits on reaching the
age of sixty in accordance with the
provisions of section 221. In the
event that s participant who was
separated from grade GS-13 or 03-12
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 OS-11 or below and who has
elected to receive retirement bene-
fits dies before reaching the age
of sixty, the total amount of his
contributions made to the fund,
with interest as provided in sec-
tion 241(a), shall be paid in
accordance with the provisions of
section 241(b).
Foreign Service Act
Seco 634(b)(contld)
(2) a refund of the contributions
made to the Foreign Service Retire-
sent and Disability Fund, with inter-
est as provided in section 841(a),
except that in lieu of such refund
each officer, if he has at least five
years of service credit toward retiree
meat under the Foreign Service Retire-
ment and Disabilitr System, excluding
mdlitary or naval service that is cre-
dited 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 seperated
from classh 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 whowas sepia-
rated from class 6 or 7 and who has
elected to receive retirement benefits
dies before reaching the age of sixty,
the total amomut of his contributions
made to the Foreign Service Retirement
and Disability Fund, with interest as
provided in section 841(a), Shall be
paid in accordance with the provisicha
of section 841(b).
Civil Service Retirement Act
Zgee Sections 6(d) and 9(d?3
quoted immediately above
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C1v1.1. Service Retiresient.ct
No comparable provision
Sec. 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
part of the benefits receivable
by hie pursuant to paragraph
(d)(1) of this section.
Mandatory Retirentent for Age
Sec. 235. (a) Any participant in
the system in grads 0S-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 exceed
five years.
Foreign Se
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 his pursuant to para-
graph (b)(1) of this section. Any
snoh 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 Feemign Service offi-
cer' who is a career ambassador or a
careerminister, ether than one men-
ming a position as ahief of mission
or any other position to which he boa
been appointed by thePresident, by
and with the advice and consent of
the Senate, shall upon reaching the
age of sixty-five, be retired fraa
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 aervioe for a period
not to exceed five years.
See . 5. (a) Xxoept 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
aumh age, and all salary shall
cease from that day.
(b) Each employing office shall
notify each employee under its
direction of the date of such
separation from the service at
least sixty days in advance
thereof: Provided, That subsea-
tion (a) shall not take effect
without the consent of the
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Proposed CIA Retirement Act
Sec. 235. (b) Any participant in
the system, other than in grade
GS-18 or above, shall upon reaching
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 pre-
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.
get,. 5(e) is a special provision
for employees of the Alaska Rail-
way, Territory of Alaska, certain
employees of the Panama Canal Com-
pony or the Canal Zone Government;
2:16e Sec. 5(a) through (d) abovej
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Proposed CIA Retirement Act
POT 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 Act, 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. 841. (a) Whenever a participant
becones 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 centum
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 section 881,
shall be returned to him.
Civil Service Retirement Act
Sec. 1. (1) The term wIlamp-inua
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 coo-
pounded annually to December 31,
1956, ox, 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-
vioe, to the data 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 wmanth in the total ser-
vice.
Sec. 11. (a) Any employee or Member
who is separated from the service, or
is transferred 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
peyment is filed with the Commission
at least thirty-one days before the
earliest commencing date of any
annuity for which he is eligible.
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Proposed CIA Retirement Act
Foreign Service Act Civil Service Retirement Act
Sec. 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.
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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 each parti-
cipant or to an annuitant Claiming
through him, in the form of annui-
ties, accumulated at the same rate
of interest up to the date the annu-
ity payments cease under the terms
of the annuity, the excess of the
accumulated contributions over the
accumulated annuity parments than
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 persons
(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 descendants 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)
Ibreign Service Act
Seo. 841. (b) In the event that the
total contributions of a retired par-
ticipant, other than voluntary contri4.
butione made in accordance with the
provisions of section 881, with inter-
est at 4 per oentum per annum coni-
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 rate 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
paynents shall be paid in the follow-
ing order of precedence, upon the
establiehment of a valid claim there-
for, and such payment shall be a bar
to reeovery by any other persons
(1) To the beneficiary or beoefi-
clarion designated by the retired
participant in writing to the
Secretary;
(2) If there be no such benefi-
ciary, to the surviving wife or
husband of such participant;
(3) If none of the above, to the
child or children of such partici-
pant and descendents 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)
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 Acts:7
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-sum
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), (es), 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 paynent arises,
and such payment shall be a bar to
recovery by any other persons
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 Each bene-
ficiary, to the widow or widower of
the employee or Member;
Third, if none of the above, to
the child, or children of the em-
ployee or Member and descendants of
deceased chi3 dren 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)
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Prepared CIA Retirement Act
Seep 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
Sec. 841(b) (contld)
(5) If none of the above, to the
duly 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.
(c) No payment shall be made pur-
suant to paragraph (b)(6) of this
section until after the expiration
of thirty days from the death of
the retired participant or his
surviving annuitant.
Civil Service Retirement Act
Seco 11(c) (conttd)
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 lave of the domicile of the
individual at the time of his death.
No comparable provision.
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Proposed CIA Retirement Act
Pi 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 e seQ,) and leaves of
absence granted participants while
performing active and honorable mili-
tary or naval service in the Any,
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 er 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
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, and leaves of absence
granted participants while per-
forming active and honorablemili-
tary or naval service in the Army,
Navy, Air Force, Marine Corps, or
Coast Guard of the United States,
Civil Service Retirement Act
See. 3. (a) An employees service
for the purposes of this Act includ-
ing service as a substitute in the
postal service shall 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
sec. 252(0 Of the Proposed CIA
Retirement Act.
(e) Credit shell be allowed for
leaves of absence granted am amps
ploys. while performing military
service or while receiving bene-
fits under the Federal Employees'
Compensation Act of September 7,
1916, as Emended. Except for a
substitute in the postal service,
there shall be excluded from credit
so much of any other leaves of
sheen?e 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 ',considered,
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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 military service,
unless he shall apply for and re-
ceive a Inmp-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 Member shall be the
full years and twelfth parts
thereof, excluding from the aggre-
gate the fractional part of a
month, if any.
(f) An employee must have coo-
plated 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 period
preoeding any separation from ser-
vice, other than a separation by
regson 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 far annuity under this Act based
on such separation. If any employe*
or Member, other than an employee or
Member separated from the service by
reason of death or disability, fails
to meet the service requirement of
the preceding sentence, the astotmts
deducted from his salary during his
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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 Coluthis
government, prior to becoming a
participant; and
(2) active and honorable mili-
tary or naval service in the Are,
Navy, Air Force, Marine Corps, or
Coast Guard of the United States.
Foreign Service Act
Sec. 852. (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 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.
Civil Service Retirement Act
Sec. Mg) (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 meet this
service requirement shall not de-
prive the individual or his survi-
vors of any annuity rights which
attached upon a previous separa-
tion.
Lgec. 3(h) excludes Member service
of an employee under certain circus-
stances. Sec. 3(1) is concerned
with service of U.S. Commissioners2
ees
. 3(a) quoted above opposite
sec. 251 of the Proposed CIA
Retirement Act;
Sec. 3(j) quoted below opposite
MC. 252(e) of the Proposed CIA
Retirement Act;
Sec. 4(c), (e), and (g) quoted
below opposite sec. 252(b) of
the Proposed CIA Retirement Act;
Sec. 4(d) quoted below opposite
sec. 252(b) of the Proposed CIA
Retirement Acts7
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Approved For Release 2002/06/2t: CIA-RDP78-03721A000200030021-2
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 61- per centum thereafter
with interest compounded annually
at 4 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 6-} per oentwa
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 determined in each in-.
stance by the Secretary, pay such
special contributions in install-
ments.
Civil Service Retirement Act
ee:
. 3(a) quoted above opposite
sec. 251 of the Proposed CIA
Retirement Act;
Sec, 3(j) quoted below opposite
SeCe 252(e) of the Proposed CIA
Retiremnt Actj
Sec. I. (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-
calved for such service:
Employee:
Percentage of
basic salary
Service Period
qAugust 1, 1920, to June 30, 1926
July 1, 1926, to June 30, 1942
5 Jay 1, 1942, to June 30, 1948
6 July 1, 1948, to October 31, 1956
6i After October 31, 1956
Member:
WiGgtage of
basic salary
Service Period
2 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, 1956
7i After October 31, 1956
(oontld on page 39)
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Proposed CIA Retirement Act
Approved For Release 2002/06/26( CIA-RDP78-03721A000200030021-2
Foreign Service Act Civil Service Retirement Act
See. 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 ser-
vice covered by the refund until the
deposit is made.
Soo. 4. (e) Interest under subsection
(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 10 1956,
ffiec. 4(f) provides for entering de-
posits for prior service credit an
individual retirement records;
(g) No deposit shall be required for
any amine prior to August 1, 1920*
for periods of military service or for
any service for the Panama Railroad
Company prior to January 1, 19240
(h) For purposes of survivor annuity*
deposits authorised by subsections
(c) and (d) may also be made by the
Approved For Release 2002/06/26*TA-RDP78-03721A00020MOPPF2a an
employee or Member.
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Proposed CI1 Retirement Act
Sec. 252(c)(1) If an officer or
employee under some 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
prier to becoming a participant in
the orates.
(2) No participant, whose con-
tributions are transferred to the
fund in accordance with the provi-
sions of paragraph (c)(1) of this
section, shall be required to he
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
section 211 of this Act for con-
tributions to the fund.
Foreign Service Act
Sec, 852. (c)(1) If an officer or
employee under some other Government
retirement systems 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 funda 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, whose
contributions are transferred to the
Fund in accordance with the provi-
sions of paragraph (c)(1) of this
section, shall be required to maks
contributions in addition to those
transferred, for periods of service
for which full coptributions 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
Fund.
Civil Service Retirement Act
No comparable provision?
No comparable provisione
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Approved For Release 2002/06/26( CIA-RDP78-03721A000200030021-2
Proposed CIA Retirement Act
Sec. 252. (c)(3) No participant,
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 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 CO 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-
ployee, 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 subsequent te
July 1$ 1924, 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 if which he is receiving er
will in the future be entitled to
receive any annuity under another
retirement system covering civilian
personnel of the Government.
Civil Service Retirement Act
Sec. 4, (d) Bach employee or
Member who has received a refund
of retirement 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.
e: provision precisely compare-
; however, provisions of
sec. 2(b) and 4(c) and (4) operate
te exclude such serviced
Leo. 3(j) quoted below apposite
800. 252(e) of the Proposed CIA
Retirement Act relates also to
credit for certain Peace Corps
volunteer servictj
27se note on Page 42 concerning
exclusion of service an which
entitlement to Social Security
benefit is basedi7
4.41.
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Proposed CIA Retirement Act
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Foreign Service Act Civil Service Retirement Act
Sec. 115, Social Security
fcCJE Amilndmente of 1954:
Covered EmPloyment Not Counted
Under Other Federal Retirement
Systeme
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
instrumentalitq 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(c) of this Act,
constitutes employment as defined
in such section 210(a)g
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Approved For Release 2002/06/26: CIA-RDP78-03721A000200030021-2
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 reoeives retired
pay an account of military or naval
service, the period of service upon
which such retired pay is based
shall not be included, except that
in the case of a participant who is
eligible for and receives retired
pay on account of a service-connected
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 (0(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 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 (aii that term is used
in chapter 11 of title 38, United
States Code), or is awarded under
chapter 67 of title ID of the
United States Code, the period of
such military or naval service
shall be included. No caotribn-
tionsto the Fund shall be required
in connection with military or naval
service credited to a participant in
accordance with the provisione of
paragraph (a)(2) of this section.
Civil Service Retirement Act
Seco 3. (b) An employee or Member
shall be allowed credit for periods
of military service prior to the
date of the separation upon which
title to annuity is based; however,
if an employee or Member is awarded
retired pay on account of military
service, his military service shall
not be included, unless such retired
pay is awarded on account of a ser-
vice-oonnected 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 Law 810,
Eightieth Congress, except that for
purposes of section 9(c)(1), a
Member (A) 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
Approved For Release 20020118t26 : CIA-RDP78-03721A000200030021C2ont Id on Pg at)
Approved For Release 2002/06/26( CIA-RDP78-03721A000200030021-2
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, shall 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
Civil Service Retirement Act
Sec. 3(b) (cont'd)
or a Member to retired pay, pension,
or compensation in addition to the
annuity herein provided.
ffee. 1. (0 The term "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, 19610
as a caamissioned 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
State e07
Sec. 3. (j) Notwithstanding any
other provision of this section or
section 5(f) of the Peace Corps Act,
any military service (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
each individual or widow or child
is entitled (or would upon proper
application be entitled) at the
time of such determination,
kont
Approved For Release d on pg 145)
2002/06/1frCIA-RDP78-03721A000200030021
Approved
For Release 2002/06/26 -CIA-RDP78-03721A000200030021-2 Ar
Serv&6 Act Civil Service Retirement .t
Sec. 3(j) (cont'd)
to monthly old-age or survivors
benefits under section 202 of the
Social Security Act, as amended
(42 U.S.C. 402), based on such
individual's wages and self-employ-
ment incase. 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-
.4 lug age sixty-two, he 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, effec-
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 tie such benefits?
Proposed CIA Retirement Act Foreign
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: Provideci,
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. Approved For Release 2002/06/26 : CIA-RDP78-03721A000200030021-2
Sec. 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 Statelso
-45-
See. 4. (g) No deposit shall be
required for any service prior to
August 1, 1920, for periods of
military service or for any
service for the Panama Railroad
Company prior to January 1, 19240
Approved For Release 2002/06/26( CIA-RDP78-03721A000200030021-2
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
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Approved For Release 2002/06/26( CIA-RDP78-03721A000200030021-2
Proposed CIA Retirement Act
PART G--MONETS
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
him.
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 Fund,
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
exceeding $5,000 per annum for the
incidental expenses neoessary in
administering the provisions of
this title, including actuarial
advice.
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. (f) The Commission shall
publish an annual report upon the
credit of the Fund an amount not
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
Boards judgment may be deemed
necessary to protect the public
interest and maintain the system
upon a sound financial basis. The
Commission shall keep or calm to
be kept such records as it deems
necessary for making periodic
actuarial valuations of the Civil
Service Retirement Systemy and
i pgcontld on 47)
Approved For Release 2002/06/2&A-RDP78-03721A00020003002T-2
Sac. 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.
Approved For Release 2002/06/2t: CIA-RDP78-03721A000200030021-2
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
hind.
Foreign Service Act
Soo. 863. The Sooretary of the
TreasurY 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 allowanoes, and the
income derived from such investments
shall constitute a part of such
Rind.
Civil Service Retirement Act
Sec. 16(g) (contld)
the Board shall make such valuations
at intervals of five years, or of-
tener if deemed necessary by the
Commission. The compensation of the
maskers of the Board of Actuaries,
exclusive of such members as are in
the employ of the United States,
shall be fixed by the Commissicn.
Sec. 17. (e) 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.
See. 17. (a) The band 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 generallyg
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 publiamdebt obligations
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Proposed CIA Retirement Act
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Foreign Service Act Civil Service Retirement Act
Sec. 17 (d) (contid)
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 and 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
an 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*
-14a-
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Approved For Release 2002/06/26: CIA-RDP78-03721A000200030021-2
Proposed CIA Retirement Act
Attachment of Moneys
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).
Civil Service Retirenent Act
Sec. 15, (a) None of the moneys
mentioned in this Act shall be
assignable either in law or equity,
or be subject to execution, levy,
attachment, garnishmont, or other
legal process.
(b) 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 without 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 any foramer employee
of the United States in the dis-
charge of his official duties
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 frsud on the part of such
employee.
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Approved For Release 2002/06/2t: CIA-RDP78-03721A000200030021-2
Prevailed CIA Retirement Act
PART 11--RETZLED PARTICIPANTS
RECALLED, REINSTATED, CR RE-
APPOINTED IN THE AG/ICY, aR
REEMPLOYED IN THE GOVERNMENT
Boma].
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 accordanoe
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 Lull
salary of the grade in which he is
serving. During such service, be
shall make contributions to the
fund in accordance with the provi-
sions of section 211. When he re-
verts to his retired status, his
annuity shall be determined anew
in accordance with the provisions
of sec. 221.
Foreign Service Lot
Sec. 520. (b) The Secretary may re-
call any retired Foreign Service offi-
cer temporarily to duty in the Service
whenever he shall determine such
recall is in the public interest.
Seo. 871. Any annuitant recalled to
duty in the Service in accordance
with the provisions of *nation 520(b)
or reinstated or reappointed in ac-
cordance with the provisions of sea-
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
services he 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 Release 2002/A1 : CIA-RDP78-03721A00020
Civil Service Retirement Act
fflthough 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, reocapu-
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 hi a salary,
but there shall be deducted fros
his salary, except for lump-sum
leave payment purposes under the
Act of December 21, 1944, a sum
equal to the annuity allocable to
the period of actual employments
and this provision concerning
0030021-2(cont,d on pg 51)
Proposed CIA Retirement Act
Approved For Release 2002/06/26 CIA-RDP78-03721A000200030021-2
Foreign Service Act Civil Service Retirement Act
Sec. 13(b) (cont,d)
the lump-sum leave payments shall
also be effective in the case of
each retired employee separated
from reemployment after Decem-
ber 15, 1953, and before the effec-
tive date of the Civil Service Re-
tirement Act Amendments of 1956:
Provide, That if such annuitant
serves on a full-time basis for at
least one year in employment not
excluding him under section 2(b)
from coverage, (1) his annuity upon
termination of employment 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 em-
ployment of an annuitant under
this subsection Shall not operate
to create an annuity for or in any
manner affect the annuity of amy
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 band of an amount com-
puted under section 4(c) covering
such employment. A similar right
to redetermination after deposit
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Approved For Release 2002/06/2t: CIA-RDP78-03721A000200030021-2
Proposed C/A Retirement Act
Reemployment
Sec, 272. Notwithstanding any
other provision of law, a parti-
cipant retired under the provi-
sions of this Act shall not, by
reason of his retired status, be
barred from employment in Feder-
al Government service in any ap-
pointive position for which he is
qualified, An annuitant so re-
employed shall serve at the will
of the appointing officer,
Foreign Service Act
Sec, 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
which he is qualified. An annuitant
so reemployed shall serve at the will
of the appointing officer,
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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
servioe, and (2) who is separated,
on 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.
ffec. 13(0) is concerned with the
reemployment of a retired 1.43mber.27
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 be is qualified. An annuitant
so reemployed shall serve at the will
of the appointing officer,
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Approved For Release 2002/06/26( CIA-RDP78-03721A000200030021-2
Proposed CIA Retirement Act
Reemployment Compensation
Sec. 2730 (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-tin* basis shall be entitled
to receive the salary of the posi-
tion in which he is serving plus so
mach of his annuity payable under
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
theretes 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 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 OT 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
[See sec. 13(b) quoted above opposite
see. 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.")
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Approved For Release 2002/06/26 ? CIA-RDP78-03721A000200030021-2
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 salary 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. 872. (b) When any such retired
offioer or employee of the Service
is reemployed, the employer shall
send a notice to the Depertment 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 he is serving.
(c) In the event of any overpayment
under this section, such overpayment
shall be recoveiled 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
*mordancy with the provisions of
this title.
Civil Service Retirement Act
No comparable provision.
NO comparable provision. However,
sec. 15(b) provides in pert:
Notwithstanding any other previ-
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 conscience;...
(Sec. 15(b) is quoted in fnll
above opposite sac. 263 of the
Proposed CIA Retirement Act.)
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Approved For Release 2002/06/26( CIA-RDP78-03721A000200030021-2
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 sums 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 cent=
per annum, compounded annually as
of December 31, and proportionately
for the period served during the
year of his retirement, including
all contributions 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-
tiamallifir annuity; or
(3) used to purchase an addi-
tional life annuity for himself
and to provide for a cash payment
cn his death to a beneficiary
whose name shall be notified in
writing to the Direotor 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 te 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; annu-
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 son;
or
(2) used to purchase an additional
life annuity; or
(3) used to purchase an additional
life annuity for himself and to pro-
vide ger a cash payment on his death to
a beneficiary whose name 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 commencing 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.
Civil Service Retirement Act
Sec. 12. (a) Any employee or Member
may, under regulations prescribed
by the Commission, voluntarily con-
tribute additional suns in multiples
of $25, but the total may not ox..
coed 10 per oentum of his basic
salary for his creditable service
from and after August 1, 19200
The voluntary contribution account
in each case shall be the Ems 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 dimes not claim the
voluntary contribution account, to
the commencing 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 prom
tided. 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)
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on
pay 55)
Approved For Release 2002/06/2t: CIA-RDP78-03721A000200030021-2
Proposed CIA Retirement Act
Seo. 281. (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 time to tine prescribed for
this purpose by the Director.
(c) In case a participant shall
become separated from the Ageney
for any reason except retirement
an an annuity, the amount of any
additional deposits with interest
at 3 per cent= per annum, com-
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.
Approved
Foreign Service Act Civil Service Retirement 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 centum
per annum, 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 from the Service.
For
Sec, 12(c) (contld)
and designate in writing a person to
receive after his death an annuity
of 50 per centum 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 40 per oentum,
ffec. 12(b) and (c) quoted immedi-
ately above specify the benefits
provided under the comparable pro-
visions of the Civil Service Re-
tirement Acts7
(d) Any present or former employee
or Member shall 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-
yond date of payment. Such individual
shall 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 section 11(c). If all additional
enmities or any right thereto based
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on voluntary contribution account
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Approved For Release 2002/06/2r CIA-RDP78-03721A000200030021-2
Propviled 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 tLe
benefits otherwise provided under
this Act.
Foreisn Serve 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.
Civil Service Retirement Act
Sec. 12(e) (cont,d)
of a deceased employee or Member
terminate before the total additional
annuity paid equals such accounts the
difference shall be paid under the
provisions of section 11(c).
Asco 12(b) quoted in fall above
opposite sec, 281(a) of the Proposed
CIA Retirement Act states in part:
Such voluntary oontribution account
shall be used to purchase at retire-
ment an annuity in addition to the
annuity otherwise_provi&d. (Under-
scoring supplied.)
Sec. 12(c), quoted in fall above,
similarly refers to a "reduced addi-
tional annuity.17
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