REMARKS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP78-03721A000600020004-8
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 22
• Document Creation Date: December 12, 2016
• Document Release Date: January 25, 2002
• Sequence Number: 4
• Content Type: SUMMARY

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TAB
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(Personal introduction of witness to members--name, title, and
thanking them for opportunity to appear as witness in presentation
of this bill)
-REMARKS-
In the book before you, there is set forth the bill explanation
and justification together with sectional analysis and explanation
of this bill. My remarks generally follow the outline of the
explanation and justification set forth at Tab of your book.
The purpose of the bill is to bring up-to-date the Central
Intelligence Agency Retirement Act and to bring it in line with
legislation approved for Civil Service and Foreign Service employees.
Authority is also provided for exemption for the Agency from the
Federal employees Pay Act.
The bill before you differs from the one approved by this
Committee and passed by the House of Representatives only in relatively
minor respect. The changes do, however, shorten the bill consider-
ably and eliminate consideration of twelve differing travel,
allowances and related expense authorities.
As I expressed to you last year, certain of the provisions of
that bill were requested for the purpose of clarifying Agency
authority. Those sections have been deleted from the present bill
which contains only the authorities we feel are necessary for
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I would like to emphasize that with one exception, each of the
authorities in this bill has already received the approval of Congress
In either the Civil Service or Foreign Service retirement systems.
(Section 6, Transfer of Government Contributions).
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IMPLEMENTATION OF THE CIA RETIREMENT AND DISABILITY SYSTEM
1. Designation of Participants
STATINTL
We have screened the files of-individuals who had been on duty for
three years or more at the time the CIA. Retirement Act was approved and
STATINTL determined that were eligible for designation as participants.
Against the ceiling of 400 retirements as of 30 June 1969, we have had only
124 voluntary, involuntary, and mandatory retirements. In addition, we have
had 13 disability retirements and 23 deaths in service -- neither chargeable
to the 400 ceiling -- for a total of 160 separations from active employment of
participants in the system.
Barring unforeseen developments, the balance of 276 of the "retirement
ceiling" would appear to be. adequate for our needs through 30 June 1969.
Present forecasts indicate that the 400 limitation for the period from July
1969 - June 1974 may not be sufficient.
Total
1965
1966
1967
Voluntary
84
22
28
34
Mandatory
39
15
16
8
Involuntary
1
0
0
1
Disability
13
2
1
10
Total Retirements
137
39
45
53
Deaths in Service
23
6
10
7
TOTAL
160
45
55
60
The average age of retirees to date has been slightly over 55. It is
significant to note that 57 of the 84 "voluntary" retirees were under age 55.
The average grade of retirees has been GS-13 and the average annuity
has been $6, 334.
Qualifying service of retirees has averaged 83. 5 months (almost 7 years)
and their total federal service has average 24. 4 years.
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3. Financial Aspects of the CIA Retirement and Disability Fund
Arrangements have been made with the Department of the Treasury for
the services of the same Actuary who has been working with the Foreign
Service Retirement and Disability Fund. With his assistance, provision
has been made to collect experience data essential for an actuarial analysis
of the CIA Fund in future years. A projection of the CIA Fund, based upon
estimated income and annuity payments, indicates that the Fund will be
self supporting for a number of years before it will be necessary to request
financial support of the Fund by an appropriation.
Through 30 September 1967, the Fund received actual income of
$22. 7 million from all sources and paid out $1. 2 million in annuity benefits,
transfers back to the CSC, refunds to beneficiaries, and miscellaneous
expense. Under special arrangements with the Secretary of the Treasury,
the Fund has been invested in United States Securities having a par value
of $22, 021, 500. Approximately a 4% yield should be realized from these
investments. The Net Worth of the Fund as of 30 September 1967 is
$21. 5 million.
Schedule of Investments -- By Series
Rate of Interest Maturity
31/2%
4 %
4 1 /8%
4 1/40/6
4 1/401,
TOTAL
1980 $ 587, 000
1980 3,495,500
1973 6,521,500
1975-85 5,377,000
1987-92 6,040,500
$22,021,500
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In compliance with clause 3 of rule XIII of the Rules of the House of Representatives, there is
herewith printed in parallel columns the text of provisions of existing law which would be repealed or
amended by the various provisions of the bill as reported.
Central Intelligence Agency Retire-
ment Act of 1964 for Certain
Employees, (50 U.S.C. 403 note.)
Sec. 204(b)(3) "Child", for the purposes
of section 221 and 232 of this Act, means an
unmarried child, including (i) an adopted
child, and (ii) a stepchild or recognized
natural child who received more than one-half
of his support from and lived with the parti-
cipant in a regular parent-child relationship,
under the age of eighteen years, or such
unmarried child regardless of age who because
of physical or mental disability incurred before
age eighteen is incapable of self-support or
such unmarried child between eighteen and
Sec. 1. The Central Intelligence Agency
Retirement Act of 1964 for Certain Employees,
(78 Stat. 1043; 50 U.S.C. 403 note) is amended
by striking subsection 204(b)(3) and inserting
the following in lieu thereof;
"(3) `Child', for the purposes of sections
221 and 232 of this Act, means an unmarried
child, including (i) an adopted child, and
(ii) a stepchild or recognized natural child
who lived with the participant in a regular
parent-child relationship, under the age of
eighteen years, or such unmarried child
regardless of age who because of physical or
mental disability incurred before age eighteen
is incapable of self-support, or such unmarried
child between eighteen and twenty-two years of
age who is a student regularly pursuing a
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twenty-one years of age who is a student regularly
pursuing a full-time course of study or training in
residence in a high school, trade school, technical
or vocational institute, junior college, college,
university, or comparable recognized educational
institution. A child whose twenty-first birthday
occurs prior to July 1 or after August 31 of any
calendar year, and while he is regularly pursuing
such a course of study or training, shall be
deemed for the purposes of this paragraph and
section 221(e) of this Act to have attained the
age of twenty-one on the first day of July
following such birthday. A child who is a student
shall not be deemed to have ceased to be a student
during any interim between school years if the
interim does not exceed four months and if he
shows to the satisfaction of the Director that
he has a bona fide intention of continuing to
pursue a course of study or training in the same
or different school during the school semester
(or other period into which the school year is
divided) immediately following the interim.
Sec. 221.(a) The annuity of a participant
shall be equal to 2 per centum 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
THE BILL AS REPORTED
full-time course of study or training in
residence in a high school, trade school,
.technical or vocational institute, junior
college, college, university, or comparable
recognized educational institution. A child
whose twenty-second 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 sec-
tion 221(e) of this Act to have attained the
age of twenty-two 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 five
months and if he shows to the satisfaction
of the Director that he has a bona fide inten-
tion of continuing to pursue a course of study
or training in the same or different school
during the school semester (or other period
into which the school year is divided) immedi-
ately following the interim. The term `child',
for purposes of section 241, shall include
an adopted child and a natural child, but shall
not include a stepchild.".
Sec. 2. Section 221(a) of the Central
Intelligence Agency Retirement Act (50 U.S.C.
403 note) is amended by striking our "thirty-
five" and substituting "forty".
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service credit obtained in accordance with the
provisions of sections 251 and 252. In
determining the aggregate period of service
upon which the annuity is to be based, the
fractional part of a month, if any, shall
not be counted.
Sec. 221(b) At the time of retirement, any
married participant may elect to receive a reduced
annuity and to provide for an annuity payable to
his wife or her husband, commencing on the date
following such participant's death and terminating
upon the death or remarriage of such surviving
wife or husband. The annuity payable to the
surviving wife or husband after such partici-
pant's death shall be 55 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 2 1/2 per centum of any amount up to
$3,600 he specified as the base for the survivor
benefit plus 10 per centum of any amount over
$3,600 so specified.
Sec. 232. (b) If a participant, who has
at least five years of service credit toward
retirement under the system, excluding military
or naval service that is credited in accordance
with the provisions of section 251 or 252(a)(2),
dies before separation or retirement from the
Agency and is survived by a widow or dependent
widower, as defined in section 204, such widow
Sec. 3. Section 221(b) of the Central
Intelligence Agency Retirement Act (50 U.S.C.
403 note) is amended by deleting the words
"or remarriage" from the first sentence, and
section 232(b) is amended by deleting the words
"or remarriage" from the second sentence.
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or dependent widower shall be entitled to an
annuity equal to 55 per centum of the annuity
computed in accordance with the provisions of
section 221(a). The annuity of such widow or
dependent widower shall commence on the date
following death of the participant and shall
terminate upon death or remarriage of the widow
or dependent widower, or upon the dependent
widower's becoming capable of self-support.
Sec. 221. (e) The annuity payable to a
child under paragraph (c) or (d) of this section
shall begin on the day after the participant
dies, and such annuity or any right thereto
shall terminate on the last day of the month
before (1) his attaining age eighteen unless
incapable of self-support, (2) his becoming
capable of self-support after age eighteen,
(3) his marriage, or (1i) his death, except
that the annuity of a child who is a student
as described in section 20)+(b)(3) of this Act
shall terminate on the last day of the month
before (1) his marriage, (2) his death,
(3) his ceasing to be such a student, or
(4) his attaining age twenty-one.
Sec. 11. Section 221(e) of the Central
Intelligence Agency Retirement Act (50 U.S.C.
403 note) is amended to read as follows:
"(e) The commencing date of an annuity
payable to a child under paragraph (c) or (d)
of this section, or (c) or (d) of section 232,
shall be deemed to be the day after the
annuitant or participant dies, with payment
beginning on that day or beginning or resuming
on the first day of the month in which the
child later becomes or again becomes a student
as described in section 204(b)(3), provided
the lump-sum credit, if paid, is returned to
the fund. Such annuity shall terminate on
the last day of the month before (1) the
child's attaining age eighteen unless he is
then a student as described or incapable of
self-support, (2) his becoming capable of
self-support after attaining age eighteen
unless he is then such a student, (3) his
attaining age twenty-two if he is then such
a student and not incapable of self-support,
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Sec. 221. (f) Any unmarried participant
retiring under the provisions of this Act and
found by the Director to be in good health may
at the time of retirement elect a reduced
annuity, in lieu of the annuity as herein-
before provided, and designate incwriting
a person having an insurable interest (as that
term is used in section 9(h) of the Civil
Service Retirement Act (5 U.S.C. 2259(h)) in
the participant to receive an annuity after
the participant's death. The annuity payable
to the participant making such election shall
be reduced by 10 per centum of an annuity
computed as provided in paragraph (a) of this
section, and by 5 per centum of an annuity so
computed for each full five years the person
designated is younger than the participant,
but such total reduction shall not exceed
40 per centum. The annuity of a survivor
designated under this paragraph shall be
55 per centum of the reduced annuity computed
as prescribed above. The annuity payable to a
beneficiary under the provisions of this
paragraph shall begin on the first day of the
next month after the participant dies. Upon
the death of the surviving beneficiary all
payments shall cease and no further annuity
payments authorized under this paragraph
shall be due or payable.
(4) his ceasing to be such a student after
attaining age eighteen unless he is then
incapable of self-support, (5) his marriage,
or (6) his death, whichever first occurs.".
Sec. 5. Section 221 of the Central
Intelligence Agency Retirement Act (50 U.S.C.
403 note) is amended by deleting the last two
sentences of subsection (f), and adding the
following new paragraphs (g) and (h):
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EXISTING LAW TEE BILL AS REPORTED
See 221(f) above.
"(g) Except as otherwise provided, the
annuity of a participant shall commence on the
day after separation from the service, or on
the day after salary ceases and the participant
meets the service and the age or disability
requirements for title thereto. The annuity
of a participant under section 234+ shall commence
on the day after the occurrence of the event on
which payment thereof is based. An annuity
otherwise payable from the fund allowed on or
after date of enactment of this provision shall
commence on the day after the occurrence of
the event on which payment thereof is based.
"(h) An annuity payable from the fund on
or after date of enactment of this provision
shall terminate (1) in the case of a retired
participant, on the day death or any other
terminating event occurs, or (2) in the case
of a survivor, on the last day of the month
before death or any other terminating event
occurs.".
Sec. 6. Section 252 of the Central
Intelligence Agency Retirement Act (50 U.S.C.
403 note) is amended by deleting subsection
(c)(1); renumbering subsections (c)(2) and
(c)(3) to read (c)(3) and (c)(tl-); and inserting
the following new subsections (c)(l) and
(c)(2):
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THE BILL AS REPORTED
Sec. 252. (c)(l) If an officer or employee
under some other Government retirement system
becomes a participant in the system by direct
transfer, such officer or employee's total
contributions and deposits, including interest
accrued thereon, except voluntary contributions,
shall be transferred to the fund effective as
of the date such officer or employee becomes
a participant in the system. Each such officer
or employee shall be deemed to consent to the
transfer of such funds and such transfer shall
be a complete discharge and acquittance of all
claims and demands against the other Govern-
ment retirement fund on account of service
rendered prior to becoming a participant in the
system.
"(c)(l) If an officer or employee under
some other Government retirement system becomes
a participant in the system by direct transfer,
the Government's contributions under such
retirement system on behalf of the officer or
employee shall be transferred to the fund and
such officer or employee's total contributions
and deposits, including interest accrued thereon,
except voluntary contributions, shall be
transferred to his credit in the fund effective
as of the date such officer or employee becomes
a participant in the system. Each such officer
or employee shall be deemed to consent to the
transfer of such funds and such transfer shall
be a complete discharge and acquittance of all
claims and demands against the other Govern-
ment retirement fund on account of service
rendered prior to becoming a participant in
the system.
"(c)(2) If a participant in the system
becomes an employee under another Government
retirement system by direct transfer to
employment covered by such system, the Govern-
ment's contributions to the fund on his behalf
may be transferred to the fund of the other
system and his total contributions and deposits,
including interest accrued thereon, except
voluntary contributions, may be transferred
to his credit in the fund of such other
retirement system at the request of the
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Sec. 273. (a) Notwithstanding any other
provision of law, any annuitant who has retired
under this Act and who is reemployed in the
Federal Government service in any appointive
position either on a part-time or full-time
basis shall be entitled to receive his annuity
payable under this Act, but there shall be
deducted from his salary a sum equal to the
annuity allocable to the period of actual
employment.
officer or employee effective as of the day
he becomes eligible to participate in such
other retirement system. Each such officer
or employee in requesting such transfer
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 fund on account
of service rendered prior to his becoming
eligible for participation in such other
system.".
Sec. T. Section 273 of the Central
Intelligence Agency Retirement Act (50 U.S.C.
403 note) is amended by deleting subsection
(a); renumbering subsection (b) to read (c);
and inserting the following new subsections
(a) and (b):
"(a) Notwithstanding any other provision
of law, any annuitant who has retired under
this Act and who is reemployed in the Federal
Government service in any appointive position
either on 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 which
when combined with such salary does not
exceed during any calendar year the basic
salary such officer or employee was entitled
to receive on the date of his retirement
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Sec. 291. (a) On the basis of deter-
minations made by the Civil Service Commission
pursuant to section 18 of the Civil Service
Retirement Act, as amended, pertaining to
per centum change in the price index, the
following adjustments shall be made:
THE BILL AS REPOICED
from the Agency. Any such reemployed officer
or employee who receives salary during any
calendar year in excess 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.
"(b) When any such annuitant is
reemployed, he shall notify the Director of
Central Intelligence of such reemployment
and shall provide all pertinent information
relating thereto.".
Sec. 8. Section 291 of the Central
Intelligence Agency Retirement Act (50 U.S.C.
403 note) is amended to read as follows:
"Sec. 291. (a) On the basis of deter-
minations made by the Director pertaining to
per centum change in the price index, the
following adjustments shall be made:
(1) Effective April 1, 1966, if the
change in the price index from 1964 to 1965
shall have equaled a rise of at least 3 per
centum, each annuity payable from the fund
which has a commencing date earlier than
January 2, 1965, shall be increased by the
"(1) Each annuity payable from the fund
on January 1, 1967, shall be increased on
that date by (a) 12.4 per centum for annuities
which commence on or before January 1, 1966,
or (b) 4.9 per centum for annuities which
commence on or between January 2, 1966, and
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per centum rise in the price index adjusted to
the nearest one-tenth of 1 per centum.
(2) Effective April 1 of any year other
than 1966 after the price index change shall
have equaled a rise of at least 3 per centum,
each annuity payable from the fund which has a
commencing date earlier than January 2 of the
preceding year shall be increased by the per
centum rise in the price index adjusted to the
nearest one-tenth of 1 per centum.
January 1, 1967.
"(2) Each month beginning with November
1966 the Director shall determine the per
centum change in the price index. Effective
the first day of the third month which begins
after the price index shall have equaled a
rise of at least 3 per centum for three
consecutive months over the price index for
the base month, each annuity payable from
the fund which has a commencing date not
later than such effective date shall be increased
by the per centum rise in the price index
(calculated on the highest level of the price
index during the three consecutive months)
adjusted to the nearest one-tenth of 1 per
centum.
(b) Eligibility for an annuity increase
under this section shall be governed by the
commencing date of each annuity payable from
the fund as of the effective date of an
increase, except as follows:
(1) Effective from the date of the first
increase under this section, an annuity payable
from the fund to an annuitant's survivor
(other than a child entitled under section
221(c)), which annuity commenced the day after
the annuitant's death, shall be increased as
provided in subsection (a)(1) or (a)(2) if
the commencing date of annuity to the annuitant
was earlier than January 2 of the year pre-
ceding the first increase.
"(b) Eligibility for an annuity increase
under this section shall be governed by the
commencing date of each annuity payable from
the fund as of the effective date of an
increase, except as follows:
"(1) Effective from its commencing date,
an annuity payable from the fund to an
annuitant's survivor (other than a child
entitled under section 221(c)), which annuity
commences the day after annuitant's death
and after January 1, 1967, shall be increased
by the total per centum increase the annuitant
was receiving under this section at death;
or if death occurred between January 1, 1967,
and date of enactment, the per centum increase
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(2) Effective from its commencing date,
an annuity payable from the fund to an
annuitant's survivor (other than a child
entitled under section 221(c)), which annuity
commences the day after the 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 221(c), the items $600, $720,
$1,800, and $2,160 appearing in section 221(c)
shall be increased by the total per centum
increase allowed and in force under this
section, and, in case of a deceased annuitant,
the items 40 per centum and 50 per centum
appearing in section 221(c) shall be increased
by the total per centum increase allowed and
in force under this section to the annuitant
at death. Effective from the date of the
first increase under this section, the provi-
sions of this paragraph shall apply as if
such first increase were in effect with
respect to computation of a child's annuity
under section 221(c) which commenced between
January 2 of the year preceding the first
increase and the effective date of the first
increase.
"(2) Effective from its commencing
date, an annuity payable from the fund to
a child under section 221(c), which annuity
commences the day after annuitant's death
and after January 1, 1967, shall be increased
by (a) 2 per centum if the annuity from which
it is derived commenced on or before January 1,
1966, or (b) 1 per centum if the annuity from
which it is derived commenced on or between
January 2, 1966, and January 1, 1967.
"(3) For the purposes of computing an
annuity which commences after January 1, 1967,
to a child under section 221(c), the items
$600, $720, $1,800, and $2,160 appearing in
section 221(c) shall be increased by 10.2 per
centum plus the total per centum increase
allowed and in force under section 291(a)(2)
for employee annuities, and, in case of a
deceased annuitant, the items 40 per centum
and 50 per centum appearing in section 221(c)
shall be increased by the total per centum
increase allowed and in force under this
section to the annuitant at death; or if death
occurred between January 1, 1967, and date of
enactment, the per centum increase the annuitant
would have received.
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EXISTING LAW THE BILL AS EKPORTED
(c) No increase in annuity provided by "(c) Any annuity increased under this
this section shall be computed on any additional section shall be deceased by the amount of
annuity purchased at retirement by voluntary increase in force and effect with respect
contributions. to that annuity under section 291 prior to
the date of enactment of this Act.
(d) The monthly installment of annuity "(d) The term 'price index' shall mean
after adjustment under this section shall be the Consumer Price Index (all items--United
fixed at the nearest dollar. States city average) published monthly by
the Bureau of Labor Statistics. The term
'base month' shall mean the month of October
1966 for the first increase under section
291(a)(2) and thereafter the month for which
the price index showed a per centum rise
forming the basis for a cost-of-living
annuity increase.
"(e) No increase in annuity provided
by this section shall be computed on any
additional annuity purchase at retirement by
voluntary contributions.
"(f) The monthly installment of annuity
after adjustment under. this section shall be
fixed at the nearest dollar, except that such
installment shall after adjustment reflect an
increase of at least one dollar.".
J)lt e),-o-pc?13 National Security Act of 1947,
as amended, (50 U.S.C. 405)
Sec. 303(a). The Director of the Office Sec. 9. Section 5 of the Central
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THE BILL AS REPORTED
of Civil and Defense Mobilization, the
Director of Central Intelligence, and
the National Security Council, acting
through its Executive Secretary, are
authorized to appoint such advisory com-
mittees and to employ, consistent with
other provisions of this Act, such part-
time advisory personnel as they may deem
necessary in carrying out their respective
functions and the functions of agencies
under their control. Persons holding other
offices or positions under the United States
for which they receive compensation, while
serving as members of such committees,
shall receive no additional compensation
for such service. Other members of such
committees and other part-time advisory
personnel so employed may serve without
compensation or may receive compensation
at a rate not to exceed $50 for each day
of service, as determined by the appointing
authority.
Intelligence Agency Act (50 U.S.C. 403f) is
amended by adding the following new paragraph:
"(f) Appoint advisory committees and
employ, notwithstanding any other provisions
of law, part-time advisory personnel necessary
to carry out the functions of the Agency.
Persons holding other offices or positions
under the United States for which they receive
compensation, while serving as members of
such committees, shall receive no additional
compensation for such service. Other members
of such committees and part-time advisory
personnel so employed may serve without
compensation or may receive compensation at
rates determined by the Director, not to
exceed $100 per day for the assignment or
position.".
Federal Employees Pay Act of 1945,
as amended, (5 U.S.C. 5541(2))
Sec. 10. Section 5541(2) of title 5,
United States Code, is amended by (1) striking
out "or" at the end of paragraph (xii);
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EXISTING LAW THE BILL AS B PORTED
(2) deleting the period at the end of
paragraph (xiii) and inserting "; or";
and (3) adding the following new paragraph:
"(xiv) an officer or employee of the
Central Intelligence Agency.".
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RETIREMENT ACT AMENDMENTS
Section I. Definition "Child"
Sections 1 through 8 provide technical amendments and additional
authority for the administration of the Agency Retirement Act
5hich the Director talked to you about this morning.7 Looking to
the provisions of the bill, section 1 provides an expanded defini-
tion of the word "child" as used in the retirement provisions.
The change makes our word "child" consistent with the current
Civil Service definition of the term.
The changes (a) eliminate the requirement that a child be
dependent upon a parent participant in order to receive a survivor
annuity, (b) raises from 21 to 22 the maximum age for receiving
survivor annuity payments as a student, (c) increases from 4 to 5
the maximum months absence from school which may be permitted without
terminating such a survivor annuity, and (d) permits a natural child
of a deceased participant to share in the distribution of any money
or deposit in the CIA Retirement and Disability Fund which belongs
to the deceased participant.
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Section 2. Computation of Annuities
This is the only provision in the bill which was not considered
by the Committee last year. Its effect is to raise the maximum
annuity payable to our retirees from 70% to 80% of the average
salary of the high five consecutive years. This is the same maximum
percentage payable under Civil Service. A similar proposal for the
benefit of Foreign Service retirees was approved by the Senate in
June and is now pending before the House Foreign Affairs Committee.
The proposed annuity ceiling increases from 35 to 110 the number of
years of service that may be credited in computing an annuity.
The 35 year limitation denies to a number of people the full benefit
of actual years of service. Seven such cases have already occurred and
there will be more in the future.
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Section 3. Widow's Annuity
This section permits the annuity of a widow or a dependent
widower to continue in the event of remarriage. Under existing law
survivor annuities to widows or dependent widowers are terminated
upon remarriage.
This proposal is the same as the provision applicable under
the Foreign Service Act.
The Civil Service Commission has also moved in this same
direction by permitting a widow after age 60 to retain her annuity
in the event of remarriage. However, Civil Service retirement looks
to age 60 for retirement without penalty, while our Act and that
of Foreign Service looks to the age 50 area. In addition, we feel
that the wife is a necessary element in our personnel team, particularly
in overseas situations and that her annuity is one that is "earned"
in the truest sense of the word.
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