TENTATIVE DETAILED DESCRIPTION OF PROPOSED AGENCY RETIREMENT SYSTEM

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP78-04718A002600170011-5
• Release Decision: RIFPUB
• Original Classification: U
• Document Page Count: 5
• Document Creation Date: December 9, 2016
• Document Release Date: June 13, 2001
• Sequence Number: 11
• Publication Date: July 14, 1958
• Content Type: REPORT

I-N-T-E-R-I?-A-L U-S-E O-N-L-Y
Approved For Release 2001/08/10 : CIA-RDP78-04718AO02600170011-5
14 July 1958
Copy L of 15 copies
TENTATIVE DETAILED DESCRIPTION
of
PROPOSED AGENCY RETIREMENT SYSTEM
.. Definition of Coverage
1, Persons covered by the plan.
() Staff Employees and Staff Agents who are Career Employees.
b) Career Agents.
(c) Contract Employees who have been Career Employees and who are still
covered by the Civil Service Retirement System by reason of no break-in
service between previous appointive status and present contract status.
Persons not covered by the plan
(' )
(i)
Staff Employees and Staff Agents who are not Career Employees.
Foreign nationals who have received appointive status in order to convey
coverage by the Civil Gervice Retirement System or (2) other benefits.
(c) Other personnel such as Consultants, persons employed by limited or
temporary appointments, Contract Employees other than those in 1(c) above,
Independent Contractors,, etc.
Definition of Creditable Service
I. For determinin eligibility for retirement
For co uti annuit or other benefits
Credit for milit xv service
Transfer nriviles
=,ote: For the above four situations the requirements and criteria
would be the same as those under the Civil Service Retirement System]
) If reemployed as a Career Employee, the conditions applicable under
the Civil Service Retirement System would apply.
(b) If reemployed, always after a technical break-in-service, as a
Ltpecial contract employee for operational reasons of a long-range nature,
thf: conditions under paragraph 6 below, Reemployment elsewhere in Government,
T`ouz;i..d be made applicable to this situation.
c thing in the Agency Retirement System would preclude the subsequent
lization as an Independent Contractor of a participant who has retired
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r. Reemployment elsewhere in the Government
LNTote: The following proposal is similar to one currently put
forward by the Department of State as an amendment, which has
been cleared by the Bureau of the Budget, to the Foreign Service
.Retirement Act. This situation is not provided for in the
Civil Service Retirement System
(a) A participant who has retired under the Agency Retirement System may
be employed elsewhere in the U. S. Government and retain that part of his
annuity which would equal the difference between his terminal Agency salary
and his base salary in his new non-Agency Government job. His gross
income from his new Government job plus his Agency annuity may not exceed
his terminal Agency salary unless the salary of his new Government job
exceeds his terminal Agency salary in which case all of his Agency annuity
would be suspended. After retirement from his new non-Agency Government
Job his Agency annuity would be resumed in full plus any other annuity he
eight have earned as a result of his new employment.
(b) Utilization by the Agency as a special contract employee, as discussed,
in paragraph IB 5 (b) above, in every case after a technical break-in
service, would be possible and the same circumstances as in paragraph 6(a)
above would apply, e.g., the sum of contract salary plus all or part of
annuity earned as a Career Employee may not exceed terminal Career Employee
salary.
A Career Employee retires from the Agency at age 50 after 20 years
total creditable service, 10 of which were overseas service (military plus
civilian) 5 of the 10 having been as an Agency Career Employee. His
"high-5" salary was $10,000. His terminal Agency salary was $3.1,000.
His annuity would be:
20 years x 2% x $10,000 : $4,000
If employed elsewhere in the Government or as a special contract employee
his gross income would be:
I?ew Government non-Agency salary Agency Annuity Agency Annuity
or Agency contract salary Paid Suspended Gross Income
$ 4,000 $4,000 -- $ 8,000
$ 5,000 $4,000 -- $ 9,000
$ 6,000 x,000 -- $10,000
$10,000 $1,000 $3,000 $11,000
$12,000 -- $4,000 $12,000
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 Approved For Release 2001/08/10 : CIA-RDP78-04718AO02600170011-5
II. BENEFITS
A. Age and Service Retirement Provisions
QUALIFICATIONS
1. Voluntary Retirement
(a) With Full Annuity
At age 50 or more after 20 years
or more total creditable service;
at least 10 of which (military
and civilian) shall have been
spent in overseas service, at
least 5 of the 10 shall have
been spent in the service of
the Agency as a Career Employee.
L Note: This is the "Ellsworth"
formula. j Permission of the
Director required.
2. Involuntary Retirement
(a) With Full Annuity
At age 55 or more after 25 years
or more total creditable service.
Retirement at discretion of the
Director. Note: In order to
o:;tablish this formula, with
equity to present personnel, it
would be necessary to install
on a phased basis to reduce the
.ge level of 62 to 55-__7
MOUNT
1. Voluntary Retirement
(a) With Full Annuity
Average "high-5" salary x credit-
able years of service x 2%. 1ax-
imum benefit, 70% average "high-5"
salary. [ Note: This is the
"Ellsworth" - also the Foreign
Service - formula)
2. Involuntary Retirement
(a) With Full Annuity
Same as 1(a) above provided
participant has 10 years or more
overseas service, 5 of which shall
have been spent in the service
of the Agency as a Career Employee.
If less than the required overseas
service, the Civil Service formula
will apply, i.e. average "high-5"
salary x 1 1/2p for the first 5
years of creditable service plus
1 3/4% for the second 5 years of
creditable service plus 2% for
the balance of creditable service.
b) With Limited Annuity (b) With Limited Annuity
At age 45 or more and with 5 years Same as 2(a) above but not to
or more creditable service, if exceed 25% of per annum salary
separated as result of unsatis- at time of separation.
factory performance or selection-
out.
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(c) With Severance Pay
Under age 45, and with 5 or more
years creditable service, if
separated as result of unsatis-
factory performance or selection-
out.
(c) With Severance Pay
Severance pay equal to one year's
salary or the return of required
contributions to the retirement
fund, whichever is greater. Compound
interest on required contributions
plus voluntary contributions and
compound interest added.
L -Note: Such a provision does not exist in the Civil Service Retirement
system. It is similar to that in the Foreign Service Retirement System
Note: If involuntary retirement occurs under (b) With Limited Annuity
(age between 4+5 and 55) or under (c) With Severance Pay (under age ).i.
?.nd individual has less than 5 years creditable service, an annuity will
not be paid but the required and voluntary contributions will be returned
with compound interest
3. Compulsor~- Retirement 3. Compulsory Retirement
) With Full Annuity (a) With Full Annuity
At age 60 regardless of years Same as Involuntary Retirement
of creditable service; no require- With Full Annuity, see paragraph
ments for overseas service. 2 (a) above.
Employee may be reappointed by
the Director on a year-to-year
basis because of special skill,
up to age 70 but not beyond.
IUMAPITULATION
Type of Retirement
Reason
AA.e
involuntary
Cause
under 45
Involuntary
Cause
45 - 55
Voluntary
Choice
50 - 55
Involuntary
Longevity 55-(70)
Compulsory
Longevity 60-(70)
Annuity
None; severance pay or return
of contributions whichever Is
greater
limited; immediate
full; immediate
full; immediate
full; immediate
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 CONFIDENTIAL
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The following factors would be controlled or administered as they are in
the Civil Service Retirement System:
Disability Provisions
Survivor Provisions
Separation Provisions
Adjustment of Benefits for Retired Employees
Alternative and Duplicate Benefits
Taxation of Benefits
Definition of basic salary, pay or compensation
Basis of required contributions
Provisions for additional contributions
Employer Contributions
GONE IDENTIAL
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