TENTATIVE DETAILED DESCRIPTION OF PROPOSED CIA RETIREMENT SYSTEM
Document Type:
Collection:
Document Number (FOIA) /ESDN (CREST):
CIA-RDP78-04718A002600170017-9
Release Decision:
RIFPUB
Original Classification:
S
Document Page Count:
5
Document Creation Date:
December 9, 2016
Document Release Date:
June 13, 2001
Sequence Number:
17
Case Number:
Publication Date:
July 11, 1958
Content Type:
REGULATION
File:
Attachment | Size |
---|---|
CIA-RDP78-04718A002600170017-9.pdf | 246.8 KB |
Body:
S-E-C-R-E-T
Approved For Release 2001/08/10 : CIA-RDP78-04718A002600170017-9
11 July 1958
TENTATIVE DETAIIZD DESCRIPTION.
of
PROPOSED CIA RETIREMENT SYSTEM
I. E1 'LOYEE6 COVERED
A. Definition of Coverage
1. Persons covered by the plan
(a) All Career Employees.
(b) Career'Agents.
(c) Contract employees who have been Career Employees and who are still
covered by the Retirement System by reason of no break in service between
previous appointive status and present contract status.
2. Persons not covered by the plan
(a) Staff Employees and Staff Agents who are not Career Employees.
(b) Foreign nationals who have appointive status in order to convey
coverage by the Civil Service Retirement System, or 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.
1. For determining eligibility for retirement
2. For computing annuity or other benefits
3. Credit for military service
4+. Transfer privileges
For the above four situations the requirements and criteria would be the
same as those under the Civil Service Retirement System
5. Reemployment after retirement
(a) If reemployed as a Career Employee, the conditions applicable under
the Civil Service System would apply.
(b) If employed, always after a technical break in service, as a covert
contract employee for covert operations overseas, the conditions under
paragraph 6 below, Reemployment elsewhere in Government, would be made
applicable to this situation.
(c) Nothing in the CIA system would preclude the subsequent utilization
as an independent contractor of a participant who has retired for age
or disability.
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6. Reemployment elsewhere in the Government
Note: The following proposal is similar to one
currently put forward by the Department of State
as an amendment to the Foreign Service System.
This situation is not provided for in the Civil
Service System
(a) A participant who has retired from the CIA System may be employed
elsewhere by the U. S. Government and retain that part of his retirement
annuity which would equal the difference between his base salary with
CIA at retirement and his base salary in his new non-CIA Government
employment provided this difference does not exceed his retirement annuity.
His total income from his new Government employment plus his CIA retire-
ment may not exceed his terminal CIA salary unless the salary of his
new Government employment exceeds his terminal CIA salary in which case
his CIA annuity would be suspended. After retirement from his new non-
CIA job his annuity from CIA would be resumed in full plus any other
annuity he might have earned as a result of his new employment.
(b) Utilization by CIA as a covert contract employee as discussed in
5 (-b) above, in every case after a technical break in service, would
be possible and the same circumstances would apply, e.g., the sum of
contract salary plus all or part of annuity from staff salary may not
exceed terminal staff salary.
An individual retired from CIA at age 50 after 20 years total
Government service, 10 of which werQoverseas service (military plus
civilian). His "high-5" salary was;l0,000. His CIA terminal salary
was `,;11,000. His annuity would be:
20 years x 2% x $10,000 c $1+,000 annuity
If employed elsewhere in the Government or as a covert contract employee
his 94r *s income would be:
New Government non-CIA Salary
or CIA. Covert Contract Salary
CIA Annuity
Paid
CIA Annuity
Suspended
Gross Income
$ 4,000
$4,ooo
--
$ 8,0oo
$ 5,000
$1+,000
--
$ 9,000
$ 6,000
$4,000
--
$10,000
$10,000
$1,000
$3,000
$11,000
*12)000
--
$4.'000
$12,000
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II. BENS ITS
A. Age and Service Retirement Provisions
QUALIFICATIONS
1. Voluntary Retirement
(a) With Full Annuity
Age 50 after 20 years total Govern-
ment service; 10 of which (military
and civilian) shall have been spent
in overseas service, 5 of the 10
shall have been spent in the service
of CIA as a civilian. [rote: This
is the "Ellsworth 1 formula) Permis-
sion of DCI required.
1. Voluntary Retirement
(a) Average "high-5 ?` salary x
creditable years of ser-
vice x 2%. t4axiimum benefit
of 70% average "high-5"
salary. -Note: This is
the "Ellsworth" - also the
Foreign Service - formula
Involuntary Retirement
(a) Same as 1(a) above
provided participant has
10 or more years overseas
service; 5 of which shall
have been spent in the
service of CIA as a civil-
ian. If less than the
requirld overseas service
in 2(a) above, the Civil
Service formula will apply,
i.e. average "high-5"
salary x 1-1/2% for the
first 5 years of credit-
able service + ;l_3/14%
for the sencond 5 years
of creditable service
2% for the balance of
creditable service. .
(b) Same as 2(a) above but
not to exceed 25% of per
annum salary at time of
separation.
this formula, with equity to present
personnel, it would be necessary
to install on a phased basis to
reduce the age level of 62 to 551
Involuntery Retirement
(a) With Full Annuity
At age 55 after 25 years total
Goverrmient service. Retirement
at discretion of DCI.
Note: In order to establish
(b) With Limited Annuity
t age 1+5, and with 5 years credit-
able service, if separated as result
of unsatisfactory performance or
selection out.
SECRET
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(c) With Severance Pay (c) Severance pay equal to
Under age 45, and with one year's salary or the
5 years credit- return of contributions to
able service, if separated as result the retirement fund, which-
of unsatisfactory performance or ever is greater.
selection out; no criteria for overseas
service.
Note: Such a provision does not exist in the Civil Service S stem.
The following is similar to that in the Foreign Service System
/-Note: If involuntary retirement occurs under (b) limited annuity --
age between 45 and 55) or (c) with severance pay -- under age 45) and
individual has less than 5 years creditable service, and annuity will
not be paid and the required and voluntary contributions will be
returned with compound interest]
3. Compulsory Retirement 3. Compulsory Retirement
(a) With Full Annuity (a) Same as 2(a) above
At age 60 regardless of years of (Involuntary Retirement)
creditable service; no requirements for
overseas service. Employee may be
reappointed by the DCI on a year-to-year basis
basis because of special skill, up to
age 70 but not beyond.
RECAPITWJATION
>e of Retirement
Reason
Age
Involuntary
Cause
under 45
Involuntary
Cause
45
- 55
Voluntary
Choice
50
- 55
Involuntary
Longevity 55 - (70)
Compulsory
Longevity 60 - (70)
z/.
SECRET
A uit1
None; severance
pay or return
of contributions whichever is
greater
limited; mediate
mil; immediate
full; inmiedlate
full; immediate
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A. 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
A1ethod of Funding
B. A determination will have to be made whether the administration of the
CIA Retirement System will conform to that of the Civil Service Retirement
System, which is controlled and administered by the Civil Service Commission,
or whether it would be desirable for CIA to administer its retirement system
in a manner similiar to that used by the Department of State. Each method
has certain advantages and disadvantages.
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WJDENTIAL
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