LETTER TO DEAR ANNUITANT FROM (Sanitized)

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79-00498A000500160008-1
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 11
• Document Creation Date: December 9, 2016
• Document Release Date: July 21, 2000
• Sequence Number: 8
• Publication Date: October 26, 1976
• Content Type: LETTER

Approved For Release 2000/08 00
25X1A
Public Law 94-522, enacted 17 October 1976, amended the
Agency Retirement Law in several significant respects. This
letter will explain the changes and provide instructions for
any action required on your part. The questions and answers
accompanying this letter provide information on the practical
implementation of certain of the amendments.
MAJOR CHANGES
A. Increase Annuities Based on a Retirement Prior
to 20 October 1969.
The annuity payable to an annuitant who retired
or separated before 20 October 1969 will be in-
creased by $20.00 per month. A survivor annuity
to a widow or widower (not to a child) of an
annuitant who retired or separated before 20 October
1969 will be increased by $11.00 per month.
These increases are effective retroactively to
1 August 1974 and are subject to subsequent cost-
of-living adjustments. These increases for el-
igible annuitants or survivors will be included
in the October annuities payable on. 1 November.
B. Survivor Annuity to "Second" Spouse of Retiree
Who WAS Married at the Time of Retirement.
Heretofore a married employee, unless he elected
"an annuity without survivor benefit" at the
time he retired, had to designate his or her
spouse and only the spouse so designated could
receive a survivor annuity benefit. If the des-
ignated spouse predeceased or was divorced from
the retiree and the retiree later remarried, the
new spouse could not qualify for the survivor
annuity.
The change in law automatically substitutes the
retiree's surviving spouse acquired after retire-
ment for the one designated at the time of re-
tirement. The amount of annuity to the spouse
acquired after retirement is the same as would
have been payable to the spouse designated at the
time of retirement had that spouse survived the
retiree.
Approved For Release 2000/08/31 : CIA-RDP79-00498A000500160008-1
 Approved For Release 2000/08/31 : CIA-RDP79-00498A000500160008-1
This amendment shall not apply in the case of
participants who died before 8 January 1971.
C. Survivor Annuity to Spouse of Retiree Who Was
Unmarried at Time of Retirement.
The change in law permits a retiree who was
unmarried at the time of retirement to change
his earlier election of "single life" or
"insurable interest" to provide a survivor
benefit for the acquired spouse if he married
after the date he retired. Such a post-retire-
ment election of "reduced annuity with survivor
benefit to spouse" must be in writing, signed
by the retiree and received by the retirement
system within 1 year from 17 October 1976, the
date of the enactment of P. L. 94-522, or within
1 year from the date of the post-retirement
marriage, whichever is later.
Upon receipt of such a post-retirement election,
the retiree's current annuity will be recomputed
and appropriately reduced to provide for the
survivor benefit. The reduced annuity is effec-
tive the first day of the month after the elec-
tion is received. The spouse's annuity will be
the same as though the retiree had been married
to the spouse at the time of retirement.
Once such a post-retirement election has been
accepted by the retirement system, it cancels
the previous "single life"or "insurable inter-
est" election and is irrevocable.
D. Elimination of the Annuity Reduction During-the
Period Annuitant is Unmarried.
The new law eliminates the annuity reduction
for months during which the annuitant is not
married. Thus, when a marriage of an annui-
tant is dissolved due to death, divorce or
annulment, the annuity will be recomputed to
eliminate the reduction for survivor benefits
beginning with the month following the one in
which the marriage was dissolved, and for each
full month thereafter during which the annui-
tant is not married. If and when the annuitant
is again married, the annuity will be reduced
beginning the first day of the month in which
the remarriage occurred. The elimination or
restoration o}f~ the reduction when a spouse
Ap~f?lWe d`%&ao ~1~ly'W%#40 00500160008-1
by operation of law and is not dependent upon
 Approved For Release 2000/08/31 : CIA-RDP79-00498A000500160008-1
our receipt of appropriate or timely notice
from the annuitant; nor can the annuitant,
upon remarriage,elect continuation of the
single-life and unreduced annuity.
The increases in annuity provided by this
change in law may not be paid for any month
prior to November 1974.
E. Changes Applicable Only to Disability Annuitants.
The new law makes important changes which apply
to disability annuitants under age 60. A spe-
cial notice will be sent to annuitants affected
by these changes.
F. Time Limit for Filing Applications for Disability
Retirement.
The new law permits an employee who separated or
retired on non-disability to apply for disability
retirement, but-such application must be filed
within one year from date of separation or retire-
ment from the Agency. This time limitation may be
waived by the Director for a participant or annui-
tant who at the date of separation from the Agency
or within one year thereafter is mentally incompe-
tent, if the application is filed with the Agency
within one year from the date of restoration of
the participant or annuitant to competency or the
appointment of a fiduciary, whichever is earlier.
G. Survivor Annuity to a Child in Process of
Adoption.
The new law permits the payment of a survivor
annuity to a child who lived with and for whom
a petition for adoption was filed by a partici-
pant and who is adopted by the surviving spouse
after the participant's death. This amendment
shall not apply in the case of participants who
died before 8 January 1971.
H. Credit for Service while in Recei t of Benefits
under Federal Employees Compensation Act.
The change in law allows for a participant or
former participant who returns to Government
duty after a period of separation to have in-
cluded in his period of creditable service that
part of the period of separation in which he
Approved For Release 2000/08/31 : CIA-RDP79-00498A000500160008-1
 Approved For Release 2000/08/31 : CIA-RDP79-00498A000500160008-1
was receiving benefits under Chapter 81 of
Title 5, United States Code. Such service
:;hall be counted whether the person returns to
duty before, on, or after 8 January 1971.
With respect to any person already retired,
any such part of a period of separation shall
be counted only upon application of the retired
~)erson. Annuity payments accruing under this
provision are payable only for full months be-
ginning after 8 January 1971.
1. Designation of Beneficiary for Disposition of
Retirement Contributions in Excess of Benefits
Received.
The change in law amended item (1) in the
Order of Precedence which operates in the case
Of a lump-sum payment. It also operates in the
event that the total contributions of a retired
participant exceed the total amount returned to
Such participant or to an annuitant claiming
through him, in the form of annuities, and the
excess of the accumulated contributions over the
accumulated annuity payments is paid in the fol-
I_owing Order of Precedence upon the establish-
ment of a valid claim therefor:
(1) To the beneficiary or beneficiaries
uesi nated such participant in- a
sew and witnessed writinrece_ved
by the Retirement System before his
per eath. For this purpose, a de-
signation, change, or cancellation of
beneficiary in a will or other docu-
ment not so execute- an filed shall
have no force or eect; (2) If there be no such beneficiary, to
the surviving wife or husband of such
participant;
(3) If none of the above, to the child or
children of such participant and de-
scendants of deceased children by re-
presentation;
(4) If none of the above, to the parents
of such participant or the survivor
of them;
Approved For Release 2000/08/31 : CIA-RDP79-00498A000500160008-1
 Approved For Release 2000/08/31 : CIA-RDP79-00498A000500160008-1
(5) If none of the above, to the duly ap-
pointed executor or administrator of
the estate of such participant;
(6) If none of the above, to other next
of kin of such participant as may be
determined by the Director in his
judgment to be legally entitled thereto.
J. Authorit to Maintain Existing Areas of Conformity
Between Civil Service and Agency Retirement Systems
Whenever the President determines that it would
be appropriate for the purpose of maintaining
existing conformity between the Civil Service
Retirement and Disability System and. the Agency
Retirement System with respect to substantially
identical provisions,he may, by Executive Order,
extend to current or former participants and annui-
tants in the Agency Retirement System, or to their
survivors, those similar provisions of law enacted
after January 1975 for Civil Service. This provi-
sion eliminates the need to resort to the lengthy
legislative process to obtain for our system cer-
tain provisions enacted for the Civil Service
System.
The passage of these amendments to the Agency Retirement
Act will require a substantial number of changes to existing
annuities. Please be assured that we shall act to accomplish
all such changes as soon as possible. These adjustments will
be retroactive to the dates allowed by law.
STATINTL
Retirement Affairs Division
Approved For Release 2000/08/31 : CIA-RDP79-00498A000500160008-1
 Approved For Release 2000/08/31 : CIA-RDP79-00498A000500160008-1
QUESTIONS AND ANSWERS REGARDING CHANGES
A. Increase in Annuities Based on a Separation Prior to
20 October 1969.
1. Q. I retired before 20 October 1969 and am eligible
for the increase. Must I apply for it?
A. No, you need not apply. The adjustment in your
annuity will be made automatically by the retire-
ment system.
2. Q. I am the surviving spouse of an annuitant who
retired before 20 October 1969. Must I apply
for the increase?
A. No, you need not apply. If you are eligible for
the increase, the adjustment in your annuity will
be made automatically by the retirement system.
B. Survivor Annuity to "Second" Spouse of Retiree Who Was
Marrie at Time of Retirement.
1. Q. I was married when I retired. The marriage
ended and I later remarried. Is my new spouse
entitled to a survivor annuity?
A. Your new spouse could be paid a survivor annuity
if at the time of your retirement you elected a
reduced annuity with survivor benefit.
2. Q. Does my spouse whom I married after retirement
have to meet any requirements to be paid the
survivor annuity?
A. Yes, your new spouse must have been married to
you for at least 1 year (2 years in the case of
participants who died before April 9, 1974) imme-
diately before your death or, if married less
than 1 year (2 years in the case of participants
who died before April 9, 1974), be the parent of
a child born of the marriage. If your spouse is
entitled to any other survivor annuity from the
Government (not including Social Security), she
(or he) must elect either that or the one pro-
vided by you. Your spouse may not receive both.
3. Q. What must I do to ensure that my new spouse is
paid a survivor annuity?
Approved For Release 2000/08/31 : CIA-RDP79-00498A000500160008-1
 Approved For Release 2000/08/31 : CIA-RDP79-00498A000500160008-1
A. You should advise this office of the name of
your new spouse, place and date of marriage,
and provide a copy of your marriage certifi-
cate. If your new spouse survives you and
meets the requirements explained in Question 2
above, she (or he) will automatically be eligi-
ble for survivor benefits.
4. Q. How much annuity will my spouse, whom I married
after I retired, receive?
A. The same amount as the spouse to whom you were
married when you retired would have received
if she (or he) had outlived you.
5. Q. When I retired I was married but elected a
single-life annuity payable during my lifetime
and without a survivor benefit. Can I change
this election now?
A. No. The new law does not authorize a change in
the type of annuity you elected for the purpose
of now providing a survivor benefit for your
spouse.
Survivor Annuity to Spouse of Retiree Who Was Unmarried
at Time o-f`Retirement .
1. Q. I was unmarried when I retired and am now married.
-low does the new law affect me?
A. The new law now gives you the chance to elect a
reduced annuity for yourself with a survivor
benefit to your spouse.
2. Q. Is there any time limit on when I can make the
election to name as a survivor annuitant my
spouse whom I married after I retired?
A. Yes. If you married before 17 October 1976 you
must make the election no later than 1 year from
1,7 October 1976.
3. Q. How do I make my election?
A. You must send your request for such a change,
in writing, to the retirement system. Your
request should include the name, date of birth
of your spouse and the date of marriage together
with a copy of the marriage certificate.
Approved For Release 2000/08/31 : CIA-RDP79-00498A000500160008-1
 Approved For Release 2000/08/31 : CIA-RDP79-00498A000500160008-1
- 3 -
4. Q. I am not married now but may marry in the
future. Can I elect the survivor annuity
after I marry?
A. Yes. If you marry on or after 17 October
1976, your election must be made within
one year after the date of your marriage.
S. Q. Can I change the survivor annuity election
after I make it?
A. No, the election of a survivor annuity can-
not be changed after it has been accepted
by the retirement system.
6. Q. Does my spouse whom I married after retire-
ment have to meet any requirements to be
paid the new survivor annuity benefit?
A. Yes. See Question 2, Part B above.
D. Elimination of the Annuity Reduction During the Period
Annuitant is Unmarrie .
1. Q. When I retired I elected a reduced annuity
to provide a survivor benefit to my spouse.
I am not married now. What must I do to
have my annuity raised to the full amount?
A. You must report your marital status to the
retirement system and request that your full
annuity be reinstated. If your marriage ter-
minated by divorce, you must provide a certi-
fied copy of the final decree; if by death,
a certified copy of the death certificate.
You must also agree to notify the retirement
system immediately if you remarry.
Approved For Release 2000/08/31 : CIA-RDP79-00498A000500160008-1
 Approved For Release 2000/08/31 : CIA-RDP79-00498A000500160008-1
25X1A
The purpose of this letter is to notify you of an amendment
recently approved by the President concerning an important
change in our retirement law which applies to all disability
annuitants under age 60.
The law now provides that if a disability annuitant, be-
fore reaching age 60, is restored to earning capacity, annuity
payments stop one year from the end of the year in which earning
capacity is restored. Earning capacity is deemed restored if,
in each of two consecutive calendar years, the income of the
annuitant from wages or self-employment, or both, equals at
least 80 percent of the current rate of compensation of the posi-
tion occupied immediately prior to retirement.
Each disability annuitant under age 60 is now required to
complete and return, before 15 April 1977, the enclosed Report
of Income form for 1976. If you do.not return the form we will
have to suspend payment of your annuity until we hear from you.
The form herewith is for reporting your income from wages or
self-employment for calendar year 1976. A similar card will be
sent to you for reporting for each year until you attain age 60.
If your Reports of Income for two consecutive calendar
years show that you earned at least 80 percent of the current
salary of your former position in each of the two years, your
disability annuity payments will be temporarily continued for
one year from the end of the second calendar year in which your
income equaled or exceeded the 80 percent limitation.
If your Reports of Income thus show that you have been
restored to earning capacity, we will write you giving full in-
formation about the discontinuance of your annuity.
If your disability annuity is discontinued. because of
restoration to earning capacity you may qualify for one of the
following:
Approved For Release 2000/08/31 : CIA-RDP79-00498A000500160008-1
 Approved For Release 2000/08/31 : CIA-RDP79-00498A000500160008-1
- 2 -
1. An immediate nondisability annuity which be-
gins when your disability annuity stops, if
you are then at least age 50 and had 20 or
more years of service when you retired for
disability.
2. An immediate nondisability annuity which begins
when your disability annuity stops, if you had
25 or more years of service when you retired for
disability, regardless of your age.
3. Reinstatement of your same disability annuity
effective the first of the year following any
calendar year in which your earning capacity
falls below the 80 percent limitation, provided:
a. you are not reemployed in any position
under a Federal retirement law, and
b. you have not recovered from the dis-
ability for which you were retired, and
c. you have not reached age 62.
4. A deferred annuity which begins when you reach
age 62, if you do not qualify for either of the
immediate nondisability annuities mentioned in
1 or 2 above, or your original disability annuity
is not reinstated as mentioned in 3 above.
With this change in regulations, our retirement system is now
the same as the Civil Service System with respect to disability
annuitants.
STATINTL
Chief
Retirement Affairs Division
Approved For Release 2000/08/31 : CIA-RDP79-00498A000500160008-1
 Approv
Approv
IF
UNCLASSIFIED CONFIDENTIAL SECRET
OFFICIAL ROUTING SLIP
TO
NAME AND ADDRESS
DATE
INITIALS
1
Deputy Director for
2
Administration
7D 26, Headquarters
Nov 1976
3
:u.9-
5
1NOV19
^
5
6
ACTION
DIRECT REPLY
PREPARE REPLY
APPROVAL
DISPATCH
RECOMMENDATION
COMMENT
FILE
RETURN
CONCURRENCE
INFORMATION
SIGNATURE
Remarks :
For your information.
FOLD HERE TO RETURN T SENDER
FROM: NAME, ADDRESS ONE
DAT
ra Acting Director of Personnel
C ASSIFI CO Mall&
C