INTERIM REPLY TO THE MANAGEMENT ADVISORY GROUP

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79-00498A000500160017-1
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 13
• Document Creation Date: December 9, 2016
• Document Release Date: July 21, 2000
• Sequence Number: 17
• Publication Date: April 20, 1976
• Content Type: MF

Approved For Release 2002/05/02 : CIA-RDP79-00498A000500160017-1
2, 0 APR 197
O
FOR. Director of Central Intaili
ohm F. Blake
Deputy Director for Administration
be completed in two weeks, by 3 May 1976.
Interim Reply to the Management
DU
Advisory Group
me dtd 30 Mar 76 to the Director from
The Management Advisory Grou ; subject:
The CIA Retirement and Disability System
TATI NTL
I. On 30 March 1976 the Management Advisory Group
prepared a memorandum recommending several far-reaching
changes to the CIA Retirement and Disability System (CIARDS).
The memorandum raises both interesting and serious questions
which need to be thoroughly studied.
2. The Office of Personnel estimates that. a reply,
for your signature, to the Management Advisory Group will
S. It is suggested that you send an interim response
to MAG. Such a response is attached for your signature.
Attachment
Distribution:
Orig - Adse
1 - DDCI
1 - ER
- FDA
2 - D/Pers (1 w/he
2 - DD/Pers/SP (I
I. - C/ RAD
19 APR 1976
e1d)
op/RA A9roved-For Release 2002/05/02 : CIA-RDP79-00498A000500160017-1
Pja(16 Apr 76)
Retyped ODD/Pens/SP: jp(16 Apr 76)
hn F. Ekk?r-
Blake
 Approved For Release 2002/05/02 : CIA-RDP79-00498A000500160017-1
FRO
,keg the Denaty Director
stay of the points of
t his findings
to re ow his
YOU:
STATINTL
STATINTL
4
ob o s
of the
; ect that
y t
rn
Distribution:
0 Addressee
3.. - DC I
1?-I 1
1 - BR
2- DIA
1 .. D/Pers
I - fl'Dfers /SP
1C/
your B ran um of 30 march 157
Originator:
I be re* y
G"Up on
the thoronhness
+OP/RAD, pja (16 Anr 6' 16 Apr 716)
RETYPED: OP/DDI?ers
Group
Sorge Bush
Iii rector
Approved For Release 2002/05/02 : CIA-RDP79-00498A000500160017-1
 Mr" tCRI NDUi4i A'P(v FbV eg&e E~$/O rC FA9P79-00498A000500160017-1 j -. - I= -- -_- _ DD!A
FROM The Management Advisory Group
SUBJECT The Central Intelligence Agency Retirement and Disability System
(CIARDS)
1. There is an immediate need to introduce legislation to equalize CIARDS
benefits with those accorded other federal employees engaged in activities con-
sidered as difficult and hazardous as intelligence work.
2. CIARDS was enacted in 1964 and was designed to permit the CIA to retire
approximately 30 percent of its employees who, because of the nature of their
work, suffer from physical and mental exhaustion at a relatively early age or,
because their skills are not applicable to other fields, become occupationally
surplus. In passing this legislation, Congress specifically recognized the need
for a young and vigorous group of employees to carry out the mission of the CIA
and considered this program to be a means of ensuring the availability of fresh
new talent. The law provides an annual annuity computation rate of 2 percent for
each year of government service up to a maximum of 70 percent. There is, no re-
duction for age under 55 years for those who retire either voluntarily or in-
voluntarily under CIARDS. Mandatory retirement is at age 60.
3.` At the request of a number of Agency employees, the MAG undertook a
comparative study of CIARDSbenefits relative to the special retirement benefits
granted other federal er ioyees. This review shows that the CIARDS benefits
have not kept pace with those of other systems. NAG recommends that you approve
action to propose legislation to amend CIARDS as follows:
A. Change the arrmui.ty computation rate from its present 2 percent to
2 1/2 percent for all years of Agency service and 2 percent for military
and all other government service.
B. Reduce the nax mum retirement age from 60 to 56 years of age or
20 years of government service, whichever is later. DCI authority to
grant exceptions through age 60 would be limited to cases involving
special needs of the Agency.
C. Provide a lump-sum payment of $50,000 to the survivor of an
employee killed in the line of duty.
D. Amend the maximum annuity authorized from 70 percent to 80 percent.
4. Since CIA employees are prohibited from being represented by'unions
or associations, it is incumbent on Agency management to introduce legislation
on behalf of its employees. Many employees suffer undue hardship, personal
inconveniences and suffering in serving CIA. We should ensure they receive all
the benefits they are entitled to.
L. The Management Advisory Group
Attachments:
Comparative Study of Special Retirement Systems
Legislative History of Special Retirement Benefits
Approved For Releas -RD 0 0 1111117
3A
 Approved For Release 2002/05/02 : CIA-RDP79-00498A000500160017-1
Comparative Study of Special. Retirement Systems
Approved For Release 2002/05/02 : CIA-RDP79-00498A000500160017-1
 Approved FoS R 1lga6 @ JfQ2R;; k#jW
_P?9 q 000500160017-1
It took some: 18 years for certain CIA employees who served in
hazardous assignments and/or positions of unusual mental, emotional and/or
physical stress, to be granted the benefits accorded members of the Foreign
Service.
When the CIA Retirement Act for Certain Employees was enacted in 1964,
Congress recognized that CIA employees serve under conditions at least as
difficult as, and frequently more onerous and dangerous than, the conditions
that led to improved retirement benefits for the Foreign Service and certain
personnel of the FBI and other law enforcement agencies. Like members of the
military services, CIA employees are obligated to serve anywhere in the world
according to the needs of the Agency. Congress recognized that CIA employees
perform hazardous and specialized overseas duties in the conduct and support.
of intelligence activities. They further recognized that overseas CIA work
produces "physical difficulties" and "motivational exhaustion" which virtually
terminate the usefulness to CIA of certain employees.
The CIA requires younger and more vigorous officers than generally re-
quired in government service. Congress, during its hearings, indicated that
it was impressed with the need for a young service by urging the Agency to
encourage, and in some cases direct, early retirement. In addition, they
noted that "the dynamic nature of intelligence work produces sudden and some-
times radical shifts in the types of personnel required and in. their deploy-
ment," making some employees "occupationally surplus." It is increasingly
difficult for former CIA employees to find new employment because their skills
are not always applicable to other fields and because employers are hesitant
to hire former intelligence officers. This has never been more apparent than
with today's image of the CIA employee.
PL 93-350 was passed in 1-374 in recognition that it was not economically
feasible for a federal law enforcement official or firefighter to retire in
his early fifties at the. 2. percent annuity computation rate then in force.
At the same time that the law increased the annuity rate to 2 :1/2 percent, it
reduced the maximum retirement age to 55 years or 20 years of service, which-
ever came later. Some of the agencies employees who were initially identified
for this increased rate include: FBI (8,600 employees); Bureau of Prisons
(5,000); Immigration and Naturalization (2,400); Marshals (800); DEA (800);
ONI (5,000).; Postal Inspectors (1,800); IRS (4,500); Customs (2,600); and
Secret Service (1,200).
PL 91--509, passed in 1970, provides the most liberal retirement benefits
granted to any government employee to date. It calls for a 2 1/2 percent rate
for the first 20 years of service and 3 percent for all years over 20. It
also is based on the salary at time of retirement. A most important feature
of the act is a $50,000 lump-sum payment to the survivor of an individual
killed in the line of duty. These benefits cover members of the Metropolitan
Police, U.S. Park Police, Executive Protective Service, D.C. Fire Department
and certain members of the Secret Service.
Approved For Release 2002/05/02 : CIA-RDP79-00498A000500160017-1
 Libe roved Fob- Releas 200 05/02 : CIA-RDP79-00498A000500160017-1
~pized retirementebene its had not been limited to the Foreign
Service and law enforcement employees prior to the enactment of the CIA
act. Since 1948, Members of Congress and, subsequent to that time, Congres-
sional employees have been entitled to greater computation rates. In 1964,
Architect of the Capitol personnel and in 1966, Botanic Garden employees
were covered under the Congressional retirement program. The annuity is
based upon 2 1/2 percent for each year of service as a Member of Congress or
Congressional employee; for up to 5 years of military service (for which one
is not receiving retirement pay); and, in the case of a Member of Congress,
for military service performed while on leave of absence during a war or
national emergency. If the total service calculated at 2 1/2 percent does
not equal 10 years, then those years of additional government service not
calculated at 2 1/2 percent are calculated at 1 3/4 percent, not to exceed
a combined total of 10 years. All other service in excess of the combined
10 years of service is calculated at a 2 percent rate. The annuity for a
Member of Congress may not exceed 80 percent of his final salary. A Congres-
sional employee's annuity may not exceed 80 percent of his high-three average
salary.
Special recognition should be taken of the benefits accorded air traffic
.controllers in 1972. Because of the stresses associated with that work,
mandatory retirement is at age 56. An employee who is voluntarily or involun-
tarily separated after completing 25 years of service as an air traffic con-
troller or after becoming .50 years of age with 20 years of service is entitled
to an annuity no less than 50 percent of his average pay. in addition, the
air traffic controller career program provides for up to 2
training for those controllers with at least 5 years of services who are,
because of physical and/or emotiora.l stress, unable to continue to perform as
controllers. They continue to draw their full salary and are entitled to any
increase in rate of basic pay provided by law. They are excluded from
limitations. If after 2. ear .staffing
y s they are not assigned other duties, they may be
released for transfer to another federal agency, or involuntarily separated.
Approximately 700 controllers annually are participating in this career training
program out of a total complement of 14,000 employees.
The benefits cited above are not meant to be all encompassing, but rather
to highlight liberalized benefits extended to other federal employees. If
one can assume that in 1964, certain CIA employees warranted special recognition,
then CIA employees' benefits should also be liberalized to keep pace with these
other systems.
Executive Order 11491 of October 29, 1969 amended the government-wide
plan for labor-management relations established in 1962. However, the CIA
and FBI are specifically excluded from participating in labor-management
relations. Subsequently, the U.S. Foreign Service (State, AID, and USIA) was
removed to a separate program of its own in 1971. Whereas the organizations
and unions representing Federal employees have played a most significant role
in increased benefits for their employees, CIA employees have no such spokes-
men. Without same, it is incumbent upon CIA top management to represent its
employees' interests.
Approved For Release 2002/05/02 : CIA-RDP79-00498A000500160017-1
 Approved For Release 2002/05/02 : CIA-RDP79-00498A000500160017-1
CIA employee morale has suffered over the last few years. Congress
in its investigations, while criticizing Agency practices and procedures
in the past, has never questioned the dedication of, and hard work expended
by, CIA employees. Our employees have often heard that CIA takes care of
our own. The facts do not bear this out, at least in the area of benefits.
Management should show our employees that it cares by introducing proposals
for increased retirement benefits on their behalf.
Approved For Release 2002/05/02 : CIA-RDP79-00498A000500160017-1
 Approved For Release 2002/05/02 : CIA-RDP79-00498A000500160017-1
Legislative History of Special Retirement Benefits
Approved For Release 2002/05/02 : CIA-RDP79-00498A000500160017-1
 Approved For Release 2002/05/02 : CIA-RDP79-00498A000500160017-1
LECISLATIVE HISTORY OF SPECIAL RETIREMENT BENEFITS
PUBLIC LAW
DATE OF ACT
79-601
79-724
2 Aug 1946
13 Aug 1946
80-168
11 Jul 1947
80-879
2 Jul 1948
86-604
7 Jul 1960
86-622
12 Jul 1960
88-267
7 Feb 1964
88-643
13 Oct 1964
r.
BENEFITS
Coverage for Members of Congress. Annuity
at rate of 2 1/2 percent: of average annual
salary as a member times years of service
as member, but no more than 3/4ths of last
salary
Enacted Foreign Service Act to include
retirement at age 50 after 20 years with
annuity equal to two percent of average
salary up to 35 years of service credit.
Provides for 1 1/2 years of service credit
for each year of service at unhealthful posts
except that no such extra credit for service
shall be credited to anyone who receives a
salary differential. (Option remains with
employee)
Provided retirement for FBI employees to
retire at age 50 after 20 years of service
with annuity computation equal to two percent
of average salary
Extended same liberalized FBI benefits to
officers and employees whose duties "are
primarily the investigation, apprehension,
or detention of persons suspected of
offenses against criminal laws of the
United States"
Liberalized annuity benefits for members
of Congress and Congressional Employees
Provided additional annuity for certain long-
term employees and reemployed annuitants and
liberalized benefits for Members of Congress
Included service by Architect of the Capitol
personnel as "Congressional Employee" service
Provided retirement benefits to certain CIA
employees. Permitted CIA Director to
mandatorily retire at age 50 with 20 years
or 25 years at any age, anyone who had at
least 10 years with CIA and 5 years qualifying
service. Annuity computation equal to two
percent of average salary. Maximum retirement
pay set at 70 percent of average salary.
Approved For Release 2002/05/02 : CIA-RDP79-00498AO00500160017-1
 Approved For Release 2002/05/02 : CIA-RDP79-00498A000500160017-1
PUBLIC LAW DATE OF ACT
BENEFITS
89-604 26 Sep 1966 Included service for United States
Botantic Garden personnel as "Congress-
ional Employee" service
2 Nov 1966
16 Dec 1967
26 Oct 1970
Provided that premium pay under Section
5545 (c)(1) shall be considered "basic
pay" for civil service retirement
purposes
Fixed maximum basic annuity benefit at
80 percent of final pay received by a
former member of Congress reemployed
with Member-annuity title
Provided retirement on immediate annuity
after 20 years regardless of age. Annuity
computed on basis of 2 1/2 percent for
first twenty years and 3 percent for all
years over 20 on salary at retirement.
Maximum retirement pay set at 80 percent.
Also provides $50,000 lump-sum payment
to survivor of individual covered who is
killed in the line-of-duty. Law covers
Metropolitan Police Department, Executive
Protective Service, the D.C. Fire
Department, U.S. Park Police and certain
contingents of US Secret Service
92-297 16 May 1172 Provided liberalized benefits for air
traffic controllers. Mandatory retirement
at age 56. Annuity entitlement after 25
years as controller or 20 years and age 50.
Annuity not less than 50 percent (2 1/2
percent). Law also provides equivalent of
2 years of full-time training for control
lers with 5 years of service who are unable
to continue to perform as controllers.
After 2 years during which they are entitle.
to all benefits, they be reassigned within
DOT, transferred to another federal agency
or involuntarily separated.
93-350 12 July 1974 Liberalized retirement benefits for "law
enforcement" employees and firefighters
(approximately 41,700 employees). Mandator;
retirement at age 55 or after 20 years,
whichever occurs later. Computation rate
increased to 2 1/2 percent on first 20 year,
and 2 percent for years exceeding 20.
Premium pay for uncontrollable overtime as
part of basic pay for average salary.
Approved For Release 2002/05/02 CIA-RDP79-00498A000500160017-1
 Approved For Release 2002/05/02 CIA-RDP79-00498A000500160017-1
EXCERPTS FROM CONGRESSIONAL TESTIMONY ON 20 SEPTEMBER 1973 RE PL 93-350
Congressman DULSKI
"To maintain a staff of relatively young and vigorous men capable
of carrying out the government's criminal law........ 5:~ .............by
the replacement of older men who, because of the stringent physical
requirements of their positions and the unusual mental, emotional and
physical stress encountered in performing their duties, are no longar
able to perform at peak efficiency.
"The more liberal compensation factor was provided not as a reward
for performance of hazardous duties, but because a more generous formula
was necessary to make earlier retirement, with resultant shorter service,
economically feasible."
"Make it more economically practicable for these employees to retire
before reduced proficiency stamina make them a greater risk to themselves
and others."
Congressman BRASCO
.'First, to assist in maintaining a relatively young, vibrant and
effective work force...............
Second, to make the recruient program for the agencies competitive..
While the intent. of the legislation is not to reward our law
enforcement officers and firefighters for performing their dangerous
duties, but rather in recognition of the everyday psychological stress
they must endure, it is a fact that these public servants do suffer
fatalities and serious injuries during the course of daily activities."
Congressman RANGEL
"What the bill is doing is encouraging Federal law enfocement
officers and firefighters to retire after 20 years. Why? Primarily so
that these work forces will remain organizations with young people doing
the hazardous work in which they are so involved. To put employees
engaged in a hazardous occupation on the same level as other Federal
employees with respect to retirement benefits is simply not proper.
The Federal-officers and firefighters experience hazards, isolation,
loneliness, and indefinite hours and locations that other employees do
not. And it takes young men to do the good job we require of them under
these conditions ..................Isolation from one's neighbors and friends
is a common problem for these officers, but what may be even worse is
the necessary lack of communication with one's family regarding his day-
to=day activities. Combined with the hazards we all are aware of and the
Approved For Release 2002/05/02 : CIA-RDP79-00498A000500160017-1
 Approved For Release 2002/05/02 : CIA-RDP79-00498A000500160017-1
indefinite working hours, isolation makes the. officers years of duty
a continuous string of stressful days and nights. Yet, I ask, where
would we be without his dedication and selfless efforts in combating
organized crime?"
Congressman BRASCO
"Is it not a fact that their job descriptions and the assignments
that we in the Congress want them to perform, and the service the
American people expect to receive make them different because they are
firefighters and law enforcement personnel and must put their lives on
the line daily, 24 hours a day, which is not so of any other Federal
employees in our committee's jurisdiction."
Congressman DANIELS
"While the element of hazard was, and is recognized, I wish to
emphasize that the special treatment originally and presently accorded
these employees, and the benefit levels proposed in this bill, are provided
not as a reward for them having been subjected to an inordinate degree
of hazard during the performance of their primary duties ...................
......by providing an incentive for young men and women to enter and
remain in such careers, and that replacements within the service might be
facilitated at younger ages without undue hardship."
Con ressman BUNT.
"Many members of the grouping covered by this bill seldom spend more
than a few nights each week with their families. So they have given their
lives to law enforcement and it is no more than right that we give these
men some privileges, some real reason to stay in."
Approved For Release 2002/05/02 : CIA-RDP79-00498A000500160017-1
 Approved For Release 2002/05/02 : CIA-RDP79-00498A000500160017-1
DCI/DDCI
Routing Slip
ACTION
INFO.
ACTION J
INF O.
1
DCI
11
LC
2
3
4
5
DDCI
S/MC
DDS&T
DDI
112
113
14
15
IG
Compi
Asst/DC;I
AO/DCI
6
6 DZ;4,SA
x
16
Ex/Sac
7
DDO
X
17
8
D/DCI/IC
l8
9
D/DCI/NIO
1
119
0
GC
X ~
'2p
TO:
For review and recommendation. I owe
MAG an interim. comment on this.
Approved For Release 2002/05/021: CIA-RDP79-00498A000500160017-1