AGENCY RETIREMENT REPORT

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-00693A000200010018-3
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 4
• Document Creation Date: December 23, 2016
• Document Release Date: October 21, 2013
• Sequence Number: 18
• Publication Date: September 8, 1969
• Content Type: MEMO

Declassified in Part - Sanitized Copy Approved for Release 2013/10/21 : CIA-RDP80-00693A000200010018-3
SEGHT
8 September 1969
MEMORANDUM FOR: Career Service Panel Members/ORD
SUBJECT : Agency Retirement Report
1. The Career Service Panel, Office of Research and Development,
at the meeting of 2 June 1969, raised questions concerning the
Agency's implementation of the retirement system of the Civil Service
Commission. A committee, appointed to study the questions as they
applied to ORD employees, made its report to the Panel on 8 July 1969.
A resolution was passed by the Panel instructing the Executive
Secretary/CSP to obtain answers to the questions raised by the
committee.
2. The answers to the questions were obtained from Agency
regulations, brochures supplied by the Retirement Branch/OP, Civil
Service Retirement brochures, and from conferences with various in-
dividuals from the Office of Personnel and from the Retirement
Branch/OP. The first draft of this report was submitted to the
Retirement Branch for comments and a subsequent meeting was held with
the Chief, Retirement AffMrs Division/OP to discuss his comments on
the report.
3. Part I of the attached report is a general discussion of the
Agency's retirement policies. Part II deals with the questions
raised by the committee.
Attachment:
As stated
Executi ecretary
Career Service Panel/ORD
CP1A.i? 1
Excluded tf:,11 Z7tC7r.tie
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Declassified in Part - Sanitized Copy Approved for Release 2013/10/21 : CIA-RDP80-00693A000200010018-3
Declassified in Part - Sanitized Copy Approved for Release 2013/10/21 : CIA-RDP80-00693A000200010018-3
r4"nrIET
PART I
1. Agency employees are covered by one of two retirement
programs. The first, Central Intelligence Agency Retirement and
Disability System was established by Public Law 88-643. The
Central Intelligence Agency Retirement Act of 1964 for Certain
Employees requires a minimum of 5 years "qualifying service" and
sufficient additional service to total 20 years for membership.
The "qualifying service" refers to overseas assignments or certain
unusual types of domestic assignments and is reviewed by the
Retirement Board for applicability to rather flexible criteria.
The second program conforms to the Federal Civil Service Act and
covers those employees not qualified for CIARDS. Retirement at
age 60 is mandatory under CIARDS and the Civil Service program;
however, under the latter, if an employee does not have sufficient
service to entitle him to immediate annuity, he may continue his
employment until he has completed sufficient service to so entitle
him. The second program conforms to the Federal Civil Service Act
and covers those employees not qualified for CIARDS.
2. The rationale behind the mandatory policy is, basically,
to provide an attrition rate which will promote the continuing
acquisition of young personnel, i.e., "keeping the Agency young."
The policy was initiated in 1962, and became a part of the Agency's
planning in 1964. In a meeting between the DCI and the
Deputy Directors on 30 April 1.68, the retirement policy was re-
affirmed and a "Limited Distribution" memorandum to that effect was
signed by the DCI on 30 April 1968. Distribution of the memorandum
is limited to the DCI, DDCI, and Deputy Directors.
3. The retirement programs of the Agency are not unique.
Basically, the CIARDS recognizes certain, "out of the normal"
service by providing some additional compensation to individuals who
have had such service.
4. A comparison of the two Agency programs with three non-
Agency programs is shown below. The examples show the basic
compensation for an individual who has had 20 years service at age
50 and whose "high five" average is $13,000.
Age at ANNUITY ($/mo)
Retirement CIARDS Agency CSC FBI FSO Veterans Admin.
50
(1) $ 433
$ *
$433
$433
*
55
542
501
542
542
501
60
650
609
650
650
609
65
-
-
-
-
718
70
-
-
-
-
-
(1) Can retire at this time
* Cannot retire at this time
S2CRET
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Declassified in Part - Sanitized Copy Approved for Release 2013/10/21 : CIA-RDP80-00693A000200010018-3
Declassified in Part- Sanitized Copy Approved forRelease2013/10/21 : CIA-RDP80-00693A000200010018-3
SECKT
PART I (Continued)
5. Civil Service basic retirement annuity is calculated at 1.5%
of the high five salary x 5 years of service, 1.75 of the high five x
years of service over 5 and up to 10 years of service, plus 2% of
the high five x the years of service over 10.
CIARDS, FBI and FSO annuities are calculated at a straight
2% of the high five x years of service.
PART II
The questions to which the CSP special committee requested answers
are listed below, with their answers:
a. What is the purpose of the Agency's unique treatment
of the retirement policy of the Federal government?
The retirement policy of the Agency is not unique.
Certain agencies can, and have established similar
policies. Basically, the current policy was
established to provide for a controlled attrition
rate in order to continue a flow of "young blood"
into the Agency.
b. When was the practice, as quoted in
initiated?
Assuming the practice in question is the one contained
in paragraph 2, the retirement policy was established in
1962 and became a part of the Agency's planning in 1964.
It has been reviewed periodically by the DCI and was
reaffirmed as Agency policy by the DCI on 30 April 1968.
c. Is any action planned to adjust the general policy to
eliminate present injustices?
This question was asked of several people in the
Retirement Division and in Personnel. The consensus
was that the question could be considered of the,
"when did you stop beating your wife" variety, and
that they were aware of no gross injustices. One
acknowledged inequity penalizes members of CIARDS,
but there are no immediate plans to rectify it. The
inequity involves a break in service not covered by
retirement.
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SECRET
Declassified in Part - Sanitized Copy Approved for Release 2013/10/21 : CIA-RDP80-00693A000200010018-3
Declassified in Part - Sanitized Copy Approved for Release 2013/10/21 : CIA-RDP80-00693A000200010018-3
SECRET
PART II (Continued)
d. On request, can any employee hired prior to the use of the
Retirement Understanding statement, get an explicit
statement of his service future, including extension of
service term beyond minimums, to assist him in personal
planning?
No, except possibly by divination. Information concerning
retirement benefits and the possibility of extension of
service beyond minimums may be obtained from the Retirement
Benefits Division/OP.
e. What are the criteria for the granting of exceptions to
the general policy on retirement?
Requests for exceptions to the retirement policy are
reviewed on an individual basis by the DCI. In general,
such requests may be granted for operational necessity or
for humanitarian reasons.
f. What is the interpretation and usage of the Retirement
Understanding forms now executed by new employees?
The two forms are used to notify the two types of
employees of the Agency's retirement policy. Form A is used
for applicants who are under 40 years of age, or who have
some prior government or military service. Form B is used
for persons over 40 who have no prior military or govern-
ment service.
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Declassified in Part - Sanitized Copy Approved for Release 2013/10/21 : CIA-RDP80-00693A000200010018-3