RETIREMENT POLICY AND THE DIRECTORATE OF INTELLIGENCE

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CIA-RDP80-00947A000100050001-6
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RIPPUB
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S
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95
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December 9, 2016
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August 3, 2000
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1
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Publication Date: 
January 1, 1968
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REPORT
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'ia cs~i, f `' 71 Tx Approved For Release 2000/08/30 : CIA-RDP80-00947A000100050661-6 Secret No Foreign Dissem Retirement Folic andt le irectorate a1 emcee mite Secret January 1968 V Approved For Release 2000/08/30 : CIA-RDP80-00947A000100050001-6 Approved For Release 2000/08/30: Cgp81D40947A000100050001-6 No Foreign Dissem 31 January 1968 MEMORANDUM FOR THE DEPUTY DIRECTOR FOR INTELLIGENCE SUBJECT: Retirement Policy This report is an amalgam of fact, opinion and judgment about Agency retirement policy and practice. Its purpose is to provide background on how that policy has affected per- sonnel of the Intelligence Directorate, ascertain whether recent policy changes--resulting in the removal of personnel from our roles sooner than had earlier been anticipated-- affects operations adversely or benefically, and, to submit for management consideration changes in policy flowing from this analysis. The cardinal supports of sound personnel policy are few in number. A challenging assignment worth the doing guar- antees job satisfaction. Fair day's pay for fair day's work enables the employee to meet the economic obligations of his station in life. In the choice of how long to extend his work life lies the reward of flexibility in planning the use of the years which follow. This then is what retirement policy is about: the later years for which the first were made. Special Advisor Approved For Release 2000/08'90 FCWRDP8?-OO94A000100050001-6 SECRET Approved For Release 2000/08/30: CWRWgV-p`0947A000100050001-6 No Foreign Dissem Covering Memorandum for DDI CONCLUSIONS . . . . . . . . . . . . . . . . . . . . . . 1 RECOMMENDATIONS . . . . . . . . . . . . . . . . . . . . 4 INTRODUCTION . . . . . . . . . . . . . . . . . . . . . 5 Profile of DDI Population . . . . . . . . . . . 7 DDI Organization Chart . . . . . . . . . . . . 8 DDI Table of Organization . . . . . . . . . . . 9 DIRECTORATE RETIREMENT RECORD . . . . . . . . . . . . . 10 PROJECTED RETIREMENTS . . . . . . . . . . . . . . . . . 12 POTENTIAL PROBLEM AREAS . . . . . . . . . . . . . . . . 15 MANAGER'S VIEWPOINT . . . . . . . . . . . . . . . . . . 22 EMPLOYEE'S VIEWPOINT . . . . . . . . . . . . . . . . . 27 APPENDICES A. Background to Problems of Administering CIA Retirement Policy Under Civil Service . . . . . . 33 B. Retirement Policy and Practice . . . . . . . . . 38 Retirement Systems in CIA . . . . . . . . . . 38 Federal Civil Service Retirement System . . . 40 Foreign Service Retirement System . . . . . . 41 Uniformed Services Retirement System . . . . . 42 Approved For Release 2000/0a0 F11: 8M bO9000100050001-6 E1' Approved For Release 2000/08/30 : c RJ O'p0947A000100050001-6 No Foreign Dissem Policy in Government Supported Research Organizations . . . ... . . . . . . . . University Practice . . . . . . . . Corporate Practice . . . . . . . . . . . C. Supporting Tables . . . . . . . . . . . . . 1. DDI Recent Separations . . . . . . . Intelligence career separations over age 40 in fiscal years 1962 through 1967; professionals who EOD during fiscal years 1963 through 1967, and attrition among this group (7 Tables) II. DDI Retirement Performance . . . Number of retirees in fiscal years 1962 through 1967; performance in retiring personnel on schedule in calendar 1967; data on DDI cases recently granted extensions by CIA Retirement Board (4 Tables) III. DDI Personnel Whose Retirement Was Recently Accelerated by Change in Agency Policy and Who Had Less Than 5 Years Notice (4 Tables) IV. DDI Retirement Projections . . . . . . . . 64 Personnel either scheduled or eligible for retirement over the next 5 and 10 years--analysis by retirement system, by retirement option, by component, by year, by professional or clerical designations (18 Tables) . . . 43 . . . 44 . . . 45 . . . 46 . . . 46 Approved For Release 2000/08'190 FEW-FRDP8O-$? 000100050001-6 SECRET Approved For Release 2000/08/30: Cl*JWWJ 'Q947A000100050001-6 No Foreign Dissem CONCLUSIONS The more strict application of Agency retirement policy, and its recent change resulting in the acceleration of retire- ment for many, has given us greater flexibility in managing resources and brought new blood in key posts. Managers have found it easier to accommodate to the demands of personnel reductions, reorganizations and reprogramming. The cost to managers has been the loss alike of personnel who could have continued in particularly useful service and personnel whose ability to contribute had leveled off. Employee morale has suffered, especially among those called upon to retire a good deal earlier and with a good deal less service than they had planned. In effect, the general use of early retirement is serving as a substitute for the more difficult management job of selectively separating from service those no longer effective. 572 retirements are scheduled over the next ten years under present Agency policy. Of these 222 can accelerate their own retirements because they will have met the 55/30 or the 50/20 age/service combination before their scheduled retirement dates. An additional 316 will likewise be eligible but will not reach age 60 during the ten year period. All of these are uniformly distributed over the next ten years. No undue numbers are scheduled to leave any single office. Departures by grade are well distributed. The retirement dates of office directors and deputies are with few exceptions well into the future and well spaced. The most immediate problem is to view sympathetically extensions which may be requested by individuals among the 126 who had their retirement dates accelerated--up to two years--on very short notice as career planning goes. Requests for extension cause can continue to be made under and under the Director's approved policy s atement enjoining that the Approved For Release 2000/0 P30F M P87 l$A000100050001-6 Approved For Release 2000/08/30 : Cl*fYUR T947A000100050001-6 No Foreign Dissem "implementation of the revised Civil Service Retirement policy be phased gradually over the next two years with liberal exceptions to give full consideration to its impact on individuals with less than 30 years service who might have reasonably expected to continue in employment until age 62." [D/PERS memo for DCI 27 Jan 67] The questionable practice of stressing financial hardship as major grounds for grudgingly granting extensions should be discontinued. How much money a man's wife has is not sound reason for determining the tenure of his employment. We should develop a management climate which will make the employee's last years in the Agency the best of his career. These last years will color his entire outlook as an alumnus of this Agency--and we do need a strong alumni to help guarantee our future. A long term problem of some moment will not be materially affected by any likely changes in retirement policy. Its roots lie in the fact that by 1978 virtually every DDI employee now on board and still on board then will have earned 30 years service by age 55. There is no reliable way to say now what conditions will be, or whether it will by then be accepted practice to retire as early as possible. It may be that the shoe will be on the other foot. We may be searching for ways to retain people instead of how to make them go. On the other hand maybe 50 years will then be the magic number 60 is today. Means should be found for restoring to managers flexibility in granting extensions for the operational con- venience of their offices. Arrangements should also be made to extend the work life of outstanding employees beyond the normally accepted date of retirement. As long as the Agency generally adheres to Civil Service standards in the management of personnel not members of the CIA Retirement System, the retirement options left to these employees should be equal to or better than any available under Civil Service. This does not mean identical in every respect. It does mean that if, in the interest of the general management of the Agency, the employee is to be denied the option of work- ing until a given age, he should in some way be compensated Approved For Release 2000/010 F@gf iMit7A000100050001-6 Approved For Release 2000/08/30 : f;In 33F q.D0947A000100050001-6 No Foreign Dissem for this in order to maintain parity with his counterpart in another Government agency. Such compensation might, for example, be in the form of a separation allowance, or a credit to his retirement account for annuity service foregone, or providing at no cost to the employee insurance for a term and at a level equivalent to what would have been available to him had he not been retired. There are economic as well as policy grounds for compensating the employee for prospective loss of earnings and annuity. The earlier people with considerable seniority are retired, the lower the Agency's per capita salary costs. Why should the Agency not share this gain with the employee? A liberalization of the normal retirement age in the DDI would not only preserve human assets, it would bring us more in line with accepted retirement practice elsewhere. Private organizations and the academic community in particular have given the employee an option to retire early while leaving him the decision of continuing beyond 60 if he chooses. Alternatively, there is much to recommend broadening the membership of the present CIA Retirement System to include all (or all professional) employees, though not necessarily under identical retirement provisions. This would be consis- tent with Administration policy as recently expressed in the President's Cabinet Report on Retirement. It is consistent with Congressional opinion. It is a natural evolution of Agency policy that has to date virtually eliminated the dif- ferences in retirement under the CIA and the Civil Service systems. Approved For Release 2000/0F$i8^0 'GI-Fi?P80-8?W000100050001-6 SECRET Approved For Release 2000/08/30 (R_RIRTff OfP0947A000100050001-6 No Foreign Dissem That DDI urge a policy which provides for: normal retirement at age 62 with 20 years or more of service; terminating by other devices the employ of personnel who cease to be productive at 60 or earlier; offering selected outstanding employees an opportunity to extend beyond age 62 up to age 65. That DDI seek to establish a climate of management concern for employees nearing retirement age to the end of creating a reservoir of goodwill toward the Agency among its alumni. That DDI.support an Agency undertaking to conduct a study of the feasibility of a single Agency-wide retirement system. Approved For Release 2000/0$1TS0 ?OPRDP8O-X4000100050001-6 Approved For Release 2000/08/30 : CyMTq_0`947A000100050001-6 No Foreign Dissem RETIREMENT POLICY AND THE DIRECTORATE OF INTELLIGENCE This study addresses the problem of how the Agency's retirement policy affects the Directorate of Intelligence. The particular objective has been to assess the impact of the early retirement policy adopted by the Director nearly a year ago following legislation which liberalized retirement under Civil Service. Two related questions were considered basic: Is the accelerated departure of early retirees from operating components occa- sioned by recent policy changes beneficial or detrimental to the DDI mission? What significant reaction has the policy engendered among the employees themselves? The approach used was to look at the record, to study the pattern of retirements scheduled for the years ahead, to seek formally the views of our managers, to ascertain infor- mally how the employees themselves viewed the matter and to note trends elsewhere that might color the attitudes of pro- spective employees or in some way penalize us. A word about definitions. The lexicon used by the Agency in discussing retirement in its directives has led to uncertainty--if not resulted in purposeful ambiguity--of interpretation. To avoid misunderstanding, I have selected the words "scheduled" and "eligible" to distinguish between the retirement dates of prime importance. The scheduled retirement date refers to the date on which the employee is to retire by force of Agency policy. By con- trast, when referring to the date on which an employee (be- cause he meets a prescribed combination of age and service) may exercise his legal right to retire, the term eligible is used. 5 Approved For Release 2000/O&F30~r1 P8b 947A000100050001-6 SECRET Approved For Release 2000/08/30: C q=. P0947A000100050001-6 No Foreign Dissem Thus John Doe is eligible to retire in 1968 because he has 30 years of service, will attain age 55, and the law says he may. However, he is scheduled to retire in 1973 because he will by then have more than 20 years service, reach age 60, and Agency policy is that he shall. Reports on retirement often are incomplete because Agency employees belong to one of two retirement systems, the Civil Service Retirement System (CSRS) and the CIA Retirement and Disability System (CIARS). Reporting on these systems is usually kept separate, though most components have personnel in both systems. From the manager's viewpoint, he is less concerned under which system an employee will be retired as he is when he may or will be deprived of the employee's services. This report covers the operation of policies under both systems. Thus if the retirement condition (51/20) finds its way next to 61/20, neither is likely to be typographic error. Where it has been important to distinguish between the two systems, this has been done. Basic charts have been included immediately following for orientation and in order to assist the reader to place the detailed findings in context. These include a profile of the DDI population (how many people we have in each age group), an organization chart (how functions have been assigned and command relationships), and the table of organ- ization (how professional and clerical positions have been allocated to the various DDI components). Approved For Release 2000/0&90 FE J pl~jp? A000100050001-6 25X9 Approved For Release 2000/08/30 : CIA-RDP80-00947A000100050001-6 Approved For Release 2000/08/30 : CIA-RDP80-00947A000100050001-6 . + d F r;Redeaw, QQA 084 ~ R P ~ DIaQ 9 ,;q , J ... Sh S.i,E 2a:b .{b Nkk 4k 6 .. t 4 h S. DIRECTOR OF CENTRAL INTELLIGENCE INFORMATION OPERATIONS REQUIREMENTS STAFF CENTER ADMIN, EXEC, f, OVERSEAS PLANNING STAFFS REPRESENTATIVES DEPUTY DIRECTOR FOR INTELLIGENCE OFFICE OF OSI FMSAC 4 k,ti BASIC AND GEOGRAPHIC INTELLIGENCE OFFICE OF CURRENT INTELLIGENCE OFFICE OF OFFICE OF ECONOMIC STRATEGIC RESEARCH RESEARCH SPECIAL COMIREX RESEARCH STAFF STAFF DOMESTIC CONTACT SERVICE CENTRAL REFERENCE SERVICE IMAGERY SERVICE Approved Far Release 20010/0CIALLR[ P 3( '9947A00 01Q 1O Qp 76 4 ~ Ii Y S,I I.P 4~i'i tlNs`u qi BOARD AND OFFICE OF NATIONAL ESTIMATES NATIONAL PHOTOGRAPHIC INTERPRETATION ' CENTER Approved For Release 2000/08/30 : CIA-RDP80-00947A000100050001-6 Approved For Release 2000/08/30 : CIA-RDP80-00947A000100050001-6 Approved For Release 2000/08/30 : C -fr0947A000100050001-6 No Foreign Dissem DIRECTORATE RETIREMENT RECORD 25X9 25X9 25X9 Over the last six years, Agency early retirement policy has been increasingly more strictly applied. This has resulted in a rise in the number of separations from the Directorate of Intelligence* through retirement of one form or another. During this six year period, disability cases aside, 110 were retired, varying from a low of one in fiscal 1962 to a high of 38 in 1967. Even the figure of 38 is not an impressive figure when 25X9 compared with the total movement out. The attrition of DDI personnel runs at 400 per year (200 professionals leaving at 200 clericals leaving at ). In considering the retirement problem, individuals in which we are most interested are those in the over age 40 group. Within ten years some of these become eligible for retirement under the CIA retirement system. Also, there is a notion that not many people leave as they get into their forties and fifties. This is quite wrong. In the period 1962-1967, separations from the over age 40 group totaled 367, of which 167 were retirees. Averaged out the picture looks like this: Cause of separations Annual average Deaths 5 Resignations 28 Retired for disability 9 Retired as surplus 1 Retired under CIA system 2 Retired under Civil Service 16 Total annual separations 61 *For purposes of analysis, the strength of the Directorate of Intelligence may be taken By Office of Personnel occupational titles, are professional, technical, _ communications and clerical employees. The more customary division, the result of putting most of the GS-7s and lower grades in the clerical ranks, shows profes- sionals and clericals. 10 Approved For Release 2000/06F30Ft >O94T000100050001-6 Approved For Release 2000/08/30 : ClA tD(P0p947A000100050001-6 No Foreign Dissem By the end of the period separations from the over 40 group were running 80 per year (60 professionals and 20 clerical), of which nearly 40 were retired for disability or age or as surplus. Now retirement results from one of two actions. An employee retires because he has been induced or forced by management to do so for specific or general reasons. Or he exercises free choice after having earned the right to retire by attaining a certain combination of age and years of ser- vice. The increases in DDI retirements have largely been the result of management induced retirements rather than employee election. With an increase in the number of employees scheduled for early retirement has come an increase in requests for extensions, generally on grounds of financial hardship. In calendar 1967, 38 people from seven DDI components were scheduled to retire. Of these 20 retired on schedule and 18 were granted extensions by the Director on recommen- dation of the CIA Retirement Board. Many of these extensions were for short periods of time, four being for six or less months. The average extension was 12 months, a period which the Board prefers not to exceed except for compelling reasons. The average age of those requesting extensions was 62.7, with a range of 60-68. Years of service earned for this group were 21.6, with a range of 10-40. Grades varied from GS-5 to GS-18, with ten out of the 38 cases being GS-13/14s. From management's point of view, retirements have progressed in an orderly way. Extensions granted have been almost without exception in keeping with the spirit of the policy and regulations. Approved For Release 2000/AOF M1A000100050001-6 Sf4 Approved For Release 2000/08/30 : ClAMK8Q0947A000100050001-6 No Foreign Dissem For whatever planned or fortuitous combination of circumstances, projected retirements in the DDI surface no problems arising from bunching. Retirements scheduled under Agency policy are uniformly distributed over the next ten years, as are the potential retirements through eligibility because of age/service combinations attained. No great exodus from a single office poses a threat. Nor is the de- parture of talent as measured by grades in uncommon quantities in a given time apparent. Of the employees now on board, 888 of them will either be scheduled or become eligible to retire in the next ten years, or both: Number Scheduled Eligible 1968 53 53 1969 63 16 1970 46 23 1971 55 45 1972 47 72 1973 52 56 1974 69 55 1975 69 69 1976 56 69 1977 62 80 Total ten years 572 *Of these, 222 become eligible before being scheduled for retirement. This leaves 316 who will also become eligible but who will not be scheduled because they do not attain age 60 before 1978. Hence total scheduled or eligible in period 1968-1977 is 572 plus 316 or 888. Approved For Release 2000/0/0l 30047%000100050001-6 Sr,C~K Approved For Release 2000/08/30 : CI,~_q~0P947A000100050001-6 No Foreign Dissem The distribution of the 572 employees scheduled to retire according to grade follows: Year Grade Group Total Under GS-12 GS 13-15 GS 16-18 1968 53 28 20 5 1969 63 38 23 2 1970 46 23 23 1971 55 31 21 3 1972 47 25 19 3 1973 52 30 17 5 1974 69 37 30 2 1975 69 41 22 6 1976 56 34 19 3 1977 62 35 21 6 572 322 215 35 Of the 888 employees, 802 are presently under the Civil Service Retirement System and 86 under the CIA Retirement System, thou h this will change over the years as some, par- ticularly qualify for the CIA system. Civil Service System Status Number of employees Will be over 60 on scheduled date 103 Scheduled under 60/20 and will have insufficient service to elect to leave earlier Scheduled under 60/20 but will have sufficient service to leave before 60 under 55/30 option Total scheduled under Civil Service 539 Not scheduled in period but eligible under 55/30 option 263 Total Civil Service 802 13 Approved For Release 2000/d830 F 1A P A000100050001-6 SECRET Approved For Release 2000/08/30 : OfWfAj00947A000100050001-6 No Foreign Dissem CIA Retirement System Number of employees Scheduled at 60 but eligible to leave before 60 under 50/20 option 4 Total scheduled under CIA system 34 Total CIA system Not scheduled but eligible under 55/20 option 52 Of the 436 employees either scheduled or eligible to retire over the next five years (calendar 1968-1972), 281 professional and 90 clerical employees are in the Civil Service System, and 65, all professional, are in the CIA system. A projection of key DDI executives, that is, the directors and deputies of the operating components shows retirements well into the future and well spaced. About one third of these officials will have earned a right to retire before their scheduled date, with option to accelerate their retirement from one year up to ten. Projected Executive Retirement By Year Scheduled or (Eligible) Component OCI 1981 OER 1973 (1972) OSR 1986 OBGI 1973 (1968) NPIC 1975 (1972) IAS 1986 CRS 1975 (1972) DCS 1977 (1976) 1968 1968 Deputy 1983 1983 1984 1975 (1971) 1985 1972 1981 1971 1980 (1970) 1973 Note: Director OCS/DDS&T, a DDI careerist, is scheduled to retire in 1986, but will become eligible for optional retirement in 1981. Approved For Release 2000/0#/30 UA-A*8? 4VY 000100050001-6 SECRET Approved For Release 2000/08/30 : ORS'-p0947A000100050001-6 No Foreign Dissem POTENTIAL PROBLEM AREAS Early retirement policy enforcement has created a number of special problems. Some have matured and already are de- creasing in importance. The full force of others, more long range in their implications, has yet to be felt. Acceleration of Previously Scheduled Retirement Dates One of the short term problems stems from the impact of early retirement on the group of employees who got very little notice of the change in policy making it necessary to retire at 60 rather than 62. In the DDI, 126 employees had their retirement dates accelerated by amounts varying up to two years. For some employees this was the third time in less than 12 years that they were given a new retirement date, each earlier than the previous one. In some cases, from every point of view (except perhaps ease of doing the necessary arithmetic) there was little need .to change the retirement date at all. For example, 17 employees had the dates moved up six months or less. To what end, except to upset people? The retirement of another 24 was accelerated less than a year. This group has naturally sought relief through extensions. A plea of inadequate notice should have sufficed as grounds for extension although in some cases lack of demonstrable financial hardship made it uncertain that the application could even be considered. At the other end of the spectrum, 51 employees had their careers abbreviated a full two years, ten of these being scheduled to retire in 1969, another 20 in 1970. Grade-wise the group varied from GS-4 to GS-17, with over half in the GS-12/15 bracket. The point is, in career and family planning, anything short of five years' notice should be considered inadequate when a unilaterally imposed management change in job tenure is being contemplated. 9000100050001-6 Approved For Release 2000/OMOEIt-MIT, Approved For Release 2000/08/30 : Cam' ?D=P'0947A000100050001-6 No Foreign Dissem Early Departure of Eligibles Quite another problem from management's viewpoint is the uncertainty surrounding the time of departure of employees whose service gives them a right to retire well in advance of their scheduled retirement date. Now that age 60 is the Agency's normal retirement age, the gap between scheduled and eligible dates can be as much as five years (age 55) for those under Civil Service and ten years (age 50) for those under the CIA system. We have only limited evidence on the probable effect of the more liberal provisions of the recent Civil Service leg- islation. In FY 1966, when a penalty attached to anyone with 30 years service leaving at age 55, 7,400 individuals exercised this option throughout the Federal Government. That year a total of 77,900 people retired (average age 61.3, average service 24.9). The 55/30 group constituted 10% of total retirees and 34% of those retiring optionally by age 60: Option Number Retirees Average Age Average Service 55/30 7,400 58.1 34.6 60/30 14,400 65.0 37.2 By contrast, in FY 1967, under the more liberal provisions which removed the early retirement penalty, 48,700 people retired (average age 59.9, average service 22.6). The proportion of this lower figure made up by the 55/30 retirees was about the same, slightly up to 10.3%. However, they accounted for 57% of those who retired optionally by age 60 compared to 34% the previous year. Option Number Retirees Average Age Average Service 55/30 5,000 57.6 33.4 60/20 3,600 61.4 24.7 Comparative Agency statistics for the last three calendar years follow: 16 Approved For Release 2000/OIJF30~UiO 0471A000100050001-6 SECRET Approved For Release 2000/08/30 : CF-p0947A000100050001-6 No Foreign Dissem Civil Service Retirement System 1967 1966 1965 Optional (55/30) 17 )84 )134 Mandatory 78 ) ) Disability 40 47 53 Discontinued service 7 4 14 CIA Retirement System Voluntary (50/20) 42 28 22 Mandatory 10 16 15 Disability 12 1 2 Discontinued service 1 0 0 65 45 39 A word of explanation is necessary to account for the large exodus both in the Government generally and in CIA during 1965. Any time a liberalizing provision is introduced in retirement legislation, a backlog of people elect to take advantage of its benefits, particularly when they are given a deadline within which to act. Thus many people, including many in CIA, decided to retire in December 1965 to take advantage of a 6.1% increase in annuity offered by the Government to those who retired prior to 1966. Similarly, some have already taken advantage of the more liberal 55/30 and 60/20 options. Based on trends in the Government generally, the number of people electing to retire under the 55/30 Civil Service option will probably run between 70% and 100% over previous retirements under that option. The number going out under the 60/20 option will probably not exceed the 12% previously averaged by the 62/12 group. As we have noted earlier, 538 DDI people will over the next ten years become eligible to retire either under the 55/30 Civil Service option or the 50/20 CIA system option. 222 of the 538 will also be scheduled to retire within the period. Approved For Release 2000/OWOE~ ~-~~}b9MOO0100050001-6 Approved For Release 2000/08/30 : 0 ,W"f0100947A000100050001-6 No Foreign Dissem A reasonable estimate is that as time goes on a moderately increasing number of these will elect to retire under the 55/30. Last year, those retiring early were about 25% of scheduled retirements. We have seen that the 55/30s last year accounted for 57% of optional retirements by age 60 in the Government generally, but only 10% of all retirees. Our projection shows that over the ten years our early retirees cannot exceed 94% of those scheduled because 572 are scheduled during the period when 538 will become eligible. A reasonable estimate for planning purposes is that on an average about 25% of those eligible under Civil Service exercise their 55/30 option to leave early, with the figure rising to 30-35% over the next ten years. If we look at probable retirements under the 50/20 option of the CIA system, the proportion of early departures is likely to be a good deal higher. We saw above that in 1967, 42 retirements under the CIA system were voluntary (eligible) compared to ten that were mandatory (scheduled). And only one was the result of the exercise by management of its option to retire an employee involuntarily for the good of the service (the first, inci- dentally, in the three years the system has been in operation). It is not improbable that over the years it will come to be accepted practice for those in the CIA system to retire at age 50 unless they feel they are really going somewhere. Though the Director's consent is required for these early departures, this consent has to date never been withheld, and may well come to be considered more a matter of form than substance. This is much more likely than is retirement under Civil Service at age 55. At 50 a man has sufficient time for an entire second career. With the economic security of 40% of his salary guaranteed for life, he will leave in order "to do what I have always wanted to without undue sacrifice or risk to my family." We should therefore be particularly mindful of trends in this direction which presently accounts for 65 of the 86 DDI members of the CIA system. And 39 of these 65, all professionals, will have an option to retire before 1978 and before reaching age 60. This is likely to be a costly program indeed. Approved For Release 2000/0130 ~UA- 8b 9OT14000100050001-6 SECRET Approved For Release 2000/08/30: Cg f81D=10947A000100050001-6 No Foreign Dissem Employee Morale Unquestionably employee morale has suffered, because the need for early retirement has never been made clear in many DDI components, and because unanticipated changes in signals have upset future plans. While relatively few people are immediately and directly affected, they are the older hands, often in key jobs, and their attitudes color the atmosphere beyond what their number would suggest. Looking ahead the problem is a bit different. An employee may be sufficiently far away from retirement that he remains neutral in any controversy about retirement policy. As he gets older, however, even if he has accumulated a healthy service record, he will increasingly resent the fact that his freedom of choice in deciding his own future has been curtailed, while that of his counterpart in other agencies has not. This would be particularly true in cases of personal difficulty. As someone has said, a striking characteristic of the human condition is the discrepancy between aspiration and opportunity. As he nears 60, many an employee finds the gap wide and widening. The very existence of two systems in the Agency makes more difficult the employee's acceptance of his minority status in Civil Service. The manner in which the CIA system is oper- ated--criteria for deciding who shall qualify for retirement thereunder for example--makes it increasingly apparent that the form of membership in a given career service outweighs the substance of doing a given job. Thus he feels discriminated against in two ways. Looking internally he sees another--in his mind no more deserving than he--given membership in the preferential CIA Retirement System. Looking externally, he sees his Civil Service counterpart free to decide when he shall retire. Agency Image How much the Agency's internal policy on retirement may affect its image by the outside world is certainly open to question. A good case can probably be made that there is no causal relationship between these two things. 19 Approved For Release 2000/06F30k'@F' P8JO2O47A000100050001-6 SECRET Approved For Release 2000/08/30 : C[Wt810=t0947A000100050001-6 No Foreign Dissem A more prudent view is to recognize that whatever the magnitude of its effect, a discriminatory retirement policy will impact adversely on the Agency's image. The impact may be little at a time and it may be slow. The effects are, however, likely to be cumulative. There are two related sources of potential trouble. One the retiree, back in his new life outside the Agency after a career of some years in it. The other the potential recruit, looking at all aspects of each job offer before deciding to jump. A very small sampling of Agency retiree opinion indicated strong and unanimous views that Agency policy of early retire- ment results in a waste of accumulated knowledge, experience and know-how. These retirees, from grades GS-13 to GS-18, recognized the theory of making room for younger men, etc., but thought this did not compensate for the loss of accumu- lated experience, some obtained by the Agency at considerable expense. Chronological age, they felt, was not a proper measure of ability to continue effective output and management. Query: if our alumni feel our retirement policy is poor, how much can we count upon them for support when they advise young people about career opportunities in the Agency? As to the potential recruits themselves. Our reading is that many are keenly interested in knowing about the retire- ment system just as they are about all fringe benefits. The CIA early retirement system permitting retirement at age 50 with 20 years service is a tremendous inducement. The idea of retirement at 55 with 30 years service under Civil Service is much less attractive. It is made even less so when option to work beyond 60 if he should choose is denied. The prospective recruit may of course not be aware of this latter point. Recruiting brochures used by the Agency today as in 1952 contain reassuring prose about the enjoyment by CIA employees of the benefits of Civil Service Retirement. "When You Retire Generally, CIA employees are eligible for benefits under the Civil Service Retirement Act. It will be to your advantage to become acquainted with the retirement system and understand the various benefits that it Approved For Release 2000/0#80E V;1qM4;flA0001 -00050001-6 Approved For Release 2000/08/30 : ,WWf0100947AO001 No Foreign Dissem provides. Details and rate tables are contained in the 'Certificate of Membership in the U.S. Civil Service Retirement System.' Standard Form 105, which you received when you reported for duty. For further information consult the Personnel Relations office." [CIA Brochure dated July 1952] "Conditions of Employment CIA employees enjoy benefits and privileges generally equivalent to Federal Civil Service employment, such as membership in a retirement system... even though they are exempt from Civil Service." [CIA Brochure currently in use] This can mislead. If it does the Agency does not stand to benefit from it. Approved For Release 2000/Obf3O '@ 'R- OiNO47A000100050001-6 SECRET Approved For Release 2000/08/30 : C8 -Wf0j00947A000100050001-6 No Foreign Dissem Any retirement policy must serve the ends of management-- those to whom the achievement of the organizational purpose has been entrusted. To an unusual degree the DDI manager is dependent upon people to carry out his responsibilities. How has this manager--the office director, the office deputy director, the senior line chief--reacted to Agency retirement policy? Specifically, as policy moves to deprive him of the services of a given individual at a given time, or to extend the time during which he will have to continue to rely on an individual, how has this manager reacted? To sample this reaction, the views of the office directors themselves were sought. It was pointed out to them that close to 600 employees are scheduled to retire over the next ten years, and that some 400 of these are professional employees. Moreover, that some of these as well as an additional number could on their own decide to call it quits before reaching age 60. The importance of assessing the effect of these prospective departures on operations, and of planning antic- ipatory action designed to keep the Directorate strong was stressed. As a first step, each prospective retiree was identified. Managers were asked to make judgments concerning his contri- bution and the availability of a replacement. A judgment was then made of the probable need for his services beyond the scheduled date of retirement. Consider- ations influencing this judgment included: Availability of competent replacement. Whether his skills are in short supply or are surplus. Whether he is blocking others from normal expectation of advancement. Whether his departure would facilitate adjustment to new programs. Approved For Release 2000/ObPSOF Ic ,i'{N47A000100050001-6 Approved For Release 2000/08/30 : Cl .d1 947A000100050001-6 No Foreign Dissem Whether his departure would facilitate adjustment to reduction in strength. Whether age or outlook have diminished his ability to contribute. Trade-offs of his retirement at 60 with the cost of training his replacement. The results of this exercise may be summarized as follows: Category Number of Individuals Assigned I. Individuals which the office head would particularly desire to retain beyond the presently scheduled date of retirement: II. Individuals for whom the office head could not justify an extension on the basis of operational necessity, but if one were granted by higher authority on other grounds, he would welcome it as bene- fiting the office materially: III. All things considered, and recognizing the continuing usefulness of most of these individuals, the office head would prefer to see them re- tire as scheduled: Individuals were placed in categories I and II for a number of reasons. Some have skills not qualitatively replaceable to the degree of present performance. Some are needed to meet an unusual training problem. Some are uniquely capable in their present job. Their departure would reduce the cost effectiveness of the office. Others still should be extended in order to facilitate the most orderly management of the office. No i~ 301: I ' JW?A000100050001-6 Approved For Release 2000/0x[ Approved For Release 2000/08/30 : CIA 46947A000100050001-6 No Foreign Dissem Another and more immediate situation is presented by NPIC and IAS. Much of the professional force of those com- ponents is very young and very new. Apart from heavy work- loads, the expansion of recent years has put an unusual burden upon the experienced hands to train the newer ones. Because of outside competition for like skills turnover is high. Timely extensions granted to even a few would help a good .deal. The basis for seeking extensions for others, in OER and OBGI for example, will simply be to prolong the unusually valuable substantive contribution to the output of the office. Many intelligence officers will sustain their ability to con- tribute importantly to the work of their offices well beyond age 60. While managers see no compelling need to extend a proficient or even a strong performer, they feel that the services of an outstanding performer should one way or another be retained at least until 62 and perhaps, in exceptional cases, even beyond. Some offices applied very strict standards. CRS, for example, plans to seek no exceptions on operational grounds. CRS was influenced heavily by the relatively long average length of service of its employees and the beneficial effects of well ordered turnover in the higher positions to facilitate adjustment to new ways and new levels of operation. OCI choices for extension were among those particularly competent in their present assignments and whose classification was based upon their retention in those jobs, or for a specified time. The length of extensions likely to be sought varied from six months to indefinite. One to two years would satisfy most situations, unless the passage of time makes matters worse rather than better in terms of the ability of the office to accommodate to change. Approved For Release 2000/6bl3F.? J 1 I A000100050001-6 Approved For Release 2000/08/30 : (M [ 'Fflb0947A000100050001-6 No Foreign Dissem The attitudes of office directors were also obtained on a related matter, and found to be consistent with their views on early retirement policy. This had to do with the group of employees fairly close to retirement when the policy was changed. The prospective job tenure of 126 employees was curtailed when, as a result of the new policy, their retire- ment dates were accelerated anywhere from one to 24 months. On the assumption that there had been inadequate notice, office directors were queried whether relief should be sought for the group as a whole. Without exception, they urged that no group extensions be granted, but that appeals be left to employee initiative for consideration by the Retirement Board on an individual case basis. . Managers like early retirement. They would like more flexibility in administering the policy in a local situation of limited duration. . They plan to seek very few exceptions. The exceptions sought will be for relatively short periods and for press- ing reasons only. If, at the employee's initiative, extensions are granted on compassionate or other grounds, managers will in most cases be able to adjust and continue to make effective use of the individual. Because the average age and grade runs relatively high in the field offices - a sampling of the views of the office chiefs was taken. Their views were remarkably con- sistent with those of the office directors, the consensus being: Stick to the present policy, but allow greater flexibility in administering the policy in individual cases, partic- ularly where the employee was hired in Approved For Release 2000/0WJ 0' 0 ,#54910,000100050001-6 Approved For Release 2000/08/30: C*4J0947A000100050001-6 No Foreign Dissem mid-career when a much more liberal retirement policy was in force. Operational convenience rather than necessity should suffice to justify extensions beyond retirement date. Early retirement rules need not necessarily apply to clerical and other subprofessional support personnel. Use of employees in postretirement status is no satisfactory alternative to an extension. (WAE personnel can be used only half time) and cannot be placed in supervisory roles.) Approved For Release 2000/OOF OMM000100050001-6 Approved For Release 2000/08/30 : c "" 00947A000100050001-6 No Foreign Dissem Employee attitude toward retirement and reaction to retirement policy is important. Precisely because people make up virtually our entire list of assets, we must be par- ticularly sensitive to employee morale and recruitment incen- tives. No formal survey was undertaken to sample employee reaction to retirement policy. Considerable evidence is nevertheless available. This has been gathered by super- visors, by administrative and personnel officers, by members of the CIA Retirement Board and its support units. Some of this evidence was obtained through letters and conversations integral to the formal processing of specific retirement cases or the establishment of new dates on which employees were expected (scheduled) to retire. Other evidence, perhaps the most meaningful, was surfaced much more informally--the telephone call, the conversation over lunch or in the corridors which remain.the true barometric reading of any organization. Quite naturally those most concerned are to be found among the group nearing retirement age. In contrast, many of the younger employees have given the matter no thought or have dismissed it lightly. Even among the older employees there are a number who have shown no particular concern. They have had many years of service and their early retire- ment plans of long standing have not been adversely affected by the recent change in retirement policy. Among concerned employees--perhaps 10% - 20% in number-- the causes of concern vary from a vague sense of injustice or confusion to a well-defined conviction that the Agency is acting immorally or illegally: o He has never been presented the case why early retirement was good for the Agency, the DDI, his shop or himself. Example "As manager. ..I can see where retirement at age 55 or 60 will be very detrimental to the office.... If it can be demonstrated Approved For Release 2000/0/0 ~'M1 ~,"P9? 000100050001-6 Approved For Release 2000/08/30 :16a00947A000100050001-6 No Foreign Dissem that the 55/30 or 62/20 is the best program for the Agency to adopt, then I feel it should be put into effect in some gradual manner so that it would not work a hardship on those people who accepted employment with the Agency with the understanding that if they performed properly, they would be able to continue in their profession for their entire working career...." o Such policy statements or explanations as he has seen have used words implying a choice on the part of an employee even though Agency expectations were set forth. Example "I have read very carefully and am considerably puzzled by the semantics therein. I find no statement of a mandatory retirement age/service combination. I do fin several rather ambiguous state- ments.... If I have any understanding of the meaning of words employed in - the actual choice of retiring at ages between 60 and 70 remains with the employee. "Optional," "voluntary" and "encourages" all imply choice. Nowhere is there any statement or implication that employees will be terminated if they do not opt to retire before the mandatory age of 70...." o He has had the signals changed on him three times in little over ten years and considers this unfair even if the overall policy is justifiable. Example "I badly confused about the ethical justification for changing the retirement rules so often that personal financial plan- ning is impossible.... You will remember the recruiting talk some of us middle-aged marvels received to convince us in 1948 that Agency service was highly desirable.... We were specifically assured that since 65 was the Approved For Release 2000/OW80~;>bbA000100050001-6 Approved For Release 2000/08/30 : c 1, lW0100947A000100050001-6 No Foreign Dissem retirement age those of us in middle age still had an opportunity to serve in govern- ment long enough to get satisfactory retire- ment compensation.... [Nevertheless] I hasten to say that I'll go quietly and quickly to the nearest Agency exit on my 60th birthday. No one will have to push me but that does not mean that I look with equanimity at any government agency breaking its word not once but twice...." o He has had unconscionably short notice to redirect his professional life. Example O a little over a year ago I received a notice about the desirability of preparing for the retirement that would be all mine at 62. It took the Agency only some 13 months to rescind that order...." o He has been penalized the economic advantages of longer service accruing from pay raises designed to provide relief from rising costs of living. Example "To retire immediately on reaching my 60th birthday... would face me with extremely heavy financial and personal problems, with which I shall probably be unable to cope without a substantial extension...." o He is being deprived of future income in a period when earnings and professional attain- ment are at their peak and when college costs for dependents may still be an important consideration. Example "For me, income foregone consists of that income which I have expected to earn from Agency employment between the ages of 61 and 65--or, after state and federal taxes, about $75,000. What does the Agency offer Approved For Release 2000/0iP30F1If_e4"A000100050001-6 Approved For Release 2000/08/30: Cl % d0947A000100050001-6 No Foreign Dissem to the employee in return for this income which it expects him to forego? If the employee qualifies under the CIA Retirement System he receives an incentive in the form of higher annuity accumulation rates. This incentive to early retirement amounts in effect to an annuity service credit of 1.75 years. The Agency employee who retires early under the Civil Service Retirement System receives no such annuity credit or other material inducement for his potential income foregone." o He also foregoes annuity income. Example I'' t1 be said that in lieu of income foregone, the early retiree attains more rapid access to his annuity, and that its effective value is enhanced because he will draw on it for a longer period of time than if he retired at a later date. True, but in retiring early, the employee also foreoges annuity income. If I retire after 20 years of Agency service I become eligible for 36.25% of an average income of about $24,000, which will yield an annuity (with survivor benefits) of around $8,100. I thus forego four years of annuity accrual as compared with retirement at age 65. Were I to retire at age 65, at the same salary level, ignoring in-grade increases, promotions, or general salary increases, my annuity would rise to $9,800, a gain of more than 20 percent. Viewed in terms of income foregone, early retirement thus deprives the individual in my category of one-fifth of the anticipated annuity at the normal retirement age of 65." o He foregoes the opportunity to provide additional annuity for himself from antic- ipated savings during his terminal years of employment. Approved For Release 2000/0&35 Fe - 000100050001-6 Approved For Release 2000/08/330 : CYR=h=bQ947A000100050001-6 No Foreign Dissem Example S pu pose, instead of foregoing income the employee follows the prudent course of saving some 20% of his salary after taxes. Converted into private annuity this sum should be worth about $500 a year in annuity benefits for each year worked in a senior grade beyond the age 60 and up to the age of 65. Now this sum just about equals the amount of additional Civil Service Retire- ment earned during each of these years." o He views as unrealistic the Agency assumption that private industry has a ready job for the early retiree who must continue to work. Examples "Except for transfer to other government service in lieu of retirement, a prospect which diminishes rapidly after 60, the pro- spects are dim. In private employment it is necessary to work for 40 quarters or ten years to qualify for minimum social security coverage. Few retirement plans in private industry will accept a short timer with less than five years of expected contributions." "Since the receipt of your memorandum, I have been alert to every opportunity for durable and gainful employment which would maintain approximately the level of my present net income and thus avoid financial distress following retirement.... Unfortunately, none of these discussions was fruitful. Either by reason of company policy as to age, or lack of suitable qualifications for the job openings where age is not a factor, or because of long identification with the Agency, the persons with whom I talked could offer no promise of employment in any category." o He has had the flexibility of deciding his own future--left to other Federal employees-- taken away. No Foreign Diss m Approved For Release 2000/08/30 : g R "0947A000100050001-6 Approved For Release 2000/08/30 - :DP8~ 1Y 47A000100050001-6 b orelgn issem Examples "am at present concerned with these matters of principle, and with discovering what the effective rights of career service employees are, rather than inquiring about appeals procedures for individuals or special excep- TI T it is a vio a ion of my constitutional and basic legal rights." How much resentment has actually built up, how much this affects output, how much will persist after retirement itself, and what repercussions this might have on the Agency's image or our ability to recruit, are all matters of conjecture. It is easy enough to see some resulting harm, but how significant is this when offset by the revitalizing effects early retire- ment is designed to produce? None can truly answer this question. We can say that the most serious effects on employee morale will be short-run. The passage of time will altogether eliminate some of the causes of discontent enumerated above. The effect of other causes will be mitigated if only because all employees will have lived under the new dispensation longer. No Forei n Di Approved For Release 2000/08/30: C l99FA000100050001-6 Approved For Release 2000/0/30 A(- BI c-00947A000100050001-6 o eign issem Background to Problems of Administering CIA Retirement Policy Under Civil Service Approved For Release 2000/08/30 0t F 4& 947A000100050001-6 Approved For Release 2000/08/30 :`Lt'R-RDPg~ 00947A000100050001-6 No Foreign'vissem BACKGROUND TO PROBLEMS OF ADMINISTERING CIA RETIREMENT POLICY UNDER CIVIL SERVICE* In 1953 the Agency confirmed in regulatory issuance the policy adhered to since its beginnings: "CIA would effect the retirement of eligible employees in accordance with the spirit and purposes of the Civil Service Retirement Act...." This policy continued in force for a number of years, during 25X1A which many individuals were hired, some in mid-career, with full assurance that they could plan their futures on the basis of this policy 21 December 1963). Late 1959 brought a shift away from that policy to one of encouraging employees to retire well in advance of the statutory limit of the Federal Government. In contrast to the mandatory age of 70, CIA employees were expected to so plan their lives that those having 30 years of Federal service at age 60 would then retire, while any one having less than 25X1A 30 but more than five years of service would retire at 62. The Agency notice announcing this was dated 5 January 1960; the Headquarters Regulation was dated 3 November 1961. The new policy was proposed and pressed by the Clandestine Services on grounds of need for a younger, more vigorous service than would have been possible under normal Civil Service practice in the Government generally. In the interest of having a single policy within the Agency, the other directorates accepted the DDP proposal though they had no compelling requirement for its provisions. In recognition of this variation in need deputy directors were delegated authority to waive the policy in individual cases, and waivers were in fact liberally granted. On 27 July 1964, as one means of adjusting the Agency's strength to projected levels, the Executive Director directed that exceptions "be granted only when an employee's skills are truly irreplaceable from within the Agency or when a real financial hardship would result which would materially affect 25X1A the employee's ability to maintain the necessities of life" *Excerpt from memo to Chairman, Retirement Board, 14 August 1967. -I~ F rei in Dissem Approved For Release 2000/08/0: GI k8 10947A000100050001-6 Approved For Release 2000/08/3o0 F rA-(R 8c00947 000100050001-6 N 25X1A (Action Memo -. In the face of this directive, many supervisors logically concluded that no man is irreplaceable and recommended no waivers on grounds of operational necessity. Others equated operational convenience with irreplaceability in granting extensions. Where the individual felt aggrieved and the deputy did not recommend his retention, recourse was to the Agency Retirement Board, created to enhance the chances of a uniform application of Agency policy in hardship cases. The r. ors of the Agency policy, as reflected in Action Memo were almost at once partially blunted by the action of the Executive Director in a case representative of others. In a memorandum dated 24 August 1964 to its Chairman, the Agency Retirement Board was directed to extend for at least three years an employee with a 17 year tenure who was scheduled to retire at age 62. The reasons given were: Need for a humane and judicious application of policy where individuals have entered on duty late in life; Careful regard to any commitments, precise or implied, oral or in writing. The Executive Director noted that it was "particularly important that we not force these people to retire unless they are will- ing, when it is difficult if not impossible for them, to return to their former professions or to acquire other commensurate employment." Attempts to reconcile the apparent inconsistency between these actions were on grounds that exceptions covered by the 24 August memo were likely to be very few indeed. The application of new Agency policy proceeded with reasonable success. Until July 1967, not one employee due to retire under it failed to, though on a number of occasions delays occurred, and persistent persuasion if not insistence were required to secure compliance. Evidence of compliance in these cases takes the form of the employee signing a request to retire (CSC 2801). Meanwhile CIA successfully pursued a parallel course of action to secure special legislation to deal with the problem of the Clandestine Services. In October 1964, the Congress, Approved For Release 2000/08 :40* Q 47A000100050001-6 Approved For Release 2000/08/30 : dk-"W;0947A000100050001-6 No Foreign Dissem at Agency urging, passed PL 88-643, an act for the retirement of certain CIA employees, largely those whose overseas service, or some equivalent, would entitle them to preferred retirement treatment similar to that accorded to Foreign Service Officers. Barring extension by the Director, members of this special retirement system are to retire at age 60, though there are options exercisable by the employee for earlier retirement. Despite this favorable legislation, estimated eventually to affect the careers of perhaps one-fourth CIA employees, managers sought further relief through early retirement. Many in the DDP are not and will never be covered by the CIA Retirement System. DDP and DDS, and to a far lesser extent the DDI and DDS&T, felt the need for opportunities to promote promising mid-careerists if Agency performance was to be improved. The hump created by mid-careerists hired in the expansion of the 1950s, the Bureau of Budget squeeze on super- grade slots, the difficulty of teaching old hands new tricks, all conspired to alert top management to opportunities for additional relief. Relief came in the form of Federal legislation enacted in 1966 amending the Civil Service Retirement Act. The changes permitted optional retirement without a reduction in annuity at age 55 with 30 years service, and at age 60 with 20 years of service (in addition to the previous provision for retirement at age 62 with five years service). These provisions were seized upon as a means of narrowing the gap between tenure for those under the Civil Service Retirement System and those under the CIA Retirement System. This was accomplished when, on 23 February 1967, the Director approved the 27 January 1967 memorandum of the Director of Personnel. Follow-up action resulted in relieving the deputy directors of the authority to grant extensions based on the needs of the service. Form letters were sent to all employees within five years of retirement to confirm old or set new dates at which time they were expected to retire. From the employee's viewpoint several aspects of the Agency's retirement policy have been disconcerting from the outset. For the majority of CIA personnel, the Agency's need to have them retire early has never been convincingly explained Approved For Release 2000/08/3 :F a n Diss m I t0109477A000100050001-6 00050001-6 Approved For Release 2000/08/30 :Fd"kb 00947A000100050001-6 No Foreign Dissem let alone demonstrated. There has been sufficient lack of uniformity in the application of the policy as to raise some eyebrows. The wording of Agency notices and regulations on the subject has left uncertainty regarding the preparedness of the Director to enforce his own policy in the event of employee non-compliance. Where the Director's right to set such a policy was not doubted, uncertainty remained concern- ing the propriety of changing the rules of the game several times within a period of a few years. Furthermore, there appeared to be an inconsistency between an Agency position at the time of recruiting which stresses Agency adherence to Civil Service standards of pay and benefits, and an Agency position at the time of retirement which stresses the freedom of the DCI from Civil Service imposed standards of retirement in favor of his own. Why then has there been compliance to the policy until recently? There are a number of reasons. First, recognizing the Director's special powers under the Agency's organic act, and given a new situation without precedent, people were just reluctant to make a contest in a situation where experience shows the individual pitted against the bureaucracy seldom wins. Second, there was a general sharing of feeling that the Agency is something special, that the Clandestine Services had a special problem, that a uniform policy was defensible if it helped to solve this special problem, and that sufficient flexibility had been given supervisors to seek and obtain waivers in particular cases as to provide adequate protection for the employee. Third, the 60/30 - 62/20 parameters set forth were fairly close to the conditions which many employees set for themselves. Four, some of the employees who have retired were one way or another pressured by management into so doing, often in a degrading manner. Why are there now such strong indications of resistance to the newly announced policy? The inverse of the points made above of course suggest themselves. Basically the malaise concerning early retirement under Civil Service stems from: A realization that the long range family plans made on the basis of earlier policy would be seriously affected by an acceler- ation of the date of retirement. Approved For Release 2000/0>3~ '0 FVft8 #000100050001-6 Approved For Release 2000/08/30 : -vQ947A000100050001-6 No Foreign Dissem C A realization that an Agency policy statement which uses words like "option," "eligible," and "expect," does not carry the conviction of mandatory enforcement. A realization that, compassion apart, uniform enforcement of policy makes little sense, when some categories of employees are in short supply and other categories may attain or maintain their highest performance in the twilight of their careers. A realization that the Agency has been granted legislation to deal with its special problems. Hence, why should Agency employees remaining under Civil Service not enjoy all options enjoyed by other Government Civil Service employees? A realization that an Agency position, almost .any position, apart from income, provides the individual with certain status. There is an indefinable reluctance to abandon this unless a substitute is provided. A realization that pay raises, in the immediate past or prospective, will appreciably improve retirement income only if the employee works long enough to have them fully reflected in his "high five" earning average. Approved For Release 2000/0'I0 F,~W 1 b M000100050001-6 Approved For Release 2000/08/3 : C kkRiP8k-0b947A000100050001-6 o oreign Dissem APPENDIX B Retirement Policy and Practice Retirement Systems in CIA Federal Civil Service Retirement System Foreign Service Retirement System Uniformed Services Retirement System Policy in Government Supported Research Organizations University Practice Corporate Practice No Foreian Di Approved For Release 2000/08/30: C t 90%I A000100050001-6 Approved For Release 2000/08/30: CFv' T -60947A000100050001-6 No Foreign Dissem RETIREMENT SYSTEMS IN CIA CIA employees belong to one of two basic retirement systems, either the Civil Service Retirement System (CSRS) or the CIA Retirement and Disability System (CIARS). The Civil Service system has existed since 1920 and its member- ship constitutes most of the employees of the Federal Govern- ment. The CIA system came into being as a result of Agency initiative with the passage of the Central Intelligence Agency Retirement Act of 1964 for Certain Employees. From the employee's viewpoint, the essential differences between the CSRS and the CIARS at the time of its passage lay in the options available to management and to the employee concerning retirement age and the amount of retire- ment pay. By passing the Federal Employees Salary Act of 1966, the Congress narrowed the differences in retirement options. And when in February 1967, the Director modified the Agency's retirement policy by adopting the new employee options of the Act of 1966, the differences between retire- ment under the CIA system and the CS system as administered by the Agency were even more considerably diminished, as the representation below shows: CIA System Employee Options: 50/20 Management Options: 50/20 x/25 60/x 65/x Civil Service in CIA Civil Service Elsewhere 55/30 55/30 60/20 62/5 70/x 60/20 70/x 62/5 70/x Approved For Release 20004/030F " A000100050001-6 Approved For Release 2000/08/30 : ClA d cth947A000100050001-6 No Foreign Dissem No change has been made in the basis for calculating retirement pay under the CIARS and the CSRS. The difference is in the multiplier applied to the average high five years of pay, resulting in a difference of 3 3/4% in favor of the retirement pay of members of the CIA system. A source of apprehension, partly justified and partly based on misinformation, is the impact of retirement upon insurance coverage provided by Agency programs. On retirement, with 12 or more years of service, FEGLI coverage remains in force free of premiums. Coverage is reduced at age 65, whether or not the individual is still on the job or is retired, at the rate of 2% per month down to a minimum base of 25% of the original coverage. The UBLIC program provides coverage at 50c per month per $1,000 until age 60, whether or not the individual has retired. After age 60, coverage is reduced to 1/6 of the average coverage of the last ten years until age 70, at which time it is reduced to 1/12. The WAEPA program provides that on retirement or at age 65, whichever comes first, the individual may retain 1/3 of his original coverage at a cost of $30 per year per $1,000. Premiums prior to age 65 are $13.10 per month for $16,250 of basic coverage. Thus early retirement has no practical effect upon coverage provided by FEGLI or UBLIC. However, retirement before age 65 materially affects WAEPA protection, reducing it by 2/3 with no reduction in cost. Approved For Release 2000/0> &0 Fa("' W . YW000100050001-6 Approved For Release 2000/08/30 : c O0947A000100050001-6 No oreign issem FEDERAL CIVIL SERVICE RETIREMENT SYSTEM Until recently normal retirement under Civil Service in the Government generally was under two employee options: age 62 with at least five years service or age 60 with at least 30 years. About 12 times as many retire under the 62-5 provision as do under the 60-30 option. (This ratio is down from more than two to one a year earlier.) The average age of recent 62-5 retirees was 66 years; the average service, 21 years. The 60-30 retirees averaged 65 years of age and had 37 years of service. Overall average age of normal retirees was 65.7, average service 25.6 years. In 1966, Congress liberalized retirement provisions so that optional retirement is now possible without penalty at 55 with 30 years service, at 60 with 20 or at 62 with five. The legislation is too recent to have yielded any useful statistics on how it may affect retirement patterns, although we do know that 6% of FY 1965 retirements were under the 55-30 option then in force under which the income of the retiree was reduced 1% for each year that he was short of 60 years of age. The compulsory retirement age under Civil Service remains 70. And attempts by the Administration to get a two-way 55-30 option was rejected by Congress. In other words, Congress gave the employee the right to retire at 55 with 30 years of service, but refused to give management the right to retire involuntarily an employee meeting these conditions. Approved For Release 2000/08/3 :FGP1 0&t6j0947A000100050001-6 Approved For Release 2000/08/30 :8!000947A000100050001-6 No Foreign Dissem FOREIGN SERVICE RETIREMENT SYSTEM In the Foreign Service Retirement and Disability System, after which the CIA system was patterned, retirement is mandatory at age 60 (except for career ambassadors and career ministers who retire at 65). Age 60 was set "in recognition of the need to maintain the Foreign Service as a corps of highly qualified individuals with the necessary physical stamina and intellectual vitality to perform effectively at any of some 300 posts throughout the world including those in isolated, primitive or dangerous areas. Retirement at 60 also enhances the advance- ment opportunities of the most effective younger personnel and reduces the strain on the selection-out program." Voluntary retirement on full annuity is authorized at or after age 50 with 20 or more years. Officers making most use of this provision are those whose careers have leveled out. This system includes a provision for selection-out, i.e., the enforced retirement. or separation of FSOs below the class of career minister who either remain in class with- out promotion for a specified period or fail to maintain the standard of performance required of officers in their class. [Note: Under this system, a bright FSO promoted early, but who may therefore spend more time in a higher class, will be pushed out of the service altogether. On the other hand, his plodding running mate, who lingers in each class for a maximum length of time, then barely makes the promotion list, will not be retired as early.] 3 : F n Dissem Approved For Release 2000/0861A iFq p 47A000100050001-6 Approved For Release 2000/08/3R: 4AW4947AO00100050001-6 6 issem UNIFORMED SERVICES RETIREMENT SYSTEM The military retirement system places primary emphasis on the maintenance of a young and vigorous force capable of performing vital defense and combat missions. For officers, this system is closely integrated with an up-or-out selective promotion system. Officers passed over for promotion two consecutive times are forced to retire (if they have 20 years or more of service), or are discharged with a readjustment payment (if they have under 20 years service). The practical effect of this is the retirement of all officers beginning with majors (as they attain 20 years of service) through general officers (as they attain 35 years of service). Most officers would therefore find themselves retired between the ages of 40 and 55, with 50 being the most likely age. The involuntary separation provisions are complemented by provisions which permit voluntary retirement of members who have at least 20 years of service. This is a privilege, not a right, the exercise of which depends upon the approval' of the respective Departmental Secretaries. In addition, maximum age limits are imposed. Ages 60 or 62, varying by department and depending primarily upon grade, are the generally prescribed statutory limits for retention of male officers (50 or 55 for some female officers). Strictly controlled exceptions may extend some to 64. And others, such as doctors, lawyers and chaplains, who would otherwise be retired prior to age 60 based on grade and ser- vice, may be extended to age 60. Approved For Release 2000/08/30 : 'I fA000100050001-6 Approved For Release 2000/08/30 : C,Il9'-b0947A000100050001-6 No Foreign Dissem POLICY IN GOVERNMENT SUPPORTED RESEARCH ORGANIZATIONS Many organizations, entirely or largely supported by Government contracts, engage in research and analysis similar to the work of the Agency's production offices. Indeed some of these are in direct competition with CIA for these skills. Illustrative of these institutions is the Research Analysis Corporation (RAC) which is under contract to the U.S. Army. RAC's retirement policy provides as follows: "Your Normal Retirement Date is the first day of the month on or following your 65th birthday. "You may retire as early as age 55 if you have then completed 15 years of Credited Service or if you are determined to be permanently disabled by RAC.... "You may continue in active service beyond your Normal Retirement Date only with the consent of RAC.... Your retirement income will begin when you actually retire in the same amount which would have been payable at your Normal Retirement Date." Approved For Release 2000/0 P'30F A PMi 4fiA000100050001-6 SECRET Approved For Release 2000/0890 : sA 1OQ947A000100050001-6 0 oreign Dissem Retirement plans in American colleges are administered by three types of systems: the Teachers Insurance and Annuity Association (TIAA)--College Retirement Equities Fund (CREF) program, State Teachers and Public Employee programs and the Agency Life Insurance Company retirement programs. All these are for the most part supplemented by Social Security coverage. The most authoriative general pronouncement on retirement policy is the statement made in 1957 by the Joint Committee of the American Association of University Professors (AAUP) and the Association of American Colleges (AAC). This group recommended a fixed and relatively late retirement age, stating that "the desirable fixed retirement age would appear to be from 67 to 70." The most widely used system in colleges today specifies a normal retirement age of 65 with extensions granted to age 70. In some cases, where extensions, say beyond 65 or 68, are granted, the work schedule is reduced to half time. There are indications that retirement for administrators may increasingly be earlier than for teachers. In some of these cases the administrator continues on as teacher after relinquishing administrative responsibilities. Another approach is to appoint individuals to administrative posts for a given period--say four years. On completion of this tour, the individual is either extended or returned to faculty status. This can easily become normally accepted practice. No Forei n Dissem Approved For Release 2000/08/30: C,W> 0947A000100050001-6 Approved For Release 2000/08/30 : C -b0947A000100050001-6 No Foreign Dissem Retirement policy and practice among private corporations have been largely related to the Social Security program. Hence the compulsory age of retirement is in most cases 65. And the preferred minimum early retirement age is 60. Many companies have different policies for salaried and hourly employees, and some differentiate between men and women. Where these differing practices are in force, salaried employees have much less opportunity to work after 65 than hourly workers, and women have an earlier retirement age than men--with accelerations from three to ten years. The trend over the last ten years has been toward more restrictive policies, that is, in the direction of lowering the age of compulsory retirement, although on occasion a company has moved in the other direction. A small number of corporations allow all employees to work after 65, regardless of ability and willingness. At the other extreme an equally small number enforce compulsory retirement at 65 in the strict sense: everyone must retire at 65, including those who perform outstandingly. Many companies allow exceptions to the compulsory rule. Some of these require retirement unless asked by management to stay on, with perhaps an annual review on a case by case basis. Early retirement, that is, under age 65, is still an exceptional occurrence in most companies. The right to early retirement is increasingly less subject to company consent, but left as an option which the employee may chose to exercise. The majority of companies provide postretirement life insurance and pay the entire premium. The preretirement coverage however is reduced on retirement. Postretirement health insurance coverage is just as widespread, though only about one third of the companies bear the full cost. Preretirement counseling programs and various schemes to help employees taper off, experiment with the use of increase in leisure time, and generally adjust, are widespread. Approved For Release 2000/0~P30' - A000100050001-6 q-tv Approved For Release 2000/08/30 : Q 1 10947A000100050001-6 No Foreign Dissem Supporting Tables I. DDI Recent Separations II. DDI Retirement Performance III. DDI Personnel Whose Retirement Was Recently Accelerated by Change in Agency Policy and Who Had Less Than 5 Years Notice IV. DDI Retirement Projections Approved For Release 2000/00 F~ $~ 4 A000100050001-6 Approved For Release 2000/08/30 : C,--0j00947A000100050001-6 No Foreign Dissem Intelligence Career Separations over age 40 (Fiscal Year 1962-67) A. Summary by cause of separation 47 B. Summary of age and grade averages 48 C. By grade by year 49 D. By component by year 50 E. By date of birth and type of separation 51 Recruitment and Attrition Levels Among DDI Professionals EODing Fiscal Years 1963-1967 F. Entered on duty 52 G. Attritions 53 Approved For Release 2000/0w O1 OpblITA000100050001-6 Approved For Release 2000/08/30 : &iJ00947A000100050001-6 No Foreign Dissem INTELLIGENCE CAREER SEPARATIONS OVER AGE 40 BY CAUSE (FY 1962 - 1967) Annual Average Resignations* 172 28 Death 28 5+ Retirement 167 28- CSC Optional 95 16 Discontinued Service 8 1 Disability 54 9 **CIA Retirement System 10 2 Total True Separations 367 61 % T/O*** * Includes 20 identifiable as separated for unsatisfactory service. ** Includes 3 voluntary, 4 mandatory age and 3 disability. *** T/O of used throughout, of which _ are over 40 years o age. Approved For Release 2000/O p30Fi#4A000100050001-6 Approved For Release 2000/08/30 : 6,06947A000100050001-6 No Foreign Dissem INTELLIGENCE CAREER SEPARATIONS OVER AGE 40: FY 1962 - 1967 Median age of separation: 55 Resignation 49 Death 59 Retirement 62 Age of highest incidence: Resignation 48 Death 64 Retirement 63 Average annual separations by grade: Supergrades 4 GS - 15 4.5 GS - 14 7 GS - 13 8 GS - 12 8 GS - 11 5.5 GS - 9/10 9 GS - 7/8 5 Under GS - 7 10 Trend: Number of separations doubled over period of 6 years (from 38 to 81). Approved For Release 2000/0 ~30~:j A000100050001-6 f "#, i-~0111 Approved For Release 2000/08/30: CJ-0947A000100050001-6 No Foreign Dissem INTELLIGENCE CAREER SEPARATIONS OVER AGE 40 BY GRADE (FY 1962 - 1967) 1962 1963 1964 1965 1966 1967 18 2 2 1 4 1 10 17 1 1 1 1 4 16 1 3 3 2 9 15 2 2 3 4 8 8 27 14 5 5 8 6 9 8 41 13 5 7 3 12 10 11 48 12 8 6 4 7 13 9 47 11 1 4 7 7 11 9 39 10 2 2 3 1 1 9 09 6 8 6 7 1 15 43 08 1 3 4 1 9 07 2 7 2 3 5 2 21 48 38 56 64 66 06 1 3 2 5 7 18 05 3 4 2 6 4 4 23 04 2 3 2 5 3 15 03 1 1 2 02 1 01 1 1 11 14 15 60 38 56 47 67 78 81 Equivalents used: GP 99 equals GS - 11 CF 2 10 " GS 10 CF 1 It GS - 2 W 07 it GS - 1 Approved For Release 2000/3P re qP dj M U000100050001-6 Approved For Release 2000/08/30 : GE-60947A000100050001-6 No Foreign Dissem INTELLIGENCE CAREER SEPARATIONS OVER AGE 40 BY COMPONENT (FY 1962 - 1967) YEAR COMPONENT 1962 1963 1964 1965 1966 1967 TOTAL DDI 3 1 1 2 5 1 13 OCI 2 9 4 6 3 5 29 OER 10 10 16 15 15 6 72 OSR OBGI 1 4 7 13 25 NPIC/IAS 5 4 2 6 3 5 25 CRS 8 13 14 18 20 30 103 DCS 3 7 5 11 14 12 52 5 7 4 9 10 8 43 TOTAL 38 56 47 67 78 81 367 0 i Approved For Release 2000/ 0 U A000100050001-6 Approved For Release 2000/08/30 : C-60947A000100050001-6 No Foreign Dissem DATE OF BIRTH INTELLIGENCE CAREER SEPARATIONS OVER AGE 40 BY DATE OF BIRTH (FY 1962 - 1967) 1900 1 19 20 1 1 1 11 13 2 1 1 10 12 3 4 19 23 4 3 1 22 26 5 2 1 13 16 6 4 2 7 13 7 4 1 7 12 8 6 3 4 13 9 4 2 6 12 1910 4 1 6 11 11 5 2 5 12 12 3 7 10 13 3 2 3 8 14 8 9 15 11 15 16 6 11 17 8 12 18 14 16 19 19 20 1920 14 2 16 21 14 2 16 22 14 2 17 23 9 2 12 24 4 3 7 25 5 1 8 26 6 1 7 Approved For Release 2000/0/30FI 111A000100050001-6 0' Approved For Release 2000/08/30 : &k0100947A000100050001-6 No Foreign Dissem DDI PROFESSIONAL EODs (FY 1963-1967) Component 1963 1964 1965 1966 1967 Total ODDI/IRS 1 1 OCI 23 13 6 4 8 54 OER/OSR 73 38 23 38 63 235 OBGI 12 2 8 15 37 NPIC/IAS 120 84 49 129 78 460 CRS 79 43 11 56 60 249 50* 23* 2 3 11 89 ONE 1 2 2 2 7 TOTAL 360 204 93 240 240 1137 Approved For Release 2000/v/369 ,b 7A000100050001-6 Approved For Release 2000/08/30 : -( ?MdmQ0947A000100050001-6 No Foreign Dissem DDI ATTRITION AMONG PROFESSIONAL (FY 1963-1967) EODs Component 1963 1964 1965 1966 1967 Total ODDI/IRS OCI 12 5 17 OER/OSR 39 22 10 10 11 92 OBGI 4 1 2 3 10 NPIC/IAS 44 28 11 29 21 133 CRS 43 28 4 15 16 106 DC S 1 1 26* 13* 1 1 2 43 ONE 1 1 2 4 TOTAL 168 97 27 58 56 406 Approved For Release 2000/3? 16kF 4~dgiA000100050001-6 Approved For Release 2000/08/30 : & - & 0100947A000100050001-6 No Foreign Dissem II. DDI RETIREMENT PERFORMANCE A. Number of DDI retirees (Fiscal Year 1962-67) 1. By age and year 55 2. By grade and year 56 B. Performance in retiring personnel on schedule (Calendar 1967) By component and ratio of extensions to retirements on schedule 57 C. Current DDI cases granted CIA Retirement Board extensions (grade - component - age/service - months extended) 58 Approved For Release 2000/0$/3d l OW4''A000100050001-6 Approved For Release 2000/0830 :Ak-RP~.!0.0947A000100050001-6 o oreign Dissem d1 0 di M M M 6) d+ It r-I LC) r-I O LC) r-I r-I r-I N N r-I N CO r-I 6) r-1 M r-1 00 co O I CO ri N r-ICI l rir-ICO co r-fd+ O ra LO C4 N N O r-I IN r-I r-I co C9 r~ r-I LS7 L17 LC) 0) t9 NO 0001-00COrINMd40 N 0 0 LO 0 0 Q0 C.0 Co Cfl (0 to $I O Approved For Release 2000/0lf/30 ??0Ll6#F +b6gi1A000100050001-6 Approved For Release 2000/08/30 : 6-b06947A000100050001-6 No Foreign Dissem r-I N N co r-a I r-I N l- LO co N Co N co r-I r-I cfl rI C N CU r-I rl r-I rl r-I r1 C r1 r-? N di N r-I N co N r-I N r-I N r-I r-i N r-I r-i co r1 r-I r-I rl t44to t`xm Or-IN co [f'LO Co[-00 O O O 000 r-1 r-I r-i r-I r-I r1 r1 r1 r-I Approved For Release 2000/0874F 6441 A000100050001-6 Approved For Release 2000/08/30 : &Kr-~"W947A000100050001-6 No Foreign Dissem DDI PERFORMANCE IN RETIRING PERSONNEL ON SCHEDULE (CALENDAR 1967) NUMBER RETIRED NUMBER RATIO ELIGIBLE ON SCHEDULE EXTENDED EXTENDED ODDI* OCI 2 1 1 50 OER 2 2 0 OSR OBGI 3 2 1 33 NPIC 2 1 1 50 15** 8 7 47 12 6 6 50 2 2 100 TOTAL 38 20 18*** 47 NOTE: Where employee is scheduled to leave by end of year, and no reason is known why this will not happen, he is included in total of those retired. * One not scheduled to retire was retired as surplus. ** Plus 1 retired for disability, and another as surplus. *** Four were extended only very short times (2, 2, 4 and 6 months respectively) and are retiring at end of 1967. Approved For Release 2000/3c 9 Al6~fl 66 'A000100050001-6 Approved For Release 2000/08/30 : &r-"100947A000100050001-6 No Foreign Dissem CURRENT CASES GRANTED RETIREMENT BOARD EXTENSIONS CASE # GRADE COMPONENT AGE/SERVICE EXTENSION (Months) 1 18 60/30 18 2 15 DCS 62/23 7 3 14 NPIC 65/25 12 4 14 DCS 62/19 2 5 14 DCS 62/17 12 6 14 DCS 61/30 6 7 14 DCS 62/29 11 8 13 OBGI 63/25 6 9 13 DCS STATSPEC 62/17 12 10 13 OCI 62/25 3 11 13 IAS 66/12 12 12 13 62/27 5 13 11 64/10 23 14 10 60/21 7 15 9 60/40 6 16 9 DCS 60/34 10 17 7 DCS 67/12 24 18 7 CRS 62/26 5 19 6 CRS 62/14 12 20 6 DCS 65/16 12 21 6 DCS 63/12 12 22 5 CRS 64/18 36 23 5 CRS 65/24 12 24 *CIARS 5 CRS 64/12 12 Age 62.7 years 60-68 Longevity 21.6 years 10-40 Extension 12.1 months 2-36 Approved For Release 2000/di/'3694 4 dgiTA000100050001-6 Approved For Release 2000/08/30 : &-10100947A000100050001-6 No Foreign Dissem III. DDI PERSONNEL WHOSE RETIREMENT WAS RECENTLY ACCELERATED BY CHANGE IN AGENCY POLICY AND WHO HAD LESS THAN 5 YEARS NOTICE A. By grade and number of months of acceleration 60 B. By component and new year of scheduled retirement 61 C. By acceleration in months and new year of scheduled retirement 62 D. By grade and new year of scheduled retirement 63 Approved For Release 2000/08?3(f Q F ~( bs60}A000100050001-6 Approved For Release 2000/08/30 : &- OlQ0947A000100050001-6 No Foreign Dissem DDI Personnel Whose Retirement Has Been Accelerated And Who Have Had Less Than 5 Years Notice (By Number of Months Accelerated Per Grade) 4 1 1 5 10 2 1 2 5 6 5 5 7 8 1 2 5 8 9 9 1 1 1 6 10 3 1 2 11 16 3 13 12 20 6 4 2 8 13 16 2 2 4 8 14 15 2 3 10 15 18 1 2 3 12 16 2 2 17 3 1 1 1 18 No F Approved For Release 2000/0830 '466&000100050001-6 Approved For Release 2000/08/30 : tk0i00947A000100050001-6 No Foreign Dissem DDI Personnel Whose Retirement Has Been Accelerated And Who Have Had Less Than 5 Years Notice (By Component) Component Total ODDI 3 3 OCI 10 3 4 2 1 OER 9 4 1 2 2 OSR OBGI 14 8 4 1 1 NPIC/IAS 5 2 1 1 1 CRS 32 10 10 10 2 DCS 28 5 8 13 2 M 25 11 6 7 1 TOTAL 126 43 34 39 10 Approved For Release 2000/08930 ' 1W#(bs4}A000100050001-6 Approved For Release 2000/08/30 : d j ' -b0947A000100050001-6 No Foreign Dissem DDI Personnel Whose Retirement Has Been Accelerated And Who Have Had Less Than 5 Years Notice (By Number of Months Accelerated) Acceleration (in Months) T t 1 o a 1969 1970 1971 1972 1 2 1 1 2 3 5 1 4 4 7 1 1 5 5 2 1 6 1 1 7 4 2 2 8 5 2 1 2 9 3 1 1 1 10 2 2 11 4 3 1 12 6 3 1 2 13 1 1 14 2 1 1 15 2 1 1 16 4 1 3 17 4 3 1 18 2 2 19 3 2 1 20 4 1 2 1 21 5 1 3 1 22 5 3 1 1 23 . 2 1 1 24 51 10 20 21 TOTAL 126 43 34 39 10 No F 44 Approved For Release 2000/08/30 o?cc 66,i~A000100050001-6 Approved For Release 2000/08/30: Oil- k4k -' 0947A000100050001-6 o oreign Dissem DDI Personnel Whose Retirement Has Been Accelerated And Who Have Had Less Than 5 Years Notice (By Grade) 1969 1970 1971 1972 18 17 3 1 2 16 2 2 15 18 6 6 5 1 14 15 5 7 3 13 16 5 3 6 2 12 20 9 3 4 4 11 16 9 3 4 10 3 3 9 9 1 3 4 8 7 8 2 2 4 6 5 3 2 5 10 1 4 3 2 4 1 1 TOTAL 126 43 34 39 10 Approved For Release 2000/v> /3&9~,~' 66 lA000100050001-6 Approved For Release 2000/08/30 : &K- I00947A000100050001-6 No Foreign Dissem A. Personnel scheduled or eligible for retirement over the next ten years (Calendar 1968-77): 1. By retirement system and option 66 2. By component and year 67 3. By grade and year 68 a. ODDI 69 b. IRS 70 C. d. e. f. g. h. i. j. k. OCI OER OSR OBGI NPIC IAS CRS DCS 79 1. ONE 80 B. Personnel scheduled or eligible for retirement over the next five years (Calendar 1968-72): By retirement system and professional or clerical designation 81 N.Q Approved For Release se 2000 0 o~o~6AF 069 lA000100050001-6 Approved For Release 2000/08/30 : &k1k& I00947A000100050001-6 No Foreign Dissem C. DDI "no-option" scheduled retirements under Civil Service (Calendar 1968-72): By longevity and year 82 ["No-option" means employee will not have earned enough service to leave at his pleasure before age 60 under the 55/30 provision.] D. Personnel eligible to accelerate their own retirement within the next ten years by exercising 55/30 option under Civil Service or 50/20 option under CIA system: By year and component 83 Approved For Release 2000/3 0 9? k -bOg47A000100050001-6 Approved For Release 2000/08/30 : CIA-RDP80-00947A000100050001-6 PERSONNEL SCHEDULED OR ELIGIBLE FOR RETIREMENT OVER THE NEXT 10 YEARS: CALENDAR 1968-77 (BY RETIREMENT SYSTEM AND OPTION) Civil Service Retirement System CIA Retirement System Component Over 60/20 60/20 Total Early Total 60 60 With Early Total Total 60 Only With Scheduled 55/30 CSRS And 50/20 50/20 CIARS Eligible 55/30 Option Eligible Over Option Option Eligible Option ODDI 2 3 5 8 13 2 2 15 IRS 8 5 13 11 24 1 1 2 26 OCI 3 19 16 38 31 69 1 3 4 73 OER 10 14 10 OSR 2 4 2 OBGI 12 21 21 NPIC 3 22 22 z 0 11 O GD n d J v (D 6; CRS 27 51 41 119 35 154 1 1 155 m DCS 20 42 37 99 39 138 3 3 141 _ 20 52 31 103 40 143 4 22 39 65 208 ONE 5 5 4 14 3 17 2 2 19 TOTAL 103 243 193 539 263 802 4 30 52 86 888 NOTE: Special cases such as pending disability retirement cases and reserve appointments not included. As of 1 Jan 68 these totaled 12, including 2 cases of employees who will retire STATSPEC after 31 Dec 77 at over age 60. Approved For Release 2000/08/30 : CIA-RDP80-00947A000100050001-6 Approved For Release 2000/08/30 : CIA-RDP80-00947A000100050001-6 PERSONNEL SCHEDULED OR ELIGIBLE FOR RETIREMENT OVER THE NEXT TEN YEARS: CALENDAR 1968-77 (BY COMPONENT AND YEAR) ODDI 0/(1) 0/(0) 0/(0) 0/(2) 2/(2) 1/(2) 0/(1) 0/(2) 0/(1) 2/(2) 5 (13) 15 IRS 0/(1) 0/(0) 0/(1) 2/(0) 0/(2) 1/(2) 2/(3) 5/(4) 2/(0) 2/(5) 14 (18) 26 z OCI 1/(1) 3/(0) 4/(2) 2/(3) 3/(7) 2/(3) 4/(10) 7/(5) 5/(14) 8/(6) 39 (51) 73 0 Fli OER 3/(3) 4/(0) 2/(2) 3/(0) 4/(4) 4/(1) 7/(2) 1/(5) 4/(4) 2/(6) 34 (27) 51 0 V: hi -;I N OSR 1/(1) 0/(0) 0/(O) 0/(1) 1/(1) 2/(0) 1/(1) 1/(1) 0/(2) 2/(4) 8 (11) 17 nt4 OBGI 7/(4) 10/(0) 6/(2) 37(5) 4/(4) 4/(6) 3/(3) 8/(9) 8/(7) 1/(9) 54 (49) 82 M d NPIC 3/(4) 3/(1) 1/(1) 3/(4) 4/(9) 6/(7) 7/(8) 9/(7) 7/(12) 4/(15) 47 (68) 93 U IAS 1/(0) 0/(0) 0/(0) 07(1) 1/(0) 0/(1) 0/(1) 1/(0) 0/(1) 2/(0) 5 (4) 8 (D CRS 10/(5) 16/(4) 14/(0) 13/(10) 11/(17) 11/(6) 13/(10) 10/(4) 107(9) 12/(12) 120 (77) 155 DCS 9/(7) 9/(2) 9/(3) 15/(7) 9/(8) 8/(12) 10/(5) 87(10) 10/(11) 14/(14) 101 (79) 141 _ 14/(25) 17/(8) 10/(11) 14/(12) 8/(17) 11/(15) 19/(11) 18/(19) 9/(8) 9/(6) 129 (132) 208 ONE 4/(1) 1/(1) 0/(1) 0/(0) 0/(1) 2/(1) 3/(0) 1/(3) 1/0) 4/(1) 16 (9) 19 NOTE: Scheduled and Eligible are not mutually scheduled during this period. exclusive categories. Some individuals will be both eligible and Approved For Release 2000/08/30 : CIA-RDP80-00947A000100050001-6 Approved For Release 2000/08/30 : c M0100947A000100050001-6 No Foreign Dissem PERSONNEL SCHEDULED FOR RETIREMENT OVER THE NEXT TEN YEARS: CALENDAR 1968-77 (BY GRADE AND YEAR) Year Grade 68 69 70 71 72 73 74 75 76 77 Total 18 5 1 1 3 1 1 1 13 17 1 1 1 3 1 7 16 2 2 1 1 2 3 4 15 16-18 5 2 3 3 5 2 6 3 6 35* 15 6 7 9 5 5 6 13 6 8 7 72 14 5 6 10 8 4 2 6 6 4 7 58 13 9 10 4 8 10 9 11 10 7 7 85 13-15 20 23 23 21 19 17 30 22 19 21 215 12 4 10 4 6 5 6 10 13 6 10 74 11 6 12 4 6 5 8 11 8 10 6 76 10 1 3 3 3 1 11 10-12 10 23 11 12 10 14 21 24 19 17 161 9 5 1 4 6 4 4 3 7 3 4 41 8 1 2 1 1 2 1 8 7 5 3 2 7 1 3 5 4 2 5 37 7-9 10 4 7 13 7 7 9 12 7 10 86 6 5 5 3 3 3 2 5 3 2 31 5 2 4 4 3 4 4 2 4 4 31 4 1 2 1 1 2 3 1 2** 13 4-6 8 11 5 6 8 9 7 5 8 8 75 Total 53 63 46 55 47 52 69 69 56 62 572 *Includes 7 GS-18 members of the Board of National Estimates (4 of which are "scheduled" to retire in 1968, 1 in 1969, 1 in 1973 and 1 in 1974) for purposes of this report only inasmuch as these cases are handled by the Director. **Includes 1 GS-3. Approved For Release 2000/0893'?WW" ' 660 A000100050001-6 Approved For Release 2000/08/0 : &A--'0947A000100050001-6 o Foreign Dissem ODDI: SCHEDULED RETIREMENTS (CALENDAR 1968-77) Year Grade Total 68 69 70 71 72 73 74. 75 76 77 18 1 1 1 3 17 16 15 1 1 14 1 1 13 12 11 10 09 08 07 06 05 04 Average per year: 0.5 Range 0 - 2 Approved For Release 2000/0830 O F ~(bsbs4l'A000100050001-6 Approved For Release 2000/08/30 : & k- i00947A000100050001-6 No Foreign Dissem IRS: SCHEDULED RETIREMENTS (CALENDAR 1968-77) 68 69 70 71 72 73 74 75 76 77 18 17 16 15 14 13 2 1 1 1 12 1 1 11 1 1 10 09 1 1 08 07 1 1 .06 1 1 05 04 Total 2 1 2 5 2 2 14 Average per year: 1.4 Range 0 - 5 Approved For Release 2000/d 873d l (& A000100050001-6 Approved For Release 2000/08/0 : G1 ROM b0947A000100050001-6 NO oreign issem OCI: SCHEDULED RETIREMENTS (CALENDAR 1968-77) 68 69 70 71 72 73 74 75 76 77 18 17 16 15 14 13 12 11 10 09 08 07 06 05 04 1 1 1 2 1 1 1 1 1 1 1 1 1 1 2 2 1 5 1 1 3 1 1 3 2 1 14 5 7 2 1 1 2 Total 1 3 4 2 2 5 7 5 Average per year: Range 4 Approved For Release 2000/08/430' 42A0001 00050001-6 Approved For Release 2000/08/N30 : O,>0947A000100050001-6 o oreign Dissem OER: SCHEDULED RETIREMENTS (CALENDAR 1968-77) Year Grade Total 68 69 70 71 72 73 74 75 76 77 18 17 16 15 1 2 1 1 2 14 1 1 1 13 1 1 2 12 1 1 2 2 6 11 1 1 2 10 09 08 07 06 1 05 04 1 1 2 Average per year: 3.4 Range 1 - 7 No Forei *0-909em Approved For Release 2000/08/30 : _~~f~D~ I-47A000100050001-6 Approved For Release 2000/0890 : OX-,"80 ~0947A000100050001-6 o oreign Dissem OSR: SCHEDULED RETIREMENTS (CALENDAR 1968-77) Year Grade 18 17 16 15 14 13 12 11 10 09 08 07 06 05 04 Total 68 69 70 71 72 73 74 75 76 77 1 1 1 1 1 1 1 1 2 1 2 Average per year: 0.7 Range 0 - 2 No Forei Di m s Approved For Release 2000/08/30 : Cftn107A000100050001-6 Approved For Release 2000/08/30 : &-WA&i-'0 947A000100050001-6 No Foreign Dissem OBGI: SCHEDULED RETIREMENTS (CALENDAR 1968-77) Year Grade Total 68 69 70 71 72 73 74 75 76 77 18 17 16 15 1 2 1 1 1 1 7 14 1 2 3 1 1 8 13 2 2 1 2 1 1 1 1 11 12 2 1 1 2 1 7 11 1 2 3 1 2 10 1 09 2 1 1 08 07 1 1 06 1 1 05 04 Average per year: 5.4 Range 1 - 10 No Forei n Dissem Approved For Release 2000/08/30 : 9 0~90947AO00100050001-6 Approved For Release 2000/08/30 : G MAD -fl 0947A000100050001-6 NO oreign Dissem NPIC: SCHEDULED RETIREMENTS (CALENDAR 1968-77) 68 69 70 71 72 73 74 75 76 77 18 17 16 15 14 13 12 11 10 09 08 07 06 05 04 1 1 1 1 1 1 1 1 1 1 4 1 1 1 1 1 1 1 2 2 1 2 1 1 1 1 1 1 1 5 10 7 5 3 1 2 2 4 Total 3 3 1 3 4 6 7 9 7 4 47 Average per year: 4. 7 Range 1 - 9 No Forei n Di e Approved For Release 2000/08/30: qj# &94}A000100050001-6 Approved For Release 2000/08/0 : - &-'00947A000100050001-6 o oresgn Diissem IAS: SCHEDULED RETIREMENTS (CALENDAR 1968-77) 68 69 70 71 72 73 74 75 76 77 18 17 16 09 08 07 06 05 04 Average per year: 0.5 Range 0 - 2 1 1 2 No Foreign Dissem Approved For Release 2000/08/30 : c t fft?0947A000100050001-6 Approved For Release 2000/08/30 :O, -i4-100947A000100050001-6 o oreign Dissem CRS: SCHEDULED RETIREMENTS (CALENDAR 1968-77) 68 69 70 71 72 73 74 75 76 77 18 17 1 1 16 15 1 2 1 1 1 6 14 1 1 1 2 5 13 2 3 2 1 9 12 2 1 1 1 1 1 1 2 10 11 1 3 1 3 2 2 3 1 1 17 10 09 4 3 3 1 1 1 1 1 15 08 07 4 1 2 2 1 1 2 1 2 2 18 06 3 1 1 1 2 2 1 11 05 1 4 3 3 1. 1 2 3 3 21 04 2 1 1 1 1 1 7 13 11 11 13 10 10 12 120 Average per year: 12 Range 10 - 16 *fto is Approved For Release 2000/08/ 0 F 74,OA0001 Approved For Release 2000/08/p: GY4=RDP80rb0947A000100050001-6 0 oreign issem DCS: SCHEDULED RETIREMENTS (CALENDAR 1968-77) Grade 68 69 70 71 72 73 74 75 76 77 18 17 1 2 16 15 2 2 2 3 1 2 3 15 14 3 1 5 4 1 2 2 1 19 13 1 3 3 3 3 5 3 2 2 25 12 1 1 1 1 1 3 1 3 12 11 1 2 1 1 5 10 2 2 09 3 08 07 '1 1 3 1 1 3 06 2 2 1 1 8 05 2 04 Total 9 9 8 14 9 8 10 8 10 14 99 Average per year: 9.9 Range 8 - 14 No Forei n Di Approved For Release 2000/08/30 : C> 4lWA000100050001-6 Approved For Release 2000/08/0: Gam,?Q947A000100050001-6 o or-e ggn Dissem SCHEDULED RETIREMENTS STATSPEC (CALENDAR 1968-77) 68 69 70 71 72 73 74 75 76 77 18 17 16 15 1 2 3 1 7 14 1 1 1 2 1 6 13 3 2 1 1 2 2 2 13 12 2 4 1 4 1 3 4 7 3 29 11 5 8 3 3 3 4 6 4 3 45 10 1 2 1 5 09 2 1 4 1 08 07 3 1 1 06 1 1 2 05 1 1 3 04 1 1 1* 3 Total 14 17 10 14 8 11 19 18 9 9 129 Average per year: 12.9 Range 8 - 19 *GS-3 included as GS-4 for convenience. No Forei Approved For Release 2000/08/30 : C k 0947A000100050001-6 Approved For Release 2000/08/30 : WD4(00947A000100050001-6 No Foreign Dissem ONE: SCHEDULED RETIREMENTS (CALENDAR 1968-77) Year Grade Total 68 69 70 71 72 73 74 75 76 77 18 4 1 1 1 7* 17 1 1 16 2 2 15 1 1 2 14 13 12 1 1 11 10 09 1 1 2 08 1 07 06 05 04 Total 4 1 2 3 1 1 4 16 Average per year: 1.6 Range 0 - 4 *Members of Board of National Estimates serve at the pleasure of the Director, and hence may or may not retire as shown above. Approved For Release 2000/f/3b?S"iJM7A000100050001-6 Approved For Release 2000/08/30 : CIA-RDP80-00947A000100050001-6 DDI RETIREMENT CASES (CALENDAR 1968-1972 BY RETIREMENT SYSTEM) Component Civil Service System CIA System Prof Clerical Total Prof Clerical Total Prof Clerical Total ODDI 3 - 3 2 - 2 5 - 5 IRS 4 1 5 1 - 1 5 1 6 OCI 23 - 23 3 3 26 - 26 o OER 19 4 23 OSR 3 1 4 - - - 3 1 4 z 0 U 0 OBGI 32 9 41 - - - 32 9 41 tt (D NPIC 18 9 o n n~ 27 2 - 2 20 9 29 (D x oo ~ IAS 3 - 3 - - - 3 - 3 . tr: d CRS 49 43 92 1 - 1 50 43 93 DCS 55 16 71 3 - 3 58 16 74 H- 65 7 72 51 - 51 116 7 123 cnn ONE 7 - 7 2 - 2 9 9 m TOTAL 281 90 371 65 - 65 346* 90 436 *Includes 21 Technical and 11 Commo. Approved For Release 2000/08/30 : CIA-RDP80-00947A000100050001-6 Approved For Release 2000/08/30 : CIA-RDP80-00947A000100050001-6 DDI NO-OPTION SCHEDULED RETIREMENTS UNDER CIVIL SERVICE (CALENDAR 1968-1972 BY YEARS OF SERVICE) Component Under 25 Years 25-29 Years 30 or More Yrs Annual Totals 68 69 70 71 72 68 69 70 71 72 68 69 70 71 72 68 69 70 71 72 ODDI z IRS 1 1 0 OCI 1 1 3 4 2 2 Ili U0 OER 1 3 1 1 1 1 1 1 1 2 rr(D OSR 1 OBGI 1 3 1 1 1 4 4 3 1 1 2 3 NPIC 1 1 1 3 1 1 1 N IAS 1 1 CRS 5 9 3 6 2 4 6 8 5 4 1 1 Component Totals 2 2 1 3 4 2 3 13 2 4 2 2 3 13 1 1 2 7 10 4 2 4 27 2 3 1 1 2 9 1 1 2 1 10 16 11 11 7 55 DCS 5 5 3 2 3 1 4 6 2 3 11 2 9 9 9 13 7 47 2 7 3 4 2 6 9 4 6 1 2 1 10*16 7 10 4 47 ONE 1 3 1 4 1 5 Annual 16 27 12 15 12 21 31 26 17 14 9 4 11 6 46 62 38 43 32 Under 25 82 25-29 109 30 or more 30 *In addition 3 members of CIARS. Approved For Release 2000/08/30 : CIA-RDP80-00947A000100050001-6 Approved For Release 2000/08/30 80-0Q947A000100050001-6 o oreign Dissem EMPLOYEES WHO COULD ACCELERATE THEIR RETIREMENT WITHIN THE NEXT 10 YEARS BY EXERCISING THE 55/30 OR 50/20 OPTION Number by Component Eligible ODDI OCI OER OSR OBGI NPIC IAS CRS DCS ONE 1968 2 1 3 1 4 4 5 7 25 1 53 1969 1 4 2 8 1 16 1970 1 2 2 2 1 3 11 1 23 1971 2 3 1 5 4 1 10 7 12 45 1972 4 7 4 1 4 9 17 8 17 1 72 1973 4 3 1 6 7 1 6 12 15 1 56 1974 4 10 2 1 3 8 1 10 5 11 55 1975 6 5 5 1 9 7 4 10 19 3 69 1976 1 14 4 2 7 12 1 9 11 8 69 1977 7 6 6 4 9 15 12 14 6 1 80 Total 31* 51 27 11 49 68 4 77 79 132 9 538 *ODDI 13 IRS 18 Approved For Release 2000/3d:? f e #O 1A000100050001-6 Approved For Release 2000/08/30 : C YAi" 00947A000100050001-6 No Foreign Dissem References Classified reports (9) Open literature (13) Machine listings (6) Approved For Release 2000/o93CT::? l e OsY, 1A000100050001-6 Approved For Release 2000/08(30 :0 6947A0001 00050001-6 o Foreign issem CIA, "Benefit Programs for You and Your Family," in Support Bulletin, January 1967. D/PERS, Retirements for the Next Decade in CIA, Personnel 25X1A Forecasts Series, No, arch 19671 pp. 13. I memo for Director of Personnel, subj: Criteria for Retirement under CIA System, 7 April 1967. Imemo for Chairman, CIA Retirement Board, subj: CIA Retirement Policy under Civil Service, 14 August 1967. D/PERS memo for DCI, subj: Special Report on the CIA Retirement Policy, 24 October 1967. D/PERS memo for deputies, subj: Proposed Notice - Employment after Retirement, 12 December 1967. [See in particular the Background section of TAB A: Extended Use of Employees After Age Sixty.] D/PERS, Report on Succession Problem in CIA, 22 December 1967, pp. 17, including Tabs. D/PERS, Comparative Analysis of Civil Service and CIA Retirement Systems, released December 1967, pp. 55. D/PERS, Statistical Information on Agency Retirement Projections, released December 1967, pp. 52. Cabinet Committee, Federal Staff Retirement Systems, Report to the President, Sena a ocument No. 14, GPOY 6 April 1967. 89th Congress, Second Session, Federal Salaries and Fringe Benefits, House Hearings on HR 12094 and related b: 111S, including HR 14122, 7 March through 27 April 1966. GPO, 1966. U.S. Social Security Administration, "Social Security in Review" in Social Security Bulletin, April 1964, U.S. Dept. HEW, pp. 45. Approved For Release 2000/08F30 :'( 0 TlA000100050001-6 Approved For Release 2000/08N: #bQ947A000100050001-6 0 oreign Dissem Gordon, Margaret S., "Work and Patterns of Retirement," in Aging and Leisure, Robert W. Kleemeir, Editor, Oxford University Press, New York, 1961, pp. 15-53. Greenough, William C. and King, Francis P., Retirement and Insurance Plans in American Colleges, Columbia niversity Press, New York, lqbq. Ingraham, Mark H. and King, Francis P., The Outer Fringe [Faculty Benefits Other Than Annuties and Insurance], University of Wisconsin Press, Madison, 1965. Lenz, Comdr. Allen J., "Early Retirement and Income Maximization," in Old Age Income Assurance, a compendium of papers on problems and policy issues in the public and private pension system, submitted to the Joint Economic Committee of the Congress, Part IV, pp. 164-176, GPO, December 1967. Lockheed Corporation, Retirement Plan, (LAC 900-1), July 1966. National Industrial Conference Board, Corporate Retirement Policy and Practices, NICB, Inc., 1962f. - Pressey, Dr. Sidney L., "Problems and Potentials of Professional Retirement," in Aging and Retirement, Fifth Annual Southern Conference on eronto ogy, University of Florida Press, 1955, pp. 49-56. Research Analysis Corporation, Retirement Income, booklet published as part of RAC Benefit Plan series, 1 August 1965. Schulz, James H., "'Early Retirement' Trends and Pension Eligibility Under Social Security," in Old Age Income Assurance, Part III, pp. 156-168, GPO, December 1 7. Spengler, Joseph J., "Some Economic and Related Determinants Affecting the Older Worker's Occupational Role," in Social Aspects of Aging, Ida Harper Simpson and John C. McKinney, Editors, Duke University Press, Durham, North Carolina, 1966, pp. 3-41. No For n Di Approved For Release 2000/08/30: Q e4 A000100050001-6 Approved For Release 2000/08/ : ,~00947A000100050001-6 o oreign Dissem MACHINE LISTINGS DDI Separations, Age 40 and Over, FY 1962-1967, as of 30 June 1967, OP/RCD Special Requirement #949 and Supplement. DDI Personnel.Roster, as of 30 September 1967, OP/RCD Job #940. Straight alphabetical by surname (940 A); by date of birth (940 B); alphabetical within office (940 C). DDI Retirement Projection Report--Year by Retirement Group by Service Designation, as of 30 November 1967, OP/RCD Job #219 A. DDI Professional EODs for FY 1963-1967, indicating attritions as of 31 December 1967, OP/RCD Job #952 A. DDI Staffing Complement--Position Control Register, as of 31 December 1967, OP/RCD Job #140. Directorate of Intelligence Retirement Projection: 1968-1977 (1 January 1968), CRS/EDPD/SYSTEMS PROGRAM #89, 16 January 1968. [A machine backup to a manual color coded card file of 888 DDI personnel scheduled or eligible for retirement in the next ten years.] No Forei n Di Approved For Release 2000/08/30: Gji009 }A000100050001-6 Seeretd For Release 2000/08/30 : CIA-RDP80-00947A000100050001-6 Secret Approved For Release 2000/08/30 : CIA-RDP80-00947A000100050001-6