RETIREMENT POLICY

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80B01676R001600190003-4
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 4
• Document Creation Date: December 15, 2016
• Document Release Date: September 17, 2002
• Sequence Number: 3
• Publication Date: October 24, 1967
• Content Type: MF

Approved For RJpase 2002/10/09: CIA RDP80
Z4 October 1967
MEMORANDUM FOR: Executive Director- Comptroller
SUBJECT Retirement Policy
1. Referring back to our recent conversation on the subject
of retirement policy, this memorandum will convey some thoughts
in regard to it for what they may be worth. I am convinced that we
need a review and re-definition of current Agency policy to standard-
ize our approach and avoid charges of inequity.
2. There is apparently reason to believe that under present
circumstances retirement at age 60 is probably unenforceable at law
as to individuals in the Civil Service System. That being the case,
the use of administrative pressure to implement policy is open to
serious question on both moral and legal grounds. Although the
policy is evidently enforceable as to those in the CIA System, it does
not appear to be feasible or equitable to maintain what will amount
to two divergent retirement standards because of differences in
enforceability. For the future, a uniform legally enforceable policy
is needed and legislation to that end should be sought if the authority
of the Director does not already extend to the matter.
3. Meanwhile, underlying any review of policy is the basic
fact that our hiring and retirement procedures were not meshed until
1959. .At that point we began to follow a general policy to employ
only those individuals whose age (and previous government employment)
would permit completion of 30 years of service on or before age 60.
Reflected thereby is the viewpoint that about 60% of high salary is
regarded as necessary to provide sufficient post-retirement income
to live in adequate, if reduced, circumstances. Prior to 1959,
however, our hiring policies had little or no relation to retirement
policies, and thus both work tenure and retirement income were left
substantially in limbo. In answer to any questions in this regard, a
prospective employee was advised that Agency policy followed the
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Civil Service compulsory retirement age of 70. In brief, the forward
retirement planning adopted in 1959 has no equitable application to the
random hiring practice of our earlier years.
4. Although we have since promulgated proposals as to
retirement at age 62 and subsequently at age 60, there evidently has
been no legally-based change in the initial premise that retirement
would not come involuntarily until age 70, if there were need to work
that long. At least, that is a conviction held by many of the pre-1959
group.
5. If we should now set as an objective the creation of a
single retirement system within five years, this time frame would
permit us, in turn, to rectify substantially any inequities created by
pre-1959 hiring practices. We might then announce that we intend to
establish, by Congressional ratification if necessary, a uniform system
of compulsory retirement at age 60 with 30 years service and to adhere
to such a formula as a matter of policy meanwhile. Concomitantly we
might state that until 31 December 1972, a person with less than 30
years of service might apply for extension (a) until that date, or (b)
until age 70, or (c) until he completes 30 years of service, whichever
occurs earliest. An examination of retirement schedules for our CS
supergrades, in regard to which data is readily available, discloses
that such a formula would have the following effect.
(1) Of 160 officers in supergrade category,
122 individuals would retire as presently scheduled
at age 60 with 30 years of service.
(2) Thirty individuals would be extended for
various periods averaging 2 years and 5 months
retiring at an average age of 63 with their annuity
based on an average of 27 years 4 months of service.
(3) Eight individuals would retire after
31 December 1972 at age 60 with less than 30 years
of service (4 of these having over 25 years).
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6. It is recognized that this formula raises the question of
promotion blockages. The problem, however, does not seem to be
as great as surmised before the foregoing analysis, assuming the
supergrade group is a fair sampling of our structure as a whole.
There may be ways to ameliorate the blockages that do result,
such as the following:
(1) Recognize service after age 60 as terminal
service and reduce people in grade, appropriately,
during this period.
(2) Explore ways of making it possible for
people who would like to undertake less demanding
jobs at less pay to convert to career agent or other
contract status with a salary commensurate with the
job.
(3) Explore ways of identifying additional
people within the CIAR System who might like to
retire, but who are not eligible under current inter-
pretations.
(4) Present the problem to the Bureau of the
Budget requesting a temporary increase in upper level
grades for a few years, with built-in assurances to the
Bureau that the structure will automatically be readjusted
as designated people retire.
7. Adoption of the foregoing revised policy would go a long
way toward equating the benefits between those who were hired prior
to 1959 and those who were hired subsequently. The formula
encompasses the aspect of compassion in substantial measure and
therefore few extensions need be afforded in the future except those
initiated by the Director, based on his estimate of Service require-
ments. In this fashion, it seems possible to avoid an increasing
demand for extensions and, if they are not granted, the situation of
having a substantial body of alumni who are embittered and resentful.
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8. I hope these observations will prove to be of assistance
in a review of the problem.
homas H. aramessines
Deputy Director for Plans
cc: DD/I
DD/S
DDIS&T
D/PERS
25X1
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