RATIONALE OF CIA RETIREMENT POLICY

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP84-00780R002400020072-7
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 21
• Document Creation Date: December 19, 2016
• Document Release Date: October 13, 2006
• Sequence Number: 72
• Publication Date: February 15, 1968
• Content Type: MF

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OV 5, 7- A ~
MEMORANDUM FOR: Deputy Director for Support
SUBJECT : Rationale of CIA Retirement policy
1. I generally concur wit paper on the
rationale of CIA retirement policy. could perhaps be
tightened-up, e.g.. repeated references to the Agency's need
for personnel of the highest competence, dedication, integrity, etc.
2. This rationale could well be accepted by personnel
entering the Agency in recent years and those joining us in the
future. It is less acceptable to a rather considerable number of
employees who, when they joined the Agency, expected to work at
least until they reached age 65.
(~~ Mtfly L1S .. "_, 4kSi4VS
Thomas H. Kararnessines
Deputy Director for Mans
 1. I am in general agreement with the provisions of the retirement
policy paper which you submitted on 20 February 1968 following our meeting
with the Executive Director-Comptroller, the Deputy Directors, and others
on 8 February. I believe, however, that a specific recommendation should
be included under paragraph 3 to provide for the weeds of the Deputy Director
for Intelligence and perhaps others as reflected in the statements contained
in paragraph 3b. I suggest this recommendation be numbered 3d and be
stated along the following lines:
"In a limited number of cases the Deputy Director concerned
may recommend an extension of the retirement date for individual
personnel whose continuing production and essentiality is deemed
necessary for the efficient operations of the Directorate concerned."
2. Also for consideration as an additional recommendation is a refer-
ence to the need for further study as to the means by which some recom -
pense may be provided for persons who retire early under the Civil Service
System and under the CIA Retirement System. 4bhile not specifically covered
in our previous discussions, there Is a reaction In the DD/S staff that some
consideration should be given to provide an adjustment between the annuity
rate granted by the Civil Service System and CIA System so that under a
single retirement age criteria there will be an equitable balance In the annui-
ties earned.
R. L. Bannerman
Deputy Director
for Support
EO-DD/S:VRT: , (27 Feb 68)
Distribution:
Orig & 1 - Adse
1' -ADD /S Subject w/X of 20 Feb 68 retirement policy paper
1 - DD/S Chrono
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 For Release 2006/10113 :CIA-RDP84-00780R002400000
SENDER WI L CHECK CLASSIFICATION TOP AND BOTTOM
UNCLASSIFIED CONFIDENTIAL SECRET
OFFICIAL ROUTING SLIP
TO
NAME AND ADDRESS
DATE
INITIALS
Deputy Director for Support
7D18 Headquarters
2
3
4
5
6
ACTION
DIRECT REPLY
PREPARE REPLY
APPROVAL
DISPATCH
RECOMMENDATION
COMMENT
FILE
RETURN
CONCURRENCE
INFORMATION
SIGNATURE
Remarks :
Attached is a draft of a memo to the
Director on retirement policy. An earlier draft
had been reviewed by the Executive Director and
this new paper includes his suggested changes.
The Executive Director has asked us to
complete this review as quickly as possible and
I would appreciate your early attention and
comments. It is my hope to put this in final
fashion for submission to the Executive Director
-bLY of the week.
-
FOLD HERE TO RETURN TO SENDER
FROM: NAME. ADDRESS AND PHONE NO.
DATE
Director of Personnel 25X1
FEB o
5E56 Headquarters
UNCLASSIFIED CONFIDEN
SECRET
7-
FORM NO. f)Q7 Use previous editions (40)
p rroov F&1 elease 2006/10/13: CIA-RDP84-00780R002400020072-
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MEMORANDUM FOR : Director of Central Intelligence
SUBJECT : Retirement Policy
1. This memorandum submits recommendations for your approval; such
recommendations are contained in paragraph 5.
2. As you know, the Agency's retirement policy has been the subject of
much discussion and review these past few months. To accelerate completion
of the review so as to be able to submit specific recommendations to you, I
convened a meeting on 8 February 1968. Present were each Deputy Director,
the General Counsel, the Inspector General, the Director of Personnel, and
Emmett D. Echols in his capacity as Chairman, CIA Retirement Board. A
detailed agenda, attached at Tab A, was prepared in advance. A record of our
discussion is attached at Tab B.
3. Summary
a. Our discussion was based on two assumptions:
(1) The Director hAsru C ?z!stioned legal authority to enforce an
early retirement policy.
(2) Legislation of any kind is difficult to obtain. Hence, we
must first try to settle those things which we can do without legisla-
tion and then proceed to those things which are desirable but which
would require legislation.
b. The principal issue, and that from which all others flow, is
 Approved For Releas : CIA-RDP84-0078OR002400020072-7
whether the Agency should have a policy requiring retirement earlier
than provided by law under the Civil Service Retirement Act, or the CIA
Retirement and Disability System for GS-18's and above. After consid-
erable discussion, it was the consensus that there should be an early
retirement policy with a stipulated age at which most employees should
leave. At the same time, it was recognized that because the Directorates
have different problems, Agency policy should be flexible enough to permit
liberal exceptions when justified. This appears to be particularly true in
the Intelligence Directorate because of the various types of professional
employees needed and because these professionals often are individuals
who have prepared themselves through academic study for long-range
professional careers where an arbitrary retirement age would not be a
condition of employment. It is essential, also, that a rationale for this
policy be prepared so that it will be understood by our employees or in
the event it becomes necessary to explain the policy to Congressional
committees or in court.
c. Having reached agreement that the Agency should have an early
retirement policy with provision for exceptions to meet particular needs,
we then discussed the types of exceptions that could be identified and
action recommended in advance. General agreement was reached on the
following:
(1) There should be no general exception for employees who
argue that at the time they entered on duty they were led to believe
(or now believe) that they had the right to work until age 65 or 70.
(2) There is a small group (12) of Agency employees who will not
have 12 years of creditable service by their scheduled retirement
 Approved For Release >7'"CIA-RDP84-00780R002400020072-7
date. We feel that these employees, as a group, should be permitted
to remain on duty until they accumulate 12 years of service when they
earn the right to continue important statutory hospitalization and life
insurance coverage.
(3) As originally conceived, our early retirement policy expected
employees to retire at age 60 with 30 years of service or at age 62 with
at least five years of service. When the Civil Service Retirement Act
was amended in 1966 to include a provision for optional retirement at
age 60 with 20 years of service, Agency policy was in turn revised.
There were some employees who prior to the revision in Agency policy
had been informed that their scheduled retirement would be at age 62
and presumably planned accordingly. With the change, their scheduled
retirement age was lowered. We feel that these employees 'should be
."'ted to remain on duty until age 62, their original scheduled date,
if they so request. This does not include those employees who at age
60 have at least 30 years of service since this was a requirement under
the earlier Agency policy.
(4) An overall exception should be made for the group of printers
who were induced' to transfer from the Government Printing Office
to the Agency with the assurance that they would not lose any benefits.
(5) There should be no overall exception for lower graded
clerical employees. Each such case should be considered on its own
merits.
(6) There should be no overall exception for employees with
technical skills in grades GS-7 and below even though it might be diffi-
cult to recruit replacements and their loss would create training
problems. Each such case should be considered on its own merits.
rx _'~1
SEC"rT
 Ap(r)ov do Fo `ReI ase 2& R 1cc CIA-RDP8c4-00o78OR002e400020072-7 ovr
be mar emplees meely
because they are writing Agency history.
4. Also discussed at this meeting was the matter of compensating employe 's
who retire early under either the Civil Service Retirement or the CIA Retirement
systems. This issue was tabled pending further study.
5. It is recommended that
Civil Service Retirement be required (not merely "encouraged" or "expected"
as currently stated in Agency regulations) to retire voluntarily upon reaching
age 60 or as soon thereafter as they are eligible for optional retirement, i. e.
age 60 with 20 years of service or age 62 and a minimum of five years of
service.
b. the mandatory age for retirement under the CIA Retirement and
Disability System be set at age 60 for employees GS-18 or above, as it is
by statute for employees GS-17 and below, and
c. overall exceptions as indicated in paragraphs 3c. (2), (3)', and (4)
above be approved and that the Director of Personnel be authorized to
approve exceptions for the employees affected.
A.tts: 2
a. the Director reaffirm as Agency policy that employees covered by
L. K. White
Executive Director-Comptroller
Concur: Concur:
Deputy Director Deputy Director
for Support for Plans
Deputy Director Deputy Director
for Intelligence for Science and Technology
Inspector General
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SUBJECT : Retirement Policy
The recommendations contained in paragraph 5 are approved.
Richard Helms Date
Director of Central Intelligence
Distribution:
0 - Return to D/Pers
1 - Director
1. - Deputy Director
1 -ER
2 - DDS
1 - DDP
1 - DDI
1 - DDS&T
1 - Gen. Counsel
1 - 1 G .
- C/BSD
1 - D/Pers (w/held)
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RETIREMENT POLICY
A. The Director has unquestioned legal authority to enforce
an early retirement policy.
B. Legislation of any kind is difficult to obtain. Hence, we must
first try to settle those things which we can do without legis-
lation and then proceed to those things which.are desirable
but which would require legislation.
A. Should CIA have an early retirement policy, i. e., retirement
earlier than the law normally requires? If so, what is the
rationale, ?
B. At what age should retirement normally be required?
C. Should the policy be the same for personnel' serving under
different, retirement systems, i. e. , Civil Service and CIA?
D. Should it be the same for ,all components or career services
of the Agency?
E. Should there be exceptions for:
1. Personnel who at the time they joined CIA thought or
were led to believe, or now believe, that they had the
right to work until age 65 or 70? (The law is, of course,
controlling under the CIA System. )
2. Those who do not have twelve years of creditable service
at retirement age? (This is important for insurance
benefits. )
3. Those not yet, age 6Z who do not have twenty years of
service? (This assumes that the answer to B above
is something lower than age 62. )
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4. Those who until 1967 were exempted until age 6Z?
(They have:!
Mot. tiadr the many years of advance notice
given to other employees. )
The GPO group who were induced to transfer
from GPO to C wi a assurance that they would not
lose any be'nefits'?
1: r
All Wage Board employees of the Printing Services
Division"'?
Wage Board employees generally?
8. Lower-graded clerical a~adicre-oollworters?
Those with technical skills in grades GS-7 and below
for whom it is difficult to recruit replacements and
whose loss would create training problems (Communi-
cations' and Finance)?
Those individuals of unusual qualifications who cannot
readily be'replaced?
11.; Those for whom a short-term extension is needed in
order to train a replacement?
III. PROBLEMS REQUIRING?FURTHER STUDY AND/OR LEGISLATION
A. Recompense, in addition to the annuity now provided by law,
for persons" who retire early
1. Under the Civil Service Retirement System:
2. Under the' CIA Retirement System.
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irr c~..:.__~:'1 1"( by i~ A
1_' r?,.^.'?.~ recora t_a 'r a at ~ :7, meting
~. _ ~.~: to ~.t.. .
C ;'u "T ?.?= t9C" U': -~`.GYL^'i'V2 o e it ~v q U ::? J'_"tl M "~ . Pre on v .7er ' a
"' ,rid I}L?CC'G, 1r r7inC. %ii,15 lCz.,'.Ct 0 n1 .,'?
`u . "c. l 4 t1 L C t'...i of th.~ attach,. d circ,1 no
C'1 V.,_: 1 :f'or ho
on t ha two pTrn :_` icin.
9. Con.- .d.er x? ion i .o tbon tu--no 1 to II.E. of the at ,,,X .o . there
u o ion iu're 'Il. sd c,bout 12 powsi ie e ception&. ft_'r3'Cen by nw ber
"o!.1o34in' i.Zrccaenty n Irc rcaehcd:
(1) ^'c'vro ohoul.si be no general exception.
(2) Yes. (3) P,,,o 62 or 20 ycara of service? whichever cokes f:.rst.
(111 eff oct--c'1rre11t policy.)
Yes, if recjucst? d by the ea levee.
1e.
vWill be tudied f:.r ther by the Deputy Director
Teoc can be dealt with unicr the general policy.
F o .
10. he ics,a'es, under III., dcc1insq ;frith the problem of ac!dltionn.
coz arnao which n! it require lericl ^tive action were left for i'rz t'1er
otu - by the Genwr L1 Counocl, i,':r. HoL',.oton, to . the Special Asa-intent to
c?. a r 7~
v ~Sill't`',g7' DLz'GC'~r for n.itl?_~70r~"i for u}7.^.C~.t^.l S e7 utiCL"L'~5, !~e :.+ChC3.$.
/SI Robert S. 1'7, ttles
tober`L- S. ' at tlcs
Director of Personnel
Distribution:
DD/s
l - i3/rer Subj
cr> Chroro
OD/Pers/FSWattles:hc (15 Feb 63)
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i S-E-C-R-E-T f 2/77Q
This Notice Expires 1 January 1969
29 December 1967
EMPLOYMENT AFTER RETIREMENT AGE
1. GENERAL
as Upon retirement, employees are expected to sever active
connections with the Agency. There will be instances, however,
in which continuation in service is necessary or clearly in the
best interests of the Agency.
1
b. There are four ways in which the services of an employee may be
continued after reaching retirement age:
(1) His appointment ed upon approval of the Director
(2) The employee after retirement may be reemployed with or
without a break in service by an appointment of f' cified
duratio or by recall by the Director
(3) The employee's staff status may be converted to that of
contract employee prior to retirement. Such conversion will
usually continue normal employee benefits such as retirement,
FEGLI, and health benefits during the term of the contract.
(4) The employee, after retirement, may be rehired as a contract
employee, independent contractor, or consultant.
a. CONTINUATION IN SERVICE BEYOND RETTR 'NT AGE
(1)
An employee may be extended in service as a staff employee
(lb(1) above) or may be converted to contract-employee status
to perform staff-type duties (lb(3) above) only when the
individual has skills and knowledge required by the Agency
not available in other personnel on a timely basis. Requests
shall be explained and attested to by the Operating Official
concerned and shall require the approval of the Director.
Extensions shall be for a stipulated term, usually not more
than one year unless renewed.
GROUP 1
Excluded from automatic
downgrading and
declassification
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29 December 1967
(2) In instances where there are personal circumstances which
clearly substantiate that retirement will constitute an
extraordinary personal hardship and it is established that
the individual can be fully employed, the employee may be
retained in service with the approval of the Director.
Requests should be submitted at the earliest possible date
to the Director of Personnel.
Persons who have optionally retired earlier than Agency retirement
age may be reappointed if there is a requirement for their
particular skills and knowledge not available among on-duty
personnel on a timely basis. Such reappointment will be for a
stipulated term not to exceed the date of attainment of Agency
retirement age. Continuation in service thereafter shall be in
accordance with lb(1), (2), or (3) above.
Persons beyond Agency retirement age will not be originally
appointed without the approval of the Director. Such approval
will only be granted where the individual possesses rare and
outstanding qualifications which the Agency requires.
d. CONTRACTUAL EMPLOYMENT OF ANNUITANTS
(1) No contract employee shall perform staff-type duties. Such
duties are defined as employee duties performed in Agency
facilities, using classified Agency materials and performed
pursuant to instructions and supervision of staff employees,
unless positions requiring such duties have been provided
for in approved projects or have otherwise been exempted from
ceiling and other staff manpower controls. With this exclusion,
annuitants, whether retired from this Agency or any other agency
of the Government, may be hired and used in any appropriate
contractual capacity for which there is a requirement and for
which they are preeminently qualified. The Director of
Personnel shall monitor all contract employee assignments with
respect to appropriateness of duties to be performed.
(2) Contracts of employment with annuitants will normally be
written for a term of one year and contain a 30-day termination
clause. Renewals will be based on and justified by evidence of
continuing need and by demonstrated effectiveness of the
annuitant. Requests for renewal will so attest and be approved
by the Operating Official concerned.
S-E-C-R-E-T
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 0
0
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3. COMPENSATION PRINCIPLES AND GUIDELINES
a. E PLOYEES EX'T'ENDED IN SERVICE
29 December 19 7
The classification of the position to be occupied shall dictate
the grade of an employee extended in service beyond retirement age.
If the grade of the position is lower than that of the employee,
his grade will be adjusted in accordance with the provisions of the
Classification Act of 1949, as amended.
b. CONTRACTUAL EMPLOYMENT OF ANNUITANTS
(1)
The classification of staff positions, particularly in the
upper grades, is preponderantly based upon managerial,
organizational, and supervisory responsibilities. Since
contract employees may not perform staff-type duties, these
elements of position classification will not normally be
present to an equivalent degree in the contractual position,
although the latter may have its own similar responsibilities.
Accordingly, the gross contractual salary of a reemployed
annuitant will normally be lower than that held as a staff
employee.
(2) The grade of the job to be performed by a reemployed annuitant
will be established by normal position classification
procedures. If the grade is in excess of GS-15, the approval
of the Director of Central Intelligence is required. The
salary to be paid for any grade so established shall be
negotiated with due regard to the special qualifications of
the individual relative to the requirements of the assignment
and the effort required of the individual. In no case may
the salary exceed that of the step closest to 90 percent of
the current salary of the individual's grade and step at time
of retirement.
c. Under present law when a civilian Government employee, retired for
longevity, is rehired as an employee, his annuity usually continues
but his gross contractual salary is reduced by the amount of the
annuity received. A reemployed annuitant may not receive a
combination of salary payments and annuity payments which exceed the
gross contractual salary of the duties he performs during the period
of his reemployment.
GROUP I
Excluded from automatic
downgrading and
declassification
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25X1
I
(1) The contractual fee paid an annuitant under an independent
contractor agreement will be determined by the nature and
value of the services to be rendered except that the
individual's retirement annuity plus the contractual fees
paid him during the contract year normally may not exceed
90 percent of the current salary of the grade and step held
by the annuitant at the time of his retirement.
(2) Unless there is a clear and overriding operational justification,
no housing expense, cost-of-living expense, or other payments
in the nature of benefits and perquisites commonly accorded
employees shall be authorized.
(3) Operational expenses must be specifically authorized in
advance by the appropriate authority.
(l) The contract shall include a clause stating that on request
of the Government the individual shall submit to a medical
evaluation by a mutually agreed upon physician.,
(5) The independent contractor must not, in fact, be used as an
employee.
(6) An Agency official shall be designated as responsible for
monitoring the performance of each independent contractor
and to attest annually that the terms of the contract have
been met and that full value has been received. Instances
of unsatisfactory performance or insufficient value received
shall be corrected promptly.
FOR THE DIRECTOR OF CENTRAL INTELLIGENCE:
R. L. BANNERMAN
Deputy Director
for Support
4
4
4
S -E-C -R-E-T
13: CIA-RDP84-0078
29 December 1967
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SECRET
8 0. JAN 1968
MEMORANDUM FOR: Special Assistant to the DD/S for Special Studies
SUBJECT Rationale of CIA Retirement Policy
1. Reference is made to our conversation and to your draft paper
on "Rationale of CIA Retirement Policy." I have several suggestions for
your consideration in your final draft.
2. I suggest in paragraphs 2 and 3 on the first page that the state-
ments of "mission" be strengthened by utilizing the exact wording as it
appears in the National Security Act of 1947. For paragraph 2 I suggest
that the National Security Council's mission be stated as follows:
"The function of the Council shall be to advise the President
with respect to the integration of domestic, foreign and military
policy relating to the national security so as to enable the military
services and the other departments and agencies of the Government
to cooperate more effectively in matters involving the national
security. "
In paragraph 3 while the official definition of the CIA mission is rather
lengthy I think it could be summarized as follows:
"To advise the National Security Council in matters concern-
ing such intelligence activities of the Government departments and
agencies as related to national security;" and among other responsibilities
"to correlate and evaluate intelligence related to the national security
and provide for the appropriate dissemination of such intelligence
within the Government using where appropriate existing agencies
and facilities."
3. At the bottom of page 4 the last sentence beginning, "The only
solution ... " and the beginning of the first sentence at the top of page 5,
"There is yet another factor,... span in CIA, " I suggest these be deleted
and these two sentences be put later on in the document but in a positive
sense as, "Therefore, the Agency determined that ..."
SECRET.
Excluded frsm automatic
downgrading and
deala^?It1-1:
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4. At the bottom of page 5 the last sentence starting "Nevertheless
approximately .... " I think this should be deleted as the figures quoted
would be timely only as of this hour and are subject to continuous revision.
It tends to detract from the value of the paper rather than add to it.
5. Per our discussion please consider whether we still require
professional employees to serve anywhere, any time at the discretion of
the Director. Certainly this applies to the DD/S and DD/P services and it
is my recollection it applies to all Agency services. If so it would be a
valuable statement in developing the rationale.
SIGNED R. L Bannerman
R R. L. Bannerman
Deputy Director
for Support
DD/S:RLB:ksd (29 Jan 68)
Distribution:
Orig - Adse
h - DD/S Subject
1 DD/S Chrono