POLICY ISSUE

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP89-00066R000800050014-7
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 19
• Document Creation Date: December 27, 2016
• Document Release Date: August 15, 2012
• Sequence Number: 14
• Content Type: MISC

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No: 1
Policy Question
1.
Should contributions to the thrift plan be in the form of
percentages or dollar amounts?
2.
If
a.
b.
contributions are made on a percentage basis, should they be:
full percentages or fractional percentages and
based on actual biweekly base pay or regular biweekly base
pay per the salary schedule?
Working Group Recommendation
The working group recommends that contributions be made as
percentages (to the nearest one-hundreth of a.percent) of the
actual biweekly base pay.
Rationale
Percentages would simplify the programming requirements of
payroll's system. Actual dollar figures would cause problems when
factors such as LWOP are involved. If an employee wanted to
specify a dollar amount, it could be converted by the employee (or
Thrift Plan component) to a percentage figure. By using actual
biweekly base pay, instances of overpayment could be prevented.
Note: At a future date a decision will need to be made on how to
handle fractions of cents within the system.
Policy Group Comments (if any)
Recommendation Approved By:
Policy Group chairman Date
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POLICY ISSUE
Policy Question
Should the Agency Provide for repayment of thrift plan loans by
means of payroll deductions?
Working Grou Recommendation
The Working Group recommends that employees be allowed to repay
thrift plan loans through payroll deductions. (This would not
preclude payment by other means).
Rationale
The Credit Union currently provides for repayment of loans through
payroll deductions. The Public Service Aid Society is requesting
that this method of repayment be extended to loans made by them, as
well. The advantages of this method, namely a set schedule for
repayment and the removal of "bill collecting" responsibilities
from the plans' administrators, would be equally applicable to the
thrift plan.
Policy Grou Comments (if any)
Recommendation Approved By:
Policy Group Chairman Date
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Policy Question
Should OP make the final computation of the annuity benefit and
then send the figure to OF for payment?
Working Group Recommendation
The Working Group recommends that OP be given the responsibility
for making final computations.
Rationale
If OP computes estimates and then OF makes the final computation,
there would be an unnecessary duplication of effort. The accuracy
of OP's computations could be tested through double checks or spot
checks within that Office.
Policy Group Comments (if any)
Recommendation Approved By:
Policy Group Chairman Date
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Policy Question
Does the term "basic pay," when used to compute the annuity
supplement, have the same meaning as the "basic pay" used to
compute a CSRS benefit?
Working Group Recommendation
The Working Group members agree that the "basic pay" used to
compute the annuity supplement is the same "basic pay" that is used
to compute a CSRS benefit.
Rationale
Although the annuity supplement is based on Social Security
formulas, and the Social Security~Administration uses FICA wages to
compute benefits, "basic pay" for the annuity supplement formula is
not equivalent to FICA wages. See sections 8421(b) (2) (A) and
8401 (4) of the FERS legislation.
Policy Group Comments (if any)
Recommendation Approved By:
Policy Group Chairman Date
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Policy Question
Should OP establish a paper thrift plan file for each participant?
Working Group Recommendation
The Working Group recommends that a paper file be established by OP
for each participant to supplement the automated record.
Rationale
A file is needed to hold hard copies of the election forms, divorce
decrees (in order to provide appropriate entitlements to former
spouses), and any other pertinent documents. Since the FERS Act
gives the Executive Director of the Thrift Board the responsibility
for reviewing divorce decrees and enforcing former spouse
entitlements the Agency will be assuming this responsibility for
its employees and will need a place to store the court orders.
Policy Group Comments (if any)
Recommendation Approved By:
Policy Group Chairman Date
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Policy Question
Should employees who were once designated as CIARDS participants
and then resigned and later returned be automatically redesignated
into CIARDS?
Working Group Recommendation
The Working Group recommends that these employees be automatically
redesignated into CIARDS by means of a personnel action initiated
by the component personnel officer, provided that applicable
service agreements are signed.
Rationale
These employees, in addition to being vested in the current
retirement system due to at least five years of federal service,
would already have the qualifying service required under CIARDS.
They have earned the right to earlier retirement and a higher
accrual rate. The CIARDS Board meets monthly to make a designation
based on overseas service or to recommend a designation based on
domestic service. To require a new designation could result in
unnecessary delay as well as a duplicate expenditure of resources.
Policy Group Comments (if any)
Recommendation Approved By:
Policy Group Chairman Date
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Policy Question
Should the CIARDS Board also administer designation into the FERS ~~
CIA Special Category?
Working Grou Recommendation
The Working Group recommends that the CIARDS Board also administer
designation into the FERS CIA Special Category.
Rationale
Because the criteria for designation into the FERS CIA Special
Category is identical to that for designation into CIARDS, we
recommend that the CIARDS Board administer designation into both.
This will ensure uniform application of the criteria and will not
result in an increased workload for the Board.
Policy Group Comments (if any)
Recommendation Approved By:
Policy Group Chairman Date
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Policy Question
Should CIARDS participants be allowed to transfer into regula
Working Grou Recommendation
The Working Group recommends that CIARDS participants be restricted
from transferring into regular FERS.
Rationale
This type of transfer would enable employees to receive the higher
accrual rates under CIARDS for most of their career, while allowing
them to circumvent the mandatory retirement age (60). While the
FERS Act does not specifically prohibit transfers from CIARDS into
regular FERS, we could write such`a restriction into our
regulations. Such a restriction would seem to be within the intent
of Congress, as the FERS CIA Special Category (CIARDS equivalent)
also has the mandatory retirement requirement at age 60. Those in
CIARDS who wish to transfer should transfer into the FERS CIA
Special Category.
Polic Group Comments (if any)
Recommendation Approved By:
Policy Group Chairman Date
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No : 10 `~,~5
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Policy Question
If an employee performed overseas service under CSRS and then left
Federal employment before becoming vested in CSRS, can the overseas
service under CSRS be applied to the 5 years of qualifying service
required for participation in the FERS CIA Special Category?
Working Group Recommendation
The Working Group recommends that overseas service under CSRS be
counted as qualifying service for the FERS CIA Special Category.
Rationale
The definition of "qualifying service" for the FERS CIA Special
Category is identical to that for CIARDS. Both systems rely on the
criteria outlined in Section 203 of the CIA~Retirement Act of 1964
to make a determination of "qualifying service." Therefore, such
service should be applicable to both CIARDS and the FERS CZA
Special Category.
Policy Group Comments (if any)
Recommendation Approved By:
Policy Group Chairman Date
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Office of Personnel Working Group Functions
22 August 1986
I. Employee Deductions
A. OP/BOOB and OF representatives are coordinating the development of
new PERSIGN coding for designating employees into the appropriate
retirement system.
B. OP will verify creditable service and establish retirement plan
eligibility for employees who have entered on duty since
1 January 1984.
~1. Guidelines and policy are being developed by ~ Working Group
for use by Component Personnel Officers and TRB.
2. New PERSIGN coding will appear on Personnel Actions.
C. These functions were initiated in July 1986 and are expected to be
completed by December 1986.
II. Thrift Plan
A. OP will initiate liaison with the Thrift Board when it has been
established.
1. OP will review the Thrift Board's forms to determine if they can
be used by the Agency. If the Board is not established by
September 1986, CP will develop in-house forms to be used in the
interim.
2. OP will request necessary information and services from the
Executive Director of the Thrift Board.
a. Our cover requirements will be articulated so that the
Thrift Board's systems and procedures will accommodate our
needs.
b. We will review the Board's procedures and develop conforming
procedures wherever possible.
B. OP is developing procedures to control the distribution, completion,
receipt, and processing of election forms.
1. Procedures will be outlined in regulations, briefings, and open
season notices.
2. OP and OF will develop a system to transmit election and
deduction data between the two Offices.
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S E C R E T
3. ~ presented suggested procedures for step #2 to the Working
Group for comment on 8 August 1986.
C. C~ will establish a paper file for each thrift plan participant at
the time of election.
1. File will contain hard copies of election forms, divorce decrees
(to enforce former spouse entitlements), and other relevant data.
2. Plans are to microfiche documents in the future.
D. ~ will publish Thrift Open Sean notices, distribute election forms
and review completed election forms to ensure employee elections are
made within permissable election guidelines.
III. Defined Benefit and Supplement
(FERS, FERS Special Category, and CSRS)
A. OP provided OIT with specific data required to compute the annuity
supplement.
1. Program was developed and tested.
2. Prototype was presented to OP Working Group members, C/SDOB, and
DC/Ops Section on 21 August.
3. Enhancements will be made to the program, including the
capability to compute survivor annuity supplements. Anticipated
completion date is 5 September 1986.
B. OP will establish liaison with CAM in September 1986.
1. Records on our employees at OPM will be retrieved either
immediately, at the time of retirement, or on an annual basis as
large groups of employees become eligible. The Agency will make
a policy decision on the best approach to retrieving records.
2. OP will request necessary information and services from the
Director of OPM.
b. We will review C~PM's procedures and develop conforming
procedures wherever possible.
C. QP is developing procedures to administer the defined benefit and
supplement.
1. OP and OF will develop a system to transmit data between the two
Offices. Probably same as CIARDS initially (manual).
2. ~ presented suggested procedures to the Working Group for
comment on 8 August 1986.
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S E C R E T
Training
A. OP is educating Agency personnel on the options and benefits under
the new retirement legislation on a continuing basis. Information
program is timed to coincide with decision points for employees.
B. OP is training Retirement Counselors on the procedures to handle the
options prior to the employee decision points. An initial training
session was conducted in June. Other sessions are scheduled for the
fall of 1986.
C. OP is in the final stages of preparing a D/Pers briefing to the
Agency population.
A. OP will begin drafting regulations that pertain to this Office in
September 1986. The regulations will follow the approval of the new
policies and procedures.
B. ~ will coordinate the regulations internally and then submit them
to the Congressional intelligence committees in October 1986.
E. QP and OF will determine historical file requirements in
September 1986.
F. The ~ Working Group drafted the automation requirements of
Retirement Division, including those resulting from the new
retirement legislation, in August 1986. RD employees were
interviewed to ensure that their requirements were voiced. C/BOOB
will review the requirements before they are taken to the Working
Group in final form.
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Requirements for the Defined Benefit
1. We need the capability to perform all annuity computations (i.e. basic,
reduced, deferred, survivor, disability, former spouse, insurable
interest, and involuntary under FERS and FERS Special Category; basic,
deferred, survivor, disability, former spouse, insurable interest, and
involuntary under CSRS and CIARDS).
2. The HRS2 data now in GIMS and the data in OF's salary and service history
data base(s) will be needed to make annuity computations.
3. Overseas service must be tracked so that the higher accrual rate (1.7$)
under regular FERS can be applied.
4. We need the capability to compute deposits and redeposits and to make
reductions to annuities if deposits and redeposits are not made
(including "catch - 62").
5. We need the capability to compute the annuity supplement under FERS using
internal earnings records. The supplement must be reduced if an
annuitant has "excess earnings." Therefore, the system must be capable
of adjusting the annuity based on an employee's earnings.
6. Cost of Living Adjustments (COLAs) must be applied to the defined benefit.
7. The defined benefit must be offset by the amount of Social Security
benefits attributable to Federal civilian service in the case of modified
CSRS and modified CIARDS participants.
8. Offsets to disability benefits will be necessary because of Social
Security benefits.
9. Earnings of disability annuitants must be reviewed to determine if
earnings capacity has been restored. Automatic annual reminders could be
generated to send to annuitants.
10. We need the capability to compute alternative forms of annuities
(including lump-sum payments).
11. The annuity of a reemployed annuitant will be recomputed to include
subsequent creditable service.
12. We need the capability to compute dual annuity computations for employees
transferring into FERS, separating out the service, benefits, COLAs, and
sick leave applicable to CSRS or CIARDS, and the service, benefits, and
COLAs applicable to FERS or FERS Special Category.
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Requirements for the Defined Benefit
13. We need the capability to compute refunds of retirement contributions for
employees who separate and wish to withdraw their contributions.
14. We need the capability to compute annuities that are based, at least
partially, on part-time service.
15. We need the capability to record a CIARDS or FERS Special Category
employee's PCS time at an unhealthful post (if the extra retirement
credit option was elected) from the date of arrival to the date of
departure, subtracting out TDY time at healthful posts.
16. The final computation of the benefit amount will be transmitted to OF's
payroll system for payment.
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Requirements for the Thrift Savings Plan
1. Voluntary employee contributions will be recorded by OP, and the data will
then be transmitted to OF so that the appropriate payroll deductions will
be made. This will take place during open seasons.
2. We need on-line access to account data, including earnings on investments,
in order to counsel participants.
3. Limitations on the amount of contributions and the investment options
should be included in the system. Internal Revenue Code and
anti-discrimination limitations apply. Limitations are dictated in part
by the participant's salary and retirement system.
4. A plan for delayed contributions to the Thrift Savings Fund may be
enacted. Therefore, we may need the capability to accept delayed
contributions.
5. We need the capability to record loans and repayments of loans.
6. We need the capability to compute Thrift Savings Plan annuities (i.e.
basic, indexed, survivor, deferred, former spouse, and insurable
interest). We also need the capability to execute withdrawals and
transfers of account balances.
7. Periodic account statements for employees and annual Reports of Interest
Earnings (Form 1099-INT) for annuitants will be needed from the system.
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Miscellaneous Requirements
1. Retirement Division/Operations Section (RD/Ops,Sec) will need the
capability to keep a running retirement file, including annuity estimates
that may be retrieved and updated. Six months before an employee's first
eligible retirement date, the system will automatically generate the file
for RD/Ops Sec use.
2. RD/Ops Sec retirement cases will be added to a log, which will act as a
permanent record and provide the basis for statistical reports.
3. RD/Ops Sec will also establish a log of officer assignments (i.e.
estimates, deposits, etc.).
4. RD/Ops Sec will generate a retirement application to be signed by the
employee, including only the data that is relevant to the particular case.
5. RD/Social Security Section (RD/SSS) will need a compilation of employees'
military service data. The system will generate a memo to new EODs which
explains the provisions of military deposits under CSRS or CIARDS
("catch - 62") and FERS, creates a suspense date to remind employees of
interest-free deadlines, and maintain a record of payments.
6. RD/Annuitant Section (RD/AS) will need the capability to compute current
basic, reduced, and survivor annuity amounts.
7. RD/AS will need the on-line capability to update master files on retirees
to include new addresses, banking instructions, changes to marital status,
survivor elections, and insurance elections. Those changes which will
adjust the benefit amount will be transmitted automatically to OF's
payroll system.
8. RD/AS must annually determine the current salary of the grade and step
held by disability annuitants at the time of retirement.
9. RQ/AS will need a listing of student - children two months before
attainment of ages 18 and 22. OF must be notified of the cessation of
entitlement to benefits.
10. RD/AS will need a log of annuitants who marry or remarry. Listings of
annuitants who are eligible to elect survivor benefits for new spouses
(beginning 9 months after the date of marriage) are needed.
11. RD/Retirement Services Branch (RD/RSB) will need an automated roster of
external company contacts.
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13. RD/RSB will need a personal financial planning system that is compatible
with PC equipment.
14. The data in the Voluntary Investment Plan (VIP) master computer should
interface with the OF/CSAD/VIP data base.
15. VIP will need automated data sheets, payroll vouchers, cash contribution
records, and withdrawal sheets that will be transmitted to the VIP master
computer.
17. VIP has many word processing needs (i.e. producing letters, minutes of the
Board meetings, brochures, etc.).
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