SUPPLEMENTAL RETIREMENT INTRODUCTORY POINTS
Document Type:
Collection:
Document Number (FOIA) /ESDN (CREST):
CIA-RDP89-00066R000800070004-6
Release Decision:
RIFPUB
Original Classification:
K
Document Page Count:
2
Document Creation Date:
December 27, 2016
Document Release Date:
July 25, 2012
Sequence Number:
4
Case Number:
Content Type:
MISC
File:
Attachment | Size |
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Body:
Declassified and Approved For Release 2012/07/25: CIA-RDP89-00066R000800070004-6
Supplemental Retirement
Introductory Points
A. Status of OP/Hay Associates Study of Supplemental Retirement
1. Major part of study of data completed with actuarial valuations
in process on multiple alternatives to valuate most promising for
Agency needs and determination of cost factors as to feasibility.
2. Basis now established as to how best to new proceed and evaluate
compatibility with CIA needs of Senate and House proposals as they are
developed and known.
B. Status of Senate and House Efforts on Supplemental Retirement
1. Senate and House efforts still in early research phase (per
Ed Hustead of Hay Associates who is doing House studies and is
monitoring Senate progress).
2. Public hearings scheduled by Senate and House committees for
February through July 1984 to provide information and receive input
from interested and effected parties.
Declassified and Approved For Release 2012/07/25: CIA-RDP89-00066R000800070004-6
Declassified and Approved For Release 2012/07/25: CIA-RDP89-00066R000800070004-6
What Might Be Expected From Congressional
Efforts In Their Proposals
A. Basic Concepts and Provisions
1. A deferred benefit plan integrated with Social Security
pension coverage.
2. A mandatory low cost employee contribution plan producing
a low benefit basic annuity coupled with options for voluntary
contributions to a "Thrift Plan" with or without matching government
contribution.
B. Cost to Employees and the Government
1. Total employee costs for both mandatory supplemental plan
and Social Security will match employee costs of current systems.
2. Government contributions set at considerably lower levels than-current
systems cost levels needed to sustain current annuity levels.
C. Early Retirement and Benefit Levels
1. Provisions can be anticipated that provide for early retirement
but income replacement rate of annuity would be so low as to preclude
younger age retirement unless substantial contributions made to
voluntary Thrift Plan.
2. Full annuity/Social Security pension benefits designed to accrue
at age 65 or later. This will be designed to discourage early
retirement and reduce governmental contribution costs.
D. Attitide Toward Enhancement or Retention of Current Benefit Levels
1. Reduction of retirement benefit levels will be a primary
objective of Congressional efforts.
2. Agency must strongly defend retention of CIARDS benefits at or
near-below current level.
3. Agency must be prepared to accept some reductions in less
vital provisions to support adequate levels in critical areas.
E. Impact of Supplemental Plan Provisions on Current Retirement Systems
Eventual supplemental plan provisions in government-wide system
will stimulate Congressional interest in adaptation to current system
provisions when politically expedient (some possibly in 1985).
Declassified and Approved For Release 2012/07/25: CIA-RDP89-00066R000800070004-6