LETTER TO HUGH E. PRICE FROM FRANK D. TITUS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP89-00066R000800200003-2
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 4
• Document Creation Date: December 27, 2016
• Document Release Date: December 6, 2012
• Sequence Number: 3
• Publication Date: September 1, 1987
• Content Type: LETTER

Declassified in Part - Sanitized Copy Approved for Release 2012/12/06 :CIA-RDP89-000668000800200003-2
United States
Office of
Personnel Management Washington, D.C. 20415
? Hugh E. Price
Director of Personnel
Central Intelligence Agency
Washington, D.C. 20505
As you are aware, staff from CIA and OPM have been working on a written
agreement to officially implement Section 207(1) of the Federal Employees'
Retirement System Act of 1986 with respect to CIA employees.
CIA and OPM staff have agreed that the best way to document our agreement is
to enter into one umbrella and several supplemental Memoranda of Understand-
ing. It was intended that the draf t umbrella memorandum be signed at the
Director level for our respective agencies. The supplemental agreements, con-
cerning such issues as operational procedures and financial accounting, would
be signed at the organizational level responsible for such functions.
While discussions have proceeded, CIA has begun to process retirement, death
benefit, and refund claims and has billed the Civil Service Retirement Fund
for reimbursement of annuitant related payments in accordance with Section
207(i). It is therefore important that we expeditiously conclude negotiations
and effect a signed umbrella agreement. Then we can pursue completion of the
necessary supplemental agreements. To this end, OPM has prepared and offers
the attached draft agreement for your consideration. It addresses the mayor
concerns OPM staff held in regard to an earlier CIA draft, while retaining
that draft's key provisions.
We would like to meet with you to discuss our draft and to finalize an agree-
ment. At the same time, we want to develop a schedule for disestablishing the
Secure Records File we maintain on current and former CIA employees and
transfer records to your custody as appropriate, including all records on
active CIA employees. You may call me direct at 632-6077 or have your staff
make arrangements with Mr. Dan Green of my staff. Dan can be reached on 653-
8733.
I look forward to an early and satisfactory conclusion to our discussions.
~ra~ik D. Titus
Assistant Director
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Declassified in Part -Sanitized Copy Approved for Release 2012/12/06 :CIA-RDP89-000668000800200003-2
 Declassified in Part - Sanitized Copy Approved for Release 2012/12/06 :CIA-RDP89-000668000800200003-2
Agreement Between the
Office of Personnel lanagement
and the
Central Intelligence Agency
Purpose: The purpose of this memorandum is to formalize existing under-
standings between the Office of Personnel Management (OPM) and the Central
Intelligence Agency (CIA) regarding the administration of the Civil Service
Retirement System (CSRS) and the Federal Employees' Retirement System
(FERS), as these systems apply to employees of the CIA.
Background: The FERS Act of 1986 contained provisions designed to improve
security protection afforded CIA employee identities, intelligence sources,
methods, and activities. These provisions amended Title 5, United States
Code, through addition of a new subsection 8347 (n) and a new section 8461,
applicable respectively to the administration of the CSRS and FERS.
!lethodology: This agreement between the two Agencies will outline in gen-
eral terms both Agencies responsibilities, obligations, and duties. It
will be supported by separate subordinate Memoranda of Understanding, which
are consistent with the context and scope of this primary memorandum and
which address such matters as operating relationships and financial
management. Signature and approval authority for these subordinate
memoranda may be delegated. A complete unclassified listing of each such
supplementary memorandum will be filed with and noted on the record copies
of this Memorandum of Understanding, and updated as necessary.
Discussion: This Memorandum reaffirms the understanding between CIA and
OPM. The Director of CIA has elected to exercise the legislated authority,
effective January 1, 1987, to administer all CSRS and FERS provisions and
related functions and duties as they apply to all current and future CIA
employees and those annuitant beneficiaries becoming eligible for such
benefit payments on and after January 1, 1987.
CIA's current retirement regulations, developed through consultation with
OPM, specify the primary policies, authorities, responsibilities, and
general procedures for the administration of CSRS and FERS functions
applicable to employees and annuitant beneficiaries of the CIA. CIA will
consult with OPM should circumstances require substantial revisions of
existing CIA retirement regulations, procedures, or processes. CIA
policies and procedures shall be consistent with OPM's administration of
CSKS and FEKS.
In the event that there is some significant change in circumstance and the
Director of CIA determines it is no longer appropriate to exercise the
authority as regard specific retirement functions and duties enumerated in
Title 5, U.S. Code, CIA will notify OPM of such intent and consult with OPM
on the mechanisms and timing of the transfer of functions. Functions and
duties assumed by OPM will be performed on a reimbursable basis as provided
for in Title 5.
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Other Duties and Responsibilities: CIA will conduct periodic internal
inspections and audits of CSRS and FERS retirement processing and dis-
bursements. Internal inspections and audit systems will be subject to
review by OPM and may be supplemented by independent reviews conducted by
UPM personnel who have appropriate program knowledge and security clear-
ance. CIA 'program officials will comply with all reasonable audit
recommendations.
C1A will provide OPM with statistical reports on financial and operational
activities. The content and frequency of reports will be described in the
supplemental agreements.
OPM will furnish, on a reimbursable basis, such information and support
services as required for CIA to carry out its functions and duties under
Chapters 83 and 84 of Title 5. The information services and charges will
be agreed upon by representatives of each Agency.
OPM will provide on request any retained prior Federal service records and
related documents applicable to CIA employees.
OPM will effect the disbursement of monies from the CSRS Fund to the CIA in
reimbursement of expenditures, properly chargeable to the Fund, incurred by
CIA in the administration of CSRS and FERS. Documentation of expenses and
payments will be described in the supplemental agreement on financial
activities.
Changes: Modifications and revisions of existing operating procedures and
the establishment of new procedures will be jointly developed and agreed to
by appropriate officials of OPM and CIA as the need arises and to assure
the currency and adequacy of such procedures. Major modifications and/or
major new procedures should be reflected in the appropriate supplementary
Memoranda of Understanding.
This Memorandum of Understanding will continue in effect until terminated
by either Agency giving six months advance written notice. The advance
notice may be waived in whole or in part only if agreed to in writing by
both Agencies.
Approvals:
Approved for the Office of Personnel Management.
Director, Office of Personnel Management Date
Approved for the Central Intelligence Agency.
Director, Central Intelligence Agency Date
Declassified in Part - Sanitized Copy Approved for Release 2012/12/06 :CIA-RDP89-000668000800200003-2