AMENDING THE CENTRAL INTELLIGENCE AGENCY RETIREMENT ACT

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP92-00455R000300040050-4
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 2
• Document Creation Date: December 12, 2016
• Document Release Date: February 8, 2002
• Sequence Number: 50
• Publication Date: July 25, 1968
• Content Type: OPEN

Congressional Rarord -- 90th Congress, Second Session
AppftQvQa2Fo-r- aW0002/04/01 : CIA-RDP92-0045510300040050-4
July 25, 1968
ceeds and receipts referred to in section
4 may initially be credited to a special
subsidiary fund established by the con-
tractor for that purpose in accordance
with procedures prescribed by the Gen-
eral Services Administration.
That is the bill and, as complicated as
it may sound, it really provides for an
orderly method of operation of this im-
portant adjunct to our national defense
posture.
AMENDING THE CENTRAL INTELLI-
GENCE AGENCY RETIREMENT
ACT
Mr. PHILBIN. Mr. Speaker, I ask
unanimous consent for the immediate
consideration of the bill (H.R. 18786) to
amend the Central Intelligence Agency
Retirement Act of 1964 for certain em-
ployees, and for other purposes.
The Clerk read the title of the bill.
The SPEAKER. Is there objection to
the request of the gentleman from
Massachusetts? ,
There was no objection.
The Clerk read the bill, as follows:
H.R. 18786
Be it enacted by the Senate and house of
Representatives of the United States o/
America in Congress assembled, That section
291 of the Central Intelligence Agency Re-
tirement Act of 1964 for Certain Employees
(78 Stat. 1043; 50 U.S.C. 403 note) is amended
to read as follows:
"Sac. 291. (a) On the basis of determina-
tions made by the Director pertaining to per
centum change in the Price Index, the fol-
lowing adjustments shall be made:
"(1) Each annuity payable from the fund
on January 1, 1967, shall be increased on that
'date by (a) 12.4 per centum for annuities
which commence on or before January 1,
1966, or (b) 4.9 per centum for annuities
which commence on or between January 2,
1966, and January 1, 1967.
"(2) Each month beginning with Novem-
ber 1966, the Director shall determine the
per centum change in the price index. Effec-
tive the first day of the third month which
begins after the price index shall have
equaled a rise of at least 3 per centum for
three consecutive months'over the price in-
dex for the base month, each annuity payable
from the fund which has a commencing date
not later than such effective date shall be
increased by the per centum rise in the price
index (calculated on the highest level of the
price index during the three consecutive
months) adjusted to the nearest one-tenth of
1 per centum.
"(b) Eligibility for an annuity increase
under this section shall be governed by the
commencing date of each annuity payable
from the fund as of the effective date of an
increase, except as follows:
"(1) Effective from its commencing date,.
an annuity payable from the fund to an
annuitant's survivor (other than a child en-
titled under section 221(c)), which annuity
commences the day after annuitant's death
and after January 1, 1967, shall be increased
by the total per centum increase the annui-
tant was receiving under this section at
death; or if'death occurred between January
1, 1967, and date of enactment, the per
centum increase the annuitant would have
received. .
"(2) Effective from its commencing date,
an annuity payable from the fund to a child
under section 221(c), which annuity com-
mences the day after annuitant's death and
117485
after. January 1, 1967, shall be increased by ice employees ' and it is only, in a sense
(a) 2 per centurn if the annuity from which ? through an inadvertence that this situa-
1, 1966, or (b) 1 per centum if the annuity
from which it is derived commenced on or
between January 2, 1966, and January 1,
1967.
"(3) For the purposes of computing an an-
nuity which commences after January 1,
1967, to a child under section 221(c), the
Stems $600, $720, $1,800, and $2,160 appear-
ing in section 221(c) shall be, increased by
10.2 per centum plus the total per centum
increase allowed and in force under section
291(a) (2) for employee annuities, and, in
the case of a deceased annuitant, the items
40 per centum and 50 per centum appearing
in section 221(c) shall be increased by the
total per centum increase allowed and in
force under this section to the annuitant at
death; or if death occurred between January
1, 1967, and date of enactment, the per cen-
tum increase the annuitant would have re-
ceived.
"(c) Any annuity increased under this sec-
tion shall be decreased by the amount of in-
crease in force and effect with respect to that
annuity under section 291 prior to the date
of enactment of this subsection.
"(d) The term 'price index' shall mean
the Consumer Price Index (all items-United
States city average) published monthly by
the Bureau of Labor Statistics. The term
'base month' shall mean the month of Octo-
ber 1966 for the first increase under section
291(a)(2) and thereafter the month for
which the price index showed a per centurn
rise forming the basis for a cost-of-living an-
nuity increase.
"(e) No increase in annuity provided by
this section shall be computed on any ad-
ditional annuity purchased at retirement by
voluntary contributions.
"(f) The monthly installment of annuity.
after adjustment under this section shall be
fixed at the nearest dollar, except that such
installment shall, after adjustment, reflect
an Increase of at least $1."
The bill was ordered to be engrossed
and read a third time, was read the third
time, and passed, and a motion to recon-
sider was laid on the table.
(Mr. PHILBIN asked and was given
permission to revise and extend his re-
marks.)
Mr. PHILBIN. Mr. Speaker, this bill,
H.R. 18786, represents a matter of simple
equity and justice.
The Congress has passed legislation
which permits civil service employees to
have their retirement adjusted as the
cost of living rises. A relatively few peo-
ple who are employed by the Central In-
telligence Agency do not, for reasons that
I will describe, receive these.same bene-
fits. This bill will correct this situation
and place these CIA people in the same
position as their counterparts in the civil
service.
Very simply stated the situation is
this: Civil service employees receive a
cost-of-living increase in their retire-
ment after any 3 months of 3-percent in-
crease in the Consume Price Index. The
few people in the CIA that this bill cov-
ers receive such an increase only when
the 3-percent increase extends over a
period of a whole year and even then they
do not get it until April of the succeeding
year. There is no rhyme or reason why
these people in the CIA should not be
treated in the same fashion as civil serv-
tion exists. Last year for example, these
CIA people missed a cost-of-living in-
crease by only two-tenths of 1 percent.
The bill ' before you will once more
bring the cost-of-living provisions in the
agency retirement system back into
phase with the similar provisions of the
Civil Service Retirement Act and will
provide the same increases that have
been provided since 1965 in the civil
service system.
CIA personnel serve under two retire-
ment systems. About 75 percent are cov-
ered by the civil service system. The re-
mainder are covered by the CIA retire-
ment system enacted in 1964 as Public
Law 88-643. At that time both systems
contained similar provisions for cost-of-
living adjustment of annuities.
Public Law 87-793, approved in Oc-
tober 1962, established the first cost-of-
living adjustment formula for the civil
service retirement system. As a part of
the cost-of-living adjustment concept
that law also provided 1965 civil service
retirees a 2-percent annuity adjust-
ment-1 percent for 1966 retirees. No
such adjustment was provided for per-
sonnel covered by the CIA system.
In September of 1965 the civil service
provision was changed by Public Law 89-
205 so that -the minimum period for
measuring percentage increases to trig-
ger an adjustment was compressed from -
1 calendar year to 3 consecutive months.
Thus an actual increase could occur after
any 3 months of 3 percent increase in the
Consumer Price Index as against the old
requirement of an average 3-percent in-
crease for a full calendar year plus a 3-
month waiting period. Furthermore, the
December 1965 increase under the new
civil service formula reflected the 'ac-
cumulated increases in the CPI since
1962.
The more responsive civil service for-
mula has generated a total of three in-
creases whereas the formula for the CIA
system, passed in October 1964, has pro-
duced only one increase. This is clearly
illustrated by applying actual increases
in force and. effect under each system to
a typical retirement case. An employee
who retired in July 1965 under the civil
service system with a $6,000 basic an-
nuity receives $7,009 per annum at pres-
ent as a result of automatic annuity ad-
justments. In contrast, an employee re-
tiring at the same time under the CIA
system and with the same basic annuity
is now paid $6,276 per annum. I intend
to insert in the RECORD as part, of my
statement chfirts which graphically illus-
trate inequities which now exist and
which would be corrected by. this bill.
The bill affords equitable treatment to
CIA retirees by providing them the same
increases already granted civil service
retirees. It also assures that Iuture cost-
of-living adjustments under the CIA re-
tirement system are in consonance with
future increases granted under the pres-
ent civil service retirement law. That is
all it does.
The charts referred to follow:
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C()NGRESSIONAL RECORD -HOUSE July 25, 1968
July 1,1965 Annuity of $6,000----------- --- Annuity of $6,000.__-______________ Annuity of $6,000.
Do------- 2 percent increase equals $120 None____________________________ None.
(Public Law 87-793); $6,120.
Dec. 1,1965 6.1 percent increase equals $373 cost - ----- do-------------------- Do.
of-living adjustment (including 1.5
percent, Public Law 89-205),
$6,493. .
Jan. 1,1967 3.9 percent increase equals $353 cost- _____do___________________________ 12.4 percent increase equals $744
of-living adjustment, $6,746. cost-of-living adjustment, sec.
291(aXI), $6,744.
- Apr. 1, 1967 'None ----------------------------- 4.6 percent increase equals $276 Existing 4.6 percent increase offset,
cost-of-living adjustment, $6,276. sec. 291(c).
May 1,1968 3.9 percent increase equals $263 None; current annuity, $6,276......- 3.9 percent increase equals $263
cost-of-living adjustment; current cost-of-living adjustment, set.
annuity, $7,009. .. 291(aX2); current annuity, $7,007.
IN THE COMMITTEE OF THE WHOLE
Accordingly the House resolved itself
into .the Committee of the Whole House
on the State of the Union for the further
consideration of the bill H.R. 15067, with
Mr. VANIc in the chair.
The Clerk read the title of the bill.
The CHAIRMAN. When the Commit-
tee rose on yesterday, it had agreed that
title I of the committee substitute amend-
ment ending on page 20, line 21, would
be considered as read and open to
amendment at any point. .
Are there any.ameiidents to title I?
If not, the Clerk will read.
The Clerk read as follows:
TITLE II-AMENDMENTS TO COLLEGE
LIBRARY ASSISTANCE AND LIBRARY
TRAINING AND RESEARCH PROGRAMS
PART A-COLLEGE LIBRARY RESOURCES
EXTENSION OF PROGRAM
July 1, 196G Annuity of $6,500__________________ Annuity of $6,500----------------- _ Annuity of $6,500.
Do ------- 1 percent increase equals $65 (Public None____________________________ None.
Law 87-793), $6,565.
Jan. 1,1967 3.9 percent increase equal $256 cost- :-___do---------------------------- 4.9 pDercent increase equals $319, set
of' living adjustment, $6,821. 291(a)(1), $6,819.
May 1,1968 3.9 percent increase equal $266 cost- None; current annuity, $6,500 ------- 3.9 percent increase equals $266,
of-livinadjustment; current an- sec. 291(aX2); current annuity,
nuity, 45,08 3. $7,085.
I Amount of assumed annuity for 1966 is increased $500 over the amount shown for 1965 in chart I to reflect probable increase
based on higher high-5 average salary.
CHART 3.-COST-OF-LIVING ADJUSTMENTS TO AN ASSUMED $7,0001 ANNUITY FROM JULY 1, 1967
SEC. 201. (a) The first sentence of section
201 of the Higher Education Act of 1965 is
amended by inserting after "two succeeding
fiscal years," the following; "$25,000,000 for
the fiscal year ending June 30, 1969, and
$35,000,000 for the fiscal year ending June 30,
1970,".
(b) The second sentence of such section
is amended by striking out "1969, and the
succeding fiscal year" and inserting in lieu
July 1,1967 Annuity of $7,000__________________ Annuity of $7,000 ----------------- Annuity of $7,000.
May 1,1968 3.9 percent increase equals $273 cost- None; current annuity, ;7,000 ------- 3.9-percent increase equals $273
of-living adjustment; current an. cost-of-living adjustment, sec.
nuity, $7,273. 291(aX2); current annuity, $7,273.
I Amount of assumed annuity for 1967 is increased $500 over the amount shown for 1966 in chart 2 to reflect probable increase
based on higher high-5 average salary.
Mr. BRAY. Mr. Speaker, will the gen- The bill will not do one single thing
tieman yield? I other than. bring these people into the
(Mr. BRAY asked and was given per-
mission to revise and extend his re-
marks.)
Mr. BRAY. Mr. Speaker, what H.R.
18786 will do has been well described
by the gentleman from Massachusetts
[Mr. PHILBINI.
The bill is of course very simple indeed.
It merely places a few people in CIA
who are engaged in what is called ro-
tational service abroad or are engaged
in hazardous duties in the same posi-
tion as the regular civil service people
and our 31/2 million military people who
receive cost-of-living increases under
existing law.
The people who are involved in this
and the military retirees.
Of course the House has already passed
this legislation in a more extensive bill
back In 1966. The Senate failed, however,
to take action on this bill which con-
tained the legislation we are considering
today along with a number of other pro-
visions.
In the'fewest possible words, what the
bill will do is change the minimum period
for measuring cost-of-living percentage
increases from 1 calendar year to 3 con-
secutive months-and this is the situ-
ation today with respect to our other
military and civilian people who are re-
tired.
bill represent a small percentage of the THE HIGHER EDUCATION AMEND-
employees of the Central Intelligence MENTS OF 1968
Agency. They may retire at age 50 with - Mr. PERKINS. Mr. Speaker, I move
20 years of Government service, 10 years
of which "must be with the CIA. that the House resolve itself into the PART B-LIBRARY TRAINING AND RESEARCH, AND
In virtually every respect this retire- Committee of the Whole House on the LIBRARY SCHOOL DEVELOPMENT
ment system is the same as that for FBI State of the Union for the further con- - EXTENSION OF PROGRAM
-
sideration of the bill (H.R. 15067) to
agents and other law-enforcement per-..
sonnel. amend the Higher Education Act of
The reasons for this special system
are obvious. The personnel must be in
a younger age group because of their
duties in support of clandestine opera-
tions or other hazardous duty and they
Act of 1958, the National Vocational Stu-
dent Loan Insurance Act of 1965, the
Higher Education Facilities Act of 1963,
and related acts.
almost by necessity must be retired at The SPEAKER. The question is on the
an earlier age than the mandatory retire- motion offered by the gentleman from
ment age of 70 provided for civil service Kentucky. ?
employees. The motion was agreed to.
years".
ELIGIBILITY OF BRANCH INSTITUTIONS FOR SUP-
PLEMENTAL AND SPECIAL PURPOSE GRANTS
SEC. 202. (a) (1) The first sentence of sec-
tion 203 (a) of such Act is amended by in-
serting after "Institutions of higher edu-
cation," the following: "(and to each branch
of such institution which is located in a
community different from that in which Its
parent institution 1s located) ".
(2) The second sentence of such section
is amended by inserting "(or branch)" after
"institution".
(b) Section 204(a) (2) (A) of such Act is
amended by inserting after "institutions of
higher education" the following: "(or to -
branches of such institutions which are lo-
cated in a community different from that
in which the parent institution is located) ".
(c) Section 204(a) (2) (B) of such Act is
amended by inserting after "Institutions of
higher education" the following: "(or to
such branches)
REVISION OF MAINTENANCE-OF-EFFORT REQUIRE-
MENT FOR SPECIAL PURPOSE GRANTS
SEC. 203. (a) Section 204(b) (2) of the
Higher Education Act of 1965 is amended by
inserting after "June 30, 1965" the follow-
ing: ", or during the two fiscal years pre-
ceding the fiscal year for which the grant is
requested, whichever is less".
(b) The amendment made by subsection
(a) shall be effective with respect to appli-
cations for grants payable on or after the
SEC. 221. (a) The first sentence of section
221 of the Higher Education Act of 1965 is
amended by inserting after "two succeeding
fiscal years," the following: "$11,800,000 for
the fiscal year'ending June 30, 1969, and
$28,000,000 for the fiscal year ending June 30,
1970,".
(b) The second sentence of such section is
amended by striking out "1969, and the suc-
ceeding fiscal year" and inserting in lieu
thereof "1971, and the two succeeding fiscal
years".
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