CENTRAL INTELLIGENCE AGENCY RETIREMENT ACT OF 1963 H.R. 7216 REFERENCES

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP75B00380R000500020007-2
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 200
• Document Creation Date: December 12, 2016
• Document Release Date: January 4, 2002
• Sequence Number: 7
• Publication Date: January 1, 1963
• Content Type: LIST

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CENTRAL INTELLIGENCE AGENCY RETIREMENT
ACT OF 1963
H. R. 7216
REFERENCES
TITLE TAB
R. 7 216 and proposed revision 1
Chart: Comparative Provisions
of Retirement Systems (Civil
Service, Foreign Service, Pro..
posedCIA)
2*
Sectional Analysis and Explanation 3
Pertinent Extracts from the Foreign
Service Act of 1946 (Pamphlet copy
of the Foreign Service Act is in-
serted at back of notebook)
Central Intelligence Agency Act
Civil Service Retirement Act
AGENCY COPIES ONLY
Cross-Index and Comparative Texts of Proposed
CIA Retirement Act with Foreign Service and
Civil Service
Supplement: Areas of Broader or More Liberal
Coverage under Civil Service
Retirement Act
4
5
6
7
*Agency copies only also include at Tab 2 an UNCLASSIFIED Statement
of Explanation and Justification
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88TH CONGRESS
1sT SESSION
H. R. 7216
A BILL
To amend the Central Intelligence Agency Act
of 1949, as amended, and for other purposes.
By Mr. VINSON
JUNE 24, 1963
Referred to the Committee on Armed Services
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H
88TH CONGRESS
1ST SESSION
. R. 7216
IN THE HOUSE OF REPRESENTATIVES
JUNE 24,1963
Mr. VINsoN introduced the following hill; which wils referred to the Com-
mittee on Armed Services
A BILL
To amend the Central. Intelligence Agency Act of 1949, as
amended, and for other purpose.
1 Be it enacted by the Senate and House of 7?epresenta-
2 tires of the United States of America in Congress assembled,
3 That this Act may be cited as the "Central Intelligence
4 Agency Act Amendments of 1963".
5 SEC. 2. The Central Intelligence Agency Act of 1949,
6 as amended (50 U.S.C. 403 (a) et seq.) , is further amended
7 as follows:
8 (1) Amend section 3 by deletion of subsections (a) and
9 (b) and substitute therefor:
10 "(a) In the performance of its functions, the Agency is
11 authorized to exercise the authorities contained in sections
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1
2301;
2302
(2) and (3) ;
2303
(b) and (c) ;
2304(a)
2
( 1 ) ,
(2),
(3), (4), (5),
(6),
(10), (12),
(15), and
3 (17) ; 2305; 2306; 2307; 2312; and 2383 of title 10,
4 United States Code.
5 " (b) In the exercise of the authorities granted in sub-
6 section (a) of this section, the term 'Agency head' shall
7 mean the Director and the Deputy Director."
8 (2) Amend section 3 (d) by deletion of the wording
9 "section 2 (c) and section 5 (a) of the Armed Services Pro-
10 Act of 1947" from the first sentence and substitute
11 therefor, "section 2304 (a) and section 2307 of title 10,
12 'United States Code," Further amend section 3 (d) by
13 deletion of the wording "section 2 (c) , by section 4 or by
14 section 5 (a) of the Armed Services Procurement Act of
15 1947" from the second sentence and substitute therefor,
16 "section 2304 (a) , by section 2306 or by section 2307 of title
17 10, United States Code".
18 (3) Amend section 4 by adding the following new
19 paragraphs (1) (G) and (1) , and (8) , and further
90 amend section 4 by deletion of the words "Under such
21 regulations as the Director may prescribe, the Agency, with
22 respect to its officers and employees assigned to duty stations
13 outside the several States of the -United States of America,
14 excluding Alaska and Trawaii, butt including the District of
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1 Columbia, shall?" and substitute therefor, "Under such
2 regulations as the Director may prescribe, the Agency, with
3 respect to its officers and employees assigned abroad to duty
4 stations outside the several States of the United States of
5 America, excluding Alaska and Hawaii, but including the
6 District of Columbia, may?".
7 " ( 1 ) (0) Pay the travel expenses of officers and em-
8 ployees of the Agency and members of their families, while
9 serving at posts specifically designated by the Director for
10 purposes of this paragraph, for rest and recuperation to other
11 locations abroad having different environmental conditions
12 than those at the post at which such officers and employees
13 are serving, provided that such travel expenses shall be
14 limited to the cost for each officer or employee and members
15 of his family of one round trip during any continuous two-
16 year tour unbroken by home leave and two round trips
17 during any continuous three-year tour unbroken by home
18 leave;
19 "(1) (II) Pay the travel expenses of members of the
20 family accompanying, preceding, or following an officer or
21 employee if, while he is enroute to his post of assignment, be
22 is ordered temporarily for orientation and training or is
23
given other temporary duty.'
24 "(8) Provide appropriate orientation and language
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1 training to mem hers of family of officers and employees of
the Agency in anticipation of the assignment abroad of
such officers and employees, or while abroad."
(1) Amend section 4 (3) (A ) to read as follows:
( ) (A ) Order to any of the several States of the
llnited States of A merlon (including the District of Co1mn-
7 bin, the Commomvenith of Puerto Rico, and any territory
8 or possession of the United States) on leave of absence
9 authorized ill section 203 (f) of the Annual and Sick Leave
10 Act of 1951 as amended, each officer or employee of the
Agency who was a resident of the United States (as de-
scribed above) at the true of employment, upon completion
of 13
tome years e0Ilf11111011S SOIVICC flbroad 01' 115 $0011 as pos-
14 sible thereafter and may so order after completion of eight-
15 een months such service without regard to the limitation
16 contained in section 203 (f) (vf the Annual and Sick Leave
11
19
17 Act of I 951, as amended."
18 (5) Amend section 4 (5) by striking out subsections
19 (A) and (C) and insorting in lien thereof the following
20 new paragraphs (A ) and (C) :
21 (A) In the event an officer or employee of the Agency
22 or one of his dependents, requires medical care, for illness or
23 injury not the result of vicious habits, intemperance, or mis-
24 conduct, while on assignment abroad in a locality where there
25 is no qualified person or facility to provide such care, pay
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1 the travel expenses of such officer, employee, or dependent
2 by whatever means deemed appropriate by the Agency, in-
3 eluding the furnishing of transportation, and without regard
4 to the Standardized Government Travel Regulations and sec-
5 tion 10 of the Act of March 3, 1933, as amended (60 Stat.
6 808; 5 U.S.C. 73b) , to the nearest locality where suitable
7 medical care can be obtained and on his recovery pay for
8 the travel expenses of his return to his post of duty. If any
9 such person is too ill to travel unattended, or in the case of
10 a dependent to() young to travel alone, the Agency may also
11 pay the round-trip travel expenses of an attendant or
12 attendants;".
13 "(C) (i) In the event of illness or injury requiring
14 hospitalization or similar treatment incurred by an officer or
15 employee of the Agency who is assigned abroad, not the
16 result of vicious habits, intemperance, or misconduct on his
17 part, pay for the cost of treatment of such illness or injury;
18 " (ii) In the event a dependent of an officer or em-
19 ployee of the Agency who is assigned abroad, incurs an ill-
20 ness or injury while such dependent is located abroad, which
21 requires hospitalization or similar treatment, and which is
22 not the result of vicious habits, intemperance, or misconduct
23 on his part, pay for that portion of the cost of treatment of
24 each such illness or injury that exceeds $35 up to a maximum
25 limitation of one hundred and twenty days of treatment for
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1 each ,such illness or injury, except that such maximum limita-
2 tion shall not apply whenever the Agency, on the basis of
3 professional medical advice, shall determine that such ilhiess
4 or injury clearly is causcAl by the fact that such dependent
5 is or has been located abroad;".
6 ( 6) In section 5, add the following new paragraphs (g)
7 and (h) :
8 (g) Upon the terminatiott of the assignment of an
9 employee appointed from another Government agency with-
10 out a break in service for duty with the Agency for a
11 specific period Of time agreed upon by both agencies, such
12 person will be entitled to reemployment in such other Gov_
13 ernnient agency in the position occupied at the tune of
14 assignment, or in a position of comparable salary, or, at the
15 volition of the other Government agency, to a position of
16 higher salary. Upon reemployment, the employee shall
17 receive the within-gTade salary advancements and other
18 salary adjustments he would have been entitled to receive
19 had he remained in the position in which he was employed
20 prior to assignment to t4e Agency.
21
G6 (I
) Settle and pay, whenever the Director determines
22 that payment will furtli er the purposes of this Act, without
23 regard to any other provisions of law and under such regula-
24 tions as the Director may prescribe, in an amount not ex-
25 ceeding 810,000, any claim against the United States for
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1 loss of or damage to real or personal property (including loss
2 of occupancy or use thereof) , belonging to, or for personal
3 injury or death of, any person not a citizen or resident of the
4 United States, where such claim arises abroad out of the act
5 or omission of any Agency employee or out of the act or
6 omission of any person acting on behalf of the Agency but
7 only if such claim is presented in writing to the Agency
?8 activity involved within one year after it accrues."
9 (7) Paragraph (4) of section 104 (a) of the Internal
10 Revenue Code of 1954 (26 U.S.C. 104 (a) (4) ) (relating
11 to the exclusion from gross income of compensation for in-
12 juries and sickness) is hereby amended to read as follows:
13 "(4) amounts received as a pension, annuity, or
14 similar allowance for personal injuries or sickness re-
15 suiting from active service in the armed forces of any
16 country or in the Coast and Geodetic Survey or the
17 Public Health Service, or as a disability annuity payable
18 under the provisions of section 831 of the Foreign
19 Service Act of 1946, as amended (22 U.S.C. 1081;
20 60 Stat. 1021) , or as a disability annuity payable under
21 title II of the Central Intelligence Agency Act of 1949,
22 as amended (50 U.S.C. 403 (a) et seq.) ."
23 (8) Renumber section 7 to read section 8. Renumber
24 section 8 to read section 9, APPRoPETATtoNs. Itenumber
25 section 9 to read section 10, SEPARABILITY OF PROVISIONS.
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_Renumber section 10 to read section 11, SHORT TITLE. Add
2 a new section 7 as follows:
"7. (a) For the benefit of or for use in connection with
4 the Agency or for the benefit or welfare of employees of
5 the Agency or their dependents, the Direct?r is authorized,
6 notwithstanding any other provisions of law-
7 (1) to receive gifts to the Agency and in his dis-
8 cretiou to accept, receive, hold, administer, and expend
9 or dispose of such gifts and bequests of property from
10 individuals or ()then.;
ii " (2) to disburse gifts, bequests of money, interest,
12 profits, income, or proceeds from sales of other property
13 received as gifts in accordance with the terms and con-
14 of the acceptance of any particular gift or
15 bequest;
16 "(3) to invest, reinvest or retain investments of
17 the money, property or securities and the interest,
18 profits, or proceeds accruing from such money, property
19 Or securities;
20 Provided, however, Thai the Director is not authorized, as a
21 consequence of gifts or bequests of money, property, or
22 securities to the Agency, to engage in any business or to
2:: exercise an.y voting privilege which may he incidental to
24 securities in his hands received as a gift to the Agency, nor
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1 shall the Director make any investments other than securities
2 of the United States or other securities guaranteed as to
3 principal and interest by the United States, except that he
4 may make any investments directly authorized by the instru-
5 ment of gift, and may retain any investments accepted by
6 him; Provided further, That gifts, bequests of money, or
7 proceeds from other property are not utilized for the conduct
8 of activities by the Agency, as authorized in 50 U.S.C.
9 403 (d) et seq. through the augmentation or in lieu of
:10 appropriations by the United States Congress; And provipied
11 further, That the funds represented by the gifts, bequests
:12 of money, or proceeds from other property are not corn-
:13 mingled with funds appropriated by the United States
14 Congress.
:15 "(b) For the purpose of Federal income, estate, and
gift taxes, gifts and bequests accepted by the Director shall
17 be deemed to be a gift or bequest to or for the use of the
18 United States."
19 SEC. 3. Insert the heading "TITLE I?DEFINITIONS
20 AND GENERAL AUTHORITIES" before the section title,
21 "DEFINITIONS", of section 1 of the Central Intelligence
22 Agency Act of 1949, as amended.
23 SEC. 4. The Central Intelligence Agency Act of 1949,
H.R. 7216 2
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it)
1 as amended, is further amended by the addition of title II
2 as follows:
3 "TITLE II?THE CENTRAL INTELLIGENCE
4 AGENCY RETIREMENT AND DISABILITY
5 SYSTEM
"PART A?ESTABLI SHMENT OF SYSTEM
7 "RULES AND REGULATIONS
8 "SEC. 201. (a) The Director may prescribe rules and
9 regulations for the establishment and maintenance of a Cen-
tral [Melligence Agency retirement and disability system,
11 referred to hereafter as the system.
12 "(b) The Director shall administer the system in
accordance with such rules and regulations and with the
14 principles established by this Act.
15 " ESTABLISHMENT AND MAIL T E NAN C E OF FIT ND
16 "SEC. 202. There is hereby created a fund to be known
17 as the Central Intelligence Agency retirement and disability
18 fund which shall be maintained by the Director. The Cen-
19 tral Intelligence Agency retirement and disability fund is
20 referred to hereafter in this title as the fund.
21 "PARTICIPANTS
22 'Six. 203. The Director may designate from time to
23 time such Agency officus and employees, hereafter referred
24 to as participants, who shall be entitled to the benefits of
25 the system.
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1. "ANN UITANTS
2 "SE.o. 204. (a) Annuitants shall be persons who are re-
3 ceiving annuities from the fund and all persons, including
4 surviving wives and husbands, widows, dependent widowers,
5 children, and beneficiaries of participants or annuitants who
6 shall become entitled to receive annuities in accordance with
7 the provisions of this Act.
8 "(b) When used in this title the term-
9 "(1) 'Widow' means the surviving wife of a partici-
10 pant who was married to such participant for at least two
11 years immediately preceding his death or is the mother of
12 issue by such marriage.
13
"(2) 'Dependent widower' means the surviving hus-
14 band of a participant who was married to such participant
15 for at least two years immediately preceding her death or is
16 the father of issue by such marriage, and who is incapable
17 of self-support by reason of mental or physical disability, and
18 who received more than one-half of his support from such
19 participant.
20 "(3) 'Child' means an unmarried child, under the age
21 of eighteen years, or such unmarried child regardless of age
22 who, because of physical or mental disability incurred before
23 age eighteen, is incapable of self-support. In addition to the
24 offspring of the participant and his or her spouse, the term
25 includes (a) an adopted child, and (b) a stepchild or recog-
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nized natural child who received more that one-half of his
2 support from the participant.
3 'TART B--COMPULSORY CONTRIBUTIONS
4 "SEc. 211. (a) Six and one-half per centum of the basic
5 salary received by each participant shall be contributed to
6 the fund for the payment of annuities, cash benefits, refunds,
7 and allowances. An equal sum shall also be contributed
8 from the respective appropriation or fund which is used
9 for payment of his salary. The amounts deducted and
10 withheld from basic salary together with the amounts so
11 contributed from the appropriation or fund, shall be deposited
12 by the Agency to the credit of the fund.
13 "(b) Each participant shall be deemed to consent and
14 agree to such deductions from basic salary, and payment
15 less such deductions shall be a full and complete discharge
16 and acquittance of all claims and demands whatsoever for
17 all regular services during the period covered by such pay-
18 except the right to the benefits to which he shall be
19
20
91
22
entitled under this Act, notwithstanding any law, rule,
or regulation affecting the individual's salary.
"PART C?COMPUTATION OF ANNUITIES
"SEC. 221. (a) The annuity of a participant shall be
23 equal to 2 per centum of his average basic salary for the
24 highest live consecutive years of service, for which full con-
25
tributions have been made to the fund, multiplied by the
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1 number of years, not exceeding thirty-five of service credit
2
3
obtained in accordance with the provisions of sections 251,
252, and 253. In determining the aggregate period of
4 service upon which the annuity is to be based, the fractional
5 part of a month, if any, shall not be counted.
6 "(b) At the time of retirement, any married participant
7 may elect to receive a reduced annuity and to provide for an
8 annuity payable to his wife or her husband, commencing on
9 the date following such participant's death and terminating
10 upon the death of such surviving wife or husband. The an-
11 payable to the surviving wife or husband after such
12 participant's death shall be 50 per centum of the amount of
13 the participant's annuity computed as prescribed in paragraph
14 (a) of this section, up to the full amount of such annuity
15 specified by him as the base for the survivor benefits. The
16 annuity of the participant making such election shall be re-
17 duced by 2.1 per centum of any amount up to $2,400 he
18 specifies as the base for the survivor benefit plus 10 per
19 centum of any amount over $2,400 so specified.
20 "(c) ( 1 ) If an annuitant dies and is survived by a wife
21 or husband and by a child or children, in addition to the an-
22 nuity payable to the surviving wife or husband, there shall
23 be paid to or on behalf of each child an annuity equal to the
24 smallest of: (i) 40 per centum of the annuitant's average
25 basie salary, as determined under paragraph (a) of this see-
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1 tion, divided by the number of children; (n) $600; or (iii)
$1,800 divided by the number of children.
3 "(2) If an annuitant dies and is not survived by a wife
4 or husband but by a child or children, each surviving child
5 shalt be paid an annuity equal to the smallest of: (i) 50 per
6 centum of the annuitant's average basic salary, as determined
7
under paragraph (a) of this section, divided by the number
8 of children; (ii) $720; or (iii) ,2,160 divided by the num-
9 her of children.
10 "(d) If a surviving wife or husband dies or the annuity
11 of a child is terminated, the annuities of any remaining
12 children shall be recomputed and paid as though such wife,
13 husband, or child had not survived the participant
14 "(e) The annuity payable to a child under paragraph
15 (c) or (d) of this section shall begin on the first day of
16 the next month after the participant dies and such annuity
17 or any right thereto shall be terminated upon death, mar-
1.8 riage, or attainment of the age of eighteen years, except that,
19 if a child is incapable of self-support by reasons of mental or
20 physical disability, the annuity shall be terminated only when
21 such child dies, marries, or recovers from such disability.
22 "(f) At the time of retirement an unmarried participant
23 may elect to receive a reduced annuity and to provide for
24 an annuity equal to 50 per centum of the reduced annuity
25 payable after his or her death to a beneficiary whose name
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2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
15
shall be designated in writing to the Director. The annuity
payable to a participant making such election shall be re-
duced by 10 per centum of an annuity computed as provided
in paragraph (a) of this section and by 5 per centum of
an annuity so computed for each full five years the person
designated is younger than the retiring participant, but such
total reduction shall not exceed 40 per centum. No such
election of a reduced annuity payable to a beneficiary shall
be valid until the participant shall have satisfactorily passed
a physical examination as prescribed by the Director. The
annuity payable to a beneficiary under the provisions of this
paragraph shall begin on the first day of the next month
after the participant dies. -Upon the death of the surviving
beneficiary all payments shall cease and no further annuity
payments authorized under this paragraph shall be due or
payable.
"PART D?BENEF1TS ACCRUING TO CERTAIN
PARTICIPANTS
"RETIRE MEN T FOR DISABILITY OR TN CAP A CITY?PI YSTCAL
EXAMINATION?RECOVERY
"SEC. 231. (a) Any participant who has five years of
22 service credit toward retirement under the system, excluding
23 military or naval service that is credited in accordance with
24
provisions of section 251 or 252 (a) (2) , and who becomes
25 totally disabled or incapacitated for useful and efficient serv-
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ice by reason of disease, illness, or injury not due to vicious
2 habits, intemperance, or willful misconduct on his part, shall,
3 upon his own application or upon order of the Director, be
4 retired on an annuity r3omputed as prescribed in section
5 221. hf the disabled or incapacitated participant has less
6 than twenty years of service credit toward his retirement
7 under the system at the time he is retired, his annuity shall
8 be computed on the assumption that he has had twenty
years of service, but the additional service credit that may
10 accrue to a participant under this provision shall ill no ease
11 exceed the difference between his age at the time of retire-
12 and the mandatory retirement age applicable to his
13 grade itt the Agency.
14 (b) In each case, the participant shall be given a
15 physical examination by one or more duly qualified phy-
16 sicians or surgeons designated by the Director to conduct
17 examinations, and disability shall be determined by the
18 Director on the basis of the advice of such physicians or
19 surgeons. Unless the disability is permanent, Iike exam-
20 Mations shall be made annually until the annuitant has
21 reached the statutory :mandatory retirement age for his
22 grade in the Agency. If the Director determines, on the
23 basis of the advice of one or more duly qualified physicians
24 or surgeons conducting such examinations that an annuitant
25 has recovered to the extent that he can return to duty,
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1 the annuitant may apply for reinstatement or reappointment
2 in the Agency within one year from the date his recovery
3 is determined. Upon application the Director may rein-
4 state any such recovered disability annuitant in the grade
5 in which he was serving at time of retirement, or the Di-
6 rector may, taking into consideration the age, qualifications,
7 and experience of such annuitant, and the present grade
8 of his contemporaries in the Agency, appoint him to a
9 grade higher than the one in which he was serving prior
10 to retirement. Payment of the annuity shall continue until
a date six months after the date of the examination showing
12 recovery or until the date of reinstatement or reappoint-
13 ment in the Agency, whichever is earlier. Fees for exam-
14 inations under this provision, together with reasonable
15 traveling and other expenses incurred in order to submit
16 to examination, shall be paid out of the fund. If the an-
17 nuitant fails to submit to examination as required under
18 this section, payment of the annuity shall be suspended
19 until continuance of the disability is satisfactorily established.
20" (c) If a recovered disability annuitant whose annuity
21 is discontinued is for any reason not reinstated or reappointed
22 in the Agency, he shall be considered to have been separated
23 within the meaning of section 234 as of the date he was
4 retired for disability and he shall, after the discontinuance
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of the disability annuity, be entitled to the benefits of that
9 section or of section 241 (a) except that he may elect volun-
3 tary retirement in accordance with the provisions of section
4 233 if he can qualify ur der its provisions.
5 " (d) No participant shall be entitled to receive an
6 annuity under this Act and compensation for injury or dis-
to himself under the Federal Employees' Compensa-
8
9
10
11
12
1.3
14
1.5
116
.17
18
lion Act of September 7, 1916, as amended, covering the
same period of time. This provision shall not bar the right
of any claimant to the greater benefit conlerred by either
Act for any part of the same period of time. Neither this
provision nor any pro-vision of the said Act of September
7, 1916, as amended, shall be so construed as to deny the
right of any person to receive an annuity under this Act by
reason of his own services and to receive concurrently any
payment under such Act of September 7, 1916, as amended,
by reason of the death of any other person.
(e) Notwithstanding any provision of law to the con-
19 trary, the right of any person entitled to an annuity under
"0 this Act shall not be affected because such person has re-
21 an award of compensation in a lump sum under
"2
section 14 of the Federal Employees' Compensation Act of
23 September 7, 1916, as amended, except that where such
24 annaity is payable on account of the same disability for
25 which compensation under such section has been paid, so
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1 much of such compensation as has been paid for any period
2 extended beyond the date such annuity becomes effective,
3 as determined by the Secretary of Labor, shall be refunded
4 to the Department of Labor, to be paid into the Federal
5 employees' compensation fund. Before such person shall
6 receive such annuity he shall (1) refund to the Department
7 of Labor the amount representing such computed payments
8 for such extended period, or (2) authorize the deduction of
9 such amount from the annuity payable to him under this
10 Act, which amount shall be transmitted to such Department
11 for reimbursement to such fund. Deductions from such
12 annuity may be made from accrued and accruing payments,
13 or may be prorated against and paid from accruing payments
14 in such manner as the Secretary of Labor shall determine,
15 whenever he finds that the financial circumstances of the
16 annuitant are such as to warrant such deferred refunding.
17 "DEATII IN SERVICE
18 "SEc. 232. (a) In case a participant dies and no claim
19 for annuity is payable under the provisions of this Act, his
20 contributions to the fund, with interest at the rates prescribed
21 in sections 241 (a) and 281 (tt) , shall be paid in the order
22 of precedence shown in section 241 (b) .
23 "(b) If a participant, who has at least five years of
24 service credit toward retirement under the system, excluding
25 military or naval service that is credited in accordance with
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20
1 the provisions of section 251 or 252 (a) (2) , dies before
2 separation or retirement from the Agency and is survived by
3 a widow or a dependent widower, as defined in section 204,
such widow or dependent widower shall he entitled to nn
5 :mill-14y equal to 50 per cenimn of the annuity computed
6 in accordance with the provisions of paragraph (e) of this
7 sect ion and of section 221 (a) . The annuity of such widow
8 or dependent widower shall commence on the date follow-
9 ing death of the participant and shall terminate upon death
10 of the widow or dependent widower, or upon the dependent,
?11 widower's becoming capable of self-support.
" (c) If a participant who has at least five years of
13 service credit toward retirement under the system. excludirer,
14 military or naval service that is credited in accordance with
the provisions of section 25f or 252 (a) (2) , dies before
16 separation or retirement, from the Agency and is survived b,'
17 a wife or a husband and a child or children, each surviving
Th child shall be entitled to MI annuity computed in accordance
19 with the provisions oi section 221(c) (1). The child's
20 annuity shall begin and be terminated in accordance with the
21 provisions of section 221 (e) . Upon the death of the sur-
22 viving wife or husband or termination of the annuity of a
23 child, the annuities of any remaining children shall be
24 recomputed and paid as though such wife or husband or child
25 had not survived the participant.
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1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
21
(d) If a participant who has at least five years of serv-
ice credit toward retirement under the system, excluding
mill-
tary or naval service that is credited in accordance with the
provisions of section 251 or 252 (a) (2) , dies before separa-
tion or retirement from the Agency and is not survived by a
wife or husband, but by a child or children, each surviving
child shall be entitled to an annuity computed in accordance
with the provisions of section 221 (c) (2) . The child's an-
nuity shall begin and terminate in accordance with the pro-
visions of section 221 (e) . Upon termination of the annuity
of a child, the annuities of any remaining children shall be
recomputed and paid as though that child had never been
entitled to the benefit.
"(e) If, at the time of his or her death, the participant
had less than twenty years of service credit toward retirement
under the system, the annuities payable in accordance with
paragraph (b) of this section shall be computed in accord-
ance with the provisions of section 221 on the assumption
he or she has had twenty years of service, but the additional
service credit that may accrue to a, deceased participant under_
this provision shall in no case exceed the difference between
his or her age on the date of death and the mandatory retire-
ment age applicable to his or her grade in the Agency. In
all cases arising under paragraphs (b) (c), (d) or (e) of
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1 this section. it shall be assumed that the deceased participant
2 was qualified for retirement on the date of his death.
`?votti N TARN' RETIRE AI ENT
4 "Sm. 233. Any pirticipant in the system who is at
5 least fifty years of age and has rendered twenty years of
6 service, including service within the meaiting of section 253,
7 may On his own application and with the consent of the
8 Director be retired from the Agency and receive benefits
9 in accordance with the provisio is of section 221.
10 "DISCONT IN U ED SERVICE RET I PEN ENT
ii ''Sic. 234. (a) Any participant who separates from the
12 Agency after obtaining at least five years of service credit
13 toward retirement under the system, excluding military or
11 naval service that is credited in accordance with the provi-
15 sions of section 251 or 252 (a) (2), may, upon separation
16 from the Agency or at any lime prior to becoming eligible
17 for an annuity, elect to have his contributions to the fund
18 returned to him in accordance with the provisions of section
19 241, or (except in cases where the Director determines that
20 separation was based in whole or in part on the ground of
21 disloyalty to the United States) to leave his contributions
22 in the fund and receive an annuity-, computed as prescribed
23 in section 221, commencing at the age of sixty years.
24 "(b) If a participant who has qualified in accordance
25 with the provisions of paragraph (a) of this section to re-
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23
1 ceive a deferred annuity commencing at the age of sixty dies
2 before reaching the age of sixty his contributions to the fund.
3 with interest, shall be paid in accordance with the provisions
4 of sections 241 and 281.
5 " (c) The Director may in his discretion retire partici-
6 pants in grade 08-14 and above to promote the efficiency
7 of the Agency and they shall receive retirement benefits in
8 accordance with the provisions of section 221.
9 " (d) The Director may in his discretion retire partici-
10 pants in grade GS-13 and below to promote the efficiency of
11 the Agency and each such officer shall receive-
12 "(1) one-twelfth of a year's salary at his then cur-
13 rent salary rate for each year of service and propor-
14 tionately for a fraction of a year, but not exceeding a total
15 of one year's salary at his then current salary rate, pay-
116 without interest, from the fund, in three equal in-
117 on the 1st day of January following the
18 officer's retirement and on the two anniversaries of this
19 date immediately following: Provided, That in special
20 cases, the Director may in his discretion accelerate or
21 combine the installments; and
22 " (2) a refund of the contributions made to the fund,
23 with interest as provided in section 241 (a) , except that
24 in lieu of such refund such. officer, if he has at least five
25 years of service credit toward retirement under the
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24
1 ystem, excluding military or 11AVal service that is
2 credited in accordance with the provisions of section
3 251 or 252 (a) , may elect to receive retirement benefits
4 on reaching the age of sixty in accordance with the pro-
5 visions of section 221. In the event that an officer who
6 was separated from grade GS-13 or 0S-12 and who has
7 1ected to receive retirement benefits dies before reaching
8 the age of sixty, his death shall be considered a death in
9 service within the meaning of section 232. In the event
110 that an officer who was separated from grade GS-11 or
11 below and who has elected to receive retirement benefits
12 dies before reaching the age of sixty, the total amount
of his contribution; made to the fund, with interest as
14 provided in section 241 (a), shall be paid in accordance
15 with the provisions of section 241 (Ii).
16 " (e) Notwithstanding the provisions of section 3477 of
17 the Revised Statutes, as amended (31 U.S.C. 203) or the
18 provisions of any other law, an Agency officer who is retired
19 in accordance with -Ow provisions of section 234 (d) shall
20 have the right to assign to any person or corporation the
whole or any part of the benefits receivable by him pursuant
'0
to paragraph (d) (1) of this section.
"MANDATORY RETIREMENT FOR AGE
24 "SEo. 235. (a) Any participant in the system in grade
OS-18 or above, shall upon reaching the age of sixty-five
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25
1 be retired from the Agency and receive retirement benefits
2 in accordance with the provisions of section 221, but when-
3 ever the Director shall determine it to be in the public interest,
4 he may extend such an officer's service for a period not to
5 exceed five years.
6 "(b) Any participant in the system, other than in grade
7 GS-18 or above, shall upon reaching the age of sixty, be
8
9
10
11
12
retired from the Agency and receive retirement benefits in
accordance with the provisions of section 221, but whenever
the Director shall determine it to be in the public interest,
he may extend such an officer's service for a period not to
exceed five years.
13 "PART E?DISPOSIT1ON OF CONTRIBITTIONS AND INTEREST
14 IN EXCESS OF BENEFITS RECEIVED
15 "SEC. 241. (a) Whenever a participant becomes sepa-
16 rated from the Agency without becoming eligible for an an-
17 nuity or a deferred annuity in accordance with the provisions
18 of this Act, the total amount of contributions from his salary
19 with interest thereon at 4 per centum per annum, corn-
20 pounded annually as of December 31, and proportionately
21 for the period served during the year of separation including
22 all contributions made during or for such period, except as
provided in section 281, shall be returned to him.
24, (b) In the event that the total contributions of a re-
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2(3
tired participant, other than voluntary contributions made in
2 accordance with the provisions of section 281 with interest
3 at 4 per centum per atrium compounded annually as is pro-
4 vided in paragraph (a) of this section added thereto, exceed
5 the iotal amount returned to such participant or to an an-
6 militant claiming through him, in the form or annuities,
7 accumulated at the same rate of interest up to the date the
8 annuity payments cease under the terms of the annuity, the
9 excess of the accumulated contributions over the accumulated
10 annuity payments shall be paid in the following order of
11 precedence, upon the establishment of a valid claim therefor,
12 and such payment shall be a bar to recovery by any other
1:3 person;
14 (1) To the beneficiary or beneficiaries designated by
15 the retired participant in writing to the Director;
16 "(2) If there be no such beneficiary, to the surviving
17 wife or husband of such participant;
18 "(3) If none of the above, to the child or children of
19 such participant and descendants of deceased 'children by
20 representation;
21. "(4) If none of the above, to the parents of such par-
22 ticipant or the survivor of them.;
23 "(5) If none of the above, the duly appointed executor
24 or administrator of the estate of such participant;
25 "(6) If none of the above, to other next of kin of
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Arr.
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27
1 such participant as may be determined by the Director in
2 his judgment to be legally entitled thereto.
3 "(c) No payment shall be made pursuant to para-
4 graph (b) (6) of this section until after the expiration of
5 thirty days from the death of the retired participant or his
6 surviving annuitant.
7 "PART F?PERIOD FOR SERVICE FOR ANNUITIES
8 "COMPUTATION OF LENGTH OF SERVICE
9 "SEC. 251. For the purposes of this title, the period of
10 service of a participant shall be computed from the date
he becomes a participant under the provisions of this Act,
11
12 but all periods of separation from the Agency and so much
13 of any leaves of absence without pay as may exceed six
14 months in the aggregate in any calendar year shall be ex-
15 eluded, except leaves of absence while receiving benefits
16 under the Federal Employees' Compensation Act of Sep-
tember 7, 1916, as amended, and leaves of absence granted
18 participants while performing active and honorable military
19 or naval service in the Army, Navy, Air Force, Marine
20 Corps, or Coast Guard of the United States.
21 "PRIOR SERVICE CREDIT
22 "SEC. 252. (a) A participant may, subject to the pro-
23 visions of this section, include in his period of service-
24
" ( 1) civilian service in the executive, judicial, and
25 legislative branches of the Federal Government and in
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28
1 the District of Colmnbia government, prior to becoming
a participant; and
11
"(2) active and honorable military or naval service
4 in the Army, Navy, Marine Corps, Air Force, or Coast
5 Guard of the -United States.
6 "(h) A person may obtain prior civilian service credit
7 in accordance with the provisions of paragraph (a) (1) of
8 this section by making a special contribution to the fund
9 equal to 5 per centum of his basic annual salary for each year
10 of service for which credit is sought prior to November 8,
11 1960, and at (V-i- per centum thereafter with interest corn-
12 pounded annually at 4 per centum per annum to the date
13 of payment. Any such person may, under such conditions
14 may be determined in each instance by the Director, pay
15 such special contributions in installments.
11; " (0) ( 1 ) If an officer or employee under some other
17 Crovernment retirement system, becomes a participant in the
18 system by direct transfer, such officer or employee's total
19 contributions and deposits, including interest accrued thereon,
20 except voluntary contributions, shall be transferred to the
21 fund effective as of the date such officer or employee becomes
22 a participant in the system. Each such officer or employee
23 shall be deemed to consent to the transfer of such funds
24 and such transfer shall be a complete discharge and acquit-
25 tame of all claims and demands against the other Govern-
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1 ment retirement fund on account of service rendered prior
2 to becoming a participant in the system.
3 "(2) No officer Or employee whose contributions are
4 transferred to the fund in accordance with the provisions of
5 paragraph (c) (1) of this section, shall be required to make
6 contributions in addition to those transferred, for periods of
7
service for which full contributions were made to the other
8 Government retirement fund, nor shall any refund be made
9 to any such officer or employee on account of contributions
1? made during any period to the other Government retirement
11 fund, at a higher rate than that fixed by section 211 of this
12 Act for contributions to the fund.
13 "(3) No officer or employee, whose contributions are
14 transferred to the fund in accordance with the provisions of
15 paragraph (c) (1) of this section, shall receive credit for
16 periods of service for which a refund of contributions has
17 been made, or for which no contributions were made to the
18 other Government retirement fund. A participant may,
19 however, obtain credit for such prior service by making a
20 special contribution to the fund in accordance with the
21 provisions of paragraph (b) of this section.
22 "(d) No participant may obtain prior civilian service
23 credit toward retirement under the system for any period
24 of civilian service on the basis of which he is receiving or
25 will in the future be entitled to receive any annuity under
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another retirement systm covering civilian personnel of the
2 Goveniment.
" (e) A participant may obtain prior military or naval
7
8
9
10
11
12
service credit in accordance with the provisions of para-
graph (a) (2) of this section by applying for it to the
Director prior to retirement or separation from the Agency.
However, in the case of a participant who is eligible for and
receives retired pay on account of military or naval service,
the period of service upon which such retired pay is based
shall not be included, except that in the case of a participant
who is eligible for and receives retired pay on account of
a service-connected disability incurred in combat with an
cum-1-T of the United States or caused by an instrumentality
14 of war and incurred in line of duty during a period of war
15 (as that term is used in chapter 11 of title 38, -United States
16 Code), or is awarded under chapter 67 of title 10 of the
17 United States Code, the period of such military or naval
18 service shall be included No contributions to the fund shall
19 be required in connection with military or naval service
20 credited to a participanb in accordance with the provisions
21 of paragraph (a) (2) of this section.
22 "CREDIT FOR SERVICE AT TJNIIEALTTIFITTA POSTS
"SEC. 253. The Director may from time to time estab-
24 lish a list of places which by reason of climatic or other
23
25 extreme conditions are to be classed as unhealthful posts,
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31
1 and each year of? duty at such posts inclusive of regular
2 leaves of absence, of participants hereafter retired, shall be
3 counted as one year and a half, and so on in like proportion
4 in reckoning the length of service for the purpose of retire-
5 ment, fractional months being considered as full months in
6 computing such service, but no such extra credit for serv-
ice at such unhealthful posts shall be credited to any par-
8 ticipant who shall have been paid a salary differential for
9 such service.
10 "CREDIT FOR SERVICE WHILE ON MILITARY- LEAVE
"SEC. 254. Contributions shall not be required covering
12 periods of leave of absence from the Agency granted a partici-
13 pant while performing active military or naval service in the,
14 Army, Navy, Air Force, Marine Corps, or Coast Guard of
15 the -United States.
16 "PART G?MONEYS
17 "ESTIMATE OF APPROPRIATIONS NEEDED
18 "SEc. 261. The Director shall prepare the estimates of
19 the annual appropriations required to be made to the fund,
20 and shall cause to be made actuarial valuations of the fund
21 at intervals of five years, or oftener if deemed necessary by
22 him.
23 "INVESTMENT OF MONEYS IN THE FUND
24 "SEC. 262. The Director may, with the approval of the
25 Secretary of the Treasury, invest from time to time in in-
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82
1 terest-beating securities of the 'United States such portions
2 of the fund as in his judgment may not be immediately re-
3 quired for the payment of annuities, cash benefits, refunds,
4 and allowances, and the income derived from such invest-
5 ments shall constitute a part of such fund.
6 "ATTACHMENT OF MONEYS
7 "Sec. 263. None of the moneys mentioned. in this title
8 shall be assignable either in law or equity, or be subject to.
9 execution, levy, attachment, garnishment, or other legal
:10 process, except as provided in section 234 (e) .
11 "PART ll?ANNUITANTS RECALLED, REINSTATED, OR RE-
12 APPOINTED IN TEE AGENCY, OR REEMPLOYED IN THE
13 GOVERNMENT
14 "EEOALT.,
15 "Sec. 271. (a) The Director may recall any annuitant
16 to duty in the Agency whenever he shall determine such
17 recall is in the public interest.
:18 "(b) Any annuitant recalled to duty in the Agency or
19 reinstated or reappointed in accordance with the provisions
20 of section 231 (b) shall, while so serving, be entitled in
21 lieu of his annuity to the full salary of the grade in which
22 he is serving. During such service, he shall make contri-
23 butions to the fund in accordance with the provisions of sec-
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33
1 don 211. When he reverts to his retired status, his an-
2 fruity shall be determined anew in accordance with the pro-
3 visions of section 221.
4 "REEMPLOYMENT COMPENSATION
5 "Sic. 272. (a) Notwithstanding any other provision
6 of law, any officer or employee of the Agency, who has re-
7 tired under this Act, as amended, and is receiving an annuity
8 pursuant thereto, and who is reemployed in the Federal
9 Government service in any appointive position either on a
10 part-time or full-time basis, shall be entitled to receive the
11 salary of the position in which he is serving plus so much
12 of his annuity payable under this Act, as amended, which
13 when combined with such salary does not exceed during any
14 calendar year the basic salary such officer or employee was
15 entitled to receive on the date of his retirement from the
16 Agency. Any such reemployed officer or employee who re-
17 ceives salary during any calendar year in excess of the maxi-
18 mum amount which he may be entitled to receive under this
19 paragraph shall be entitled to such salary in lieu of benefits
20 hereunder.
21 " ( b ) When any such retired officer or employee of
22 the Agency is reemployed, the employer shall send a notice
23 to the Agency of such reemployment together with all
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34
pertinent information rolating thereto, and 'shall pay directly
2 to such officer or employee the salary of the position in which
3 he is serving.
4 (c) In the evem of any overpayment under this sec-
5 tion, such overpayment shall be recovered by withholding
6 the amount involved i:rom the salary payable to such re-
7 employed officer or employee or from any other moneys,
8 including his annuity, payable in accordance with the pro-
9 visions of this title.
10 "iREEMPLOYM ENT
11 "SEC. 273. Notwithstanding the provisions of title 5,
12 United States Code, section 62, and title 5, United States
13 Code, section 715a, aa Agency officer or employee retired
14 miller the provisions of this Act shall not, by reason of his
15 retired status, be barred from employment in Federal Coy-
16 service in any appointive position for which he
17 is qualified. An annuitant so reemployed shall serve at the
18 will of the appointing officer.
19 ``PART oLuNTABY CONTRIBUTIONS
20 "SEC. 281. (a) Any participant may, at his option and
21 under such regulations as may be prescribed by the Director,
22 deposit additional sums in multiples of 1 per centum of his
23 basic salary, but not in excess of 10 per centum of such
24 salary, which amounts together with interest at 3 per centum
25 per annum, compounded annually as of December 31, and
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35
1 proportionately for the period served during the year of his
2 retirement, including all contributions made during or for
3 such period, shall, at the date of his retirement and at his
4 election, bei-
5 "(1) returned to him in lump sum; or
6 "(2) used to purchase an additonal life annuity; or
7 "(3) used to purchase an additional life annuity for
8 himself and to provide for a cash payment on his death
9 to a beneficiary whose name shall be notified in writing
10 to the Director by the participant; or
11 " (4 ) used to purchase an additional life annuity
12 for himself and a life annuity commencing on his death
13 payable to a beneficiary whose name shall be notified in
14 writing to the Director by the participant with a guar-
15 return to the beneficiary or his legal representa-
16 tive of an amount equal to the cash payment referred to
17 in subparagraph (3) above.
18 "(b) The benefits provided by subparagraphs (2) ,
19 (3) , or (4) of paragraph (a) of this section shall be actu-
20 arially equivalent in value to the payment provided for by
21 subparagraph (a) (1) of this section and shall be calculated
22 upon such tables of mortality as may be from time to time
23 prescribed for this purpose by the Director.
24 "(c) In case a participant shall become separated from
25 the Agency for any reason except retirement on an annuity,
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:36
the amount of any additional deposits with interest at 3 per
2 cerium] per annum, co npounded as is provided in paragraph
3 (a) of this section, made by him under the provisions of
4 said paragraph (a) shall be refunded in the manner provided
5 in qwtion 241 for the return of contributions and interest
in the case of death o: separation from the Agency.
7 (d) any benefits payable to an officer or to his bene-
ficiary in respect to the additional deposits provided under
9 this section shall be in addition to the benefits otherwise pro-
10 vided under this title."
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TAB
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88th CONGRESS
1st Session
H. R. 7216
IN THE HOUSE OF REPRESENTATIVES
A BILL
To provide for the establishment and maintenance of a Central Intelligence
Agency Retirement and Disability System for a limited number of employees
and for other purposes.
1 Be :it enacted by the Senate and House of Representatives of the United
2 States of America in Congress assembled,
3 TITLE I - SHORT TITLE AND DEFINITIONS
4 PART A - SHORT TITLE
5 SEC. 101. Titles I to III inclusive of this Act may be cited as the "Central
6 Intelligence Agency Retirement Act of 1963".
7 PART B - DEFINITIONS
8 SEC. 111. When used in this Act, the term --
9 (1) "Agency" means the Central Intelligence Agency; and
10 (2) "Director" means the Director of Central Intelligence or the Deputy
11 Director of Central Intelligence.
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2
1 TITLE II -- THE CENTRAL INTELLIGENCE AGENCY RETIREMENT
2 AND DISABILITY SYSTEM
3 PART A -- ESTABLISHMENT OF SYSTEM
4 RULES AND REGULATIONS
5 SEC. 201. (a) The Director may prescribe rules and regulations for
6 the establishment and maintenance of a Central Intelligence Agency Retire-
7 ment and Disability System for a limited number oLuslplayees, referred
8 to hereafter as the system.
9 (b) The Director shall administer the system in accordance with such
10 rides and regulations and with the principles established by this Act.
11 (c) In the interests of the security of the foreign intelligence activities
12 of the United States and in order further to implement the proviso of section
13 102 (d) (3) of the National Secl_Trity Act of 1947, as amended, (50 U.S.C.
14 403 (d) (3) ) that the Director of Central Intelligence shall be responsible
15 for protecting intelligence sources and methods from unauthorized disclosure,
16 and notwithstanding the provisions of the Administrative Procedure Act
17 (5 U.S. C. 1001 et seq.) or any other provisions of law, any determinations
18 by the Director authorized by the provisions of this title shall be deemed
19 to be final and conclusive and not subject to review by any court.
20 ESTABLISHMENT AND MAINTENANCE OF FUND
21 SEC. 202. There is hereby created a fund to be known as the Central
22 Intelligence Agency Retirement and Disability Fund which shall be main-
23 tamed by the Director. The Central Intelligence Agency Retirement and
24 Disability Fund is referred to hereafter in this title as the fund.
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3
1 PARTICIPANTS
2 SEC. 203. The Director may designate from time to time such Agency
3 officers and employees, hereafter referred to as participants, who shall be
4 entitled to the benefits of the system. Any participant who has completed
5 fifteen years of service with the Agency and whose career at that time is
6 a_c_ladLeiLy....th.s_atEs_staLta.L:saaalifyin& for the system may elect to remain.
7 a participant of such system for the duration of his employment by the Agency.
dat.1111?1010..04.1111101110., " " ' " '
8 ANNUITANTS
9 SEC. 204. (a) Annuitants shall be participants who are receiving
10 annuities from the fund and all persons, including surviving wives and hus-
11 bands, widows, dependent widowers, children, and beneficiaries of partici-
12 pants or annuitants who shall become entitled to receive annuities in accord-
13 ance with the provisions of this Act.
14 (b) When used in this title the term--
15 (1) "Widow" means the surviving wife of a participant who was married
16 to such participant for at least two years immediately preceding his death
17 or who is the mother of issue by such marriage.
18 (2) "Dependent widower" means the surviving husband of a participant
19 who was married to such participant for at least two years immediately
20 preceding her death or who is the father of issue by such marriage, and who
21 is incapable of self-support by reason of mental or physical disability, and
22 who received more than one-half of his support from such participant.
23 (3) "Child" means an unmarried child, under the age of eighteen
24 years, or such unmarried child regardless of age who, because of physical
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441.we
4
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1 or mental disability incurred before age eighteen, is incapable of self-
support. In addition to the offspring of the participant and his or her spouse,
3 the term includes (i) an adopted child, and (ii) a stepchild or recognized
4 natural child who received more than one-half of his support from the
5 participant.
6 PART B -- COMPULSORY CONTRIBUTIONS
7 SEC. 211. (a) Six and ohe -half per centum of the basic salary received
8 by each participant shall be contributed to the fund for the payment of
9 annuities, cash benefits, refunds, and allowances. An equal sum shall
10 also be contributed from the respective appropriation or fund which is used
11 for payment of his salary. The amounts deducted and withheld from basic
12 salary together with the amounts so contributed from the appropriation or
13 fund, shall be deposited by the Agency to the credit of the fund.
14 (b) Each participant shall be deemed to consent and agree to such
15 deductions from basic salary, and payment less such deductions shall be a
16 full and complete discharge and acquittance of all claims and demands what-
17 soever for all regular services during the period covered by such payment,
18 except the right to the benefits to which he shall be entitled under this Act,
19 notwithstanding any law, rule, or regulation affecting the individual's salary.
20 PART C -- COMPUTATION OF ANNUITIES
21 SEC. 221. (a) The annuity of a participant shall be equal to 2 per
22 centum of his average basic salary for the highest five consecutive years
23 of service, for which full contributions have been made to the fund, multiplied
24 by the number of years, not exceeding thirty-five, of service credit obtained
25 in accordance with the provisions of sections 251 and 252. In determining
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Vire
5
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1 the aggregate period of service upon which the annuity is to be based, the
2 fractional part of a month, if any, shall not be counted.
3 (b) At the time of retirement, any married participant may elect to
4 receive a reduced annuity and to provide for an annuity payable to his wife
5 or her husband, commencing on the date following such participant's death
6 and terminating upon the death of such surviving wife or husband. The
7 annuity payable to the surviving wife or husband after such participant's
8 death shall be 50 per centum of the amount of the participant's annuity corn-
9 puted as prescribed in paragraph (a) of this section, up to the full amount
10 of such annuity specified by him as the base for the survivor benefits. The
11 annuity of the participant making such election shall be reduced by 2 1/2 per
12 centum of any amount up to $2, 400 he specified as the base for the survivor
13 benefit plus 10 per centum of any amount over $2, 400 so specified.
14 (c) (1) If an annuitant dies and is survived by a wife or husband and by
15 a child or children, in addition to the annuity payable to the surviving wife
16 or husband, there shall be paid to or on behalf of each child an annuity
17 equal to the smallest of; (i) 40 per centum of the annuitant's average basic
18 salary, as determined under paragraph (a) of this section, divided by the
19 number of children; (ii) $600; or (iii) $1,800 divided by the number of children.
20 (2) If an annuitant dies and is not survived by a wife or husband but by
21 a child or children, each surviving child shall be paid an annuity equal to
22 the smallest of: (i) 50 per centum of the annuitant's average basic salary,
23 as determined under paragraph (a) of this section, divided by the number of
4imir 24 children; (ii) $720; or (iii) $2,160 divided by the number of children.
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6
1 (d) If a surviving wife or husband dies or the annuity of a child is
2 terminated, the annuities of any remaining children shall be recomputed
3 and paid as though such wife, husband, or child had not survived the
4 participant.
5 (e) The annuity payable to a child under paragraph (c) or (d) of this
6 section shall begin on the first day of the next month after the participant
7 dies and such annuity or any right thereto shall be terminated upon death,
8 marriage, or attainment of the age of eighteen years, except that, if a
9 child is incapable of self-support by reasons of mental or physical disability,
10 the annuity shall be terminated only when such child dies, marries, or
11 recovers from such disability.
12 (f) Any unmarried participant retiring under the provisions of this
13 Act and found by the Director to be in good health may at the time of re-
14 tirement elect a reduced annuity, in lieu of the annuity as hereinbefore
15 provided, and designate in writing a person having an insurable interest
16 (as that term is used in 5 U.S. C. 2259(h) ) in the participant to receive
17 an annuity after the participant's death. The annuity payable to the
18 participant making such election shall be reduced by 10 per centum of an
19 annuity computed as provided in paragraph (a) of this section, and by 5
20 per centum of an annuity so computed for each full five years the person
21 designated is younger than the participant, but such total reduction shall
22 not exceed 40 per centum. The annuity of a survivor designated under
23 this paragraph shall be 50 per centum of the reduced annuity computed as
24 prescribed above. The annuity payable to a beneficiary under the provisions
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7
1 of this paragraph shall begin on the first day of the next month after the
2 participant dies. Upon the death of the surviving beneficiary all payments
3 shall cease and no further annuity payments authorized under this paragraph
4 shall be due or payable.
5 PART D -- BENEFITS ACCRUING TO CERTAIN PARTICIPANTS
6 RETIREMENT FOR DISABILITY OR INCAPACITY -- MEDICAL
7 EXAMINATION -- RECOVERY
8 SEC. 231. (a) Any participant who has five years of service credit
9 toward retirement under the system, excluding military or naval service
10 that is credited in accordance with provisions of section 251 or 252(a)(2),
11 and who becomes totally disabled or incabacitated for useful and efficient
12 service by reason of disease, illness, or injury not due to vicious habits,
13 intemperance, or willful misconduct on his part, shall, upon his own applica-
14 tion or upon order of the Director, be retired on an annuity computed as
15 prescribed in section 221. If the disabled or incapacitated participant has
16 less than twenty years of service credit toward his retirement under the
17 system at the time he is retired, his annuity shall be computed on the
18 assumption that he has had twenty years of service, but the additional
19 service credit that may accrue to a participant under this provision shall
20 in no case exceed the difference between his age at the time of retirement
21 and the mandatory retirement age applicable to his grade in the Agency.
22 (13) In each case, the participant shall be given a medical examination
23 by one or more duly qualified physicians or surgeons designated by the
24 Dire cAPPrtzvEL4EariftinaiztraMk1/233, C41A-RDE761340,00411741.40500920097r2ne by
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1 the Director on the basis of the advice of such physicians or surgeons.
2 Unless the disability is permanent, like examinations shall be made
3 annually until the annuitant has reached the statutory mandatory retirement
4 age for his grade in the Agency. If the Director determines on the basis
5 of the advice of one or more duly qualified physicians or surgeons conducting
6 such examinations that an annuitant has recovered to the extent that he can
7 return to duty, the annuitant may apply for reinstatement or reappointment
8 in the Agency within one year from the date his recovery is determined.
9 Upon application the Director may reinstate any such recovered disability
10 annuitant in the grade in which he was serving at time of retirement, or the
11 Director may, taking into consideration the age, qualifications, and experi-
12 ence of such annuitant, and the present grade of his contemporaries in the
13 Agency, appoint him to a grade higher than the one in which he was serving
14 prior to retirement. Payment of the annuity shall continue until a date six
15 months after the date of the examination showing recovery or until the date
16 of reinstatement or reappointment in the Agency, whichever is earlier.
17 Fees for examinations under this provision, together with reasonable
18 traveling and other expenses incurred in order to submit to examination,
19 shall be paid out of the fund. If the annuitant fails to submit to examination
20 as required under this section, payment of the annuity shall be suspended
21 until continuance of the disability is satisfactorily established.
22 (c) If a recovered disability annuitant whose annuity is discontinued is
23 for any reason not reinstated or reappointed in the Agency, he shall be con-
24 side red to have been separated within the meaning of paragraphs (a) and (b)
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9
1 of section 234 as of the date he was retired for disability and he shall,
2 after the discontinuance of the disability annuity, be entitled to the bene-
3 fits of that section or of section 2 41(a) except that he may elect voluntary
4 retirement in accordance with the provisions of section 233 if he can
5 qualify under its provisions.
6 (d) No participant shall be entitled to receive an annuity under this
7 Act and compensation for injury or disability to himself under the Federal
8 Employees' Compensation Act of September 7, 1916, as amended, (5 U.S. C.
9 751 et seq.) covering the same period of time. This provision shall not
10 bar the right of any claimant to the greater benefit conferred by either
11 Act for any part of the same period.of time. Neither this provision nor
12 any provision of the said Act of September 7, 1916, as amended, shall be
13 so construed as to deny the right of any participant to receive an annuity
14 under this Act by reason of his own services and to receive concurrently
15 any payment under such Act of September 7, 1916, as amended, by reason
16 of the death of any other person.
17 (e) Notwithstanding any provision of law to the contrary, the right
18 of any person entitled to an annuity under this Act shall not be affected
19 because such person has received an award of compensation in a lump
20 sum under section 14 of the Federal Employees' Compensation Act of
21 September 7, 1916, as amended, (5 U.S. C. 764) except that where such
22 annuity is payable on account of the same disability for which compensation
23 under such section has been paid, so much of such compensation as has
24 been paid for any period extended beyond the date such annuity becomes
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1 effective, as determined by the Secretary of Labor, shall be refunded to
2 the Department of Labor, to be paid into the Federal employees' compensa-
3 tion fund. Before such person shall receive such annuity he shall (1) refund
4 to the Department of Labor the amoulit representing such commuted pay-
5 merits for such extended period, or (2) authorize the deduction of such
6 amount from the annuity payable to him under this Act, which amount shall
7 be transmitted to such Department for reimbursement to such fund.
8 Deductions from such annuity may be made from accrued and accruing
9 payments, or may be prorated against and paid from accruing payments in
10 such manner as the Secretary of Labor shall determine, whenever he finds
11 that the financial circumstances of the annuitant are such as to warrant such
12 deferred refunding.
13 DEATH IN SERVICE
14 SEC. 232. (a) In case a participant dies and no claim for annuity is
15 payable under the provisions of this Act, his contributions to the fund,
16 with interest at the rates prescribed in sections 241(a) and 281(a), shall
17 be paid in the order of precedence shown in section 241(b).
18 (b) If a participant, who has at least five years of service credit
19 toward retirement under the system, excluding military or naval service
20 that is credited in accordance with the provisions of section 251 or 252(a)(2),
21 dies before separation or retirement from the Agency and is survived by a
22 widow or a dependent widower, as defined in section 204, such widow or
23 dependent widower shall be entitled to an annuity equal to 50 per centum
24 of the annuity computed in accordance with the provisions of paragraph (e)
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1 of this section and of section 221(a). The annuity of such widow or dependent
2 widower shall commence on the date following death of the participant and
3 shall terminate upon death of the widow or dependent widower, or upon the
4 dependent widower's becoming capable of self-support.
5 (c) If a participant who has at least five years of service credit toward
6 retirement under the system, excluding military or naval service that is
7 credited in accordance with the provisions of section 251 or 252(a)(2), dies
8 before separation or retirement from the Agency and is survived by a wife
9 or a husband and a child or children, each surviving child shall be entitled
10 to an annuity computed in accordance with the provisions of section 221(c)(1).
11 The child's annuity shall begin and be terminated in accordance with the
12 provisions of section 221(e). Upon the death of the surviving wife or
13 husband or termination of the annuity of a child, the annuities of any re-
14 maining children shall be recomputed and paid as though such wife or
15 husband or child had not survived the participant.
16 (d) If a participant who has at least five years of service credit
17 toward retirement under the system, excluding military or naval service
18 that is credited in accordance with the provisions of section 251 or 252(a)(2),
19 dies before separation or retirement from the Agency and is not survived
20 by a wife or husband, but by a child or children, each surviving child shall
21 be entitled to an annuity computed in accordance with the provisions of
22 section 221(c)(2). The child's annuity shall begin and terminate in accord-
23 ance with the provisions of section 221(e). Upon termination of the annuity
24 of a child, the annuities of any remaining children shall be recomputed and
25 paid aAiallirouget RottRisibilkaa t10012t01123: 101AIRDPIligttaiJa0 IWO olgeopittoo7-2
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12
1 (e) If, at the time of his or her death, the participant had less than
2 twenty years of service credit toward retirement under the system, the
3 annuities payable in accordance with paragraph (b) of this section shall
4 be computed in accordance with the provisions of section 221 on the assump-
tion he or she has had twenty years of service, but the additional service
6 credit that may accrue to a deceased participant under this provision
7 shall in no case exceed the difference between his or her age on the date
8 of death and the mandatory retirement age applicable to his or her grade
9 in the Agency. In all cases arising under paragraphs (b), (c), (d), or
10 (e) of this section, it shall be assumed that the deceased participant was
11 qualified for retirement on the date of his death.
12 VOLUNTARY RETIREMENT
13 SEC. 233. Any participant in the system who is at least fifty years
14 of age and has rendered twenty years of service may on his own applica-
15 tion and with the consent of the Director be retired from the Agency and
16 receive benefits in accordance with the provisions of section 221 provided
17 he has not less than five service service with the Agenc/.
18 DISCONTINUED SERVICE RETIREMENT
19 SEC. 234. (a) Any participant who separates from the Agency after
20 obtaining at least five years of service credit toward retirement under the
21 system, excluding military or naval service that is credited in accordance
22 with the provisions of section 251 or 252(a)(2), may, upon separation from
23 the Agency or at any time prior to becoming eligible for an annuity, elect
24 to have his contributions to the fund returned to him in accordance with
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1 the provisions of section 241, or (except in cases where the Director deter-
2 mines that separation was based in whole or in part on the ground of dis-
3 loyalty to the United States) to leave his contributions in the fund and
4 receive an annuity, computed as prescribed in section 221, commencing
5 at the age of sixty years.
6 (b) If a participant who has qualified in accordance with the prbvi-
7 sions of paragraph (a) of this section to receive a deferred annuity corn-
8 mencing at the age of sixty dies before reaching the age of sixty his
9 contributions to the fund, with interest, shall be paid in accordance with
10 the provisions of sections 241 and 281.
11 (c) The Director may in his discretion retire participants in grade
12 GS-14 and above to promote the efficiency of the Agency. If so retired
13 they shall receive retirement benefits in accordance with the provisions
14 of section 221, provided they have in each case not less than five years of
15 qualifying and a total of ten years of service with the Agency. Any indi-
16 vidual so retired who does not meet these service requirements shall
17 receive the benefits provided for individuals in grade GS-13 as set out in
18 paragraph (d) of this section.
19 (d) The Director may in his discretion retire participants in grade
20 GS-13 and below to promote the efficiency of the Agency and each such
21 participant shall receive--
22 (1) one-twelfth of a year's salary at his then current salary
23 rate for each year of service and proportionately for a fraction of a
24 year, but not exceeding a total of one year's salary at his then
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1 current salary rate, payable without interest, from the fund, in
2 three equal installments on the 1st day of January following the
3 participant's retirement and on the two anniversaries of this date
4 immediately following; Provided, That in special cases, the
5 Director may in his discretion accelerate or combine the installments;
6 and
7 (2) a refund of the contributions made to the fund, with inter-
8 est as provided in section 241(a), except that in lieu of such refund
9 such participant, if he has at least five years of service credit
10 toward retirement under the system, excluding military or naval
11 service that is credited in accordance with the provisions of section
12 251 or 252(a)(2), may elect to receive retirement benefits on reaching
low
13 the age of sixty in accordance with the provisions of section 221. In
14 the event that a participant who was separated from grade GS-13 or
15 GS-12 and who has elected to receive retirement benefits dies before
16 reaching the age of sixty, his death shall be considered a death in
17 service within the meaning of section 232. In the event that a partici-
18 pant who was separated from grade GS-11 or below and who has
19 elected to receive retirement benefits dies before reaching the age
20 of sixty, the total amount of his contributions made to the fund, with
21 interest as provided in section 241(a), shall be paid in accordance
22 with the provisions of section 241(b).
23 (e) Notwithstanding the provisions of section 3477 of the Revised
NUIP" 24 Statutes, as amended, (31 U.S. C. 203) or the provisions of any other
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1 law, a participant who is retired in accordance with the provisions of
paragraph (d) of this section shall have the right to assign to any person
3 or corporation the whole or any part of the benefits receivable by him
4 pursuant to paragraph (d)(1) of this section.
5 MANDATORY RETIREMENT FOR AGE
6 SEC. 235. (a) Any participant in the system in grade GS-18 or above
shall upon reaching the age of sixty-five be retired from the Agency and
8 receive retirement benefits in accordance with the provisions of section
9 221, but whenever the Director shall determine it to be in the public inter-
10 est, he may extend such a participant's service for a period not to exceed
11 five years.
12 (b) Any participant in the system, other than in grade GS-18 or above,
13 shall upon reaching the age of sixty be retired from the Agency and receive
14 retirement benefits in accordance with the provisions of section 221, but
15 whenever the Director shall determine it to be in the public interest, he
16 may extend such a participant's service for a period not to exceed five years.
17 PART E -- DISPOSITION OF CONTRIBUTIONS AND INTEREST IN EXCESS
18 OF BENEFITS RECEIVED
19 SEC. 241. (a) Whenever a participant becomes separated from the
20 Agency without becoming eligible for an annuity or a deferred annuity in
21 accordance with the provisions of this Act, the total amount of contribu-
22 tions from his salary with interest thereon at 4 per centum per annum,
23 compounded annually as of December 31, and proportionately for the
24 period served during the year of separation including all contributions made
25 durinArwthEed ForiReuat@doovrim :aebvamirsgo038:0R011050eztoonan be re-
26 turned to him.
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16
1 (b) In the event that the total contributions of a retired participant,
2 other than voluntary contributions made in accordance with the provisions
3 of section 281, with interest at 4 per centum per annum compounded
4 annually as is provided in paragraph (a) of this section added thereto,
5 exceed the total amount returned to such participant or to an annuitant
6 claiming through him, in the form of annuities, accumulated at the same
7 rate of interest up to the date the annuity payments cease under the terms
8 of the annuity, the excess of the accumulated contributions over the ac-
9 cumulated annuity payments shall be paid in the following order of
10 precedence, upon the establishment of a valid claim therefor, and such
11 payment shall be a bar to recovery by any other person:
12 (1) To the beneficiary or beneficiaries designated by such participant
13 in writing to the Director;
14 (2) If there be no such beneficiary, to the surviving wife or husband
15 of such participant;
16 (3) If none of the above, to the child or children of such participant
17 and descendants of deceased children by representation;
18 (4) If none of the above, to the parents of such participant or the
19 survivor of them;
20 (5) If none of the above, to the duly appointed executor or administrator
21 of the estate of such participant;
22 (6) If none of the above, to other next of kin of such participant as
23 may be determined by the Director in his judgment to be legally entitled
24 thereto.
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17
1 (c) No payment shall be made pursuant to paragraph (b)(6) of this
2 section until after the expiration of thirty days from the death of the re-
3 tired participant or his surviving annuitant.
4 PART F -- PERIOD OF SERVICE FOR ANNUITIES
5 COMPUTATION OF LENGTH OF SERVICE
6 SEC. 251. For the purposes of this title, the period of service of a
7 participant shall be computed from the date he becomes a participant under
8 the provisions of this Act, but all periods of separation from the Agency
9 and so much of any leaves of absence without pay as may exceed six months
10 in the aggregate in any calendar year shall be excluded, except leaves of
11 absence while receiving benefits under the Federal Employees' Compensa-
12 tion Act of September 7, 1916, as amended, (5 U.S. C. 751 et seq.) and
13 leaves of absence granted participants while performing active and honor-
14 able military or naval service in the Army, Navy, Air Force, M arine
15 Corps, or Coast Guard of the United States.
16 PRIOR SERVICE CREDIT'
17 SEC. 252. (a) A participant may, subject to the provisions of this
18 section, include in his period of service--
19 (1) civilian service in the executive, judicial, and legislative branches
20 of the Federal Government and in the District of Columbia government,
21 prior to becoming a participant; and
22 (2) active and honorable military or naval service in the Army, Navy,
23 Air Force, Marine Corps, or Coast Guard of the United States.
24 (b) A participant may obtain prior civilian service credit in accordance
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18
1 with the provisions of paragraph (a)(1) of this section by making a special
2 contribution to the fund equal to 5 per centum of his basic annual salary
3 for each year of service for which credit is sought prior to November 8,
4 1960, and at 6 1 / 2 per centum thereafter with interest compounded
5 annually at 4 per centum per annum to the date of payment. Any such
6 participant may, under such conditions as may be determined in each
7 instance by the Director, pay such special contributions in installments.
8 (c) (1) if an officer or employee under some other Government re-
9 tirement system becomes a participant in the system by direct transfer,
10 such officer or employee's total contributions and deposits, including
11 interest accrued thereon, except voluntary contributions, shall be trans-
12 ferred to the fund effective as of the date such officer or employee becomes
13 a participant in the system. Each such officer or employee shall be deemed
14 to consent to the transfer of such funds and such transfer shall be a corn-
15 plete discharge and acquittance of all claims and demands against the
16 other Government retirement fund on account of service rendered prior
17 to becoming a participant in the system.
18 (2) No participant, whose contributions are transferred to the fund in
19 accordance with the provisions of paragraph (c)(1) of this section, shall be
20 required to make contributions in addition to those transferred for periods
21 of service for which full contributions were made to the other Government
22 retirement fund, nor shall any refund be made to any such participant on
23 account of contributions made during any period to the other Government
24 retirement fund at a higher rate than that fixed by section 211 of this Act
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25 for contributions to the fund.
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19
1 (3) No participant, whose contributions are transferred to the fund
2 in accordance with the provisions of paragraph (c)(1) of this section, shall
3 receive credit for periods of service for which a refund of contributions
4 has been made, or for which no contributions were made to the other
5 Government retirement fund. A participant may, however, obtain credit
6 for such prior service by making a special contribution to the fund in
7 accordance with the provisions of paragraph (b) of this section.
8 (d) No participant may obtain prior civilian service credit toward
9 retirement under the system for any period of civilian service on the
10 basis of which he is receiving or will in the future be entitled to receive
11 any annuity under another retirement system covering civilian personnel
12 of the Government.
13 (e) A participant may obtain prior military or naval service credit in
14 accordance with the provisions of paragraph (a)(2) of this section by applying
15 for it to the Director prior to retirement or separation from the Agency.
16 However, in the case of a, participant who is eligible for and receives
17 retired pay on account of military or naval service, the period of service
18 upon which such retired pay is based shall not be included, except that in
19 the case of a participant who is eligible for and receives retired pay on
20 account of a service-connected disability incurred in combat with an
21 enemy of the 'United States or caused by an instrumentality of war and in-
22 curred in line of duty during a period of war (as that term is used in chapter
23 11 of title 38, United States Code), or is awarded under chapter 67
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1 of title 10 of the United States Code, the period of such military or naval
2 service shall be included. No contributions to the fund shall be required
3 in connection with military or naval service credited to a participant in
4 accordance with the provisions of paragraph (a)(2) of this section.
5 CREDIT FOR SERVICE WHILE ON MILITARY LEAVE
6 SEC. 253. Contributions shall not be required covering periods of
7 leave of absence from the Agency granted a participant while performing
8 active military or naval service in the Army, Navy, Air Force, Marine
9 Corps, or Coast Guard of the United States.
10 PART G--MONEYS
11 ESTIMATE OF APPROPRIATIONS NEEDED
12 SEC. 261. The Director shall prepare the estimates of the annual
low
13 appropriations required to be made to the fund, and shall cause to be
14 made actuarial valuations of the fund at intervals of five years, or oftener
15 if deemed necessary by him.
16 INVESTMENT OF MONEYS IN THE FUND
17 SEC. 262. The Director may, with the approval of the Secretary of
18 the Treasury, invest from time to time in interest-bearing securities of
19 the United States such portions of the fund as in his judgment may not be
20 immediately required for the payment of annuities, cash benefits, refunds,
21 and allowances, and the income derived from such investments shall con-
22 stitute a part of such fund.
23
Nor-
24
ATTACHMENT OF MONEYS
SEC. 263. None of the moneys mentioned in this title shall be assignable
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2
1 either in law or equity, or be subject to execution, levy, attachment,
2 garnishment, or other legal process, except as provided in section 234(e).
3 PART H --RETIRED PARTICIPANTS RECALLED, REINSTATED, OR
4 REAPPOINTED IN THE AGENCY, OR REEMPLOYED IN THE GOVERNMENT
5 RECALL
6 SEC. 271. (a) The Director may recall any retired participant to duty
7 in the Agency whenever he shall determine such recall is in the public inter-
8 est.
9 (b) Any such participant recalled to duty in the Agency in accordance
10 with the provisions of paragraph (a) of this section or reinstated or reappointed
11 in accordance with the provisions of section 231(b) shall, while so serving, be
12 entitled in lieu of his annuity to the full salary of the grade in which he is
13 serving. During such service, he shall make contributions to the fund in
14 accordance with the provisions of section 211. When he reverts to his retired
15 status, his annuity shall be determined anew in accordance with the provisi-
16 sions of section 221.
17 REEMPLOYMENT
18 SEC. 272. Notwithstanding any other provision of law, a participant
19 retired under the provisions of this Act shall not, by reason of his retired
20 status, be barred from employment in Federal Government service in any
21 appointive position for which he is qualified. An annuitant so reemployed
22 shall serve at the will of the appointing officer.
23 REEMPLOYMENT COMPENSATION
24 SEG. 273. (a) Notwithstanding any other provision of law, any
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1 annuitant who has retired under this Act and who is reemployed in the
2 Federal Government service in any appointive position either on a part-
3 time or full-time basis shall be entitled to receive the salary of the posi-
4 tion in which he is serving plus so much of his annuity payable under this
5 Act which when combined with such salary does not exceed during any
6 calendar year the basic salary such annuitant was entitled to receive on
7 the date of his retirement from the Agency. Any such reemployed annui-
8 tant who receives salary during any calendar year in excess of the maxi-
9 mum amount which he may be entitled to receive under this paragraph
10 shall be entitled to such salary in lieu of benefits hereunder.
11 (b) When any such retired annuitant is reemployed, the employer
12 shall send a notice to the Agency of such reemployment together with all
13 pertinent information relating thereto, and shall pay directly to such
14 annuitant the salary of the position in which he is serving.
15 (c) In the event of any overpayment under this section, such overpay-
16 ment shall be recovered by withholding the amount involved from the salary
17 payable to such reemployed annuitant, or from any other moneys, including
18 his annuity, payable in accordance with the provisions of this title.
19 PART I -- VOLUNTARY CONTRIBUTIONS
20 SEC. 281. (a) Any participant may, at his option and under such
21 regulations as may be prescribed by the Director, deposit additional sums
22 in multiples of 1. per centum of his basic salary, but not in excess of 10
23 per centum of such salary, which amounts together with interest at 3 per
24 centum per annum, compounded annually as of December 31, and pro-
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25 portionateiy tor the permoi served during the year of his retirement,
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1 including all contributions made during or for such period, shall, at the
2 date of his retirement and at his election, be--
3 (1) returned to him in lump sum; or
4 (2) used to purchase an additional life annuity; or
5 (3) used to purchase an additional life annuity for himself and to pro-
6 vide for a cash payment on his death to a beneficiary whose name shall be
7 notified in writing to the Director by the participant; or
8 (4) used to purchase an additional life annuity for himself and a life
9 annuity commencing on his death payable to a beneficiary whose name
10 shall be notified in writing to the Director by the participant with a
11 guaranteed return to the beneficiary or his legal representative of an
12 amount equal to the cash payment referred to in subparagraph (3) above.
13 (b) The benefits provided by subparagraphs (2), (3), or (4) of para-
14 graph (a) of this section shall be actuarially equivalent in value to the
15 payment provided for by subparagraph (a)(1) of this section and shall be
16 calculated upon such tables of mortality as may be from time to time pre-
17 scribed for this purpose by the Director.
18 (c) In case a participant shall become separated from the Agency for
19 any reason except retirement on an annuity, the amount of any additional
20 deposits with interest at 3 per centum per annum, compounded as is pro-
21 vided in paragraph (a) of this section, made by him under the provisions
22 of said paragraph (a) shall be refunded in the manner provided in section
23 241-for the return of contributions and interest in the case of death or
*ow 4 separation from the Agency.
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Nur
rvirri
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24
Arse 1 (d) Any benefits payable to a participant or to his beneficiary in
2 respect to the additional deposits provided under this section shall be
3 in addition to the benefits otherwise provided under this title.
TITLE III -- INTERNAL REVENUE CODE AMENDMENT
5 Paragraph (4) of section 104(a) of the Internal Revenue Code of 1954,
6 as amended, (26 U.S.C. 104(a) (4) ) (relating to the exclusion from
gross income of compensation for injuries and sickness) is hereby
8 amended to read as follows:
9 "(4) amounts received as a pension, annuity, or similar allowance for
10 personal injuries or sickness resulting from active service in the armed
11 forces of any country or in the Coast and Geodetic Survey or the Public
12 Health Service, or as a disability annuity payable under the provisions
13 of section 831 of the Foreign Service Act of 1946, as amended (22 U.S. C.
14 1081, 60 Stat. 1021), or as a disability annuity payable under the provisions
15 of section 231 of the Central Intelligence Agency Retirement Act of 1963."
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Chart. 1
COMPARISON OF PRINCIPAL PROVISIONS OF THE CIVIL SERVICE,
FOREIGN SERVICE, AND PROPOSED CIA RETIREMENT SYSTEMS
PROVISIONS CIVIL SERVICE FOREIGN SERVICE & CIA
General
Employee Contribution
Basic Annuity Formula
6 1/2% of basic pay
Based on high 5-year-average salary:
1 1.2% of high 5 x 1st 5 yrs service
+1 3/J4 of high 5 x 2nd 5 yrs service
+ 2% of high 5 x remaining yrs
service
Same
Based on high-5-year average salary:
2% of high-5 x total years service
Maximum Annuity 80% of high-5 salary 70% of high-5 salary
Mandatory Retirement
Age 70 with 15 years service
Career Ambassador and
Career Minister or
GS-18 and above: age 65
FSO Class 1 and below
or GS-17 and below: age 60
Chart 1
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COMPARISON OF PRINCIPAL PROVISIONS OF THE CIVIL SERVICE,
FOREIGN SERVICE, AND PROPOSED CIA RETIREMENT SYSTEMS
PROVISIONS
CIVIL SERVICE
FOREIGN SERVICE & CIA
Optional Retirement
Age 60 - 30 years service
Age 62 - 5 years service
Age 55 - 30 years service-annuity
is reduced by 5%
Age 50 - 20 years service
(full earned annuity -
not reduced)
(immediate annuity)
Discontinued Service -
Any age - 25 years service
Age 50 - 20 years service
(immediate, but annuity is
reduced by 15%)
FS0 Classes 1-3 or GS-14 and above:
Immediate annuity at any age
5 years service (annuity not reduced)
FSO Classes 4-7 or (35-13 and below:
Separation pay at rate of one month's
salary per year of service up to one
year's salary; plus deferred annuity
at age 60.
Age 50 - 20 years service (full earned
annuity - not reduced)
Selection Out
Disability Retirement
Any age - 5 years service
Lesser of: 40% high 5-year-
average salary or annuity
computed by extending service
to age 60.
Under Federal income tax "Sick
Pay" exclusion, first $100 per
week tax exempt until optional
retirement age.
Same
Same
Fully tax exempt.
Age and Service
Minimum Annuity
?
Taxability
Chart 2
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Chart 3
COMPARISON OF PRINCIPAL PROVISIONS OF THE CIVIL SERVICE,
FOREIGN SERVICE, AND PROPOSED CIA RETIREMENT SYSTEMS
PROVISIONS
CIVIL SIKEIV ICE
FOREIGN SERVICE & CIA
Survivor Annuity to Widow
Reduction of employee's
annuity
Amount of widow's annuity
Termination of widow's
annuity
2 1/2% of first $3,600 plus
10% of balance
55% of employee's basic annuity
Death or remarriage
2 1/2% of first $2,400 plus
10% of balance
50% of employee's basic annuity
Death only
Reemployment of Annuitant
Annuity offset against salary
Annuity plus salary cannot
exceed basic pay at time of
retirement
Chart 3
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Approved For Release
CENTRAL
Committee Members do NOT have th.i.S.As,tatement.
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They previously received the original unclassified and
j classified versions of the statement of Explanation and
Justification.
EXPLANATION AND JUSTIFICATION
PART A. PURPOSE OF PROPOSED BILL
The proposed bill permits the Agency to improve its retirement program
by authorizing the establishment of a retirement system corresponding in
its main features to that of the Foreign Service. The Central Intelligence
Agency needs to attract and retain a force of highly motivated careerists
who are intensively trained in unique skills. Agency requirements demand
that this group of careerists be composed of younger and more vigorous offi-
cers than are generally required in Government service. Consequently, the
voluntary early retirement features of this bill will serve this end. Since
the Agency is unable in fact to provide full-term careers for many individual
officers, it is necessary to minimize the adverse effects of the required
programs of managed attrition and to preserve its ability to recruit and re-
tain the high-caliber personnel it needs. Therefore, the Agency must make
reasonable provision for the futures of those individuals who must be sepa-
rated before completing a full-term career of thirty or so years. Accord-
ingly, the proposed bill establishes for a limited number of Agency employees
a retirement and disability system modeled after that established for persons
serving in the Foreign Service of the Department of State.
PART B. PROPOSED RETIREMENT SYSTEM
1. Need for a Separate Retirement System for Certain Employees
a. Summary
All regular employees of the Central Intelligence Agency are at pre-
sent covered by the provisions of the Civil Service Retirement Act. Such
coverage is appropriate for those whose conditions, obligations, and terms
of service are comparable to those of federal employees generally. However,
the Agency has a serious problem in its need to make more adequate provision
for certain of its employees who should be retired at an earlier age and
with a more equitable annuity than can be provided under the Civil Service
Retirement Act. This need stems from the fact that the Agency cannot pro-
vide to or expect from many individuals in its service a full-term career
of thirty or so years.
b. Background
(lJ The nature of the Agency's mission requires people who are
highly motivated and who develop unique and specialized abilities through
their continuing training and service over the years. A substantial pro-
portion of Agency personnel accept, as do members of the military service,
the obligation to serve anywhere in the world at the Agency's direction --
not at their own will -- and to be available for duty on a 24-hour-a-day
basis. Further, the stresses and strains of uneven and unpertain hours of
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CENTRAL INTELLIGENCE AGENCY RETIREMENT ACT
OF 1963
EXPLANATION AND JUSTIFICATION
PART A. PURPOSE OF PROPOSED BILL
The proposed bill permits the Agency to improve its retirement program
by authorizing the establishment of a retirement system corresponding in
its main features to that of the Foreign Service. The Central Intelligence
Agency needs to attract and retain a force of highly motivated careerists
who are intensively trained in unique skills. Agency requirements demand
that this group of careerists be composed of younger and more vigorous offi-
cers than are generally required in Government service. Consequently, the
voluntary early retirement features of this bill will serve this end. Since
the Agency is unable in fact to provide full-term careers for many individual
officers, it is necessary to minimize the adverse effects of the required
programs of managed attrition and to preserve its ability to recruit and re-
tain the high-caliber personnel it needs. Therefore, the Agency must make
reasonable provision for the futures of those individuals who must be sepa-
rated before completing a full-term career of thirty or so years. Accord-
ingly, the proposed bill establishes for a limited number of Agency employees
a retirement and disability system modeled after that established for persons
serving in the Foreign Service of the Department of State.
PART B. PROPOSED RETIREMENT SYSTTM
1. Need for a Separate Retirement System for Certain Employees
a. Summary
All regular employees of the Central Intelligence Agency are at pre-
sent covered by the provisions of the Civil Service Retirement Act. Such
coverage is appropriate for those whose conditions, obligations, and terms
of service are comparable to those of federal employees generally. However,
the Agency has a serious problem in its need to make more adequate provision
for certain of its employees who should be retired at an earlier age and
with a more equitable annuity than can be provided under the Civil Service
Retirement Act. This need stems from the fact that the Agency cannot pro-
vide to or expect from many individuals in its service a full-term career
of thirty or so years.
b. Background
1 The nature of the Agency's mission requires people who are
highly motivated and who develop unique and specialized abilities through
their continuing training and service over the years. A substantial pro-
portion of Agency personnel accept, as do members of the military service,
the obligation to serve anywhere in the world at the Agency's direction --
not at their own will -- and to be available for duty on a 24-hour-a-day
basis. Further, the stresses and strains of uneven and uncertain hours of
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work, of duty in unhealthful locations, and of arduous assignments require
people who have a high degree of vigor, vitality, endurance, resilience,
and adaptability.
(2) There are other factors pertaining to the individuals them-
selves which, over the years, limit their ability and desire to continue
in overseas service.
(a) Our experience has shown that maw officers or members of
their families will in time incur physical impediments which limit or pre-
clude their further assignment overseas. The extreme climates and inferior
medical facilities of many foreign areas make living abroad less healthful
than in the United States. Also, Americans, because of the advances of
sanitation and public health in this country, have failed to develop the
natural immunities which most foreigners develop. Consequently, Americans
are more susceptible than local inhabitants to the diseases of an area.
(b) The wear and tear of repeated illness saps an individual's
strength and resilience and affects his longevity. Moreover, ills which an
employee encounters in one place often attach themselves permanently as
chronic and sometimes disabling conditions. This contributes to the need
for the earlier retirement provisions now proposed.
(c) Finally, there is "motivational exhaustion." This term
is used to describe a gradual lessening of interest and enthusiasm of an
officer as a result of impingements on his personal and family life. These
stem from the transient nature of his assignments, the complications and
restrictions of security requirements, and intrusions on his family life.
(3) The dynamic nature of intelligence work produces sudden and
sometimes radical shifts in the types of personnel required and in their
deployment. For example, the Agency's responsibility for covert cold war
functions requires that much of its effort be directed to troubled areas,
wherever they may be. Civil troubles often bring about a retrenchment of
activity on the part of other U.S. Government agencies, but a reorientation
and intensification of that of the Agency. Completion of a mission of a
temporary nature or a shift in emphasis or direction of operations may re-
sult in an excess of officers who are skilled in a relatively narrow field.
Their primary qualifications thus become obsolete or unneeded and they
become "occupationally surplus."
c. Manpower Control
(l) The Agency finds it increasingly necessary to impose manpower
controls to ensure appropriate alignment as to age, qualifications, and
other characteristics of its employees engaged in conducting or supporting
foreign intelligence activities. Insofar as possible, imbalances should be
and are corrected by the reassignment of officers who cannot, or should not,
continue in such work to other fields of work in the Agency. However,
encouraged and induced attrition is feasible only if it is linked to a sys-
tem of retirement benefits providing fair annuities to those who have earned
early retirement.
2
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(2) The proposed bill would provide these individuals with a more
equitable annuity, beginning immediately upon their separation. This would
place them in a better position to accept less demanding and probably lover-
paid employment. It is often difficult for an Agency employee to obtain
other employment. The special skills required for intelligence work, devel-
oped over the years by training and experience within the Agency, are not
directly applicable to other fields. This situation is aggravated by secu-
rity considerations which do not allow an Agency employee to describe to a
prospective employer the substance of his Agency duties and responsibilities.
There is also a reluctance on the part of other employers, both Governmental
and private, who are engaged in business overseas to hire a former intelli-
gence officer. This attitude reflects their concern that the attitude of
foreign officials toward their enterprises might be adversely affected if
they were known to employ former intelligence officers.
(3) During the peat year, the Agency has separated some 125 indi-
viduals as surplus to its needs because of the several factors described
above. These people had given years of competent and faithful service to
the Agency and to the Government. The process of terminating their employ-
ment was made the more painful because of the relatively inadequate assist-
ance which the Agency could offer them in making occupational transfers or
in retiring prematurely.
2. Proposed Retirement System
a. In order to minimize the adverse effects of such programs on the
Agency's ability to recruit and retain the caliber of personnel needed, and
particularly to minimize their effects on the dedicated personnel already-
in the service of the Agency, better provision must be made for the futures
of those individuals who are separated before completing a full-term career.
An important means for doing so is to establish a retirement system permit-
ting earlier retirement with a more nearly adequate and equitable annuity
than is possible under the Civil Service retirement system.
b. Careful study has been devoted to this matter. Recognizing the
difficulties in developing an entirely new retirement system, the Agency
examined existing systems. It was determined that the basic features of
the Foreign Service system fulfill Agency requirements and are appropriate
for those Agency employees whose careers involve conditions of service com-
parable to those of Foreign Service personnel. Further, by adopting a sys-
tem based on that of the Foreign Service, the Agency can take advantage of
the considerable study and experience which have gone into its development.
c. Appendix I compares the pertinent provisions of the proposed Agency-
retirement system and the Foreign Service and the Civil Service retirement
systems. In format, this chart is similar to one appearing in the Report
of the Nouse Committee on Foreign Affairs in the second session of the 86th
Congress. It was prepared at that time in connection with proposed amend-
ments to the Foreign Service Act of 1946, as amended, relating to the retire-
ment system, which proposals were subsequently enacted into law.
3
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d. All of the Agency's employees do not serve under conditions war-
ranting other than the normal retirement considerations. Consequently, the
Agency does not intend to place all of its personnel under the proposed new
system. Those who are to be designated for coverage will undergo a rigid
selection process, the essential criteria for coverage being as follows:
(1) Career employees whose duties and responsibilities are pre-
dominantly concerned with the conduct and support of intelligence activities
In foreign countries.
(2) Career employees whose duties are so specialized that they are
placed at an unusual disadvantage when required to seek other employment.
e. It is estimated that a maximum of only 30% of our total employees
will qualify for coverage under the proposed system; civil service retire-
ment will remain the retirement system for all other employees. During the
past year, the average age of Agency personnel who retired under the Civil
Service retirement system was 66. We plan in time to lower the average re-
tirement age of those covered under the proposed system to about 55 years,
Which is comparable to the average retirement age in the Foreign Service.
f. The specific provisions of the proposed retirement system and
explanatory notes are contained in Appendix II, Sectional Analysis and
Explanation.
3. Cost Estimates
a. There will be certain increased costs for the administration of the
_retirement system. For reasons of efficiency and security, it is considered
essential that full administration of the program be accomplished within the
Agency. It is estimated that this cost would approximate $85,000 per year
by the end of the first five years.
b. Program costs cannot be precisely estimated. However, the additional
annuity costs under the proposed system would be partially offset by payroll
savings resulting from the time lapse in completing the chain of recruitment,
reassignment, and promotion actions created by retirements. It is estimated
that the net additional cost after the first five years would average approxi-
mately $580,000 per year.
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ATTACHMENTS OMITTED BECAUSE THEY
ARE INCLUDED WITH CLASSIFIED
STATEMENT OF EXPLANATION AND
JUSTIFICATION IN BRIEFING BOOKS
Order is revereed, however:
Appendix I is Appendix II (Comparison of Pertinent Pro-
visions of the Civil Service, Foreign Service, and
Proposed CIA Retirement and Disability Systems)
Appendix II is Appendix I (Sectional Analysis)
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CENTRAL INTELLIGENCE AGENCY RETIREMENT ACT OF 1963
SECTIONAL ANALYSIS AND EXPLANATION
(NOTE: Except for such changes as are necessary to reflect terminology appli-
cable to the Central Intelligence Agency, most of the proposed provisions are
substantively the same as, or identical with, the corresponding provisions of
the Foreign Service Act of 1946, as amended. For convenient reference, the
corresponding section number under the Foreign Service Act of 1946, as amended,
is furnished at the end of each explanatory statement below (for example, "Sec-
tion 801, FSA") where applicable.
Be it enacted by the Senate and House of Representatives of the United States of
America in Congress assembled,
TITLE I - SHORT TITLE AND DEFINITIONS
PART A - SHORT TITLE
Sec. 101. Titles I to III inclusive of this Act may be cited as the "Central
Intelli-
gence Agency Retirement Act of 1963".
Explanation: This section provides a short title for this bill.
PART B - DEFINITIONS
Sec. 111. When used in this Act, the term--
(1) "Agency" means the Central Intelligence Agency; and
(2) "Director" means the Director of Central Intelligence or the Deputy Director
of Central Intelligence.
Explanation: This section defines the terms "Agency" and "Director" as these
terms a:re used throughout the bill.
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TITLE II - THE CENTRAL INTELLIGENCE AGENCY RETIREMENT
AND DISABILITY SYSTEM
PART A - ESTABLISHMENT OF SYSTEM
Rules and Regulations
Sec. 201. (a) The Director may prescribe rules and regulations for the estab-
lishment and maintenance of a Central Intelligence Agency Retirement and
Disability System for a limited number of employees, referred to hereafter
as the system.
(b) The Director shall administer the system in accordance with such
rules and regulations and with the principles established by this Act.
(c) In the interests of the security of the foreign intelligence activities
of the United States and in order further to implement the proviso of section
102(d)(3) of the National Security Act of 1947, as amended, (50 U.S. C. 403(d)(3))
that the Director of Central Intelligence shall be responsible for protecting
intelligence sources and methods from unauthorized disclosure, and notwith-
standing the provisions of the Administrative Procedure Act (5 U.S. C. 1001
et. seq.) or any other provisions of law, any determinations by the Director
authorized by the provisions of this title shall be deemed to be final and con-
clusive and not subject to review by any court.
Explanation: This section gives the Director of Central Intelligence the authority
necessary to establish and maintain a retirement system for a limited number
of employees and to prescribe rules and regulations governing its administration.
(Section 801, FSA)
In view of the security classification of information concerning the service
of Agency employees, the facts pertinent to determinations made under this
Act will ordinarily be of such a nature that they cannot be publicly disclosed.
Accordingly the section provides that determinations of the Director under
this Act are final and conclusive and not subject to review. Legislative prece-
dent for this provision is contained in the Civil Service Retirement Act which
provides in section 16(c) that determinations by the Commission of questions
of dependency and disability under that Act are not reviewable. Other precedents
are contained in the Atomic Energy Act which provides that where Restricted
Data are involved determinations of the Commission will not be subject to
judicial review and in the Foreign Claims Settlement Act of 1949. (See 42 U.S. C.
2231 and 22 U.S. C. 1623(h).)
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Establishment and Maintenance of Fund
Sec. 202. There is hereby created a fund to be known as the Central Intelligence
Agency Retirement and Disability Fund which shall be maintained by the Director.
The Central Intelligence Agency Retirement and Disability Fund is referred to
hereafter in this title as the fund.
Explanation: This section provides for establishment and maintenance of the
Central Intelligence Agency Retirement and Disability Fund by the Director.
(Section 802, FSA, and 43 Stat. 144)
Participants
Sec. 203. The Director may designate from time to time such Agency officers
and employees, hereafter referred to as participants, who shall be entitled to the
benefits of the system. Any participant who has completed fifteen years of serv-
ice with the Agency and whose career at that time is adjudged by the Director
to be qualifying for the system may elect to remain a participant of such system
for the duration of his employment by the Agency.
Explanation: This section necessarily deviates from the comparable provision
of the Foreign Service Act of 1946, as amended, since Foreign Service Officers
are automatically covered by virtue of their appointments under the Foreign
Service Act. However, only a limited number of Agency employees will serve
under conditions which will warrant other than normal retirement considera-
tions and those who are to be designated as participants pursuant to this section
will undergo a rigid selection process. (Sec. 803, FSA)
This retirement system is designed for those officers whose careers over
the years are predominantly concerned with the conduct and support of intelli-
gence activities in foreign countries. It is intended to designate an employee
as a participant in this system at the earliest time after he has gained full
career employee status in the Agency that it can be determined that his career
field of work is in the conduct and support of intelligence activities in foreign
countries. Thereafter, his service record will be reviewed periodically to
verify that his career has remained in this field and that he is in fact performing
qualifying service. If on such review it should be determined that an officer's
career specialization has permanently shifted to a different field, he will be
transferred to the civil service retirement system. However, when an employee
who has been designated as a participant has met all of the minimum require-
ments for retirement under this system and then shifts to another field of career
specialization, he would ordinarily be viewed as having acquired a right to the
benefits he has already earned under this system and would be permitted to remain
in it. Consequently, the section provides that an employee who has completed
fifteen years of service in the Agency and whose career at that time is adjudged
to be qualifying for this system may elect to remain in this system for the duration
of his employment by the Agency.
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Sec. 204. (a) Annuitants shall be participants who are receiving annuities from
the fund and all persons, including surviving wives and husbands, widows, depen-
dent widowers, children, and beneficiaries of participants or annuitants who
shall become entitled to receive annuities in accordance with the provisions of
this Act.
(b) When used in this title the term--
(1) "Widow" means the surviving wife of a participant who was married to
such participant for at least two years immediately preceding his death or who
is the mother of issue by such marriage.
(2) "Dependent widower" means the surviving husband of a participant who
was married to such participant for at least two years immediately preceding
her death or who is the father of issue by such marriage, and who is incapable
of self-support by reason of mental or physical disability, and who received
more than one-half of his support from such participant.
(3) "Child" means an unmarried child, under the age of eighteen years, or
such unmarried child regardless of age who, because of physical or mental dis-
ability incurred before age eighteen, is incapable of self-support. In addition
to the offspring of the participant and his or her spouse, the term includes
(i) an adopted child, and (ii) a stepchild or recognized natural child who received
more than one-half of his support from the participant.
Explanation: This section defines annuitants who may be eligible for benefits
under the retirement system. (Section 804, FSA)
PART B - COMPULSORY CONTRIBUTIONS
Sec. 211. (a) Six and one-half per centum of the basic salary received by each
participant shall be contributed to the fund for the payment of annuities, cash
benefits, refunds, and allowances. An equal sum shall also be contributed from
the respective appropriation or fund which is used for payment of his salary.
The amounts deducted and withheld from basic salary together with the amounts
so contributed from the appropriation or fund, shall be deposited by the Agency
to the credit of the fund.
(b) Each participant shall be deemed to consent and agree to such deduc-
tions from basic salary, and payment less such deductions shall be a full and
complete discharge and acquittance of all claims and demands whatsoever for
all regular services during the period covered by such payment, except the right
to the benefits to which he shall be entitled under this Act, notwithstanding any
law, rule, or regulation affecting the individual's salary.
Explanation: This section provides for contributions to the retirement fund by
the employee and by the Agency at the rate of six and one-half per cent of basic
salary, which is the same under both the Foreign Service retirement system and
the civialpfoow4dfcrreptiww2.6032fiktf2r30.:.C1k5RD10790438M66500020007-2
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Sec. 221. (a) The annuity of a participant shall be equal to two per centum of
his average basic salary for the highest five consecutive years of service, for
which full contributions have been made to the fund, multipled by the number of
years, not exceeding thirty-five, of service credit obtained in accordance with
the provisions of sections 251 and 252. In determining the aggregate period of
service upon which the annuity is to be based, the fractional part of a month,
if any, shall be not be counted.
(b) At the time of retirement, any married participant may elect to receive
a reduced annuity and to provide for an annuity payable to his wife or her husband,
commencing on the date following such participant's death and terminating upon
the death of such surviving wife or husband. The annuity payable to the surviving
wife or husband after such participant's death shall be 50 per centum of the
amount of the participant's annuity computed as prescribed in paragraph (a) of
this section, up to the full amount of such annuity specified by him as the base
for the survivor benefits. The annuity of the participant making such election
shall be reduced by 2 1/2 per centum of any amount up to $2, 400 he specifies as
the base for the survivor benefit plus 10 per centum of any amount over $2, 400
so specified.
(c)(1) If an annuitant dies and is survived by a wife or husband and by a
child or children, in addition to the annuity payable to the surviving wife or hus-
band, there shall be paid to or on behalf of each child an annuity equal to the
smallest of: (i) 40 per centum of the annuitant's average basic salary, as deter-
mined under paragraph (a) of this section, divided by the number of children;
(ii) $600 ;or (iii) $1,800 divided by the number of children.
(2) If an annuitant dies and is not survived by a wife or husband but by a
child or children, each surviving child shall be paid an annuity equal to the
smallest of: (i) 50 per centum of the annuitant's average basic salary, as deter-
mined under paragraph (a) of this section, divided by the number of children;
(ii) $720; or (iii) $2,160 divided by the number of children.
(d) If a surviving wife or husband dies or the annuity of a child is terminated,
the annuities of any remaining children shall be recomputed and paid as though such
wife, husband, or child had not survived the participant.
(e) The annuity payable to a child under paragraph (c) or (d) of this section,
shall begin on the first day of the next month after the participant dies and such
annuity or any right thereto shall be terminated upon death, marriage, or attain-
ment of the age of eighteen years, except that, if a child is incapable of self-
support by reasons of mental or physical disability, the annuity shall be termin-
ated only when such child dies, marries, or recovers from such disability.
(f) Any unmarried participant retiring under the provisions of this Act and
found by the Director to be in good health may at the time of retirement elect
a reduced annuity, in lieu of the annuity as hereinbefore provided, and designate
in writing a person having an insurable interest (as that term is used in 5 U.S. C.
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2259(h) ) iri the participant to receive an annuity after the participant s death. The
annuity payable to the participant making such election shall be reduced by 10 per
centum of an annuity computed as provided in paragraph (a) of this section, and
by 5 per centum of an annuity so computed for each full five years the person
designated is younger than the participant, but such total reduction shall not
exceed 40 per centum. The annuity of a survivor designated under this paragraph
shall be 50 per centum of the reduced annuity computed as prescribed above.
The annuity payable to a beneficiary under the provisions of this paragraph shall
begin on the first day of the next month after the participant dies. Upon the
death of the surviving 'beneficiary all payments shall cease and no further annuity
payments authorized under this paragraph shall be due or payable.
Explanation: This section defines annuitants who may be eligible for benefits
under the retirement system. Comparable provision is made in section 804
of the Foreign Service Act except that the first sentence of paragraph (f),
regarding the designation of a beneficiary by an unmarried participant, uses
language employed for the comparable provision in the Civil Service Retirement
Act (section 9(h) ) which provides that such individual must have an insurable
interest in the participant.
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PART D - BENEFITS ACCRUING TO CERTAIN PARTICIPANTS
Retirement for Disability or Incapacity -- Medical
Examination -- Recovery
Sec. 231. (a) Any participant who has five years of service credit toward retire-
ment under the system, excluding military or naval service that is credited in
accordance with provisions of section 251 or 252(a)(2), and who becomes totally
disabled or incapacitated for useful and efficient service by reason of disease,
illness, or injury not due to vicious habits, intemperance, or willful misconduct
on his part, shall, upon his own application or upon order of the Director, be
retired on an annuity computed as prescribed in section 221. If the disabled
or incapacitated participant has less than twenty years of service credit toward
his retirement under the system at the time he is retired, his annuity shall be
computed on the assumption that he has had twenty years of service, but the
additional service credit that may accrue to a participant under this provision
shall in no case exceed the difference between his age at the time of retirement
and the mandatory retirement age applicable to his grade in the Agency.
(b) In each case, the participant shall be given a medical examination by one
or more duly qualified physicians or surgeons designated by the Director to con-
duct examinations, and disability shall be determined by the Director on the basis
of the advice of such physicians or surgeons. Unless the disability is permanent,
like examinations shall be made annually until the annuitant has reached the
statutory mandatory retirement age fdr his grade in the Agency. If the Director
determines on the basis of the advice of one or more duly qualified physicians
or surgeons conducting such examinations that an annuitant has recovered to
the extent that he can return to duty, the annuitant may apply for reinstatement
or reappointment in the Agency within one year from the date his recovery is
determined. Upon application the Director may reinstate any such recovered
disability annuitant in the grade in which he was serving at time of retirement, or
the Director may, taking into consideration the age, qualifications, and experience
of such annuitant, and the present grade of his contemporaries in the Agency,
appoint him to a grade higher than the one in which he was serving prior to retire-
ment. Payment of the annuity shall continue until a date six months after the d4e
of the examination showing recovery or until the date of reinstatement or reappoint-
ment in the Agency, whichever is earlier. Fees for examinations under this
provision, together with reasonable traveling and other expenses incurred in order
to submit to examination, shall be paid out of the fund. If the annuitant fails to
submit to examination as required under this section, payment of the annuity shall
be suspended until continuance of the disability is satisfactorily established.
(c) If a recovered disability annuitant whose annuity is discontinued is for
any reason not reinstated or reappointed in the Agency, he shall be considered
to have been separated within the meaning of paragraphs (a) and (b) of section 234
as of the date he was retired for disability and he shall, after the discontinuance
of the disability annuity, be entitled to the benefits of that section or of section
241(a) except that he may elect voluntary retirement in accordance with the pro-
visions of section 233 if he can qualify under its provisions.
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(d) No participant shall be entitled to receive an annuity under this Act and
compensation for injury or disability to himself under the Federal Employees'
Compensation Act of September 7, 1916, as amended, (5 U. S. C. 751 et seq. )
covering the same period of time. This provision shall not bar the right of any
claimant to the greater benefit conferred by either Act for any part of the same
period of time. Neither this provision nor any provision of the said Act of
September 7, 1916, as amended, shall be so construed as to deny the right of
any person to receive an annuity under this Act by reason of his own services
and to receive concurrently any payment under such Act of September 7, 1916,
as amended, by reason of the death of any other person.
(e) Notwithstanding any provision of law to the contrary, the right of any
person entitled to an annuity under this Act shall not be affected because such
person has received an award of compensation in a lump sum under section 14
of the Federal Employee& Compensation Act of September 7, 1916, as amended,
(5 U.S. C. 764) except that where such annuity is payable on account of the same
disability for which compensation under such section has been paid, so much of
such compensation as has been paid for any period extended beyond the date such
annuity becomes effective, as determined by the Secretary of Labor, shall be
refunded to the Department of Labor, to be paid into the Federal Employees'
Compensation Fund. Before such person shall receive such annuity he shall
(1) refund to the Department of Labor the amount representing such commuted
payments for such extended period, or (2) authorize the deduction of such
amount from the annuity payable to him under this Act, which amount shall be
transmitted to such Department for reimbursement to such Fund. Deductions
from such annuity may be made from accrued and accruing payments, or may be
prorated against and paid from accruing payments in such manner as the Secre-
tary of Labor shall determine, whenever he finds that the financial circumstances
of the annuitant are such as to warrant such deferred refunding.
Explanation: This section makes provision for retirement of employees who
become disabled or incapacitated for duty. It establishes procedures for physical
examinations and subsequent return to duty when an annuitant has recovered to
the extent that he can return to duty. The section further bars payment of a
disability annuity if the employee is given an award of compensation for the same
disability under the Federal Employees' Compensation Act. (Section 831, FSA)
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Death in Service
Sec. 232. (a) In case a participant dies and no claim for annuity is payable
under the provisions of this Act, his contributions to the fund, with interest
at the rates prescribed in sections 241(a) and 281(a), shall be paid in the order of
precedence shown in section 241(b).
(b) If a participant, who has at least five years of service credit toward
retirement under the system, excluding military or naval service that is
credited in accordance with the provisions of section 251 or 252(a)(2), dies before
separation or retirement from the Agency and is survived by a widow or a depen-
dent widower, as defined in section 204, such widow or dependent widower shall
be entitled to an annuity equal to 50 per centum of the annuity computed in accord-
ance with the provisions of paragraph (e) of this section and of section 221(a).
The annuity of such widow or dependent widower shall commence on the date
following death of the participant and shall terminate upon death of the widow
or dependent widower, or upon the dependent widower's becoming capable of
self-support.
(c) If a participant who has at least five years of service credit toward
retirement under the system, excluding military or naval service that is credited
in accordance with the provisions of section 251 or 252(a)(2), dies before separa-
tion or retirement from the Agency and is survived by a wife or a husband and
?a child or children, each surviving child shall be entitled to an annuity computed
in accordance with the provisions of section 221(c)(1). The child's annuity
shall begin and be terminated in accordance with the provisions of section 221(e).
Upon the death of the surviving wife or husband or termination of the annuity
of a child, the annuities of any remaining children shall be recomputed and paid
as though such wife or husband or child had not survived the participant.
(d) If a participant who has at least five years of service credit toward
retirement under the system, excluding military or naval service that is credited
in accordance with the provisions of section 251 or 252(a)(2), dies before separa-
tion or retirement from the Agency and is not survived by a wife or husband, but
by a child or children, each surviving child shall be entitled to an annuity com-
puted in accordance with the provisions of section 221(c)(2). The child's annuity
shall begin and terminate in accordance with the provisions of section 221(e).
Upon termination of the annuity of a child, the annuities of any remaining children
shall be recomputed and paid as though that child had never been entitled to the
benefit.
(e) If, at the time of his or her death, the participant had less than twenty
years of service credit toward retirement under the system, the annuities
payable in accordance with paragraph (b) of this section shall be computed in
accordance with the provisions of section 221 on the assumption he or she has had
twenty years of service, but the additional service credit that may accrue to a
deceased participant under this provision .shall in no case exceed the difference
between his or her age on the date of death and the mandatory retirement age appli-
cable to his or her grade in the Agency. In all cases arising under paragraphs' (b),
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(c), (d), or (e) of this section, it shall be assumed that the deceased participant
was qualified for retirement on the date of his death.
Explanation: This section provides for payment of an annuity to the survivor(s)
of an employee who dies while in active service. If no annuity is payable, this
section provides for payment of his contributions plus interest to a named bene-
ficiary, or to specified survivors, or to his estate, in a prescribed order of
precedence. (Section 832, FSA)
Voluntary Retirement
Sec. 233. Any participant in the System who is at least fifty years of age and
has rendered twenty years of service may on his own application and with the
consent of the Director be retired from the Agency and receive benefits in
accordance with the provisions of section 221 provided he has not less than five
years of service with the Agency.
Explanation: This section provides for voluntary retirement of an officer when
he reaches age 50 and has at least five years of Agency service and a total of
twenty years of service credit under the system. (Section 636, FSA)
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Sec. 234. (a) Any participant who separates from the Agency after obtaining
at least five years of service credit toward retirement under the system, ex-
cluding military or naval service that is credited in accordance with the pro-
visions of section 251 or 252(a)(2), may, upon separation from the Agency or at
any time prior to becoming eligible for an annuity, elect to have his contributions
to the fund returned to him in accordance with the provisions of section 241, or
(except in cases where the Director determines that separation was based in
whole or in part on the ground of disloyalty to the United States) to leave his
contributions in the fund and receive an annuity, computed as prescribed in
section 221, commending at the age of sixty years.
(b) If a participant who has qualified in accordance with the provisions
of paragraph (a) of this section to receive a deferred annuity commencing at
the age of sixty dies before reaching the age of sixty his contributions to the
fund, with interest, shall be paid in accordance with the provisions of sections
241 and 281.
(c) The Director may in his discretion retire participants in grade GS-14
and above to promote the efficiency of the Agency. If so retired, they shall
receive retirement benefits in accordance with the provisions of section 221,
provided they have in each case not less than five years of qualifying and a total
of ten years of service with the Agency. Any individual so retired who does not
meet these service requirements shall receive the benefits provided for indi-
viduals in grade GS-13 as set out in paragraph (d) of this section.
(d) The Director may in his discretion retire participants in grade GS-13
and below to promote the efficiency of the Agency and each such participant
shall receive--
(1) one-twelfth of a year's salary at his then current salary rate for each
year of service and proportionately for a fraction of a year, but not exceeding
a total of one year's salary at his then current salary rate, payable without
interest, from the fund, in three equal installments on the 1st day of January
following the participant's retirement and on the two anniversaries of this date
immediately following: Provided, That in special cases, the Director may in
his discretion accelerate or combine the installments; and
(2) a refund of the contributions made to the fund, with interest as pro-
vided in section 241(a), except that in lieu of such refund such participant, if
he has at least five years of service credit toward retirement under the system
excluding military or naval service that is credited in accordance with the
provisions of section 251 or 252(a)(2), may elect to receive retirement benefits
on reaching the age of sixty in accordance with the provisions of section 221.
In the event that a participant who was separated from grade GS-13 or GS-12
and who has elected to receive retirement benefits dies before reaching the
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age of sixty, his death shall be considered a death in service within the meaning
of section 232. In the event that a participant who was separated from grade
GS-11 or below and who has elected to receive retirement benefits dies before
reaching the age of sixty, the total amount of his contributions made to the fund,
with interest as provided in section 241(a), shall be paid in accordance with the
provisions of section 241(b).
(e) Notwithstanding the provisions of section 3477 of the Revised Statutes,
as amended,(31 U. S. C. 203) or the provisions of any other law, a participant
who is retired in accordance with the provisions of paragraph (d) of this section
shall have the right to assign to any person or corporation the whole or any part
of the benefits receivable by him pursuant to paragraph (d)(1) of this section.
Explanation: This section provides for the involuntary retirement of employees
by the Director in order to promote the efficiency of the Agency. The compar-
able provisions of the FSA relate to "selection-out" of officers who fail of
promotion or who do not meet required standards of performance.
Retirement benefits provided for employees in GS-14 and above are the same
as those provided for Foreign Service Officers in Classes 1, 2, and 3 except that
more stringent service requirements have been established for this system.
In order to be retired with an immediate annuity, an employee in GS-14 and
above must have at least ten years of service with the Agency which includes at
least five years of service of a nature qualifying him for coverage under this
system. Employees in GS-14 and above who do not meet these service require-
ments will receive the benefits provided for employees in GS-13. The retire-
ment benefits provided for employees in GS-13 and below are the same as those
provided for Foreign Service Officers in Class 4 and below. The linkage levels
established in the Federal Salary Reform Act of 1962 (Public Law 87-793) to
provide comparability for pay purposes have been used to relate Foreign Service
classes to the Agency's General Schedule grades.
Comparable sections of FSA are as follows:
CIA System Foreign Service System
Sec. 234(a) (Refund of contributions)
Sec. 234(b) (Disposition of contribu-
tions upon death prior to receipt of
deferred annuity)
Sec. 234(c) (Involuntary retirement--
employees in grades GS-14 and above)
Sec. 234(d) (Involuntary retirement--
employees in grades GS-13 and below)
Sec.. 234(e) (Assignment of benefits)
Sec. 834(a) and 637(b)
Sec. 834(b)
Sec. 519, 633(b), and 634(a)
Sec. 633(b) and 634(b)
Sec. 634(c)
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Mandatory Retirement for Age
Sec. 235. (a) Any participant in the system in grade GS-18 or above shall
upon reaching the age of sixty-five be retired from the Agency and receive
retirement benefits in accordance with the provisions of section 221, but
whenever- the Director shall determine it to be in the public interest, he may
extend such a participant's service for a period not to exceed five years.
(b) Any participant in the system, other than in grade GS-18 or above,
shall upon reaching the age of sixty be retired from the Agency and receive
retirement benefits in accordance with the provisions of section 221, but
whenever- the Director shall determine it to be in the public interest, he may
extend such a participant's service for a period not to exceed five years.
Explanation: This section provides for the mandatory retirement of employees
in GS-18 or above upon reaching age 65 and of other employees upon reaching
age 60. As in the preceding section, conversion to Agency grades was achieved
by application of the linkage levels established in the Federal Salary Reform
Act of 1962. (Sections 631 and 632, FSA)
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Approved FA e299219
INTEREST IN EXCESS OF BENEFITS RECEIVED
Sec. 241. (a) Whenever a participant becomes separated from the Agency
without becoming eligible for an annuity or a deferred annuity in accordance
with the provisions of this Act, the total amount of contributions from his salary
with interest thereon at 4 per centum per annum, compounded annually as of
December 31, and proportionately for the period served during the year of sep-
aration including all contributions made during or for such period, except as
provided in section 281, shall be returned to him.
(b) In the event that the total contributions of a retired participant, other
than voluntary contributions made in accordance with the provisions of section
281, with interest at 4 per centum per annum compounded annually as is pro-
vided in paragraph (a) of this section added thereto, exceed the total amount
returned to such participant or to an annuitant claiming through him, in the form
of annuities, accumulated at the same rate of interest up to the date the annuity
payments cease under the terms of the annuity, the excess of the accumulated
contributions over the accumulated annuity payments shall be paid in the
following order of precedence, upon the establishment of a valid claim therefor,
and such payment shall be a bar to recovery by any other person:
(1) To the beneficiary or beneficiaries designated by such participant
in writing to the Director;
(2) If there be no such beneficiary, to the surviving wife or husband of
such participant;
(3) If none of the above, to the child or children of such participant and
descendants of deceased children by representation;
(4) If none of the above, to the parents of such participant or the survivor
of them;
(5) If none of the above, to the duly appointed executor or administrator
of the estate of such participant;
(6) If none of the above, to other next of kin of such participant as may be
determined by the Director in his judgment to be legally entitled thereto.
(c) No payment shall be made pursuant to paragraph (b)(6) of this section
until after the expiration of thirty days from the death of the retired participant
or his surviving annuitant.
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Explanation: This section provides for the refund of contributions, plus interest
at 4 per cent to an employee who is separated without attaining eligibility for an
immediate or deferred annuity.
The section further provides for the disposition of contributions, plus in-
terest at 4 per cent, which are in excess of the amounts paid to a participant
or to an annuitant claiming through him. If at the time annuity payments cease,
the accumulated annuities paid to the participant or to an annuitant claiming
through him, or both, are less than the total amount of the contributions of the
participant, plus interest at 4 per cent, the excess of such contributions and
interest is payable to a surviving spouse, children, parents, or estate of a
deceased participant or to his named beneficiary in the same order of precedence
as has beei established under the Foreign Service and the Civil Service retire-
ment systems. (Section 841, FSA)
PART F - PERIOD OF SERVICE FOR ANNUITIES
Computation of Length of Service
Sec. 251. For the purpose of this title, the period of service of a participant
shall be computed from the date he becomes a participant under the provisions
of this Act, but all periods of separation from the Agency and so much of any
leaves of absence without pay as may exceed six months in the aggregate in
any calendar year shall be excluded, except leaves of absence while receiving
benefits under the Federal Employees' Compensation Act of September 7, 1916,
as amended, (5 U.S. C. 751 et. seq.) and leaves of absence granted participants
while performing active and honorable military or naval service in the Army,
Navy, Air Force, Marine Corps, or Coast Guard of the United States.
Explanation: This section provides that the period of service of a participant
under this system shall begin as of the date he becomes a participant but
excludes periods of separation from the Agency or leaves of absence in excess
of six months except when such leave is during a period when the participant is
receiving benefits under the Federal Employees' Compensation Act (for illness
or injury incurred in the performance of duty) or when such leave is for mili-
tary service. (Section 851, FSA)
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Sec. 252. (a) A participant may, subject to the provisions of this section,
include in his period of service--
(1) civilian service in the executive, judicial, and legislative branches of
the Federal Government and in the District of Columbia government, prior to
becoming a participant; and
(2) active and honorable military or naval service in the Army, Navy,
Air Force, Marine Corps, or Coast Guard of the United States.
(b) A participant may obtain prior civilian service credit in accordance
with the provisions of paragraph (a)(1) of this section by making a special con-
tribution to the fund equal to 5 per centum of his basic annual salary for each
year of service for which credit is sought prior to November 8, 1960, and at
6 1/2 per centum thereafter with interest compounded annually at 4 per centum
per annum to the date of payment. Any such participant may, under such con-
ditions as may be determined in each instance by the Director, pay such special
contributions in installments.
(c)(1) If an officer or employee under some other Government retirement
system becomes a participant in the system by direct transfer, such officer
or employee's total contributions and deposits, including interest accrued
thereon, except voluntary contributions, shall be transferred to the fund effec-
tive as of the date such officer or employee becomes a participant in the sys-
tem. Each such officer or employee shall be deemed to consent to the transfer
of such funds and such transfer shall be a complete discharge and acquittance
of all claims and demands against the other Government retirement fund on
account of service rendered prior to becoming a participant in the system.
(2) No participant, whose contributions are transferred to the fund in
accordance with the provisions of paragraph (c)(1) of this section shall be
required to make contributions in addition to those trans ferred, for periods of
service for which full contributions were made to the other Government retire-
ment fund, nor shall any refund be made to any such officer or employee on
account of contributions made during any period to the other Government retire-
ment fund, at a higher rate than that fixed by section 211 of this Act for con-
tributions to the fund.
(3) No officer or employee, whose contributions are transferred to the
fund in accordance with the provisions of paragraph (c)(1) of this section, shall
receive credit for periods of service for which a refund of contributions has
been made, or for which no contributions were made to the other Government
retirement fund. A participant may, however, obtain credit for such prior
service by making a special contribution to the fund in accordance with the
provisions of paragraph (b) of this section.
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(d) No participant may obtain prior civilian service credit toward retire-
ment under the system for any period of civilian service on the basis of which
he is receiving or will in the future be entitled to receive any annuity under
another retirement system covering civilian personnel of the Government.
(e) A participant may obtain prior military or naval service credit in
accordance with the provisions of paragraph (a)(2) of this section by applying
for it to the Director prior to retirement or separation from the Agency. How-
ever, in the case of a participant who is eligible for and receives retired pay on
account of military or naval service, the period of service upon which such
retired pay is based shall not be included, except that in the case of a partici-
pant who is eligible for and receives retired pay on account of a service-con-
nected disability incurred in combat with an enemy of the United States or
caused by an instrumentality of war and incurred in line of duty during a
period of war (as that term is used in chapter 11 of title 38, United States Code),
or is awarded under chapter 67 of title 10 of the United States Code, the period
of such military or naval service shall be included. No contributions to the
fund shall be required in connection with military or naval service credited to
a participant in accordance with the provisions of paragraph (a)(2) of this
section.
Explanation: This section provides for credit under the retirement system of
previous civilian and military service and for the transfer of an individual's
contributions from other Government retirement systems to the Central Intelli-
gence Agency Retirement and Disability Fund. Generally, these provisions
are comparable to those under the civil service retirement system. (Section
852, FSA)
Credit for Service While on Military Leave
Sec. 253. Contributions shall not be required covering periods of leave of
absence from the Agency granted a participant while performing active military
or naval service in the Army, Navy, Air Force, Marine Corps, or Coast Guard
of the United States.
Explanation: This section waives any requirement for contributions to the fund
during leave of absence for military or naval service. (Section 854, FSA)
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Estimate of Appropriations Needed
Mine
Sec. 261. The Director shall prepare the estimates of the annual appropriations
required to be made to the fund, and shall cause to be made actuarial valuations
of the fund at intervals of five years, or oftener if deemed necessary by him.
Explanation: This section provides for estimates of annual appropriations
required to be made to the fund and for actuarial valuation of the fund at least
every five years. It is identical with section 861, FSA, except that there has
been deleted the authorization to expend money for administering the progrhitn
from the fund since funds required for such purposes would be provided by
annual appropriations.
Investment of Moneys in. the Fund
Sec. 262. The Director may, with the approval of the Secretary of the Treasury,
invest from time to time in interest-bearing securities of the United States such
portions of' the fund as in his judgment may not be immediately required for the
payment of annuities, cash benefits, refunds, and allowances, and the income
derived from such investments shall constitute a part of such fund.
Explanation: This section provides necessary authority for the Director to
invest funds which are not immediately required and to deposit the income pro-
Nuir duced by such investment to the fund. (Section 863, FSA)
Attachment of Moneys
Sec. 263. None of the moneys mentioned in this title shall be assignable either
in law or equity, or be subject to execution, levy, attachment, garnishment, or
other legal process, except as provided in section 234(e).
Explanation: This section provides necessary protection to moneys in the fund
to preserve them for the payment of annuities, cash benefits, refunds, and
allowances as provided under the proposed retirement system. (Section 864,
FSA)
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PART H - RETIRED PARTICIPANTS RECALLED, REINSTATED
OR REAPPOINTED IN THE AGENCY OR REEMPLOYED IN THE
GOVERNMENT
Recall
Sec. 271. (a) The Director may recall any retired participant to duty in the Agency
whenever he shall determine such recall is in the public interest.
(b) Any such participant recalled to duty in the Agency in accordance with the
provisions of paragraph (a) of this section or reinstated or reappointed in accord-
ance with the provisions of section 231(b) shall, while so serving, be entitled in
lieu of his annuity to the full salary of the grade in which he is serving. During
such service, he shall make contributions to the fund in accordance with the pro-
visions of section 211. When he reverts to his retired status, his annuity shall
be determined anew in accordance with the provisions of section 221.
Explanation: This section provides for the recall to active service of an annui-
tant when necessary in the public interest. It further provides that such a
recalled annuitant shall be entitled to the full salary of the grade in which he
serves upon recall and for recomputation of his annuity upon completion of
such service. (Sections 520(b) and 871, FSA)
Reemployment
Sec. 272. Notwithstanding any other provision of law, a participant retired under
the provisions of this Act shall not, by reason of his retired status, be barred
from employment in Federal Government service in any appointive position for
which he is qualified. An annuitant so reemployed shall serve at the will of the
appointing officer.
Explanation: This section authorizes the reemployment in Government of an
employee retired under the Agency system. This authority is similar to that
applicable to civil service retirees and is comparable to section 520 (c) FSA.
Reemployment Compensation
Sec. 273. (a) Notwithstanding any other provision of law, any annuitant who has
retired under this Act and who is reemployed in the Federal Government serv-
ice in any appointive position either on a part-time or full-time basis shall be
entitled to receive the salary of the position in which he is serving plus so much
of his annuity payable under this Act which when combined with such salary does
not exceed during any calendar year the basic salary such annuitant was entitled
to receive on the date of his retirement from the Agency. Any such reemployed
annuitant who receives salary during any calendar year in excess of the maximum
amount which he may be entitled to receive under this paragraph shall be entitled
to such salary in lieu of benefits hereunder.
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(b) When any such retired annuitant is reemployed, the employer shall send
a notice to the Agency of such reemployment together with all pertinent informa-
tion relating thereto, and shall pay directly to such annuitant the salary of the
position in which he is serving.
(c) In the event of any overpayment under this section, such overpayment
shall be recovered by withholding the amount involved from the salary payable
to such reemployed annuitant, or from any other moneys, including his annuity,
payable in accordance with the provisions of this title.
Explanation: This section provides that an annuitant who is reemployed in the
federal service in an appointive position is entitled to retain the salary of his
position plus his annuity up to a combined amount which does not exceed the
basic salary of the grade which he held upon retirement. In the event of an
overpayment, the amount of such overpayment may be withheld from either the
salary or the annuity payable to the reemployed annuitant. (Section 872, FSA)
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PART I - VOLUNTARY CONTRIBUTIONS
Sec. 281. (a) Any participant may, at his option and under such regulations as
may be prescribed by the Director, deposit additional sums in multiples of 1
per centum of his basic salary, but not in excess of 10 per centum of such
salary, which amounts together with interest at 3 per centum per annum, com-
pounded annually as of December 31, and proportionately for the period served
during the year of his retirement, including all contributions made during or
for such period, shall, at the date of his retirement and at his election, be--
(1) returned to him in lump sum; or
(2) used to purchase an additional life annuity; or
(3) used to purchase an additional life annuity for himself and to provide
for a cash payment on his death to a beneficiary whose name shall be notified in
writing to the Director by the participant; or
(4) used to purchase an additional life annuity for himself and a life annuity
commencing on his death payable to a beneficiary whose name shall be notified
in writing to the Director by the participant with a guaranteed return to the ben-
eficiary or his legal representative of an amount equal to the cash payment
referred to in subparagraph (3) above.
(b) The benefits provided by subparagraphs (2), (3), or (4) of paragraph
(a) of this section shall be actuarially equivalent in value to the payment pro-
vided for by subparagraph (a.)(1) of this section and shall be calculated upon such
tables of mortality as may be from time to time prescribed for this purpose
by the Director.
(c) In case a participant shall become separated from the Agency for any
reason except retirement on an annuity, the amount of any additional deposits
with interest at 3 per centum per annum, cotnpounded as is provided in para-
graph (a) of this section, made by him under the provisions of said paragraph
(a) shall be refunded in the manner provided in section 241 for the return of
contributions and interest in the case of death or separtion from the Agency.
(d) Any benefits payable to a participant or to his beneficiary in respect
to the additional deposits provided under this section shall be in addition to
the benefits otherwise provided under this title.
Explanation: This section provides for an employee to make voluntary contri-
butions to the fund if he wishes to do so in order to increase the annuity to be
paid to him or to a survivor upon his retirement or death. Similar provision
is contained in both the Foreign Service and the civil service retirement systems.
(Section 881, FSA)
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TITLE III - INTERNAL REVENUE CODE AMENDMENT
Paragraph (4) of section 104(a) of the Internal Revenue Code of 1954, as
amended, (26 U.S. C. 104(a)(4) ) (relating to the exclusion from gross income
of compensation for injuries and sickness) is hereby amended to read as
follows:
"(4) amounts received as a pension, annuity, or similar allowance for per-
sonal injuries or sickness resulting from active service in the armed forces
of any country or in the Coast and Geodetic Survey or the Public Health Serv-
ice, or as a disability annuity payable under the provisions of section 831 of the
Foreign Service Act of 1946, as amended (22 U.S.C. 1081, 60 Stat. 1021), or as
a disability annuity payable under the provisions of section 231 of the Central
Intelligence Agency Retirement Act of 1963."
Explanation: This section amends paragraph 4 of section 104(a) of the Internal
Revenue Code of 1954 to exempt disability annuities under Title II of this Act
from Federal income tax. This is the same exemption already accorded similar
annuities for participants under the Foreign Service Disability and Retirement
System and for members of the uniformed services. (This section was favorably
reviewed by the Department of Treasury in processing within the Executive
Branch.)
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CROSS-REFERENCE INDEX TO FOREIGN SERVICE ACT
HR 7216 (Revised)
Sec. Page/tine
Subject
Extracts from
Foreign Service
Act
Sec. Page
201
202
203
204
2
2
3
3
4
21
1
9
Rules and Regulations
Establishment and Maintenance of Fund
Participants
Annuitants
801
802
803
804
5
5
5
6
211
4
6
Compulsory Contributions
811
7
221
4
20
Computation of Annuities
821
7
231
7
6
Retirement for Disability
831
8
232
10
13
Death in Service
832
10
233
12
12
Voluntary Retirement
636
3
234
Discontinued Service Retirement
(a)
12
19
Refund of Contributions
834(a)
12
637(b)
3
(b)
13
6
Disposition of Contributions upon
834(b)
12
Death Prior to Receipt of Deferred
Annuity
(c)
13
11
Involuntary Retirement-Zmployees in
519
18
GS-14 and Above
633(b)
1
634(a)
2
(d)
13
12
Involuntary Retirement?Employees in
633(b)
1
GS-13 and Below) Severance Pay
634(b)
2
(e)
14
23
Assignment of Benefits
634(0)
2
235
15
6
Mandatory Retirement for Age
631
1
632
1
241
15
19
Disposition of Contributions and Interest
in Excess of Benefits Received
841
12
-1-
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Extrscts from
Foreign Service
BR 7216 (Revised) Act
Sec. Page/Line Subject Seco Page
251
17 5
Computation of Length of Service
851
13
252
17
17
Prior Service Credit
852
13
253
20
5
Credit for Service while on Military Leave
854
15
261
20
11
Estimate of Appropriations Needed
861
15
262
20
16
Investment of Moneys in the Fund
863
16
263
20
24
Attachment of Moneys
864
16
271
21
15
Recall of Annuitants to Duty in Agency
520(b)
18
871
16
272
21
18
Reemployment of Annuitants in Other
520(c)
18
Federal Agencies
273
21
23
Reemployment Compensation
872
16
281
22
20
Voluntary Contributions
881
17
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THE FOREIGN SERVICE ACT OF 1946, AS AMENDED
TITLE VI - PERSONNEL ADMINISTRATION
PART D. SEPARATION OF OFFICERS AND EMPLOYEES FROM THE SERVICE
Foreign Service Officers who are Career Ambassadors or Career Ministers
Sec. 631. Any Foreign Service officer who is a career ambassador or a
career minister, other than one occupying a position as chief of mission
or any other position to which he has been appointed by the President,
by and with the advice and consent of the Senate, shall upon reaching
the age of sixty-five, be retired from the Service and receive retire-
ment benefits in accordance with the provisions of section 821, but
whenever the Secretary shall determine it to be in the public interest,
he may extend such an officer's service for a period not to exceed five
years.
Participants in the Foreign Service Retirement and Disability System who
are not Career Ambassadors or Career Ministers
Sec. 632. Any participant in the Foreign Service Retirement and Disa-
bility System, other than one occupying a position as chief of mission
or any other position to which he has been appointed by the President,
by and with the advice and consent of the Senate, who is not a career
ambassador or a career minister shall, upon reaching the age of sixty,
be retired from the Service and receive retirement benefits in accord-
ance with the provisions of section 821, but whenever the Secretary
shall determine it to be in the public interest, he may extend such
participant's service for a period not to exceed five years.
Selection-Out
Sec. 633. (a) The Secretary shall prescribe regulations concerning--
(1) the maximum period during which any Foreign Serv-
ice officer below the class of career minister shall be permitted to
remain in class without promotion; and
(2) the standard of performance which any such officer
must maintain to remain in the Service.
(b) Any Foreign Service officer below the class of career
minister who does not receive a promotion to a higher class within the
specified period or who fails to meet the standard of performance re-
quired of officers of his class shall be retired from the Service and
receive benefits in accordance with the provisions of section 634.
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Selection-Cut Benefits
Sec. 634. (a) Any Foreign Service officer in classes 1, 2, or 3 who
is retired from the Service in accordance with the provisions of sec-
tion 633 shall receive retirement benefits in accordance with the pro-
visions of section 821.
(b) Any Foreign Service officer in classes 4, 5, 6 or 7 who
is retired from the Service in accordance with the provisions of section
633 shall receive--
(1) one-twelfth of a year's salary at his then current
salary rate for each year of service and proportionately for a fraction
of a year, but not exceeding a total of one year's salary at his then
current salary rate, payable without interest, from the Foreign Service
Retirement and Disability Fund, in three equal installments on the 1st
day of January following the officer's retirement and on the two anni-
versaries of this date immediately following: Provided, That in special
cases, the Secretary may in his discretion accelerate or combine the
installments; and
(2) a refund of the contributions made to the Foreign
Service Retirement and Disability Fund, with interest as provided in
section 841(a), except that in lieu of such refund such officer, if he
has at least five years of service credit toward retirement under the
Foreign Service Retirement and Disability System, excluding military or
naval service that is credited in accordance with the provisions of sec-
tion 851 or 852(a), may elect to receive retirement benefits on reaching
the age of sixty in accordance with the provisions of section 821. In
the event that an officer who was separated from class 4 or 5 and who
has elected to receive retirement benefits dies before reaching the age
of sixty, his death shall be considered a death in service within the
meaning of section 832. In the event that an officer who was separated
from class 6 or 7 and who has elected to receive retirement benefits
dies before reaching the age of sixty, the total amount of his contri-
butions made to the Foreign Service Retirement and Disability Fund, with
interest as provided in section 841(a), shall be paid in accordance with
the provisions of section 841(b).
(c) Notwithstanding the provisions of section 3477 of the
Revised Statutes, as amended (31 U.S.C. 203) or the provisions of any
other law, a Foreign Service officer who is retired in accordance with
the provisions of section 633 shall have the right to assign to any
person or corporation the whole or any part of the benefits receivable
by him pursuant to paragraph (b)(1) of this section. Any such assign-
ment shall be on a form approved by the Secretary of the Treasury and a
copy thereof shall be deposited with the Secretary of the Treasury by
the officer executing the assignment.
2
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Foreign Service Officers Retired from Class 7 or 8
Sec. 635. Any Foreign Service officer in class 7 who is appointed
under the provisions of section 516(b) and any Foreign Service officer
in class 8 shall occupy probationary status. The Secretary may termi-
nate his service at any time.
Voluntary Retirement
Sec. 636. Any participant in the Foreign Service Retirement and Disa-
bility System who is at least fifty years of age and has rendered
twenty years of service, including service within the meaning of sec-
tion 853, may on his own application and with the consent of the
Secretary be retired from the Service and receive benefits in accord-
ance with the provisions of section 821.
Separation for Cause
Sec. 637. (a) The Secretary may, under such regulations as he may
prescribe, separate from the Service any Foreign Service officer,
Reserve officer, or staff officer or employee, on account of the unsat-
isfactory performance of his duties, or for such other cause as will
promote the efficiency of the Service, with reasons given in writing,
but no such officer or employee shall be so separated until he shall
have been granted a hearing by the Board of the Foreign Service and the
unsatisfactory performance of his duties, or other cause for separation,
shall have been established at such hearing, unless he shall have waived
in writing his right to a hearing. The provisions of this section shall
not apply to Foreign Service officers of class 8 or any other officer or
employee of the Service who is in a probationary status or whose appoint-
ment is limited or temporary, except when separation is by reason of
misconduct.
(b) Any participant in the Foreign Service Retirement and
Disability System separated under the provisions of paragraph (a) of
this section shall receive a refund of the contributions made to the
Foreign Service Retirement and Disability Fund, with interest, as pro-
vided in section 841(a) except that in lieu of such refund such officer
may (except in cases where the Secretary determines that separation was
based in whole or in part on the ground of disloyalty to the United
States) if he has at least five years of service credit toward retire-
ment under this System, excluding military or naval service that is
credited in accordance with the provisions of section 851 or 852 (a),
elect to leave his contributions in the Fund and receive an annuity,
computed as prescribed in section 821 commencing at the age of sixty
years. In the event that an officer who has elected under the provisions
of this section to receive a deferred annuity dies before reaching the
age of sixty, his contributions to the Fund, with interest, shall be
paid in accordance with the provisions of sections 841 and 881.
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(c) Any officer or employee of the Service separated under
the provisions of paragraph (a) of this section who is not a participant
in the Foreign Service Retirement and Disability System shall be entitled
only to such benefits as shall accrue to him under the retirement system
in which he is a participant.
(d) Any payments made in accordance with the provisions of
paragraph (b) of this section shall be made out of the Foreign Service
Retirement and Disability Fund.
Termination of Limited Appointments of Foreign Service Reserve Officers
and Staff Officers and Employees
Sec. 638. Notwithstanding the provisions of this or any other law, the
Secretary may, under such regulations as he may prescribe, terminate at
any time the services of any Reserve officer or staff officer or employee
serving under limited appointment, except that, if the termination is
because of misconduct, the provisions of section 637 shall be applicable.
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TITLE VIII -- THE FOREIGN SERVICE RETIREMENT AND DISABILITY SYSTEM
PART A. ESTABLISHMENT OF SYSTEM
Rules and Regulations
Sec. 801. (a) The President may prescribe rules and regulations for
the maintenance of a Foreign Service Retirement and Disability System,
originally established by section 18 of the Act of May 24, 1924 (43
Stat. 1)44), referred to hereafter as the System.
(b) The Secretary shall administer the System in accordance
with such rules and regulations and with the principles established by
this Act.
Maintenance of Funds
Sec. 802. The Secretary of the Treasury shall maintain the special fund,
known as the Foreign Service Retirement and Disability Fund, referred to
hereafter as the Fund, originally constituted by section 18 of the Act
of May 24, 1924 (43 Stat. 1)4).
Participants
Sec. 803. (a) The following persons, hereafter referred to as partici-
pants, shall be entitled to the benefits of the System:
(1) All Foreign Service officers;
(2) All other persons making contributions to the Fund
on the effective date of this Act;
(3) Any chief of mission who is not otherwise entitled
to be a participant and who fulfills the conditions of paragraph (b)
of this section;
(b) A person to become a participant in accordance with the
provisions of paragraphs (a)(3) of this section must --
(1) have served as chief of mission for an aggregate
period of twenty years or more, exclusive of extra service credit in
accordance with the provisions of section 853; and
(2) have paid into the Fund a special contribution for
each year of such service in accordance with the provisions of section
852(b).
(c) (1) In accordance with such regulations as the President
may prescribe, any Foreign Service staff officer or employee appointed
by the Secretary of State who has completed at least ten years of con-
tinuous service in the Department's Foreign Service, exclusive of
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military service, shall become a participant in the System and shall
make a special contribution to the Fund in accordance with the provisions
of section 852.
(2) Any such officer or employee who, under the provisions
of paragraph (c)(1) of this section, becomes a participant in the System,
shall be mandatorily retired for age during the first year after the
effective date of this paragraph if he attains age sixty-four or if he
is over age sixty-four; during the second year at age sixty-three;
during the third year at age sixty-two; during the fourth year at age
sixty-one, and thereafter at age sixty.
(3) Any officer or employee who becomes a participant in
the System under the provisions of paragraph (c)(1) of this section who
is age 57 or over on the effective date of this paragraph, may retire
voluntarily at any time before mandatory retirement under paragraph (c)(2)
of this section and receive retirement benefits under section 821.
Annuitants
Sec. 804. (a) Annuitants shall be persons who are receiving annuities
from the Fund and all persons, including surviving wives and husbands,
widows, dependent widowers, children and beneficiaries of participants
or annuitants who shall become entitled to receive annuities in accord-
ance with the provisions of this Act, as amended, or in accordance with
the provisions of section 5 of the Act of May 1, 1956 (70 Stat. 125).
(b) When used in this title the term --
(1) "Widow" means the surviving wife of a participant who
was married to such participant for at least two years immediately pre-
ceding his death or is the mother of issue by such marriage.
(2) "Dependent widower" means the surviving husband of a
participant who was married to such participant for at least two years
immediately preceding her death or is the father of issue by such marriage,
and who is incapable of self-support by reason of mental or physical disa-
bility, and who received more than one-half of his support from such
participant.
(3) "Child" means an unmarried child, under the age of
eighteen years, or such unmarried child regardless of age who because of
physical or mental disability incurred before age eighteen is incapable
of self-support. In addition to the offspring of the participant and
his or her spouse the term includes (a) an adopted child, and (b) a step-
child or recognized natural child who received more than one-half of his
support from the participant.
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PART B. COMPULSORY CONTRIBUTIONS
Sec. 811 (a) Six and one-half percentum of the basic salary received by
each participant shall be contributed to the Fund for the payment of
annuities, cash benefits, refunds, and allowances. An equal sum shall
also be contributed from the respective appropriation or fund which is
used for payment of his salary. The amounts deducted and withheld from
basic salary together with the amounts so contributed from the appropria-
tion or fund, shall be deposited by the Department of State in the
Treasury of the United States to the credit of the Fund.
(b) Each participant shall be deemed to consent and agree to
such deductions from basic salary, and payment less such deductions shall
be a full and complete discharge and acquaintance of all claims and de-
mands whatsoever for all regular services during the period covered by
such payment, except the right to the benefits to which he shall be
entitled under this Act, notwithstanding any law, rule, or regulation
affecting the individual's salary.
PART C. COMPUTATION OF ANNUITIES
Sec. 821. (a) The annuity of a participant shall be equal to 2 per-
centum of his average basic salary for the highest five consecutive
years of service, for which full contributions have been made to the
Fund, multiplied by the number of years, not exceeding thirty-five, of
service credit obtained in accordance with the provisions of sections
851, 852, and 853. However, the highest five years of service for which
full contributions have been made to the Fund shall be used in computing
the annuity of any participant who serves as chief of mission and whose
continuity of service as such is interrupted prior to retirement by
appointment or assignment to any other position determined by the Secre-
tary to be of comparable importance. In determining the aggregate period
of service upon which the annuity is to be based, the fractional part of
a month, if any, shall not be counted.
(b) At the time of retirement, any married participant may
elect to receive a reduced annuity and to provide for an annuity payable
to his wife or her husband, commencing on the date following such par-
ticipant's death and terminating upon the death of such surviving wife
or husband. The annuity payable to the surviving wife or husband after
such participant's death shall be 50 percentum of the amount of the par-
ticipant's annuity computed as prescribed in paragraph (a) of this sec-
tion, up to the full amount of such annuity specified by him as the base
for the survivor benefits. The annuity of the participant making such
election shall be reduced by 2- percentum of any amount up to $2,400
he specifies as the base for the survivor benefit plus 10 percentum of
any amount over $2,400 so specified.
(c) (1) If an annuitant dies and is survived by a wife or
husband and by a child or children, in addition to the annuity payable
to the surviving wife or husband, there shall be paid to or on behalf
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of each child an annuity equal to the smallest of: (i) 40 percentum of
the annuitant's average basic salary, as determined under paragraph (a)
of this section, divided by the number of children; (ii) $600; or (iii)
$1,800 divided by the number of children.
(2) If an annuitant dies and is not survived by a wife
or husband but by a child or children, each surviving child shall be
paid an annuity equal to the smallest of: (i) 50 percentum of the annu-
itant's average basic salary, as determined under paragraph (a) of this
section, divided by the number of children; (ii) $720; or (iii) $2,160
divided by the number of children.
(d) If a surviving wife or husband dies or the annuity of a
child is terminated, the annuities of any remaining children shall be
recomputed and paid as though such wife, husband, or child had not sur-
vived the participant.
(e) The annuity payable to a child under paragraph (c) or
(d) of this section shall begin on the first day of the next month after
the participant dies and such annuity or any right thereto shall be
terminated upon death, marriage, or attainment of the age of eighteen
years, except that, if a child is incapable of self-support by reasons
of mental or physical disability, the annuity shall be terminated only
when such child dies, marries, or recovers from such disability.
(f) At the time of retirement an unmarried participant may
elect to receive a reduced annuity and to provide for an annuity equal
to 50 percentum of the reduced annuity payable after his or her death
to a beneficiary whose name shall be designated in writing to the Secre-
tary. The annuity payable to a participant making such election shall
be reduced by 10 percentum of an annuity computed as provided in para-
graph (a) of this section and by 5 percentum of an annuity so computed
for each full five years the person designated is younger than the re-
tiring participant, but such total reduction shall not exceed 40 per-
centum. No such election of a reduced annuity payable to a beneficiary
shall be valid until the participant shall have satisfactorily passed a
physicial examination as prescribed by the Secretary. The annuity pay-
able to a beneficiary under the provisions of this paragraph shall begin
on the first day of the next month after the participant dies. Upon the
death of the surviving beneficiary all payments shall cease and no fur-
ther annuity payments authorized under this paragraph shall be due or
payable.
PART D. BENEFITS ACCRUING TO CERTAIN PARTICIPANTS
Retirement for Disability or Incapacity - Physical Examination - Recovery
Sec. 831. (a) Any participant who has five years of service credit
toward retirement under the System, excluding military or naval service
that is credited in accordance with provisions of section 851 or 852 (a)
(2), and who becomes totally disabled or incapacitated for useful and
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efficient service by reason of disease, illness, or injury not due to
vicious habits, intemperance, or willful misconduct on his part, shall
upon his own application or upon order of the Secretary, be retired on
an annuity computed as prescribed in section 821. If the disabled or
incapacitated participant has less than twenty years of service credit
toward his retirement under the System at the time he is retired, his
annuity shall be computed on the assumption that he has had twenty
years of service but the additional service credit that may accrue to a
participant under this provision shall in no case exceed the difference
between his age at the time of retirenent and the mandatory retirement
age applicable to his class in the Service.
(b) In each case, the participant shall be given a physical
examination by one or more duly qualified physicians or surgeons desig-
nated by the Secretary to conduct examinations, and disability shall be
determined by the Secretary on the basis of the advice of such physicians
or surgeons. Unless the disability is permanent, like examinations shall
be made annually until the annuitant has reached the statutory mandatory
retirement age for his class in the Service. If the Secretary determines,
on the basis of the advice of one or more duly qualified physicians or
surgeons conducting such examinations that an annuitant has recovered
to the extent that he can return to duty, the annuitant may apply for
reinstatement or reappointment in the Service within one year from the
date his recovery is determined. Upon application the Secretary shall
reinstate any such recovered disability annuitant in the class in which
he was serving at time of retirement, or the Secretary may, taking into
consideration the age, qualifications, and experience of such annuitant,
and the present class of his contemporaries in the Service, appoint him
or, in the case of an annuitant who is a former Foreign Service officer,
recommend that the President appoint him, by and with the advice and con-
sent of the Senate, to a class higher than the one in which he was serv-
ing prior to retirement. Payment of the annuity shall continue until a
date six months after the date of the examination showing recovery or
until the date of reinstatement or reappointment in the Service, which-
ever is earlier. Fees for examinations under this provision, together
with reasonable traveling and other expenses occurred in order to submit
to examination, shall be paid out of the Fund. If the annuitant fails
to submit to examination as required under this section, payment of the
annuity shall be suspended until continuance of the disability is satis-
factorily established.
(c) If a recovered disability annuitant whose annuity is dis-
continued is for any reason not reinstated or reappointed in the Service,
he shall be considered to have been separated within the meaning of sec-
tion, 834 as of the date he was retired for disability and he shall, after
the discontinuance of the disability annuity, be entitled to the benefits
of that section or of section 841(a) except that he may elect voluntary
retirement in accordance with the provisions of section 636 if he can
qualify under its provisions.
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(d) No participant shall be entitled to receive an annuity
under this Act and compensation for injury or disability to himself under
the Federal Employees' Compensation Act of September 7, 1916, as amended,
covering the same period of time. This provision shall not bar the right
of any claimant to the greater benefit conferred by either Act for any
part of the same period of time. Neither this provision nor any provision
of the Act of September 7, 1916, as amended, shall be so construed as to
deny the right of any person to receive an annuity under this Act by
reason of his own services and to receive concurrently any payment under
such Act of September 7, 1916, as amended, by reason of the death of any
other person.
(e) Notwithstanding any provision of law to the contrary, the
right of any person entitled to an annuity under this Act shall not be
affected because such person has received an award of compensation in a
lump sum under section 14 of the Act of September. 7, 1916, as amended,
except that where such annuity is payable on account of the same disability
for which compensation under such section has been paid, so much of such
compensation as has been paid for any period extended beyond the date
such annuity becomes effective, as determined by the Secretary of Labor,
shall be refunded to the Department of Labor, to.be paid into the Federal
Employees' Compensation Fund. Before such person shall receive such annuity
he shall (1) refund to the Department of Labor the amount representing
such computed payments for.such extended period, or (2) authorize the
deduction of such amount from the annuity payable to him under this Act,
which amount shall be transmitted to such Department for reimbursement
to such Fund. Deductions from such annuity may be made from accrued and
accruing payments, or may be prorated against and paid from accruing pay-
ments in such manner as the Secretary of Labor shall determine, whenever
he finds that the financial circumstances of the annuitant are such as to
warrant such deferred refunding.
Death in Service
Sec. 832. (a) In case a participant dies and no claim for annuity is
payable under the provisions of this Act, his contributions to the Fund,
with interest at the rates prescribed in sections 841(a) and 881(a),
shall be paid in the order of precedence shown in section 841(b).
(b) If a participant who has at least five years of service
credit toward retirement under the System, excluding military or naval
service that is credited in accordance with the provisions of section
851 or 852(a)(2), dies before separation or retirement from the Service
and is survived by a widow or a dependent widower, as defined in section
804, such widow or dependent widower shall be entitled to an annuity
equal to 50 percentum of the annuity computed in accordance with the pro-
visions of paragraph (e) of this section and of section 821(a). The
annuity of such widow or dependent widower shall commence on the date fol-
lowing death of the participant and shall terminate upon death of the
widow or dependent widower, or upon the dependent widower's becoming
capable of self-support.
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(c) If a participant who has at least five years of service
credit toward retirement under the System, excluding military or naval
service that is credited in accordance with the provisions of section 851
or 852(a)(2), dies before separation or retirement from the Service and
is survived by a wife or a husband and a child or children, each sur-
viving child shall be entitled to an annuity computed in accordance with
the provisions of section 821(c)(1). The child's annuity shall begin
and be terminated in accordance with the provisions of section 821(e).
Upon the death of the surviving wife or husband or termination of the
annuity of a child, the annuities of any remaining children shall be
recomputed and paid as though such wife or husband or child had not sur-
vived the participant.
(d) If a participant who has at least five years of service
credit toward retirement under the System, excluding military or navel
service that is credited in accordance with the provisions of section 851
or 852 (a)(2), dies before separation or retiremeht from the Service and
is not survived by a wife or husband, but by a child or children, each
surviving child shall be entitled to an annuity computed in accordance
with the provisions of section 821(c)(2). The child's annuity shall begin
and terminate in accordance with the provisions of section 821(e). Upon
termination of the annuity of a child, the annuities of any remaining
children shall be recomputed and paid as though that child had never been
entitled to the benefit.
(e) If, at the time of his or her death, the participant had
less than twenty years of servide credit toward retirement under the Sys-
tem, the annuities payable in accordance with paragraph (b) of this sec-
tion shall be computed in accordance with the provisions of section 821
on the assumption he or she has had twenty years of service, but the
additional service credit that may accrue to a deceased participant under
this provision shall in no case exceed the difference between his or her
age on the date of death and the mandatory retirement age applicable to
his or her class in the Service. In all cases arising under paragraphs
(b), (c), (d), or (e) of this section, it shall be assumed that the
deceased participant was qualified for retirement on the date of his
death.
Retirement of Persons Who are Participants Under Section 803(A)(3)
Sec. 833. (a) Any person who is a participant, has at least twenty
years of service to his credit, and has reached the age of fifty years,
but is not a Foreign Service officer at the time he is retired in accord-
ance with the provisions of law governing retirement in the position that
he occupies, shall be entitled to an annuity computed as prescribed in
section 821.
(b) Any person who is a participant in accordance with the
provisions of section 803(a)(3) shall be entitled to voluntary retirement
to the same extent and subject to the same conditions as a Foreign Service
officer.
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Discontinued Service Retirement
Sec. 834. (a) Any participant who voluntarily separates from the Serv-
ice after obtaining at least five years of service credit toward retire-
ment under the System, excluding military or naval service that is
credited in accordance with the provisions of section 851 or 852(a)(2),
may, upon separation from the Service or at any time prior to becoming
eligible for an annuity, elect to have his contributions to the Fund
returned to him in accordance with the provisions of section 841, or to
leave his contributions in the Fund and receive an annuity, computed as
prescribed in section 821, commencing at the age of sixty years.
(b) If a participant who has qualified in accordance with the
provisions of paragraph (a) of this section to receive a deferred annuity
commencing at the age of sixty dies before reaching the age of sixty his
contributions to the Fund, with interest, shall be paid in accordance
with the provisions of sections 841 and 881.
PART E. DISPOSITION OF CONTRIBUTIONS AND INTEREST IN EXCESS OF
BENEFITS RECEIVED
Sec. 841. (a) Whenever a participant becomes separated from the Serv-
ice without becoming eligible for an annuity or a deferred annuity in
accordance with the provisions of this Act, the total amount of con-
tributions from his salary with interest thereon at 4 percentum per annum,
compounded annually at the end of each fiscal year through June 30, 1960;
semiannually as of December 31, 1960; annually thereafter as of December
31, and proportionately for the period served during the year of separa-
tion including all contributions made during or for such period, except
as provided in section 881, shall be returned to him.
(b) In the event that the total contributions of a retired
participant, other than voluntary contributions made in accordance with
the provisions of section 881, with interest at 4 percentum per annum
compounded annually as is provided in paragraph (a) of this section added
thereto, exceed the total amount returned to such participant or to an
annuitant claiming through him, in the form of annuities, accumulated at
the same rate of interest up to the date the annuity payments cease under
the terms of the annuity, the excess of the accumulated contributions
over the accumulated annuity payments shall be paid in the following
order of precedence, upon the establishment of a valid claim therefor,
and such payment shall be a bar to recovery by any other person:
(1) To the beneficiary or beneficiaries designated by
the retired participant in writing to the Secretary;
(2) If there be no such beneficiary, to the surviving
wife or husband of such participant;
(3) If none of the above, to the child or children of such
participant and descendants of deceased children by representation;
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(4) If none of the above, to the parents of such partici-
pant or the survivor of them;
(5) If none of the above, to the duly appointed executor
or administrator of the estate of such participant;
(6) If none of the above, to other next of kin of such
participant as may be determined by the Secretary in his judgment to be
legally entitled thereto.
(c.) No payment shall be made pursuant to paragraph (b)(6)
of this section until after the expiration of thirty days from the death
of the retired participant or his surviving annuitant.
PART F. PERIOD OF SERVICE FOR ANNUITIES
Computation of Length of Service
Sec. 851. For the purposes of this title, the period of service of a
participant shall be computed from the effective date of appointment as
a Foreign Service officer, or, if appointed prior to July 1, 1924, as
an officer or employee of the Diplomatic or Consular Service of the
United States or from the date he becomes a participant under the pro-
visions of this Act, as amended, but all periods of separation from the
Service and so much of any leaves of absence without pay as may exceed
six months in the aggregate in any calendar year shall be excluded,
except leaves of absence while receiving benefits under the Federal
Employees' Compensation Act of September 7, 1916, as amended, and leaves
of absence granted participants while performing active and honorable
military or naval service in the Army, Navy, Air Force, Marine Corps, or
Coast Guard of the United States.
Prior Service Credit
Sec. 852. (a) A participant may, subject to the provisions of this
section, include in his period of service --
(1) civilian service in the executive, judicial, and
legislative branches of the Federal Government and in the District of
Columbia government, prior to becoming a participant; and
(2) active and honorable military or naval service in
the Army, Navy, Marine Corps, Air Force, or Coast Guard of the United
States.
(b) A person may obtain prior civilian service credit in
accordance with the provisions of paragraph (a)(1) of this section by
making a special contribution to the Fund equal to 5 percentum of his
basic annual salary for each year of service for which credit is sought
subsequent to July 1, 1924, and prior to the effective date of the
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Foreign Service Act Amendments of 1960, and at 61 percentum thereafter
with interest compounded annually at 4 percentum per annum to the date
of payment. Any such person may, under such conditions as may be deter-
mined in each instance by the Secretary, pay such special contributions
in installments.
(c) (1) If an officer or employee under some other Government
retirement system, becomes a participant in the System by direct transfer,
such officer or employee's total contributions and deposits, including
interest accrued thereon, except voluntary contributions, shall be trans-
ferred to the Fund effective as of the date such officer or employee
becomes a participant in the System. Each such officer or employee shall
be deemed to consent to the transfer of such funds and such transfer
shall be a complete discharge and acquittance of all claims and demands
against the other Government retirement fund on account of service rendered
prior to becoming a participant in the System.
(2) No officer or employee, whose contributions are
transferred to the Fund in accordance with the provisions of paragraph
(c)(1) of this section, shall be required to make contributions in addi-
tion to those transferred, for periods of service for which full contri-
butions were made to the other Government retirement fund, nor shall any
refund be made to any such officer or employee on account of contributions
made during any period to the other Government retirement fund, at a
higher rate than that fixed by section 811 of this Act for contributions
to the Fund.
(3) No officer or employee, whose contributions are
transferred to the Fund in accordance with the provisions of paragraph
(c)(1) of this section, shall receive credit for periods of service sub-
sequent to July 1, 1924, for which a refund of contributions has been
made, or for which no contributions were made to the other Government
retirement fund. A participant may, however, obtain credit for such
prior service by making a special contribution to the Fund in accordance
with the provisions of paragraph (b) of this section.
(d) No participant may obtain prior civilian service credit
toward retirement under the System for any period of civilian service
on the basis of which he is receiving or will in the future be entitled
to receive any annuity under another retirement system covering civilian
personnel of the Government.
(e) A participant may obtain prior military or naval service
credit in accordance with the provisions of paragraph (a)(2) of this sec-
tion by applying for it to the Secretary prior to retirement or separa-
tion from the Service. However, in the case of a participant who is
eligible for and receives retired pay on account of military or naval
service, the period of service upon which such retired pay is based
shall not be included, except that in the case of a participant who is
eligible for and receives retired pay on account of a service-connected
disability incurred in combat with an enemy of the United States or
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caused by an instrumentality of war and incurred in line of duty during
a period of war (as that term is used in chapter 11 of title 38, United
States Code), or is awarded under chapter 67 of title 10 of the United
States Code, the period of such military or naval service shall be in-
cluded. No contributions to the Fund shall be required in connection
with military or naval service credited to a participant in accordance
with the provisions of paragraph (a)(2) of this section.
Extra Service Credit for Service at Unhealthful Posts
Sec. 853. The President may from time to time establish a list of places
which by reason of climatic or other extreme conditions are to be classed
as unhealthful posts, and each year of duty subsequent to January 1, 1900,
at such posts inclusive of regular leaves of absence, of participants
thereafter retired, shall be counted as one year and a half, and so on
in like proportion in reckoning the length of service for the purpose of
retirement, fractional months being considered as full months in computing
such service, but no such extra credit for service at such unhealthful
posts shall be credited to any participant who shall have been paid a
salary differential in accordance with section 443, as amended, for such
service performed subsequent to the date of enactment of the Foreign
Service Act Amendments of 1955.
Credit for Service While on Military Leave
Sec. 854. Contributions shall not be required covering periods of leave
of absence from the Service granted a participant while performing active
military or naval service in the Army, Navy, Marine Corps, or Coast Guard
of the United States.
Recomputation of Annuities of Certain Former Participants
Sec. 855. The annuity of each former participant under the System, who
retired prior to July 28, 1956, and who at the time of his retirement had
creditable service in excess of thirty years, shall be recomputed on the
basis of actual years of creditable service not in excess of thirty-five
years. Service which was not creditable under the System on the date a
former participant retired, shall not be included as creditable service
for the purpose of this recomputation. The annuities payable to such
persons shall, when recomputed, be paid at the rates so determined, but
no such recomputation or any other action taken pursuant to this section
shall operate to reduce the rate of the annuity any such person is entitled
to receive ?under the System.
PART G. MONEYS
Estimate of Appropriations Needed
Sec. 861. The Secretary of the Treasury shall prepare the estimates of
the annual appropriations required to be made to the FUnd, and shall
make actuarial valuations of such funds at intervals of five years, or
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oftener if deemed necessary by him. The Secretary of State may expend
from money to the credit of the Fund an amount not exceeding $5,000 per
annum for the incidental expenses necessary in administering the pro-
visions of this title, including actuarial advice.
Annual Report to Congress
Sec. 862. The Secretary shall submit annually to the President and to
the Congress a comparative report showing the condition of the Fund and
estimates of appropriations necessary to continue this title in full
force.
Investment of Moneys in the Fund
Sec. 863. The Secretary of the Treasury shall invest from time to time
in interest-bearing securities of the United States such portions of the
Fund as in his judgment may not be immediately required for the payment
of annuities, cash benefits, refunds, and allowances, and the income
derived from such investments shall constitute a part of such Fund.
Attachment of Moneys
Sec. 864. None of the moneys mentioned in this title shall be assignable
either in law or equity, or be subject to execution, levy, attachment,
garnishment, or other legal process, except as provided in section 634(c).
PART H. ANNUITANTS RECALLED, REINSTATED OR REAPPOINTED IN
THE SERVICE OR REEMPLOYED IN THE GOVERNMENT
Recall
Sec. 871. Any annuitant recalled to duty in the Service in accordance
with the provisions of section 520(b) or reinstated or reappointed in
accordance with the provisions of section 831(b) shall, while so serving,
be entitled in lieu of his annuity to the full salary of the class in
which he is serving. During such service, he shall make contributions
to the Fund in accordance with the provisions of section 811. When he
reverts to his retired status, his annuity shall be determined anew in
accordance with the provisions of section 821.
Reemployment
Sec. 872. (a) Notwithstanding any other provision of law, any officer
or employee of the Service, who has retired under this Act, as amended,
and is receiving an annuity pursuant thereto, and who is reemployed in
the Federal Government service in any appointive position either on a
part-time or full-time basis, shall be entitled to receive the salary of
the position in which he is serving plus so much of his annuity payable
under this Act, as amended, which when combined with such salary does
not exceed during any calendar year the basic salary such officer or
employee was entitled to receive under sections 412 or 415 of the Act,
as amended, on the date of his retirement from the Service. Any such
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reemployed officer or employee who receives salary during any calendar
year in excess of the maximum amount which he may be entitled to receive
under this paragraph shall be entitled to such salary in lieu of bene-
fits hereunder.
(b) When any such retired officer or employee of the Service
is reemployed, the employer shall send a notice to the Department of
State of such reemployment together with all pertinent information
relating thereto, and shall pay directly to such officer or employee the
salary of the position in which he is serving.
(c) In the event of any overpayment under this section, such
overpayment shall be recovered by withholding the amount involved from
the salary payable to such reemployed officer or employee, or from any
other moneys, including his annuity, payable in accordance with the pro-
visions of this title.
PART I. VOLUNTARY CONTRIBUTIONS
Sec. 881. (a) Any participant may, at his option and under such regula-
tions as may be prescribed by the President, deposit additional sums in
multiples of 1 percentum of his basic salary, but not in excess of 10 per-
centum of such salary, which amounts together with interest at 3 percentum
per annum, compounded annually at the end of each fiscal year through
June 30, 1960; semiannually as of December 31, 1960; annually thereafter
as of December 31, and proportionately for the period served during the
year of his retirement, including all contributions made during or for
such period, shall, at the date of his retirement and at his election,
be --
(1) returned to him in a lump sum; or
(2) used to purchase an additional life annuity; or
(3) used to purchase an additional life annuity for him-
self and to provide for a cash payment on his death to a beneficiary
whose name shall be notified in writing to the Secretary by the partici-
pant; or
(4) used to purchase an additional life annuity for him-
self and a life annuity commencing on his death payable to a beneficiary
whose name shall be notified in writing to the Secretary by the partici-
pant with a guaranteed return to the beneficiary or his legal representa-
tive of an amount equal to the cash payment referred to in paragraph 3.
(b) The benefits provided by subparagraphs 2, 3, or 4 of
paragraph (a) of this section shall be actuarially equivalent in value to
the payment provided for by paragraph (a)(1) of this section and shall
be calculated upon such tables of mortality as may be from time to time
prescribed for this purpose by the Secretary of the Treasury.
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(c) In case a participant shall become separated from the
Service for any reason except retirement on an annuity, the amount of
any additional deposits with interest at 3 percentum per annum, com-
pounded as is provided in paragraph (a) of this section, made by him
under the provisions of this paragraph shall be refunded in the manner
provided in section 841 for the return of contributions and interest
in the case of death or separation from the Service.
(d) Any benefits payable to an officer or to his beneficiary
in respect to the additional deposits provided under this paragraph shall
be in addition to the benefits otherwise provided under this title.
TITLE V. APPOINTMENTS AND ASSIGNMENTS
PART B. FOREIGN SERVICE OFFICERS
Reausignment to Foreign Service of Former Ambassadors and Ministers
Sec. 519. If, within three months of the date of the termination of
his services as chief of mission and of any period of authorized leave,
a Foreign Service officer has not again been appointed or assigned as
chief of mission or assigned in accordance with the provisions of section
514, he shall be retired from the Service and receive retirement bene-
fits in accordance with the provisions of section 821.
Reiappointment, Recall, or Reemployment of Foreign Service Officers
Sec. 520. (b) The Secretary may recall any retired Foreign Service
officer temporarily to duty in the Service whenever he shall determine
such recall is in the public interest.
(c) Notwithstanding the provisions of title 5, United States
Code, section 62, and title 5, United States Code, section 715a, a Foreign
Service officer heretofore or hereafter retired under the provisions of
section 631 or 632 or a Foreign Service staff officer or employee here-
after retired under the provisions of section 803 shall not, by reason of
his retired status, be barred from employment in Federal Government serv-
ice in any appointive position for which he is qualified. An annuitant
so reemployed shall serve at the will of the appointing officer.
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Note -- This statute is cited as 63 Stat. 208, 50 U. S. C. 403 (a)
(1949), or P. L. 81-110 (1949).
AN ACT
. To provide for the administration of the Central Intelligence Agency,.
established pursuant to Section 102, National Security Act of 1947, and
for other purposes.
Be it enacted by the'Senate and House of Representatives of the
United State S of America in Cong2212 assembled,
DEFINITIONS
Section 1. That when used in this Act, the term -- 50
(a) "Agency" means the Central Intelligence Agency; U.S.C.A.
(b) "Director" means the. Director of Central Intelligence; 403a
(c) Government agency" means any executive department, commission,
council, independent establishment, corporation wholly or partly owned
by the United States which is an instrumentality of the United States,
board, bureau, division, service, office, officer, authority, adminis-
tration, or other establishment, in the executive branch of the Govern-
ment.
SEAL OF OFFICE
Section 2. The Director of Central Intelligence shall cause a 50
seal of office to be made for the Central Intelligence Agency, of U.S.C.A.
such design as the President shall approve, and judicial notice 403b
shall be taken thereof.
PROCUREMENT AUTHORITIES
Section 3. (a) In the performance of its functions the Central
Intelligence Agency is authorized to exercise the authorities con-
tained in sections 2(c)(1), (2), (3), (4), (5), (6), (10), (12), (15),
(17), and sections 3, 4, 5, 6, and 10 of the Armed Services Procurement
Act of 1947 .(Public Law 413, Eightieth Congress, second session).
(b) In the exercise of the authorities granted in sub-
section (a) of this section, the term "Agency head" shall mean the
Director, the Deputy Director, or the Executive of the Agency.
(c) The determinations and decisions provided in sub-
section (a) of this section to be made by the Agency head may be made
with respect to individual purchases and contracts or with respect to
classes of purchases or contracts, and shall be final. Except as
provided in subsection (d) of this section, the Agency head is authorized
to delegate his powers provided in this section, including the making
of such determinations and decisions, in his discretion and subject to
his direction, to any other officer or officers or officials of the
Agency.
50
U.S.C.A.
403c
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(d) The: power of the Agency heady to make the determina-
tions, or decisions specified in paragraph (12) and (15) of section 2(c)
and. section 5(a) of the Armed Services Procurement Act of 1947 shall
not be delegable. Each determination or decision required by paragraphs
(12) and (15) of section 2(0, by section 4 or by section 5(a) of the
Armed Services Procurement Act of 1947, shall be based upon written
findings made by the official making such determinations, which findings
shall be final and shall be available within the Agency for a period of
at least six years following the date of the determinatiOn.
TRAVEL, ALLOWANCES, AND RELATED EXPENSES
Section 4. fformerly Section 57 Under such regulations as the 50
Director may prescribe,:the Agency, with respect to its officers and U.S.C.A,
employees assigned to duty stations outside the several States of the 403e
United States of America, excluding Alaska and Hawaii,- but including
the District of Columbia, shall
(1) (A) pay the travel expenses.of officers and
employees of the Agency, including expenses incurred while traveling
pursuant to authorized home leave;
(B) pay the travel expenses of members of the
family of an officer or employee of the Agency when proceeding to or
returning from his post of duty; accompanying him on authorized home
leave; or otherwise traveling in accordance with authoritY granted
pursuant to the terms of this or any other Act;
(C) pay the cost of transporting the furniture
and household and persOtal'effects of an officer or employee of the
Agency to his successive posts of duty and, on the termination of
his services, to his residence at time of appointment or to a point
not more distant, or, upon retirement, to the place where he will
reside;
(D) pay the cost of packing and unpacking, trans-
porting to and from a place of storage, and storing the furniture and
household and personal effects of an officer or employee of the Agency,
when he is absent from his post of assignment under Orders, or when
he is assigned to a post to which he cannot take or at which he is
unable to use such furniture and household and personal effects, or
when it is in the public interest or more economical to authorize
storage;, but in no instance shall the weight or volume of the effects
stored together with the weight or volume of the effects transported
exceed the maximum limitations fixed by regulations, when not other-
wise fixed by law;
(E) pay the cost of packing and unpacking, trans-
porting to and from a place of storage, and storing the furniture and
household and personal effects of an officer or employee of the Agency
in connection with assignment or transfer to a new post, from the
date of his departure from his last post or from the date of his
departure from his place of residence in the case of a new officer
or employee and for not to exceed three months after arrival at the
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new post, or until the establishment of residence quarters, whichever
shall be shorter; and in connection with separation of an officer or
employee of the Agency, the cost of packing and unpacking, transporting
to and from a place of storage, and storing for a period not to exceed
three months, his furniture and household and personal effects; but
in no instance shall the weight or volume of the effects transported
exceed the maximum limitations fixed by regulations, when not otherwise
fixed by law.
(F) pay the travel expenses and transportation
costs incident to the removal of the members of the family of an
officer or employee of the Agency and his furniture and household and
personal effects, including automobiles, from a post at which, because
of the prevalence of disturbed conditions, there is imminent danger
to life and property, and the return of such persons, furniture, and
effects to such post upon the cessation of such conditions; or to such
other post as may in the meantime have become the post to which such
officer or employee has been assigned.
(2) Charge expenses in connection with travel of
personnel, their dependents, and transportation of their household
goods and personal effects, involving a change of permanent station,
to the appropriation for the fiscal year current when any part of either
the travel or transportation pertaining to the transfer begins pur-
suant to previously issued travel and transfer orders, notwithstanding
the fact that such travel or transportation may not all be effected
during such fiscal year, or the travel and transfer orders may have
been issued during the prior fiscal year.
(3) (A) Order to any of the several States of the
United States of America (including the District of Columbia, the
Commonwealth of Puerto Rico, and any territory or possession of the
United States) on leave of absence each officer or employee of the
Agency who was a resident of the United States (as described above)
at time of employment, upon completion of two years' continuous serv-
ice abroad, or as soon as possible thereafter.
(B) While in the United States (as described
in paragraph (3)(A) of this section) on leave, the service of any
officer or employee shall be available for work or duties in the
Agency or elsewhere as the Director may prescribe; and the time of
such work or duty shall not be counted as leave.
(C) Where an officer or employee on leave
returns to the United States (as described in paragraph (3)(A) of
this section), leave of absence granted shall be exclusive of the
time actually and necessarily occupied in going to and from the
United States (as so described) and such time as may be necessarily
occupied in awaiting transportation.
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(4) Notwithstanding the provisions of any other law,
transport for or on behalf of an officer or employee of the Agency, a
privately owned motor vehicle in any case in which it shall be deter-
mined that water, rail, or air transportation of the motor vehicle is
necessary or expedient for all or any part of the distance between
points of origin and destination, and pay the costs of such trans-
portation. Not more than one motor vehicle of any officer or employee
of the Agency may be transported under authority of this paragraph
during any four-year period, except that, as a replacement for such
motor vehicle, one additional motor vehicle of any such officer or
employee may be so transported during such period upon approval, in
advance, by the Director and upon a determination, in advance, by the
Director that such replacement is necessary for reasons beyond the
control of the officer or employee and is in the interest of the
Government. After the expiration of a period of four years following
the date of transportation under authority of this paragraph of a pri-
vately owned motor vehicle of any officer or employee who has remained
in continuous service outside the several States of the United States
of America, excluding Alaska and Hawaii, but including the District
of Columbia, during such period, the transportation of a replacement
for such motor vehicle for such officer or employee may be authorized
by the Director in accordance with this paragraph.
(5) (A) In the event of illness or injury requiring
the hospitalization of an officer or full time employee of the Agency,
not the result of vicious habits, intemperance, or misconduct on his
part, incurred while on assignment abroad, in a locality where there
does not exist a suitable hospital or clinic, pay the travel expenses
of such officer or employee by whatever means he shall deem appro-
priate and without regard to the Standardized Government Travel Reg-
ulations and section 10 of the Act of March 3, 1933 (47 Stat. 1516;
5 U.S.C. 73b), to the nearest locality where a suitable hospital or
clinic exists and on his recovery pay for the travel expenses of his
return to his post of duty. If the officer or employee is too ill
to travel unattended, the Director may also pay the travel expenses of
an attendant;
(B) Establish a first-aid station and provide
for the services of a nurse at a post at which, in his opinion, suffi-
cient personnel is employed to warrant such a station: Provided, That,
in his opinion, it is not feasible to utilize an existing facility;
(C) In the event of illness or injury requiring
hospitalization of an officer or full time employee of the Agency,
not the result of vicious habits, intemperance, or misconduct on his
part, incurred in the line of duty while such person is assigned
abroad, pay for the cost of the treatment of such illness or injury
at a suitable hospital or clinic;
(D) Provide for the periodic physical examination
of officers and employees of the Agency and for the cost of admin-
istering inoculations or vaccinations to such officers CT employees.
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(6) Pay the cost of preparing and transporting the
remains of an officer or employee of the Agency or a member of his
family who may die while in travel status or abroad, to his home or
official station, or to such other place as the Director may deter-
mine to be the appropriate place of interment, provided that in no
case shall the expense payable be greater than the amount which would
have been payable had the destination been the home or official
station.
(7) Pay the costs of travel of new appointees and
their dependents, and the transportation of their household goods
and personal effects, from places of actual residence in foreign
countries at time of appointment to places of employment and return
to their actual residences at the time of appointment or a point not
more distant; Provided, That such appointees agree in writing to remain
with the United States Government for a period of not less than twelve
months from the time of appointment.
Violation of such agreement for personal conven-
ience of an employee or because of separation for misconduct will bar
such return payments and, if determined by the Director or his designee
to be in the best interests of the United States, any money expended
by the United States on account of such travel and transportation shall
be considered as a debt due by the individual concerned to the United
States.
GENERAL AUTHORITIES
Section 5. gormerly Section 67 In the performance of its func-
tions, the Central Intelligence Agency is authorized to --
(a) Transfer to and receive from other Government 50
agencies such sums as may be approved by the Bureau of the Budget, U.S.C.A.
for the performance of any of the functions or activities authorized 403f
under sections 102 and 303 of the National Security Act of 1947
(Public Law 253, Eightieth Congress), and any other Government agency
is authorized to transfer to or receive from the Agency such sums
without regard to any provisions of law limiting or prohibiting
transfer between appropriations. Sums transferred to the Agency in
accordance with this paragraph may be expended for the purposes and
under the authority of this Act without regard to limitations of
appropriations from which transferred;
(b) Exchange funds without regard to section 3651
Revised Statutes (31 U.S.C. 543);
(c) Reimburse other Government agencies for services
of personnel assigned to the Agency, and such other Government agencies
are hereby authorized, without regard to provisions of law to the
contrary, so to assign or detail any officer or employee for duty with
the Agency;
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(d) Authorize couriers and guards designated by
the Director to carry firearms when engaged in transportation of con-
fidential documents and materials affecting the national defense
and. security;
(e) Make alterations, improvements, and repairs on
premises rented by the Agency, and pay rent therefor without regard
to limitations on expenditures contained in the Act of June 30, 1932,
as amended: Provided, That in each case the Director shall certify
that exception from such limitations is necessary to the successful
Performance of the Agency's functions or to the security of its
activities.
(f)(1) Notwithstanding section 2 of the Act of
July 31, 1894 (28 Stat. 205), as amended (5 U.S.C.A. 62), or any
other law prohibiting the employment of any retired commissioned or
warrant officer of the armed services, the Agency is hereby authorized
to employ and to pay the compensation of not more than fifteen retired
officers or warrant officers of the armed services while performing
service for the Agency, but while so serving such retired officer
or warrant officer will be entitled to receive only the compensation
of his position with theAgency, or his retired pay, whichever he
.may elect.
(2) Nothing in this section shall limit or affect
the appointment of and payment of compensation to retired officers
or warrant officers not presently or hereafter prohibited by law.
Section 6. formerly Section 77 In the interests of the security
of the foreign intelligence activites of the United States and in order
further to implement the proviso of section 102(d)(3) of the National
Security Act of 1947 (Public Lar 253; Eightieth Congress, first session)
that the Director of Central. Intelligence shall be responsible for
protecting intelligence sources and methods from unauthorized dis-
closure, the Agency shall be exempted from the provisions of sections
1 and 2, chapter 795 of the Act of August 28, 1935 (49 Stat. 956, 957;
5 U.S.C: 654), and the provisions of any other law which require the
publication or disclosure of the organization, functions, names,
official titles, salaries, or numbers of personnel employed by. the
Agency: Provided, That in furtherance of this section, the Director
of the 'Bureau of the Budget shall make no reports to the Congress
in connection with the Agency under section 607, Title VI, chapter 212
of the Act of June 30, 1945, as amended (5 U.S.C. 947(b)),
Section 7. formerly Section 87 Whenever the Director, the 50
Attorney General, and the Commissioner of Immigration shall determine U.S.C.A,
that the entry of a particular alien into the United States for 403h
permanent residence is in the interest of national security or essen-
tial to the furtherance of the national intelligence mission, such
alien and his immediate family shall be given entry into the United
States for permanent residence without regard to their inadmissibility
50
U.S.C.A.
403g
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under the immigration or any other laws and regulations, or to the
failure to comply with such laws and regulations pertaining to admis-
sibility: Provided, That the number of aliens and numbers of their
immediate families entering the United States under the authority of
this section shall in no case exceed one hundred persons in any one
fiscal year.
APPROPRIATIONS
Section 8. formerly Section 107 (a) Notwithstanding any other
provisions of law, sums made available to the Agency by appropriation
or otherwise may be expended for purposes necessary to carry out its
functions, including --
(1) personal services, including personal services 50
without regard to limitations on types of persons to be employed, and
rent at the seat of government and elsewhere; health-service programs 403j
as authorized by law (5 U.S.C. 150); rental of news-reporting services;
purchase or rental and operation of photographic, reproduction,
cryptographic, duplication and printing machines, equipment and devices,
and radio-receiving and radio-sending equipment and devices, including
telegraph and teletype equipment; purchase, maintenance, operation,
repair, and hire of passenger motor vehicles, and aircraft, and vessels
of all kinds; subject to policies established by the Director, trans-
portation of officers and employees of the Agency in Government-owned
automotive equipment between their domiciles and places of employment,
where such personnel are engaged in work which makes such transportation
necessary, and the transportation in such equipment, to and from school,
of children of Agency personnel who have quarters for themselves and
their families at isolated stations outside the continental United States
where adequate public or private transportation is not available; print-
ing and binding; purchase, maintenance, and cleaning of firearms,
including purchase, storage, and maintenance of ammunition; subject to
policies established by the Director, expenses of travel in connection
with, and expenses incident to attendance at meetings of professional,
technical, scientific, and other similar organizations when such
attendance would be a benefit in the conduct of the work of the Agency;
association and library dues; payment of premiums or costs of surety
bonds for officers or employees without regard to the provisions of
61 Stat. 646; 6 U.S.C. IA; payment of claims pursuant to 28 U.S.C.;
acquisition of necessary land and the clearing of such land; construc-
tion of buildings and facilities without regard to 36 Stat. 699;
40 U.S.C. 259, 267; repair, rental, operation, and maintenance of
buildings, utilities, facilities, and appurtenances; and
(2) supplies, equipment, and personnel and con-
tractual services otherwise authorized by law and regulations, when
approved by the Director.
(t) The sums made available to the Agency may be expended
without regard to the provisions of law and regulations relating to the
expenditure of Government funds; and for objects of a confidential,
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extraordinary, or emergency nature, such expenditures to be accounted
for solely on the certificate of the Director and every such certificate
shall be deemed a sufficient voucher for the amount therein certified.
SEPARABILITY OF PROVISIONS
Section 9. fformerly section ii7 If any provision of this Act,
or the application of such provision to any person or circumstances,
is held invalid, the remainder of this Act of the application of such
provision or persons or circumstances other than those as to which it
is held invalid, shall not be affected thereby.
SHORT TITLE
Section 10. formerly Section lq This Act may be cited as the
"Central Intelligence Agency Act of 1949."
Approved June 20, 1949.
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CROSS-REFERENCE INDEX
PROPOSED CENTRAL INTFLT.TGENCE AGENCY FCREIGN SERVICE AND CIVIL SERVICE RETIRENENT SfTENS
Subject
Short title and definitions
Rules and Regulations
Authority to prescribe
Administration
Non-reviewability of decisions
Establishment and Maintenance
of Fund
Participents
Annuitants
Definition of annuitant
Definitions of:
Widow
Dependent widower
Child
Compulsory Contributions
Rate
Employee's consent
Computation of Annuities
Basic formula
Annuity to surviving spouse only;
reduction in employee annuity;
beginning and termination of
survivor annuity
Amount of annuity to surviving
spouse and child(ren)
Proposed CIAR Act
Title I.
Sec. 20I(a)
Sec. 201(b)
Sec. 201(c)
Sec. 202
Sec., 203
Sec. 204(5)
Sec. 2014(b)(1)
Sec. 2014(b)(2)
Sec. 204(b)(3)
Sec. 211(a)
Sec, 211(b)
Sec. 221(a)
Sec. 221(b)
Sec, 221(0)(1)
Foreign Service Act
Not comparable
Sec. 801(a)
Sec. 801(b)
Sec. 802
Sec. 803
Sec. 804(a)
Sec. 804(b)(1)
Sec. 804(b)(2)
Sec. 804(b)(3)
Sec. 811(a)
Sec. 811(b)
Sec, 821(a)
Sec. 821(b)
Sec. 821(c)(1)
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CSR Act
Sec. 19
Sec. 16(a)
Sec. 16(a) & (b)
Sec. 16(c) & (d)
Sec. l(f)
Sec. 2 & Sao. 1(a),
(b), & (c)
Sec. 1(n), (Os & (p)
Sec. 1(h)
Sec. 1(i)
Sec. 1(j)
Sec, 4(0; Sec. 1(d)
Sec. 4(b)
sl7c, 3
1034) Sec.gi3(a);
e
Sec. 9(g)
Seco 19(a)(1) & (2)
Sec. 10(d)
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Subject
Computation of Annuities (seatt4)
Amount of annuity to surviving
child(ren) only
Beginning and termination of
annuity to surviving child
Annuity to designated beneficiary
of unmarried employee
Disability Retirement
Determination of disability; appli-
cation for retirement; computation
of annuity; guaranteed minima
Initial examination
Periodic re-examination
Payment of fees and travel expenses
Recovery: re-employment; diecontin-
name of annuity
Annuity if not re-ompleyed
?lanai exclusiveness of disability
retirement and FECA; employee
election of benefit
Exception of lump-sum FECA award
from general exclusion of con-
current benefits
Death in Service
Lump-sum payment if no entitlement
to annuity
Annuity to surviving sponse only
Annuity to surviving spouse
and child(ren)
Annuity to surviving dhild only
Survivor annuity computed on
basis of minimum of 20 years
of service
Voluntary Retirement
Proposed CIAR Act
Sec. 221(c)(2)
Sec. 221(e)
Sec. 221(1)
Sec. 231(a)
Sec. 231(b)
Sec. 231(b)
Sec. 231(b)
Seco 231(b)
Sec. 231(c)
Sec. 231(d)
Sec. 231(e)
Sec. 232(a)
Sec. 232(b)
Sec. 232(c)
Sec. 232(d)
Sec. 232(e)
Sec. 233
Foreign Service Act CSR Act
Sec. 821(c)(2)
Sec. 821(e)
Sec. 821(f)
Sec. 831(e)
Sec. 831(b)
Sec. 831(b)
Sec. 831(b)
See. 831(b)
Sec. 831(c)
Sec. 831(d)
Sec. 831(e)
Sec. 832(a)
Sec. 832(b)
Sec. 832(c)
Sec. 832(d)
Sec. 832(e)
Sec. 833
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Sec. 10(d) & 16(c)
Sec. 10(d)
See. 9(h); Sec. 10(b)
Sec. 1(g);
Sec. 7(a) & (01
See. 9(a); Sec. 16(c)
Sec. 16(e)
Seco MY
Sec. 16(e)
Sec. 7(d)
Sec. 7(e)
Sec. 7(1)
Sec. 7(g)
See. 1 (1);
Sec. 11(c) & (d)
Sec. 10(c)
See. 10(d)
Sec. 10(d)
Sec. 10(d)
Sec. 6(a), (b), & (e)
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Subject
Discontinued Service Retirement
Option of refund of contributions
or deferred annuity if separated
with 5 years service but no en-
titlement to immediate annuity Sec. 2314(a)
Disposition of contributions of
separated employee who dies
before elietas for payment of
deferred annuity Sec. 234(b)
Involuntary Retirement:
OS-14 and above Sec. 234(c)
OS-13 and below Sec. 234(d)
Right of employee to assign
separation compensation Sec. 234(e)
Proposed CIO Act
Mandatory Retirement for Age
GS-18 and above Sec. 235(e)
Below OS-18 Sec. 235(b)
Disposition of Contributions and
Interest in Excess of Benefits
Received
Refund of contributions if sepa-
rated without annuity entitlement Sec. 241(a)
Disposition of excess of contribu-
tions over annuity payments to
employee or survivor Sec. 241(b)
Deferment of payment of excess
contributions to next-of-kin
other than surviving spouses
parents or child Sec. 241(c)
Period of Service for Annuities
Computation of period of service;
exclusion of specified types
of leave
Sec. 251
Foreign Service Act CM Act
Sec. 8314(a)
Sec, 8311(b)
Sec. 634(a); 633(h)
Sec. 634(b)
Sec. 634(c)
Sec. 8(a)
Sec. 11(d)
Sec. 6(d) & 9(d)
Sec. 6(d) & 9(d)
Sec. 631 ? Sec. 5(a) thru (d)
See. 632; Sec,, 803(c)(3) Sec. 5(e) thru (d)
Sec. 841(a)
Sec. 841(b)
Sec. 841(c)
see. 851
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Sec. 1(1) & 11(a)
Sec. 11(c), (e), & (f)
See. 3(11)? (a)t (d),
(eh (f), & ?g)
Subject
Prior Service Credit
General provision for credit of
prior mtlitary or civilian service
Contribution to fund for prior
civilian service credit
Transfer of contributions from
other Government retirement funds
Special contribution for credit for
service for which refund received
Exclusion of prior civilian service
establishing annuity entitlement
under other Government retirement
system
Credit far prior military or naval
service
Cattributiona not required :or
credit for service while on
military leave
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Proposed CIAR Act
Moneys
Estimate of Appropriations Needed
Investment of Moneys in the Fund
Attachment of Moneys
Recall of Annuitant to Agency Duty:
compensation; re-computation of
annuity
Reemployment of annuitant in federal
service; compensation; recovery of
overpayments
Reemployment of annuitant in federal
service not prohibited but such
annuitant serves at mill of
appointing officer
Voluntary Contributions to Fund
Sec. 252(a)
Sec. 252(b)
Sec. 252(c)
Sec. 252(c)(3)
Sec, 252(d)
Sec. 252(e)
Sec. 253
Sec. 261
Sec. 262
Sec. 263
Sec. 271
Sec, 272
Foreign Service Act CSR Act
Seco 852(a)
Sec, 852(a)
Sect. 852(c)
Sec, 852(o)(3)
Sect. 852(d)
See. 852(e)
Sec. 854
Sec. 861
Sec. 863
Sec. 864
Soo, 520(b) at 813
Sec. 872
Sec. 273 Sec. 520(c)
Sec. 281(a) thru (d) Sec. 881(a) thru (d)
Sec. 3(v) & (j);
Sec. 4(c) & (d)
Sec. /*Ws (Os & (g)
Sec. 4(d)
fte. 2(b), 304 4(04(d)
related. Also, Soo. 11$,
Sooial Security lot
Amoodionto of 1954
Sae. l(r); See. 3(b)
Sec. 4(g)
Sec. 16(f)k(g); Sec. 17(e)
Sec. 17 (a), (b), (c), & (d)
Sec. 15 (a) & (b)
3eo, 13(b)
Income tax exclusion of disability
annuity Title III ffec. 1014(0(4) of
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-4-
Sec. 13(1))
Sec. 13(a)
Sec. 12(a) thru (e)
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1
COMPARISON OF TEXTS OF PROPOSED CENTRAL INTELLIGENCE AGENCY RETIREMENT
ACT AND PERTINENT PROVISIONS OF THE FOREIGN SERVICE ACT AND THE CIVIL ShINICE RETIREMENT ACT
Proposed CIA Retirement Act
TITLE I - SHORT TITLE AND DUBUTIOZE
Part A - SHORT TITLE
Sec. 101. Titles I to III inclusive
of this Act may be cited as the "Cen-
tral Intelligence Agency Retirement
Act of 196311.
Part B - DEFINITIONS
Sec. 111. When used in this Act, the
term--
(I) "Agency" means the Central Intel-
ligence Agency; and
(2) "Director" means the Director of
Central Intelligence or the Deputy
Directbr of Central Intelligenoe.
MIN II - THE CENTRAL INTELLIGENCE
Amur RETIREMENT AAD DISAB/L1TT
SYSTEM
Part A - ESTABLISHMENT OF SYSTEM
Rules and Regulations
Sec. 201. (a) The Director may pre-
scribe rules and regulations for the
establishment of a Central Intelli-
gence Agency Retirement and Disabil-
ity System for a limited number of
employees, referred to hereafter as
the system.
Foreign Service Act
Civil Service Retirement Act
Sec. 101. Titles I to :X, inclusive, of Sec. 19. This Act may be cited as
this Act may be cited as the "Foreign the "Civil Service Retirement Act"
Service Act of 1946".
(Provisions not comparable)
TITLE VIII - THE FOREIGN SERVICE RE-
TIREMENT AND Disarurr SYSTEM
Sec. 801.(a) The President may pre-
scribe rules and regulations for the
maintenance of a Foreign Service Retire-
ment and Disability System, originally
established by section 18 of the Act of
May 24, 1924 (43 Stat.144), referred to
hereafter as the System.
(Provisions not comparable)
(Not comparable)
Soo. 16.(a) This Act shall be admin-
istered by the Commission. Except
as otherwise specifically provided
herein, the Commission is hereby
authorized and directed to perform,
or cause to be performed, any and
all sots and to make such rules and
regulations as may be necessary and
proper for the purpose of carrying
the provisions of this Act into
full force and effect.
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Proposed CIA Retirement Act
Sec. 201, (b) The Director shall
administer the system in accordance
with such rules and regulations and
with the principles established by
this Act.
(o) In the interests of the
security of the foreign intelligence
activities of the United States and
in order further to implement the
proviso of 'section 102(d)(3) of the
National Security Act of 1947, as
amended, (50 U.S.C. 403(d)(3)) that
the Director of Central Intelligenos
shall be responsible for protecting
intelligence sources and methods
from unauthorized disclosure, and
notwithstanding the provisions of
the Administrative Procedure Act
(5 U.S.C. 1001 et jalta) or any
other provisions of law, any deter-
minations by the Director authorized
by the provisions of this title
shall be deemed to be final and oon-
elusive and not subject to review by
any court.
Foreign Service Act
Sec. 801, (b) The Secretary shall
administer the System in accordance
with such rules and regulations and
with the principles established by
this Act.
(No comparable provision in the
Foreign Service Act.)
Civil Service Retirement Act
Sec. 16, (a) (See immediately above.)
(b) Applications under this Act
shall be in such form as the Commis-
sion shall prescribe, and shall be
supported by such certificates from
departments or agencies as the Com-
mission may deem neoessary to the
determination of the rights of
applicants. The Commission shall
adjudicate all claims under this
Act.
(c) Questions of dependency and
disability arising under this Act
shall be determined by the Commis-
sion and its decisions with respect
to such matters shall be final and
conclusive and shall not be subject
to review. The Commission may
order or direct at any time such
medical or other examinations as it
shall deem necessary to determine
the facts relative to the disability
or dependency of any person reoeiving
or applying for annuity under this
Act, and may suspend or deny any such
annuity for failure to submit to any
such examination,
(d) An appeal to the Commission
shall lie from any administrative
action or order affecting the rights
or interests of any person or of the
United States under this Act, the
procedure on appeal to be prescribed
by the Commission.
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Approved For Release 2002/01/23 ; CIA-RDP75600380R000500020007-2
Proposed CIA Retirement Act
letablishment and Meintenanoe of Fund
Sec. 202. Mere is hereby created a
fund to be known as the Central In-
telligence Agency Retirement and
Disability Fund mhieb shall be main-
tained by the Director. The Central
Intelligence Agency Retirement and
Disability Fund is referred to here-
after in this title as the Auld.
Foreign Service Act
Sec. 802. The Secretary of the Trea-
sury !hail maintain the special funds
known as the Foreign Service Retire-
ment and Disability Fund, referred to
hereafter as the nand, originally
constituted by section 18 of the Act
of Rey 242 1924 (43 Stat. 144).
Civil Service Retirement Act
Sec. 1. (f) The term ?fund" Shall
mean the civil service retirement
and disability fund created by the
Lot of Rey 22A 1920.
-3-
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Approved For Release 2002/01/23 ? CIA-RDP75600380R000500020007-2
Proposed CIA Retirement Lot
Participants-
Secq, 203. The Director may designate
from time to time such Agency officers
and employees, hereafter referred to
as participants, who shall be entitled
to the benefits of the system. Any
participant who has completed fifteen
years of service with the Agency and
whose career at that time is adjudged
by the Directorte be qualifying for
the system may sleet to remain a
participant of such system for the
duration of his employment by the
Agency.
Foreign Service Act
See. 803(a)The fnllowing persons,
hereafter referred to as participants,
/hell be entitled to the benefits of
the System:
(1) All Foreign Service officers;
(2) All other persons making contri7
buttons to the Fund on the effective
date of this Act;
(3) Any chief of mission who is not
otherwise entitled to be a participant
and who fulfills the conditions of
paragraph (b) of this section;
(b) A person to become a participant
in accordance with the provisions of
paragraphs (a)(3) of this section must-
(1) have served as thief of mission
for an aggregate period of twenty
years or more, exclusive of extra ser-
vice credit in acoordanoe with the
provisions of section 853; and
(2) have paid into the Fund a spe-
cial contribution for each year of such
service in acoordance with the provi-
sions of section 852(b).
(c)(1) In accordance with such
regulations as the President my pre-
scribe, any Foreign Service staff
officer or employee appointed by the
Secretary of State who has empleted
at least ten years of continuous ser-
vice in the Departments Foreign
Service, exclusive of military ser-
vice, shall become a participant in
the System and shall mak* a special
contribution to the Fund in accord-
ance with the provisions of section
852
ffiea. 803(c)(2) & (3) relate to the
retirement of participants under
section 8036c)ClIZ
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Civil Service Retirement Act
Sec. 2. (a) This Act shall apply to
each employee and *Mbar, except as
hereinafter provided.
tali,l(a). The term "employee"
term
a civilian Wiser ar
ployee in or under the Goverment
and, except for purposes of section
2, 'hell man. person tombola tkis
Act applies.
CO The tern "MeMber" shall mean
the Vice President, a United States
Senstor, Representative in Congress,
Delegate from a Territory, or the
Resident Commissioner from Puerto
Rico, ands except for purposes of
section 2, shell mean a Welber to
wham this Act applies.
(c) ?Defines "congressional
emacrmii7 ?
(b) This Act shall not apply to
the President, to any judge of the
United States as defined under sec-
tion 451 of title 28 of the United
States Code, or to. any employee of
the Government sulject to another
retirement system for Government
employ..!. (Underscoring supplied)
, 201 and (d) concern Nabors
and congressional employees. Seo-
tion 2(,) satimorime exeleaten of
temporary or intisatteat sa-
playpen. Section 2(f) excludes
specified categories of temporary
or intermittent employees. Section
2(g) applies to Civil Service
Comissioners. Section 2(h) apcaiet
to specified persons who are
employed by county ommedttese under
the Sell Oonnermrama and Deneetio
Allotment Aotil
500020007-2
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Proposed CIA Retirement Act
inanitouto
Sec. 2040 (a) Annuitants shall be
participants who are receiving
annuities from the fund and all
persons, including surviving wives
and husbands, widows, dependent
widowers, children, and benefi-
ciaries of participants or annui-
tants who shall become entitled
to receive annuities in accord-
ance with the provisions of this
Lot.
(3) When need in this title the
term--
(1) "Widow" means the surviving
wife of a participant who was mar-
ried to such participant for at
least two years immediately preced-
ing his death or who is the mother
of issue by such marriage.
(2) "Dependent widower" means the
surviving husband of a participant
who was married to such participant
for at least two years immediately
preceding her death or who is the
father of issue by such marriage,
and who is incapable of self-
support by reason of mental or phy-
sical disability, and who received
more than one-half of his support
from such participant.
Foreign Service Act
Sec. 804. (a) Annuitants shall be
persons who are receiving annuities
from the Fund and all persons, in-
eluding surviving wives and husbands,
widows, dependent widowers, children
and beneficiaries of participants or
annuitants who shall become entitled
to receive annuities in accordance
with the provisions of this Act, as
amended, or in accordance with the
provisions of section 5 of the Act
of May 1, 1956 (70 Stat. 125).
(b) When used in this title the
tem--
(1) "Widow" means the surviving
wife of a participant who was mar-
ried to such participant for at
least two years immediately preced-
ing his death or is the mother of
issue by such marriage.,
(2) "Dependent widower" means the
surviving husband of a participant
who was married to such participant
for at least two years immediately
preceding her death or is the father
of issue by such marriage, and who is
incapable of self-support by reason
of mental or physical disability, and
who received more than one-half of
his support from such participant.
-5-
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Civil Service Retirement Act
Sec. 1. (n) The tore "annuitant"
Shill mean any farmer employee or
Member who, on the basis of his
service, has met all requirements
of the Act for title to annuity and
has filed cliche therefore
(e) The term "survivor" shall mean
at prom who is entitled to annuity
ender this Act based on the service
of a deceased employee or MeMber or
of a deceased annuitant.
(p) The term "survivor annuitant"
shall mean a survivor who has filed
claim for annuity.
Sea. 1. (h) The term "widow", for
purposes of section 10, shall mean
the surviving wife of an employee
or Mather who was married to such
individual for at least two years
immediately preceding his death or
is the mother of issue by such
marriage.
(i) The term "widower", for pur-
poses of section 10, Shall mean
the surviving husband of an em-
ploys. or Member who was married
to such employee or Member for at
least two years immediately pre-
ceding her death or is the father
of issue by such marriage. The
term "dependent widower", for pur-
poses of section IO, Shall mean a
"widower" who is incapable of self-
support by reason of mental or phy-
sical disability, and who received
more than one-half his support fram
such employee or Motor.
Proposed CIA Retirement Act
Sec, 204. (b) (contid)
(3) "Child" means an unmarried
child, under the age of eighteen
years, or such unmarried child re-
gardless of age who, because of phy-
sical or mental disability incurred
before age eighteen, is incapable of
self-support. In addition to the
offepring of the participant amd his
or her spouse, the term includes
(i) an adapted Child, and (ii)
stepchild or recognised uteri/
abild who received mare than one-
half of his support from the
participant.
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Foreign Service Aot
Approved
See. 804, (b) (cantid)
(3) ?Child means an unmarried
child, under the age of eighteen
years, or such unmarried child re-
gardless of age who because of phy-
sical or mental disability incurred
before age eighteen is incapable of
self-support, In addition to the
offspring of the participant and his
or her spouse the term includes
(a) an adopted child, and (b) a
step-child or recognized natural
child who received more than one-
half of his support from the
the participant.
Civil Service Retirement Act
Sec. 1, (contid)
(j) The term "child", for pur-
poses of section 10, shall mean am
unmarried child, including (1) an
adopted child, and (2) a stepchild
or recognized natural child who
received more than one-half his
support from and lived with the
Member or employee in a regular
parent-child relationship* under
the age of eighteen years, or such
unmarried child regardless of age
who because of physical or mental
disability incurred before age
eighteen is incapable of self-
support, or such unmarried child
between eighteen and twenty-ame
years of age who is a student
regularly pursuing a full-time
course of study or training in
residence in a high school, trade
school, technical or vocational
institute, junior college, college,
university, or comparable recog-
nized educational institutica. A
child whose twenty-first birthday
occurs prior to July]. or after
August 31 of any calendar year,
and while he is regularly pursuing
such a course of study or training,
shall be deemed for the purposes of
this paragraph and section 10(d) to
have attained the age of twenty-one
on the first day of July following
such birthday, A child who is a
student shall not be deemed to have
ceased to be a student during any
interim between school years if the
interim does not exceed four months
and if he shows to the satisfaction
Of the Ccamission that he has a
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Approved For Release 2002101123a; CIA-RDP75600380R000500020007-2
Praocedd CLt Retirement Act
Part B - COMPULSORY CONTRIBUTIONS
Sec. 211. (a) Six and one-half per
centum of the basic salary received
by each participant shall be contri-
buted to the fund for the payment of
annuities, cash benefits, refunds,
and allowances. An equal sum shall
also be contributed from the respeo-
tive appropriation or fund which is
used for payment of his salary. The
amounts deducted and withheld from
basic salary together with the
amounts so contributed from the
appropriation or fund, shall be de-
posited by the Agency to the credit
of the fund.
Foreign Servi'td Act
Sec. an. (a) Six and one-half per
centum of the basic salary received
by each participant shall be contri-
buted to the Fund for the payment of
annuities, cash benefits, refunds,
and allowances. An equal sumAbell
also be contributed from the respeo-
tive appropriation aa fUnd which is
used far psyneet ethic salary. The
amountsdeducted sad mithimald from
badesalary together with the
amounts so oantribated from the appro.
priation or fund, Shall be deposited
by the Department of State in the
Treasury of the United States to the
credit of the Fund.
Civil Service Retirement ot
See. 1. (3)(00ot/d)
bona fide intention of continuing to
pursue a ors. of study or training
in the same or different school.der-
ing the school semester (or other
period into which the school year is
divided) immediately fallowing the
interim.
Sec. 4. (a) Freeland after the first
day of the first pay period which
begins on or after the effective date
of the Civil Service Retirement Act
amendments of 1956, there shall be
deducted and withheld from each em-
ployee's basic salary an amount
equal to 61 per mint= of such basic
salary and from each Member's basic
salary an amount equal to 7i per
curb= of such basic salary. From
and after the first day of the first
pay period which begins after June 30,
1957, an equal gram shall also be con-
tributed from the respective appre-
priation or fund which is used for
payment of his seller'', pay or com-
pensation, or in the case of an
elected official, from each appro-
priation or fund as may be available
for payment of other salaries of the
same offioe or establishment. The
amounts so deducted and withheld by
each department or agency, together
with the amounts so contributed,
shall, in accordance with such pro-
cedureas may be prescribed by the
Comptroller General of the United
States, be deposited by the depart-
ment or agency in the Treasury of
the United States to the credit of
-7. (continued on page 8)
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Approved For Release 2002/01/234: CIA-RDP75600380R000500020007-2
Proposed CIA Eetirerasnt Act
Sec. 2110 (b) Each partilimal shall
be deemed to consent and agree to
such deductions from basic salary,
and payment less such deductions
shall be a full and complete dis-
charge and acquittance of all claims
and demands whatsoever for all regu-
lar services during the period
covered by such payment, except the
right to the benefits to which be
shall be entitled under this Act,
notwithstanding any law, rule, or
regulation affecting the individual's
salary.
Fore_tojp_s_rsi Act
Sec. all. (b) Each participant shall
be deemed to consent and agree to
such deductions from basic salary,
and payment less such deductions
shall be a full and complete dis-
charge and acquaintance (81c) of all
claims and demands whatsoever for
all regular services during the
period covered by such payment,
except the right to the benefits to
which he shall be entitled under this
Act, notwithstanding any low, rule,
or regulation affecting the individ-
ual's salary.
43.
Civil Service Estiremant Act
Sec. Is. (a) (contld)
the fUmd. There shall also be
credited all deposits made by em?
ployees or Members under this section,
ffec. 1(4). The term *basic salary"
shall not include bonuses, allow-
ances, overtime pay, military pay,
or salary, pay, or compensation
given in addition to the base pry
of the position as fixed by law or
regulationg Provided, That for me-
ployees paid on a fee basis, the
maximum amount of basic salary
which may be used shall be $10,000
per annum. --remainder of (4) defines
"basic =lame for a Melberg
(b) Each employee or Member shall
be deemed to consent and agree to
such deductions from basic salary,
and payment less such deductions
shall be a full and complete dis-
charge and acquittance of all
claims and demands whatsoever for
all regular services during the
period covered by such payment,
except the right to the benefits
to which be shall be entitled
under this Act, notwithstanding
any law, rule, or regulation
affecting the individual's
salary,
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Approved For Release 2002/01/23a; CIA-RDP75600380R000500020007-2
Proposed CIA Retirement Act
PART C - COMPUTATION OF murnas
See. 221, (a) The annuity of a par-
ticipant shall be equal to 2 per
cleft= of his average basic salary
for the highest five consecutive
years of service, for which fall
contributions have been made to the
fund, multipaied by the number of
years!, not exceeding thirty-five,
of service credit Obtained in ac-
cordance with the provisions of
sections 251 and 252. In deter-
mining the aggregate period of
service upon which the annuity is
to be based, the fractional part
of a month, if any, shall not be
?counted.
Foreign Service Act
Sec. 821, (a) The annuity of a par-
ticipant shall be equal to 2 per
()ant= of his average basic salary
for the highest five consecutive
years of service, for which full
contributions have been made to the
fund, multiplied by the number of
years, not exceeding
of service credit obtained in ac-
cordance with the provisions of
motions 8511 852, and 853. How-
ever, the highest five years of
service for which fell contribu-
tions have been made to the Fund
shall be used in computing the
annuity of any participant who
serves ae chief of mission and
whose continuity of service as such
is interrupted prior to retirement
by appointment or assignment to
any other position determined by
the Seeretery to be of oempszehlo
importance. In determining the
aggregate period of SWIMS span
Aid' the annuity is to be based,
the fractional part of a month, if
any& shall not be counted.
Civil Service Retirement Act
ffec. 1. (e) The term *average
salary" shall me= the largeet
annual rate resulting from aver-
nine, over any period of five
coneecutive years of creditable
1,221st, or at a Hhmber(s option
over all periods of Member ser-
vice subsequent to the date of
enactment of the Legislative Re-
organization Act of 1946 used in
the computation of an annuity
under this Act, a Member's or
an owlmee's rates of basis
salary in effect during such
period, with ea& rate weighted
by the time it was in effect,
(Underscoring supplied..1,
Sec, 9. (a) Except as otherwise
provided in this section, the
annuity of an employee retiring
under this Act shall be (1) the
larger of (A) l per centum of
the average salary multiplied by
so much of the total service as
does not exceed five years, or
(B) 1 percentmm of the average
salary, plus $25, multiplied by
so mph of the total service as
does not exceed five years ? plus
(2) the larva* et (&) 1 3/h per
cent= of the average salary
multiplied by so mesh of the
total service as seem& time
years but does not mooed tam
years, or (B) 1 per centum of
the average salary, plus $25,
multiplied by so much of the
total service as exceeds five
years but does not exceed
ten years, plus (3) the larger
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10)
Approved For Release 2002/01/23i CIA-RDP75600380R000500020007-2
Proposed Act
Foreign Service Act Civil Service Retirement Act
Ss*. 9(a) (contid)
of (A) 2 per =atm of the average
salary multiplied by so mach of the
total service as exceeds ten years,
or (B) 1 per centun of the average
salary, plus $25, mdltiplied by so
much of the total service as ex-
ceeds ten years: Provided, That the
annuity shall not exceed aa per
cents' of the average salary: Pro-
vided further, That the annuity of
an employee retiring under section
7 JLeability retire:I:hall be
at least (1) 40 per of the
average salary or (2) the sum ob-
tained under this subsection after
increasing his total service by
the period elapsing between the
date of separation and the date he
attains the age of sixty years,
whichever is the lesser, but this
proviso Shall not increase the
annuity of any surviver0
Lection 9(b) deals with the
annuity of a congressional em-
ployee, Section 9(c) deals with
the annuity of a &Where Section
9(d) deals with the redaction in
annuity of an employee retiring
under age 604 Section 9(e) deals
with the annuity of an amPlagee
retiring mmdar station 6(o) *Lek
lishes spacial provision fee
W ?(f) The annuity as hereinbefore
V
provided shall be reduoed by 10
per ?tutus of any deposit deseribed
in section 4(0 remaining nmPsids
=less the employee or Member
Shall elect to eliminate the mo-
vies involved for the purposes of
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Approved For Release 2002/01/23i CIA-RDP75600380R000500020007-2
Foreign Service Act Civil Service Retirement Act
Proposed CIA Retirement Act
Sec. 3. (f) An employee must have
completed at least five years of
civilian service before he shall
be eligible for annuity under this
Act.
(g) An employee or Member must
have, within the two-year period
preceding any separation from ser-
vice, other than a separation by
reason of death or disability, com-
pleted at least one year of credi-
table civilian service during which
he was subject to this Act before
he or his survivors shall be eligi-
ble for annuity under this Act based
on such separation. If any employee
or Member, other than an employee
or Member separated from the service
by reason of death or disability,
fails to meet the service require-
ment of the preceding sentence, the
amounts deducted from his salary
during his period of service for
which no eligibility for annuity
is established based on such
separation shall be returned to
him upon such separation. Failure
to meet this service requirement
shall not deprive the individual
or his survivors of any annuity
rights which attached upon a
previous separation. (Underscoring
supplied)
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Proposed CIA Retirement Act
Approved For Release 2002/01/23i CIA-RDP75600380R000500020007-2
Foreign Service Act Civil Service Retirement Act
No comparable provision. No comparable provision.
Sec. 11. (h)(1) Any amounts de-
ducted and withheld from the basic
salary of an employee or Member from
the first day of the first month
which begins after he shall have
yerformed sufficient service (exclu-
sive of any service which the em-
ployee or libmber elects to elimi-
nate for purposes of annuity com-
putation under section 9) to entitle
him to the maximum annuity provided
by section .24 tether with interest
an such amounts at the rate of 3 per
cent um per annum compounded annually
from the date of each deductions to
the date of retirement or death&
shall be applied toward any deposit
due under section 4, and any balance
not so required shall be deemed to
be a voluntary contribution for the
purposes of section 12, (Under-
scoring supplied.)
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Approved For Release 2002/01/23 ? CIA-RDP75600380R000500020007-2
NOTE: COST -OFZIVING ADJUSTMENT OF
ANNUITIES
Section 18 of the Civil Service Re-
tirement Act, quoted below, makes
special provision for automatie cost-
of living increases in annuities. In
addition, under Part III of the Act
of October 11, 1962, each annuity in
effect as of 1 January 1963 was in-
creased by 5 per centum. Part III
of the Act of October 11, 1962 fur-
ther provided for an increase of 4
per centum in each annuity (except
any purchased by voluntary contri-
butions) commencing between 2 Janu-
ary and 31 December 1963, of 3 per
centum in annuities beginning during
calendar year 1964, of 2 percentum
in annuities beginning during calen-
dar year 1965, and of 1 per centum
in annuities beginning during cal-
endar year 1966. There are no com-
parable provisions in either the
Vereign Service Act or the Proposed
CIA Retirement Act.
Sec. 18. (a) After January 1$ 1964$
and after each succeeding January 1,
the Commission shall determine the
per centum change in the price index
from the later of 1962 or the year
preceding the most recent cost-of-
living ad3ustment to the latest am-
plate year. On the basis of such
Cammission determination, the fallow-
ing adjustments shall be made:
(1) Effective April 1, 1964, if the
change in the price index from 1.962
to 1963 shall have equaled a rise of
at least 3 per centams each annuity
payable from the fund which has a
oemmencing data earlier than January 2,
1963 shall be increased by the per eon,.
tura rise in the price index adjusted to
the nearest one-tenth of 1 per centrum.
(2) Effective April 1 of any year
other than 1964 after the price index
change shall have equaled a rise of at
Xsast 3 per centum, each annuity payable
from the fund which has a commencing date
earlier than January 2 of the preceding
year shall be increased by the per centum
rise in the price index adjusted to the
nearest one-tenth of 1 per centime.
(b) Eligibility for an annmity increase
under this section shall be governed by
the commenring date of each annuity pay-
able from the fund as of the effective
date of an increase, except as follows:
(1) Effective from the date of the
first increase under this section, an
annuity payable from the fund to an
annuitant's survivor (other than a
child entitled under section 10(d)),
which annuity commenced the day after
the annuitant's death, shall be in-
creased as provided in subsection (a)(1)
or (a)(2) if the commencing date of
annuity to the annuitant was earlier
than January 2 of the year preceding
the first increase.
(2) Effective from its commencing
date, an annuity payable from the fend
to an annuitant's survivor (other than
a child entitled under section 10(d)),
which annuity commences the day after
the annuitant 's death and after the
effective date of the first increase
under this section, shall be increased
by the total per Dentine increase the
annuitant was receiving under this
section at death.
(3) For purposes of computing an
annuity which commences after the
effective date of the first increase
under this section to a child under
section 10(d), the items $600, $720,
$1000, ax $2360 appearing in sec-
tion 10(d) shall be increased by the
total per centum increase allowed and
in force under this section, and, in
08S0 of a deceased annuitant, the
items 40 per cent= and 50 per con-
tum appearing in section 10(d) shall
be increased by the total per centum
increase allowed and in force under
this section to the annuitant at
death. Effective from the date of
the first increase under this see.
tion, the provisions of this para-
graph shall apply as if such first
increase were in effect with respect
to computation of a child's annuity
under section 10(d) which commenced
between January 2 of the year preced-
ing the first increase and the effec-
tive date of the first increase.
(c) No increase in annuity pro-
vided by this section shall be
oomputed on any additional annuity
purchased at retirement by velum-
t$17 oontributions.
(d) The monthly installment ef
annuity after adjustment under
this section shall be fixed at
the nearest dollar.
ffibc. 1(t). The term "price index"
shall mean the annual average over
a calendar year of the Consumer
Price Index (all items?United
States city average) published
monthly by the Bureau of Labor
Statisticag
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Approved For Release 2002/01/23i CIA-RDP75600380R000500020007-2
Proposed CIA Retirement Act
Sec. 221. (b) At the time of retire-
ment, any married participant may
elect to receive a reduced annuity
and to provide for an annuity pay-
able to his mile or her huiband,
commencing on the date following
such participant's death and
terminating upon the death of such
surviving mile or husband. The
annuity payable to the surviving
vire or husband after such parti-
cipant's death shall be 50 per
centum of the amount of the par-
ticipant's annuity computed as
prescribed in paragraph (a) of
this section, up to the full
amount of such annuity specified
by him as the base for the sur-
vivo'. benefits. The annuity of
the participant making such
election shall be reduced by 2i
per centom of any amount up to
t2,400 he specifies as the base
for the survivor benefit plus
10 per centum of any amount over
$2,400 so specified.
Foreign Service Act
Sec. 821. (b) At the tiam of retire-
sent, any married participant may
elect to receive a reduced annuity
and to provide for an annuity payable
to his wife or her husband, oommeno-
ing on the date renaming such par-
ticipant's death and terminating
upon the death of mach surviving
wife or husband. The annuity payable
to the surviving wife or husband
after such participant's death shall
be 50 per cent= of the aunt of
the participant's annuity computed as
prescribed in paragraph (a) of this
section, up to the full amount of such
annuity specified by him as the base
for the survivor benefits. The
annuity of the participant making
such election shall be reduced by
2i per centum of any amount up to
$2,h00 be specifies as the base for
the survivor benefit plus 10 per
oentum of any amount over $2,400
so specified.
Civil Service Ibtirement Act
Sec. IO. (a)(1) If an employee or
Nember dies after having retired
under any provision of this Act and
is survived by a wife ca. husband to
whai the employee or Member was mar-
ried at the time of retirement, such
wife or husband shall be paid an
annuity equal to 55 per centum of
an annuity computed as provided in
subsections (a), (Ws (0), (d), (411),
and (f) of section 9, as may apply
with respect to the annuitant, or
of such portion thereof as may have
been designated in writing for each
purpose by the employee or Member
at the time of retirement, unless
the employee or Naber has notified
the Commission in writing at the
time of retirement that he does not
desire his wife or husband to re-
ceive such annuity.
(2) An annuity computed under
this subsection shall commence on
the day after the retired employee
or member dies, and such annuity or
any right thereto shall terminate
an the last day of the month before
the survivor's death or remarriage?
Sec. 9. (g) The annuity as herein-
before provided (excluding any in-
crease because of retirement under
section 7 Lasability retirg:::E
for any married employee or r
retiring under this Act, or for any
portion of such annuity designated
in writing for purposes of section
10(a)(1), shall be reduced by 2i- per
centum of so much thereof as does
not exceed $3,600 and by 10 per
centum of so much thereof as
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. Approved For Release 20_02/01/23i CIA-RDP75600380R000500020007-2
Foreign Service Act
Proposed CIA Retirement Act
Seo ? 221. (e)(1) If an annuitant
dies and is survived by a wife or
husband and by a child or children,
in addition to the annuity payable
to the surviving wife or husband,
there shall be paid to or on behalf
of each child an annuity equal to
the emeLlest of: (i) 40 per ovxtum
of the annuitant's average basic
salary, as determined under para-
graph (a) of this section, divided
by the Ember of children; (ii)$600;
or (iii) $1,800 divided by the num-
ber of children.
(2) If an annuitant dies and is
not survived by a wife or husband but
by a Child or children, each surviv-
ing Child shall be paid an annuity
equal to the smallest of (i) 50 per
centum of the annuitant's average
basic salary, as determined under
paragraph (a) of this section, di-
vided by the number of children;
(ii) $720; or (iii) $2,160 divided
by the number of Children?
Sea. 821. (c)(1) If an annuitant
dies and is survived by a wife or
husband and by a child or children,
in addition to the annuity payable
to the surviving 'rife or husband,
there shall be paid to or on behalf
of each child an annuity equal to
the smallest of:(i) 40 per centum
of the annuitant's average basics
salary, as determined under para-
graph (a) of this section, divided
by the number of children; (ii)$600;
or (iii) $1,800 divided by the num-
ber of children.
(2) If an annuitant dies and is
not survived by a wife or husband but
by a child or Children, each surviv6.
ing Child shall be paid an annuity
equal to the smallest of: (i) 50 per
centum of the annuitant's average
basic salary, as determined under
parapet* (a) of this section, di-
vided by the number of Children;
(ii) $720; or (iii) $2,160 divided
by the number of Children,
Civil Service Retirement Act
Seo. 9(g) (canted)
exceeds $3,600 unless the employee
or Member notifies the Commission
in writing at the time of retire-
ment that he does not desire his
wife or husband to receive an
annuity as provided in section
10(a)(1).
Sec. 10. (d) If an employee or a
Marker dies after completing at
least five years of civilian ser-
vice, or an employee or a ?limber
dies after having retired under
any provision of the Act, and is
survived by a wife or by a husband,
each surviving child who received
mmme than one.-half of his support
from such employee or Member Shall
be paid an annuity equal to the
smallest of (1) 40 per centum of
the employee's or Member's average
salary divided by the number of
children, (2) $600, or (3) $1,800
divided by the number of children?
If such employee or Member is not
survived by a wife or husband, each
surviving child shall be paid an
annuity equal to the smallest of
(1) 50 per cent= of the amP107.08
or Member's average salary divided
by the number of children, (2) $720,
or (3) $2,160 divided by the number
of children. The child's annuity
shall commenoe an the day after the
employee or Member dies, and such
annuity granted under this Act or
under the Act of May 29, 1930, as
amended from and after February 28,
1948, or any right thereto shall
terminate an the last day of the
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9/
Approved For Release 2002/01/23i CIA-RDP75600380R000500020007-2
Fond= Service Act
Proposed CIA Retirement Act
Sec. 221. (d) If a surviving wile or
husband dies or the annuity of a
child is terminated, the azamittes
of any remaining children shall be
recomputed and paid as though such
wife, husband, or child had not sur-
vived the participant.
(e) The annuity payable to a Child
under paragraph (c) or (d) of this
section ehell begin on the first day
of the next month after the partici-
pant dies and such annuity or any
right thereto thin be terminated upon
death, marriage, or attainment of the
age of eighteen years, except that, if
a child is incapable of self-support
by reasons of mental or physical die-
ability, the annuity stall be termi-
nated only when such Child dies,
marries, or reamers from atm* dis-
ability.
Sec. 821. (d) If a surviving will
or husband dies or the annuity of a
child is terminated, the annuities of
any remaining ehi)dren AMU be re-
computed and paid as though such
vile, husband, or Child had not stir-
vived the participant?
(e) The annuity payable to a child
under paragraph (c) or (d) of this
section shall begin on the first day
of the next month after the partici-
pant dies and such annuity or any
right thereto shall be terminated upon
death, marriage, or attainment of the
age of eighteen years, except that, if
a child is incapable of self-support
by reasons of mental or physical dis-
ability, the annuity shall to termi-
nated only when such child dies,
marries, or recovers from such dis-
ability.
Civil Service Retirement Act
Sec. 10(d)(coutld)
month before (1) his attaining age
eighteen unless incapable of self-
support, (2) his becoming capable
of self-support after age eighteen,
(3) his marriage, or (4) his death,
except that the annuity of a child
who is a student as described in
section 1(j) Shall terminate an
the last day of the month before (1)
his marriage, (2) his death, (3) his
ceasing to be such a student, or
(4) his attaining age twenty-acs?
Upon the death of the surviving
wile or husband or termination of
the annuity of the child, the
annuity of any other child or
children shall be recomputed and
paid as though such wife, husband,
or child had not survived the
employee or Manber.
/gee Sec. 10(d) above beginning on
page 12 at "The child's annuity
Shall commence on the day after
the employee or &labor dies" and
continuing through "(3) his ceasing
to be a student, or (4) his attain-
ing age twenty-one" immediately
aboved
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Approved For Release 2002/01/23 : CIA-RDP75600380R000500020007-2
Proposed CIA Retirement Act
Sec. 221, (f) Any unmarried partici-
pant retiring under the provisions of
this Act and found by the Director to
be in good health may at the time of
retirement elect a reduced annuity,
in lieu of the annuity as hereinbe-
fore provided, and designate in
writing a person having an insurable
interest (as that term is used in
5 U.S.C. 2259(h)) in the partici-
pant to receive an annuity after the
participant's death. The annuity
payable to the participant making
such election shall be reduced by
10 per centum of an annuity computed
as provided in paragraph (a) of this
section, and by 5 per centum of an
annuity so computed for each fall
five years the person designated is
younger than the participant, but
such total reduction shall not
exceed 40 per centum. The annuity
of a survivor designated under
this paragraph shall be 50 per
centum of the reduced annuity com-
puted as prescribed above. The
annuity payable to a beneficiary
under the provisions of this para-
graph shall begin on the first day
of the next month after the parti-
cipant dies. Upon the death of
the surviving beneficiary all pay-
ments shall cease and no further
annuity peyments authorised under
this paragraph shall be due or
payable.
Foreign Service Act
Sec. 821. (f) At the time of retire-
ment an unmarried participant may
elect to receive a reduced annuity
and provide for an annuity equal to
50 per centum of the reduced annuity
payable after his or her death to a
beneficiary whose name shall be
designated in writing to the Secre-
tary. The annuity payable to a par-
ticipant making such election shall
be reduced by 10 per centum of an
annuity computed as provided in
paragraph (a) of this section and
by 5 per centum of an annuity so
computed for each fall five years
the person designated is younger
than the retiring participant, but
such total reduction shall not ex-
ceed 40 per centum. No such elec-
tion of a reduced annuity payable
to a beneficiary shall be valid
until the participant shall have
satisfactorily passed a physical
examination as prescribed by the
Secretary. The annuity payable to
a beneficiary under the provisions
of this paragraph shall begin on
tthe first day of the next month
after the participant dies. Upon
the death of the surviving bene-
ficiary all payments shall cease
and no further annuity payments
authorized under this paragraph
shall be due or payable,
Civil Service Retirement Act
Sec. 9. (h) Any unmarried employee
or Member retiring under faction 6
or 8, and found by the Commission
to be in good health, may at the
time of retirement elect a reduced
annuity in lieu of the annuity as
hereinbefore provided, and designate
in writing a person having an in-
surable interest in the employee
or Member to receive an annuity
after the retired individual's
death. The annuity payable to the
employee or Member making such
election shall be reduced 10 per
cent= of an annuity computed as
provided in section 9 and lay 5 per
centum of an annuity so computed
for each full five years the per-
son designated is younger than the
retiring employee or Member, but
such total reduction shall not
exceed 40 per oentum.
Sec. 10. (b) The annuity of a sur-
vivor designated under section 9(h)
shall be 55 per centum of the re-
duced annuity computed as provided
in subsections (a)? (b), (c), (d),
(0), (f), and (h) of section 9 an
may apply with respect to the
annuitant. The annuity of such
survivor shall commence on the
day after the retired employee or
Member dies, and such annuity or
any right thereto shall terminate
on the last day of the month be-
fore the survivor's death.
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Approved For Release 2002/01/23 CIA-RDP75600380R000500020007-2
Proposed CIA Retirement Act
PART D - BENEFITS =gum To CERTAIN
PARTICIPANTS
Retirammat for Disability or Incept-
city?Medical Exmmination--Meoevery
Sec. 231. (a) Any participant who has
five years of service credit toward
retirement under the system, exclud-
ing military or naval service that is
credited in accordance with provi-
sions of section 251 or 252(a)(2),
and who becomes totally disabled or
incapacitated for useful and effi-
cient service by reason of disease,
illness, or injury not due to
vicious habits, intemperance, or
willful misconduct on his part,
shall, upon his own application
or upon order of the Director, be
retired on an annuity computed as
prescribed in section 221, If the
disabled or incapacitated partici-
pant has less than twenty years of
service credit toward his retire-
ment under the eyebam at the time he
is retired,his annuity shall be
computed on the assumption that he
has had twenty years of services but
the additional service credit that
may accrue to a participant under
this provision Shall in no oaae ex-
ceed the differanoe between his age
at the time of retirement and the
mandatory retirement age applicable
to his grade in the Agency.
Foreign Service Act
See. 831. (a) Any participant who has
five years of service credit toward
retirement under the System, exclud-
ing military or naval service that is
credited in accordance with provi-
sions of section 851 or
and who becomes totally disabled or
incapacitated for useful and effi-
cient service by reason of disease,
illness, or injury not due to
vicious habits, intemperance, or
willful misconduct on his parts
shall, upon his own application or
upon order of the Secretary be re-
tired on an annuity computed as
prescribed in section 821. If the
disabled or incapacitated partici-
pant has less than twenty years of
service credit toward his retire-
ment under the System at the time he
is retired, his annuity shall be
oamputed on the assumption that he
has had twenty years of service,
but the additional flErVi00 credit
that may accrue to a participant
under this provision shall in no
ease exceed the difference between
his age at the time of retirement
and the mandatory retirement age
applicable to his class in the
3111,400 ?
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Moil Semi** Retiremeet
Soo. 1 (g) The terms *disabled* mad
sability? shall on totally die..
Oiled for useful and efficient service
in the grade or class of position last
amoupied by the employee or Member by
reason of disease or injury not due to
'vicious habits, intemperance, or will-
Sol misconduct on his part within the
lime years next prior to becoming so
disabled.
Sec. 7. (a) Any employee who completes
five years of civilian service and who
is found by the Commiesion to have be-
come disabled 'hall, upon his emn
application or upon application by his
department or agency, be retired an an
amenity computed as provided in sec-
tion 9. Any MeMber who completes fits
years of Melbar service and who is
!bend by the Commission to have become
disabled Shall, upon his own applica-
tion, be retired on an annuity can-
peted as provided in section 9.
(b) No claim shall be allowed under
this section unless the application is
filed with the Commission prior to
'operation of the employ's. or liber
Arm the gerVias or within use year
rsafter. This time limitation may
be waived by the Commission for an
individual who at the dote of separa-
tion fran service or within am year
thereafter is mentally incompetent,
it the application is filed with the
Commission within one year from the
at, of restoration of sudh indivi-
dual to oompeteney or tho appointment
qpir a fiduciary, whichever is the
ild an page 16)
Approved For Release 2002/01/2
Proposed CIA Retirement Act
Sec. 231. (b) In each case, the par-
ticipant shall be given a medical
examination by one or more duly
qualified physicians or surgeons
designated by the Director to conduct
examinations, an disability shall be
determined by the Director on the
basis of the advice of such physicians
or surgeons. Unless the disability
is permanent, like examinations
shall be made annually until the
annuitant has reached the statutory
mandatory retirement age for his
grade in the Agency, If the Direc-
tor determines on the basis of the
(cont'd on page 17) Approved
: CIA-RDP75600380R000500020007-2
Foreign Service Act
Sec. 831. (b) In each case, the
participant shall be given a phsical
examination by one or more duly qual-
ified physicians or surgeons desig-
nated by the Secretary to conduct
examinations, and disability Shall be
determined by the Secretary an the
basis of the advice of such physicians
or surgeons. Unless the disability is
permanent, like examinations shall be
made annually until the annuitant has
reached the statutory mandatory re-
tirement age for his class in the
Service, If the Secretary determines,
on the basis of the (cont'd page 1?)
For Release 2002/01/236CIA-RDP751300380R0005
Civil Service Retirement Act
/gem. 9(a) concerning the computation
Tif annuities (quoted opposite Sec.
221 (a) of the Proposed CIA Retire-
ment Act above) specifically pro-
vides as follows for disability
annuities: *Provided farther, That
the annuity of an employee retiring
under section 7 shall be at least
(1) 40 per centum of the average
salary or (2) the BUR obtained under
this subsection after increasing hie
total service by the period elapsing
between the date of separation and
the date he attains the age of sixty
years whichever is the lesser, but
this Proviso shall not increase the
annuity of sny servivor.2
Pao. 16(c), quoted in full above
opposite sec. 201(c) of the Proposed
CIA Retirement Act, provides that
disability determinations by the
Commission are final and conclusive
and not subject to reviewj
Sec. 7. (c) Each annuitant retired
under this section or under Sec-
tion 6 of the Act of May 29, 1930,
as amended, unless his disability
is permanent in character, shall at
the expiration of one year from the
date of such retirement and annually
thereafter, until reaching age sixty,
be examined under the direction of
the Commission. If the annuitant
fails to submit to examination as
required under this section, payment
of the annuity shall be suspended
until continuance of the disability
is satisfactorily established,
0002000igPntt d on page 17)
Approved For Release 2002/01/234: CIA-RDP75600380R000500020007-2
Foreign Service Act
Proposed CIA Retirement Act
Sec. 231. (b) (cont'd)
advice of one or more duly qualified
physicians or surgeons condmoting snob
examinations that an annuitant has re.
covered to the extent that he can
return to duty, the annuitant may
apply for reinstatement or reappoint-
ment in the Agency within one year
from the date his recovery is deter-
mined. Upon application the Direc-
tor may reinstate any such recovered
disability annuitant in the grade in
which he was serving at time of re-
tirement, or the Director may, tak-
ing into consideration the age,
qualifications, and experience of
such annuitant, and the present
grade of his contemporaries in the
Agency, appoint him to a grads
higher than the one in which he was
nerving prior to retirement. Pay-
sent of the annuity shall continue
until a date six months after the
date of the examination showing
recovery or until the date of re-
instatement or reappointment in
the Agency, whichever is earlier.
Ales for examinations under this
provision, together with reasonable
traveling and other expenses in-
curred in order to submit to exam-
ination, shall be paid out of the
fund. If the annuitant fails to
submit to emmmination as required
under this section, payment of the
annuity shall be suspended until
continuance of the disability is
satisfactorily established.
Sis. 61. (b) (ooktd)
advise of one Grime day qualified
ph:plata= er saroeons condanttnt sadi
examinations that an annuitant has re. .
covered to the extent that he can return
to duty, the annuitant nay apply for
reinstatement or reappcdntwent in the
Service within one year from the date
his recovery is deteridned. Upon appli-
cation the Secretary shall reinstate
any each recovered disability annuitant
in the class in which he was serving at
time of retirement, or the Secretary
may, taking into consideration the age,
qualifications, and experience of such
annuitant, and the present class of his
contemporaries in the Service, appoint
him or, in the case of an annuitant who
is a former Foreign Service officer,
recommend that the President appoint
him, by and with the advice and consent
of the Senate, to a class higher than
the one in which he was serving prier
to retirement. Payment of the annuity
shall continue until a date six mouths
after the date of the examination show-
ing recovery or until the date of rein-
statement or reappointment in the Ser-
vice, whichever is earlier. Fees for
emaminations under this provisions to-
gether with reasonable traveling and
other expenses occurred in order to
submit to examination, shall be paid
one of the Fund. If the annuitant
fails to submit to examination as re-
quired under this section, payment of
the annuity shall be suspended until
continuance of the disability is sat/Oft
factorily established.
Civil. Service Retirement Act
See. 7. (d) If each =natant, before
reaching age sixty, reamers from his
disability, payment of the annuity
shall cease upon reemployment by the
Government or one year from the date
of the medical examination showing
such recovery, whichever is earlier,
If such annuitant, bears reaching
age sixty, is restored to an earning
capacitor fairly comparable to the
current rata of conipensation of the
position occupied at the time of re-
tirement, payment of the annuity shall
cease upon reemployment by the Govern-
ment or one year from the end of the
calendar year iambi** earning capa-
city is so restored, whichever is ear-
.Ler, Earning capacity @hen be
deemed restored if, in sash of two
Sunneeding calendar years, the income
at the ammuitsnt from wages or self-
employment, or both, shall equal at
least 80 per cent= of the current
rate of compensation of the position
tempted immediately prier to
seddreeento
Sesk, 16, (e) Fees for emaminatieme
immlb under the provisions of this
Let, by physicians or surgeons who are
not medical officers of the United
States, shall be fixed by the Com.
mission, and such fees, together
mith reasonable traveling and other
expanses incurred in connection with
such emmanations, shall be paid out
of the appropriations for the cost
of administering this Act,
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Proposed CIA Retirement Act
Sec. 231. (c) If a recovered disability
annuitant whose annuity is discontinued
is for any reason not reinstated or re-
appointed in the Agency, he shall be
considered to have been separated 'smith-
in the meaning of paragraphs (e) and
(b) of section 234 as of the date he
was retired for disability and he shall,
after the discontinuance of the dis-
ability annuity, be entitled to the
benefits of that section or of sec,-
tion 2141(a) except that he may elect
voluntary retirement in accordance
with the provisions of section 233
if he can qualify under its provi-
sions.
Foreign Service Act
Sec. 831. (c) If a recovered disability
annuitant whose annuity is discontinued
is for any reason not reinstated or re-
appointed in the Service, he ehall be
considered to have been separated with-
in the meaning of sectien 834 an of the
date he was retired for disability and
be shall, after the discontinuance of
the disability annuity, be entitled to
the benefits of that section or of
section 81i1(a) except that he may
elect voluntary retirement in accord-
ance with the provisions of section
636 if he can qualify under its
provisions.
Civil Service Retirement Act
Sec. 7. (e) If such annuitant whom
annuity is discontinued under subsec-
tion (d) is not reemployed in any
position included in the provisions
of this Act, he shall be considered
except for Derwine credit, as having
been involuntarily Impended from
the service for the purposes of this
Act as of the date of discontinuance
of the disability annuity and shall,
after such discontinuance, be en-
titled to annuity in accordance with
the applicable provision of this Acto
In the C890 of an annuitant whose
annuity is heretofore or hereafter
discontinued because of an earning
capacity provision of this or any
prior law and such annuitant is not
reemployed in any position included
in the provisions of this Act,
annuity at the same rate shall be
restored effective the find of the
year following any calendar year in
which his inmate froo sages or self-
esOloymeots or both, is less thoo
eel per cantos of the eurront rote of
empaneation of the position occupied
immediately prier to retirement, if
he has not recovered from the disabil-
ity for which he was retired. In the
case of an annuitant whose annuity is
heretofore or hereafter discontinued
because of a medical finding that the
annuitant has recovered from disabil-
ity and such annuitant is not memo.
ployed in any position included in
the provisions of this Act, annuity
at the same rate shall be restored ef-
fective from the date of medical exam.
ination showing a recurrence of such
(oont id on page 19)
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Proposed CIA Retirement Act
Sec. 231. (d) No participant shall
be entitled to reoeive an annuity
under this Act and compensation for
injury or disability to himself un-
der the Federal Employees' Compen-
sation Act of September 7, 1916, as
amended, (5 U.S.C. 751 et
covering the same period of time.
This provision shall not bar the
right of any claimant to the greater
benefit conferred by either Act for
any part of the same period of time.
Neither this provision nor any pro-
vision of the said Act of Septem-
ber 7, 1916, as wended, shall be
so construed as to deny the right
of any participant to receive an
annuity under this Act by reason
of his own services and to receive
concurrently any payment under such
Act of September 7, 1916, as
amended, by reason of the death of
any other person.
Foreign Service Act
Seo. 831. (d) SD participant shall be
entitled to receive an annuity under
this Act and compensation for inftry
er disability to himself under the
Federal Employees' Compensation Act
of September 7, 1916, as amended,
covering the same period of time.
This provision Shall not bar the
right of any claimant to the greater
benefit conferred by either Act for
any part of the same period of time.
Neither this provision nor any pro-
visinn of the Act of Sejtelher 7,
1916, as amended, Shall be so con-
strued as to deny the right of any
person to receive an annuity under
this Act by reason of his own ser-
vices and to receive concurrently
any payment under such Act of Septem-
ber 7, 1916, as amended, by reason
of the death of any other person
Civil Service Retirement Act
Sec. 7(11)(cont'd)
disability. Neither the second nor
third sentence of this subsection
shall be applicable in the case of
any person receiving or eligible to
receive annuity under the first sen-
tenoe hereof and who has reached the
age of sixty-two years.
Sec. 7. (f) NO person shall be en-
titled to receive an annuity under
this Act and oompensation for in-
jury or disability to himself under
the Federal Employees' Compensation
Act of September 7$ 1916, as amended,
covering the same period of time.
This provision shall not bar the
right of any claimant to the greater
benefit conferred by either Act for
any pert of the same period of time.
Neither this provision nor any pro-
vision,,in such Act of September 7$
1916, as amended, Shall deny to any
person an annuity accruing to such
person under this Act on account of
service rendered by him, or deny any
concurrent benefit to such person
under such Act of September 7, 1916,
as amended, on account of the death
of any other person.
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Propoeed CIA Retirement Act
See. 231. (e) Notwithstanding amy
prevision of law to the contrury, the
right of any person entitled to an
annuity under this Act shall not be
affected because such person has re-
oeived an award of compensation in a
lump sum under section 14 of the
Federal Employees' Compensation Act
of September 7, 1916, as amended,
(5 U.S.C. 764) except that where such
annuity is payable on account of the
same disability for which compensa-
tion under such section has been paid,
so much of such compensation as has
been paid for any period extended be-
yond the data such annuity becomes
effective, as determined by the Sec-
retary of Labors shall be refunded to
the Department of Labor, to be paid
into the Federal employees' compen-
sation fUnd. Defers such person
ihell receive such enmity he than.
(2) refUnd to the Department of Labor
the amount representing such con-
mated payments for such extended
period, or (2) authorize the deduc-
tion of such amount from the annuity
payable to him under this Act, which
amount shall be transmitted to mac*
Department for reimbursement to such
fund. Deductions from such annuity
may be made from accrued and accruing
payments, or may be prorated against
and paid from accruing payments in
such manner as the Secretary of Labor
shall determines whenever he finds
that the financial circumstances of
the annuitant are such as to warrant
such deferred refunding.
Foreign Service Act
Sec. 831. (e) NotwithStanding any
provision of law to the contrary, the
right of any person entitled to an
annuity under this Act shall not be
affected because such person has re-
ceived an award of oompensation in a
lump sum under section 14 of the Act
of September 7, 1916, as amended,
except that where such annuity is
payable on account of the sane die-
ability for which compensation under
such section has been paid, so much
of such compensation as has been paid
for any period extended beyond the
date such annuity becomes effective,
as determined by the Secretary of
Labor, shall be refunded to the De.
partment of Labor, to be paid into
the Federal Employees' Compensation
Fund. Before such person shall re-
ceive such annuity he shall (1) re-
filled to the Department of Labor the
amount representing such computed
payments for such extended period,
or (2) authorize the deduction of
mach amount from the annuity payable
to him under this Act, which amount
shell be transmitted to such Depart-
meet for reimbursement to such Fund.
Deductions from such annuity may be
made from accrued and accruing pay-
ments, or may be prorated against
and paid from accruing payments in
such manner as the Secretary of
Labor shall determine, whenever he
finds that the financial circum-
stanoes of the annuitant are such as
to warrant such deferred refunding.
Civil Service Retirement Act
Sec. 7. (g) Notwithstanding any pro-
vision of law to the contrary, the
right of any person entitled to an
annuity under this Act shall not be
affected because such person has re-
ceived an award of compensation in.
lump sum under section 14 of the Act
of September 7, 1916, as amended, ex-
cept that where such annuity is payable
an account of the same disability for
which compensation under such section
has been paid, so much of such compen-
sation as has been paid for any period
extended beyond the date such annuity
becomes effective, as determined by
the Departaest of Leber, shell be re-
fended to the Department of Labor, to
be covered into the Federal Employee&
Compensation Fund. Before such person
shall receive such annuity he shall
(1) refund to such Department the
amount representing such commuted pay-
ments for such extended period, or
(2) authorise the deduction of such
amount from the annmity payable to
himinder this Act, which amount shall
be transmitted to such Department far
reinbmrsement to such fund. Deductiona
from such annuity may be made from
accrued and accruing payments, or may
be prorated against and paid from
accruing payments in such manner as
the Department of Labor shall deter-
mines whenever it finds that the
financial circumstances of the annui-
tant are such as to warrant such
deferred refunding.
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Proposed CIA Retirement Act
Death in Service
Sec. 232. (a) In case a participant
dies and no Claim for annuity is pay-
able under the previsions of this
Act, his contributions to the fund,
with interest at the rates prescribed
in sections 241(a) and 281(a), shall be
be paid in the order of precedence
&wen in section 241(b).
Foreign Service Act
Sec. 832. (a) In case a participant
dies and no Claim for annuity is pay..
able under the provisions of this Acts
his contributions to the hind, with
interest at the rates prescribed in
sections 841(a) and 881(a), shall be
paid in the order of precedence 'ho,e.
in section 841(b).
soh U. (d) If an caolaara? or
Xember dies (1) without a survivor,
or (2) with a survivor or varvivers
amid the right of all survivors shall
terminate before claim for survivor
amity is filed, or if a former
employee or Member not retired dies,
the lump-aom credit shall be paid.
ifflie. 1(1). The_tena alumpwoma
=edit* shell mom the =retooled
mood consietine of (1) the re..
flameout dedeetions made trot the
hesie salary of an =plays. or
Sober (2) any sums depoadted by
es *Lye. or Member covering
prior service, and (3) interest an
smeh deductions and deposits at h
percent= per annum to December 31,
I,h7, and 3 per centum per annum
thereafter compounded annually to
Deoember 31, 1956, or, in the case
of an employee or Heaer separated
or transferred to a position not
within the purview of this Act be-
fore he has completed five years of
cdvilian service, to the date of
the separation or transfer. The
lump-mia credit shall not include
luterest if the service covered
thereby aggregates one year or,less,
mar =al it include interest far
the fractional part of a month in
the total servintg
11(0), quoted in fel
below opposite section 241(b)
of the Proposed CIA Retirement
Act, specifies the order of
-21-
precedence for payment of a
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1
Proposed CIL Retirement Act
Sec. 232. (b) If a participant, who
has at least five years of service
credit toward retirement under the
system4 excluding military or naval
eervice that is credited in accord-
ance with the provision of section
251 or 252(0(2), dies before sepa-
ration or retirement tr?ma the Agency
and is survived by a widow or depen-
dent widower, as defined in motion
204, such widow or dependent widower
Shall be entitled to an annuity
equal to 50 per centum of the annu-
ity computed in accordance with the
provisions of paragraph (e) of this
motion and of section 221(a). The
annuity of such widow or dependent
widower shall commence on the date
following death of the participant
and shall terminate upon death of
the widow or dependent widower, or
upon the dependent widower's becom-
ing capable of self-support.
Foreign Series Lot
Soak832. (b) If a Partiediant Ws. blui
at least flys years of service credit
toward roUresent under the System,
excluding military or naval service
that is credited in accordance with
the provisions of section 851 or
852(0(2), dies befcqe separation or
retirement from the Service and is
survilsd by a widow or a dependent
widower, as defined in section 804#
such widow or dependent widower shall
be entitled to an annuity oval to
50 per oentum of the annuity computed
in accordance with the provisions of
paragraph (e) of this sectiob and of
emotion 821(a). The annuity of such
widow or dependent widower shall
commence on the date following death
of the participent and Abell termi-
nate upon death of the widow or
dependent widower, or upon the de-
pendent widower's Weaning capable
of self-support,
civilSerTioe Retirement Act
Sec. 10. (c) If an employee or a
Member dies after completing at
least five years of civilian ser-
vice, the widow or dependent
widower of such employee or Member
shall be paid an annuity equal to
55 per ?autos of an annuity oompoted
as provided in subsections (a), (b),
(c), (e), and (f) of section 9 as
may apply with respect to the em-
ployee or Mer. The annuity of
such widow or dependent widower
shall commence an the day after
the employee or Member dies, and
such annuity or any right thereto
shall terminate on the last day of
the month before (1) death or re-
marriage of the widow or widower
or (2) the widower's becoming
capable of self-support,
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Proposed CIA Retirement Id
See. 232. (c) If a participant who has
at least five years of service credit
toward retirement under the syetomm? ex-
cluding military or naval service that
is credited in accordance with the pro-
visions of motion 251 or 252(0(2),
dies before separation or retirement
from the Agency and is survived by a
wife or a husband and a child or chil-
dren, each surviving child shall be
entitled to an annuity computed in
accordance with the provisions of
section 221(c)(1). The child's an-
nuity shall begin and be teeminsted
in accordance with the prmmimions of
section 221(e). Upon the death of the
surviving mile or husband or termina-
tion of the annuity of a child, the
annuities of any remaining children
shall be recomputed and paid as
though such mile or husband or child
had not survived the participant*
Foreign Service Act
Sec. 832. (c) If a participant who has
at least five years of service credit
toward retirement under the Systsmy ex-
cluding military or naval service that
is credited in accordance with the pre-
visions of section 851 or 852(0(2),
dies before separation or retirement
from the Service and is survived by a
wile or a husband and a child or Chil-
dren, each surviving child Abell be
entitled to an annuity computed in
accordance with the provisions of
election 821(c)(1). The Child's annu-
ity shell begin and be terminated in
accordance with the provisions of
section 821(e). Upon the death of the
aurviving wife or husband or termina-
tion of the annuity of a Child, the
annuities of any remaining Children
shall be recomputed and paid as
though each wife or husband or
Child had not survived the participant*
Civil Service Retirement Act
Sec. be (d) If an employee or a
*Aber dies after completing at
least five years of civilian ser-
vice, or an employee or a *lbw
dies after having retired under any
provision of the Act, and is our.
vived by a mile or by a husband,
each surviving child who received
more than one-half of his support
from such employee or Member shall
be paid an annuity equal to the
smallest of (1) 40 per cent= of
the employee's or Member's average
salary divided by the number of
children, (2) $600s or (3) $1,800
divided by the number of children.
giontinued on page 24 opposite
sec. 232 (d) of the Proposed
(ILL Retirement Leg
?23?
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Proposed CIA petiTemMat Agl.
Sec. 232. (d) If a partiaipentsho has
at least five years of service credit
toward retirement under the system, ex,.
eluding military or naval service that
is credited in accordance with the pre-
visions of section 251 or 252(a)(2),
dies before separation or retirement
from the Agency and is not survived by
a wife or husband, but by a child or
children, each surviving child shall
be entitled to an annuity computed in
accordance with the provisions of sec.
tion 221(c)(2). The child's annuity
shall begin and terminate in accord-
ance with the provisions of section
221(e). Upon termination of the annu-
ity of a child, the annuities of any
remmining children all be ISCcW.
puted and mid as though that child
had never been entitled to the
benefit.
Foreign Service Act
Seco. 832. (d) If a participant who has
at least five yearn of service credit
toward retirement under the System, ex-
cluding military or navel service that
is credited in accordance with the pro-
visions of section 851 or 852(0(2),
dies before separation or retirement
from the Service and is not survived by
a wife or husband, but by a child or
children, each surviving child shall
be entitled to an annuity computed in
meardence with the provisions of see-
time 821(o)(2). The ehild'Is mismatW
shall begin and terminate in aselerd.
mace with the provisions of section
821(e). Upon termination of the annu-
ity of a child, the annuities of any
remaining Children shall be recomputed
and paid as though that child had
never been entitled to the benefit.
Civil Service Retirement Act
Sec. 10. (d) (oont'd)
If such employee or Neiber is not
survived by a wife or husband, each
surviving child shall be paid an
annuity equal to the smallest of
(1) 50 per centum of the employee's
or Member's average salary divided
by the number of children, (2) $720.
or (3) $2,160 divided by the maw
of children. The Child's annuity
shall conmence on the day after the
employee or Member dies, and such
annuity granted under this Act or
under the Act of May 29s 1930, as
amended from and after February 28,
1948, or any right thereto shall
terminate on the last day of the
month beftre (1) his attaining age
eighteen unless incapable of self-
support, (2) his becoming capable
of self-support after age eighteen,
(3) his marriage, or (4) his death,
except that the annuity of a child
who is a student as described in
section 1.(j) shall terminate an
the last day of the month before
(1) his marriage, (2) his death,
(3) his ceasing to be such a Btu-
dent, or (4) his attaining age
twenty-one. Upon the death of
the surviving idle or husband or
terminatian of the annuity of the
child, the annuity of any other
child or children shall be recom-
puted and paid an though such wife,
husband, or child had not survived
the employee or Member.
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1,
Proposed CIA Retirement Act
Sec. 232. (e) If, at the time of his
or her death, the participant had less
than twenty years of service credit
toward retirement under the sysUm,
the annuities payable in accordance
with paragraph 04 of this section
shall be computed in accordance with
the provisions of section 221 an the
assumption he or she has had twenty
years of service, but the additional
service credit that may accrue to a
deceased participant under this pro-
vision shall in no case exceed the
difference between hi s or her age on
the date of death and the mandatory
retirement age applicable to his or
her grade in the Agency. In all
cases arising under paragraphs (b),
(c), (d), or (e) of this section,
it shall be assumed that the de-
ceased participant was qualified for
retirement on the date of his death.
Voluntary Retirement
Sec. 233. Any participant in the
Mott= who is at least fifty years
of age and has rendered twenty years
of service may an his own applica-
tion and with the consent of the
Director be retired from the Agency
and receive benefits in accordant*
with the provisions of section 221
provided he has at least five yearsof
service with the Agency.
Foreign Service Act
Sec. 832. (e) /f, at the time of his
or her death, the participant bad less
than twenty years of service credit
toward retirement under the System,
the annuities payable in accordance
with paragraph (b) of this section
shall be computed in accordance with
the provisions of election 821 on the
assumption he or 1500 has had twenty
years of service, but the additional
service credit that may accrue to a
deceased participant under this pro-
vision shall in no case exceed the
difference been his or her age on
the date of death and the mandatory
retirement age applicable to his or
her class in the Service. In all
cases arising under paragraphs (4,
(c), (d), or (e) of this section, it
shell be assumed that the deceased
participant was wattled for retire-
ment on the date of his death.
Sec. 636. Any participant in the
Foreign Service Retirement and Dis-
ability System who is at least fifty
years of age and has rendered twenty
years of service, including service
within the meaning of section 853,
may on his own application and with
the consent of the Secretary be re-
tired from the Service and receive
benefits in accordance with the
provisions of sectidh 821.
Civil Service Retirement Act
Mb comparable provision.
Dec. 10(0 of the CSRA is a
special provision for Nekber?g
See. 6. (a) Amy mapleyee eke
attains the age of arty years sent
completes thirty years of service
shall, upon separation from the
service, be paid an annuity computed
as provided in section 9.
(b) Any employee who attains the
age of fifty-five years and com-
pletes thirty years of service shall,
upon separation from the service
prior to attainment of the age of
sixty years, be paid a reduced an-
nuity computed as provided in
section 9.
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Proposed CIA Retirement Act
Foreign Service Act
Civil Service Retirement Act
(cont,d)
4pec. 6(c) is a special provision
or "Any employee the duties of
whose position are primarily the
investigation, apprehension, or
detention of persons suspected or
convicted of offenses against the
criminal laws of the United States,
including any employee engaged in
such activity who has been trans-
ferred to a supervisory or admin-
istrative position." The section
provides for retirement of such
employees at age 50 with twenty
years of service without reduction
in annuity;
gee. 6(d) concerns involuntary
separation and is quoted below
opposite motion 234(c) of the
Proposed CIA Retirement Act;
Sec. 60 (e) Any employee who
attains the age of sixty-two years
and completes five years of ser-
vice, shall, upon separation from
the service, be paid an annuity
computed as provided in seo-
tion 9.
ffec. 6(f) is a special provision
relating to Members and their
retirement at age 62 with five -
years of service, at age 60 with
ten years of service, etc;
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Proposed CIA Retirement Act
Discontinued Service Retirement
Sec. 234. (a) Any participant who
separates from the Agency after ob-
taining at least five years of ser-
vice credit toward retirement under
the syste% excluding military or
naval service that is credited in
accordance with the provisions of
section 251 or 252(a)(2), may,
upon separation from the Agency or
at any time prior to becoming eli-
gible for an annuity, elect to have
his contributions to the fund re-
turned to him in accordance with the
provisions of section 241, or (ex-
cept in cases where the Director
determines that separation was based
in whole or in part on the ground of
disloyalty to the United States) to
leave his contributions in the fund
and receive an annuity, computed as
prescribed in section 221, commenc-
ing at the age of sixty years?
Approved
Foreign Service Act
Sec. 834. (a) Any participant who
voluntarily separates from the Service
after obtaining at least five years of
service credit toward retirement under
the system, (mantling military or naval
service that is credited in accordance
with the Provisions of section 851 or
852(0(2). my, upon separation from
the Service or at any time prior to
becoming eligible for an annuity,
elect to have his contributions to
the Fund returned to him in accord-
ance with the provisions of section
841, or to leave his contributions in
the Fund and reoeive an annuity, com-
puted as prescribed in section 821,
commencing at the age of sixty years.
Civil Service Retirement Act
Sec. 8. (a) Any employee who is
separated from the service or trans-
ferred to a position not within the
purview of this Act after completing
five years of civilian service may
be paid an annuity beginning at the
age of sixty-two years computed as
provided in section 9.
276c. 8(b) is a provision appli-
cable only to Memberdg
Sec. 637. (b) Any participant in the
Foreign Service Retirement and Dis-
ability System separated under the pro-
visions of paragraph (a) of this section
shall receive a refund of the contribu-
tions made to the Foreign Service Re-
tirement and Disability Fund, with in-
terests as provided in section 841(a)
except that in lieu of such refund such
officer may (except in cases where the
Secretary determines that separation
was based in whole or in part on the
ground of disloyalty to the United
States) if he has at least five years
of servioe credit toward retirement
under this System, excluding military
or naval service that is credited in
accordance with the provisions of sec-
tion 851 or 852(a), elect to leave his
contributions in the Fund and receive
an annuity, computed as prescribed in
section 821 commencing at the age of
(contld on page 27a)
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Approved For Release 2002/01/23 ..CIA-RDP75600380R000500020007-2
Proposed CIA Retirement Act
Sec. 234. (b) If a participant
who has qualified in accordance
with the provisions of para-
graph (a) of this section to re-
ceive a deferred annuity com-
mencing at the age of sixty
dies before reaching the age of
sixty his contributions to the
fund, with interest, shall be
paid in accordance with the
provisions of sections 241 and
281.
Foreign Service Act
Sec. 637(b) (contld)
sixty years. In the event that an
officer who has elected under the
provisions of this section to re-
ceive a deferred annuity dies before
reaching the age of sixty, his con-
tributions to the FUnd, with inter-
est, shall be paid in accordance
with the provisions of sections 841
and ma.
Sec. 834. (b) If a participant who
has qualified in accordance with the
provisions of paragraph (a) of this
section to reoeive a deferred annuity
commencing at the age of sixty dies
before reaching the age of sixty his
contributions to the*Fund, with
interest, Shall be paid in accord-
ance with the provisions of 98c-
tions 841 and 881.
Civil Service Retirement Act
Sec. 11. (d) If an employee or
Member dies (1) without a survivor,
or (2) with a survivor or survivors
and the right of all survivors shall
terminate before claim for annuity is
filed, or if a former employee or
Member not retired dies, the lump.
sum credit shall be paid. (under-
scoring supplied)
2TUmp-sum credit is defined in
sec. 1(1) quoted in full above
opposite sec. 232(a) of the Pro-
posed CIA Retirement Actj
-27-a-
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?Approved For Release 2002/01/23; CIA-RDP75600380R000500020007-2
Proposed CIA Retirement Act
Sec. 234. (c) The Director may in his
discretion retire participants in
grade GS-14 and above to promote the
efficiency of the Agency. If so re-
tired they shall receive retirement
benefits in accordance with the pro-
visions of section 221, provided they
have in each case not less than five
years of qualifying and a total of
ten years of service with the Agency.
Any individual so retired who does
not meet these service requirements
shall receive the benefits provided
for individuals in grade GS-13 as
set out in paragraph (d) of this
section.
(d) The Director may in his dis-
cretion retire participants in grade
GS-13 and below to promote the effi-
ciency of the Agency and each ouch
participant shall receive?
(1) one-twelfth of a year's salary
at his then current salary rate for
each year of service and proportion-
ately for a fraction of a year, but
not exceeding a total of one year's
salary at his then current salary
rate, payable without interest, from
the fund, in three equal installments
an the let day of January following
the participant's retirement and on
the two anniversaries of this data
immediately following: Provided
That in special cases, the Director
may in his discretion accelerate or
combine the installments; and
(cont'd on page 29)
Approved
Foreign Service Act
Sec. 634. (a) Any Foreign Service
officer in classes 1, 2, or 3 who
is retired from the Service in ao-
cordence with the provisions of
section 633 shall receive retire-
ment benefits in accordance with
the provisions of section ea.
See. 633. (b) Any Foreign Service
officer below the class of career
minister who does not receive a
promotion to a higher class within
the specified period or who fails
to meet the standard of performance
required of officers of his clans
shall be retired from the Service
and receive benefits in accordance
with the provisions of section 634.
Sec. 634. (b) Any Foreign Service of-
fixer in classes 14, 5, 6, or 7 who is
retired from the Service in accord-
with the provisions of section
633 shall receive?
(1) one-twelfth of a year's salary
at his then current salary rate for
each year of service and proportion-
ately for a fraction of a year, but
not exceeding a total of one year's
salary at his then current salary
rate, payable without interest, from
the Foreign Service Retirement and
Disability Fund, in three equal in-
stallments on the 1st day of January
following the officer's retirement
and on the two anniversaries of this
date immediately following: provided,
That in special cases, the Seoretary
my in his discretion accelerate or
*combine the installments; and
(cont'd on page 29)
For Release 2002/011A.L CIA-RDP75600380R000500020007-2
Civil Service Retirement Act
Sec. 6. (d) Any employee who com-
pletes twenty-five years of service
or who attains the age of fifty
years and completes twenty years
of service shall upon involuntary
separation from the service not by
removal for cause on charges of
misconduct or delinquency, be paid
a reduced annuity computed as pro-
vided in section 9.
sec. 9. (d) The annuity as here-
inbefore provided, for an employee
retiring under section 6(b) or 6 (d)
are Member retiring under the second
or third sentence of section 6(f) or
the third sentence of section 8(b)
shall be reduced by one-twelfth of
1 per centum for each full month not
in excess of sixty, and one-sixth of
1 per centum for each full month in
excess of sixty, such employee or
Member is under the age of sixty
years at date of separation. (Under-
scoring supplied)
No comparable provision.)
Approved For Release 2002/01/23 CIA-RDP75600380R000500020007-2
Proposed CIA Retirement Act
Sec. 234(d) (contld)
(2) a refund of the contributions
made to the fund, with interest as
provided in section 241(a), except
that in lieu of such refund such par-
ticipant, if he has at least five
years of service credit toward re-
tirement under the system, exclud-
ing military or naval service that
is credited in accordance with the
provisions of section 251 or
252(a)(2),may elect to receive re-
tirement benefits on reaehing the
age of sixty in accordance with the
provisions of section 221. In the
event that a participant who was
separated from grade GS-13 or GS-12
and who has elected to receive re-
tirement benefits dies before
reaching the age of sixty, his
death shall be considered a death
in service within the meaning of
section 232. In the event that a
participant who was separated from
grade GS-11 or below and who has
elected to receive retirement bene-
fits dies before reaching the age
of sixty, the total amount of his
contributions made to the fund,
with interest as provided in sec-
tion 241(5), shall be paid in
accordance with the provisions of
section 2141(b).
Foreign Service Act
Rec. 634(b)(contld)
(2) a refund of the contributions
mode to the Foreign Service Retire-
ment and Disability Fund, with inter-
est as provided in section 841(a),
except that in lieu of such refund
such officer, if he has at least five
years of service credit toward retiree
nent under the Foreign Service Retire-
ment and Disabilitr Systen, excluding
military or naval service that is cre-
dited in accordance with the provisions
of section 851 or 852(a), may elect to
receive retirement benefits on reaching
the age of sixty in accordance with the
provisions of section 821. In the
event that an officer who was separated
from class h or 5 and who has elected to
receive retirement benefits dies before
reaching the age of sixty, his death
shall be considered a death in service
within the meaning of section 832. In
the event that an officer who was sops-
rated from class 6 or 7 and who has
elected to receive retirement benefits
dies before reaching the age of sixty,
the total amount of his contributions
mede to the Foreign Service Retirement
and Disability Fund, with interest as
provided in section 841(a), shall be
paid in accordance with the provisiohs
of section 841(b).
Civil Service Retirement Act
ffee Sections 6(d) and 9(d1
quoted immediately aboved
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Proposed CIA Retirement Act
Seco 234. (e) Notwithstanding the
provisions of section 3477 of the
Revised Statutes, as amended,
(31 U.S.C. 203) or the provisions
of any other law, a participant
who is retired in accordance with
the provisions of paragraph (d)
of this section shall have the
right to assign to any person or
corporation the whole or any
part of the benefits receivable
by him pursuant to paragraph
(d)(1) of this section.
Mandatory Retirement for Age
Sec. 235. (a) Any participant in
the system in grade 05-18 or above
shall upon reaching the age of
sixty-five be retired from the
Agency and receive retirement bene-
fits in accordance with the provi-
sions of section 221, but whenever
the Director shall determine it to
be in the public interest, he my
extend such a participant's ser-
vice for a period not to exceed
five years.
Forsi Service Act
See. 6314(c) Notwithstanding the pro-
visions of nation 3477 of the Revised
Statutes, as amended (31 U.S.C. 203)
or the provisions of any other law, a
Foreign Service officer who is retired
in accordance with the provisions of
section 633 shall have the right to
assign to any person or corporation
the whole or any part of the benefits
receivable by him pursuant to para-
graph (b)(1) of this section. Any
inch assignment shall be on a form
approved by the Secretary of the
Treasury and a copy thereof Shall be
deposited with the Secretary of the
Treasury by the officer executing
the assignment.
Sec. 631. Any Foreign Service offi-
cer who is a career ambassador or a
careerminister, ether than one occu-
pying a position as chief of mission
or any other position to which he has
been appointed by the President, by
and with the advice and consent of
the Senate, shall upon reaching the
age of sixty-five, be retired from
the Service and receive retirement
benefits in accordance with the
provisions of section 821, but
whenever the Secretary shall de-
termine it to be in the public
interest, he may extend such an
officer's service for a period
not to exceed five years.
Civil Service Retirement Act
No comparable provision
Sec. 5. (a) Except as hereinafter
provided, an employee who shall
have attained the age of seventy
years and completed fifteen years
of perilce shall be automatically
separated from the service. Such
separation shall be effective on
the last day of the month in which
such employee attains the age of
seventy years or completes fifteen
years of service if than beyond
such age, and all salary shall
cease from that day.
(b) Each employing office shall
notify each employee under its
direction of the date of such
separation from the service at
least sixty days in advance
thereof: Provided:, That subsec-
tion (a) shall not take effect
without the consent of the
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Proposed CIA Retirement Act
Sec. 235. (b) Any participant in
the system, other than in grade
03-18 or above, shall upon reaching
the age of sixty be retired from
the Agency and receive retirement
benefits in accordance with the
provisions of section 221, but
whenever the Director shall de-
termine it to be in the public
interest, he may extend such 2
participant's service for a period
not to exceed five years.
Foreign Service Act
Sec. 632, Any participant in the
Foreign Service Retirement and Dis-
ability System, other than one oc-
cupying a position as chief of
mission or any other position to
which he has been appointed by the
President, by and with the advice
and consent of the Senate, who is
not a career ambassador or a career
minister shall, upon reaching the
age of sixty, be retired from the
Service and receive retirement
benefits in accordance with the pro-
visions of section 821, but whenever
the Secretary shall determine it to
be in the public interest, he may
extend such participant's service
for a period not to exceed five
years.
Civil Service Retirement Act
Sec. 5(b) (continued)
employee until sixty days after he has
been so notified.
(c) The President may, by Executive
Order, exempt from automatic separa-
tion under this section any employee
when, in his Judgment, the public in-
terest so requires.
(d) The automatic separation pro-
visions of this section shall not
apply to any person named in any Act
of Congress providing for the continu-
ance of such person in the servioes to
any Member, to any congressional em-
ployee, to the Architect of the Capi-
tol or any employee in the judicial
branch who has been appointed to
hold office for a definite term of
years,
gee. 5(e) is a special provision
for employees of the Alaska Rail-
way, Territory of Alaska, certain
employees of the Pane= Canal Com
pany or the Canal Zone Government2
gee Sec, 5(a) through (d) above2
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Approved For Release 2002/01/234: CIA-RDP75600380R000500020007-2
g,
Proposed CIA Retirement Act
PART E - DISPOSITION OF CONTRIBUTIONS
AND INTEREST IN EXCESS OF BENEFITS
RECEIVED
Sec. 241. (a) Whenever a participant
becomes separated from the Agency with-
out becoming eligible for an annuity
or a deferred annuity in accordance
with the provisions of this Act, the
total amount of contributions from his
salary with interest thereon at h per
centum per annum, compounded annually
as of December 31, and proportionate-
ly for the period served during the
year of separation including all
contributions made during or for such
period, except as provided in section
281, shall be returned to him.
Foreign Service Act
Sec. 841. (a) Whenever a participant
becomes separated from the Service with-
out becoming eligible for an annuity or
a deferred annuity in accordance with
the provisions of this Act, the total
amount of contributiona from his salary
with interest thereon at 24 per centum
per annum, compounded annually at the
end of each fiscal year through
June 30, 1960; semiannually as of
December 31, 1960; annually thereafter
as of December 31, and proportionately
for the period served during the year
of separation including all contribu-
tions made during or for such period,
except as provided in section 881,
shall be returned to him..
Civil Service Retirement Act
Sec. 1. (1) The term "limap-sum
credit" shall mean the unreftnded
amount consisting of (1) the retire-
ment deductions made from the basic
salary of an employee or Member,
(2) any sums deposited by an employee
or Member covering prior service, and
(3) interest on such deductions end
deposits at 4 per oentum per annum
to December 31, 1947, end 3 Per
centum per annum thereafter com-
pounded annually to December 31,
1956, aro in the case of an employee
or Member separated or transferred
to a position not within the pur-
view of this Act before he has eau-
pleted five years of civilian ser-
vice, to the date of the separation
or transfer. The lump-sum credit
shall not include interest if the
service covered thereby aggregates
one year or less, nor shall it in-
clude interest for the fractional
part of a month in the total ser-
vice,
Sec. U. (a) Any employee or Member
who is separated from the service, or
is transftrred to a position wherein
he deas not continue subject to this
Acts shall be paid the lump-sum
credit provided his separation or
transfer occurs and application for
payment is filed with the Commission
at least thirty-one days before the
earliest commencing date of any
annuity for which he is eligible,
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Proposed CIA Retirement Act
Foreign Service Act
Civil Service Ret.irement Act
Seo, 11(a) (contld)
The receipt of payment of the lump
sum credit by the individual shall
void all annuity rights under this
Act, unless and until he shall be
reemployed in the service subject
to this Act, This subsection shall
also apply to any employee or Mem-
ber separated prior to the effective
date of the Civil Service Retirement
Act Amendments of 1956 after colas.
pleting at least twenty years of
civilian service,
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Proposed.
Approved For Release 2002/01/23: CIA-RDP75600380R000500020007-2
Sec. 241, (b) In the event that the
total contributions of a retired
participant, other than voluntary
contributions made in accordance
with the provisions of section 281,
with interest at 4 per centum per
annum compounded annually as is pro-
vided in paragraph (a) of this sec-
tion added thereto, exceed the
total amount returned to such parti-
cipant or to an annuitant claiming
through him, in the form of annui-
ties, accumulated at the same rate
of interest up to the date the annu-
ity payments cease under the terms
of the annuity, the excess of the
accumulated contributions over the
accumulated annuity pgrments Shall
be paid in the following order of
precedence, upon the establishment
of a valid claim therefor, and such
payment shall be a bar to recovery
by any other person:
(1) To the beneficiary or bene-
ficiaries designated by such parti-
cipant in writing to the Director;
(2) If there be no such benefici-
ary, to the surviving wife or hus-
band of such participant;
(3) If none of the above, to the
Child or children of such partici-
pant and descendants of deceased
children by representation;
(4) If none of the above, to the
parents of such participant or the
survivor of them;
(continued on page 34)
Foreign Service Act
Sec. 841. (b) In the event that the
total contributions of a retired par-
ticipant, other than voluntary contriA
butiona made in accordance with the
provisions of section 881, with inter-
est at 4 per oentum per annum cam-
pounded annually as is provided in
paragraph (a) of this section added
thereto, exceed the total amount re-
turned to such participant or to an
annuitant claiming through him, in
the form of annuities* accumulated
at the sane rate of interest up to
the date the annuity payments cease
under the terms of the annuity, the
excess of the accumulated contribu-
tions over the accumulated annuity
payments shall be paid in the follow-
ing order of precedence, upon the
establishment of a valid claim there-
for, and such payment shall be a bar
to recovery by any other person:
(1) To the beneficiary or benefi-
ciaries designated by the retired
participant in writing to the
Secretary;
(2) If there be no such benefi-
ciary, to the surviving 'wife or
husband of such participant;
(3) If none of the above* to the
child or children of such partici-
pant and descendants of deceased
children by representation;
(4) If none of the above, to the
parents of such participant or the
survivor of them;
(continued on page 34)
Civil Service Retirement Act
ffor definition of "lump-sum credit",
see sec. 1(1) quoted immediately
above opposite sec. 241(a) of the
Proposed CIA Retirement Acts7
Sec. 11. (e) If all annuity rights
under this Act based on the service
of a deceased employee or Member
shall terminate before the total
annuity paid equals the lump-sum
credit, the difference shall be paid.
(f) If an annuitant dies, any annu-
ity accrued and unpaid shall be paid.
(c) Lump-sum benefits authorized
under subsections (d), WI and (f)
of this section shall be paid in the
following order of precedence to
such person or persons surviving the
employee or Member and alive at the
date title to the payment arises,
and such payment shall be a bar to
recovery by any other person:
First, to the beneficiary or bene-
ficiaries designated by the employee
or Member in a writing received in
the Commission prior to his death;
Second, if there be no such bene-
ficiary, to the widow or widower of
the employee or Member;
Third, if none of the above, to
the child, or children of the em-
ployee or Member and descendants of
deceased ehildren by representation;
Fourth, if none of the above, to
the parents of the employee or Mem-
ber or the survivor of them;
(continued on page 34)
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Proposed CIA Retirement Act
See. 241(b) (cont'd)
(5) If none of the above, to the
duly appointed executor or adminis-
trator of the estate of such par-
ticipant;
(6) If none of the above, to
other next of kin of such partici-
pant as may be determined by the
Director in his judgment to be
legally entitled thereto.
(c) No payment Shall be made
pursuant to paragraph (b)(6) of
this section until after the ex-
piration of thirty days from the
death of the retired participant
or his survieing annuitant.
Foreign Service Act
Sec. 841(b) (contld)
(5) If none of the above, to the
duly appointed executor or adMinis-
trator of the estate of such parti-
cipant;
(6) If none of the above, to other
next of kin of such participant as
may be determined by the Secretary in
his judgment to be legally entitled
thereto.
(c) No payment shall be made pur-
suant to paragraph (b)(6) of this
section until after the expiration
of thirty days from the death of
the retired participant or his
surviving annuitant.
Civil Service Retirement Act
Sec. 11(c) (cont'd)
Fifth, if none of the above, to
the duly appointed executor or ad-
ministrator of the estate of the
employee or Member;
Sixth, if none of the above, to
other next of kin of the employee
or Member as may be determined by
the Commission to be entitled under
the laws of the domicile of the
individual at the time of his death.
No comparable provision.
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Proposed CIA Retirement Act
FART F PERIOD OF SERVICE FOR
ANNUITIES
Computation of Length of Service
Sec. 251. For the purposes of this
title, the period of service of a
participant shall be computed from
the date he becomes a participant
under the provisions of this Act*
but all periods of separation from
the Agency and so much of any
leaves of absence without pay as
may exceed six months in the aggre-
gate in any calendar year shall be
excluded, except leaves of absence
wale receiving benefits under the
Pbderel EmPleyeesi Compensation
Act of September 7, 1916, so
amended, (5 U.S.C. 751 et
end leaves of absence granted
participants while performing
active and honorable military
or naval service in the Army,
Navy, Air Force, Marine Corps,
or Coast Guard of the United
States.
Foreign Service Act
Sec. 851. For the purposes of this
title, the period of service of a
participant shall be computed from
the effective date of appointment
as a Foreign Service officer, or, if
appointed prior to July 1, 1924, as
an officer or employee of the Diplo-
matic or Consular Service of the
United States or from the data he
becomes a participant under the
provisions of this Act* as amended,
but all periods of separation from
the Service and so much of any
leaves of absence without pay as
may exceed six months in the aggre-
gate in any calendar year shall be
excluded, except leaves of absence
while receiving benefits under the
Federal Employees' Compensation
Act of September 7# 1916, as
amended, and leaves of absence
granted participants while per-
forming active and honorable mili-
tary or naval service in the Army,
Navy, Air Force, Marine Corps, or
Coast Guard of the United States.
Civil Service Retirement Act
Sec. 3. (a) An employee's service
for the purposes of this Act includ-
ing service as a substitute in the
postal service shall be credited
from the date of original employ-
ment to the date of the separation
upon which title to annuity is taxed
in the civilian service of the
Government. Credit shall similarly
be allowed for service in the Pen
American Sanitary Bureau. No credit
shall be allowed for any period of
separation from the service in
excess of three calendar days.
(b) Quoted below opposite
moo 252(e) of the Proposed CIA
RetirementAoto
(s) Credit shell be allowed !Cr
loaves of absence granted an emm
ployee while performing military
service or while receiving bene-
fits under the Federal Employees'
Compensation Act of September?,
1916, as amended. Except for a
substitute in the postal service,
there shall be excluded from credit
so much of any other leaves of
absence) without pay as may exceed
six months in the aggregate in
any calendar year.
(d) An employee who during the
period of any war, or of any
national emergency as proclaimed by
the President or declared by the
Congress, has left or leaves his
position to enter the military
service shall not be considered,
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Foreign Service Act
Proposed CIA Retirement Act
Civil Service Retirement Act
Sec. 3(d) (contid)
for the purposes of this Act, as
separated from his civilian position
by reason of such military service,
unless he shall apply for and re-
oeive a lump-sum benefit under this
Act: Provided, That such employee
shall not be considered as retain-
ing his civilian position beyond
December 31, 1956, or the expira-
tion of five years of such military
service, whichever is later,
(e) The total service of an
employee or Member shall be the
full years and twelfth parts
thereof, excluding from the aggre-
gate the fractional part of a
month, if any.
(f) An employee must have com-
pleted at least five years of
civilian service before he shall
be eligible for annuity under this
Act.
(g) An employee or Member mast
have, within the two-year period
preoeding any separation from ser-
vice, other than a separation by
refison of death or disability, com-
pleted at least one year of credi-
table civilian service during which
he was subject to this Act before
he or his survivors shall be eligi-
ble foriumity under this Act based
on such separation. If any employee
or Meeker, other than an employee or
Member separated from the service by
reason of death or disability, fails
to meet the service requirement of
the preceding sentence, the amounts
deducted from his salary during his
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Proposed CIA Retirement Act
Prior Service Credit
Sec. 252. (a) A participant They,
subject to the provisions of this
section, include in his period of
service?
(1) civilian service in the exe-
cutive, judicial, and legislative
branches of the Federal Government
and in the District of Columbia
government, prior to becoming a
participant; and
(2) active and honorable mili-
tary or naval service in the Are,
Navy, Air Force, Merine Corps., or
Coast Guard of the United States,
Foreign Service Act
Sec. 852. (a) A participant may,
subject to the provisions of this
section, include in his period of
service--
(1) civilian service in the exe-
cutive, judicial, and legislative
branches of the Federal Government
and in the District of Columbia
government, prior to becoming a
participant; and
(2) active and honorable mili-
tary or naval service in the Army,
Wavy, Marine Corps, Air Force, or
Coast Guard of the United States.
Civil Service Retirement Act
Sec. 3(g) (contld)
period of service for which no
eligibility for annuity is estab-
lished based on such separation
shall be returned to him upon such
separation. Failure to meet this
service requirement shall not de-
prive the individual or his survi-
vors of any annuity rights which
attached upon a previous separa-
tion.
Lgec. 3(h) excludes Member service
of an employee ender certain circum-
stances, Sec. 3(1) is concerned
with service of U.S. Commissioners2
ee:
. 3(a) quoted above opposite
sec. 251 of the Proposed CIA
Retirement Act;
Sec. 3(j) quoted below opposite
90C. 252(e) of the Proposed CIA
Retirement Act;
Sec. h(c), (e), and (g) quoted
below opposite sec. 252(h) of
the Proposed CIA Retirement Act;
Sec. h(d) quoted below opposite
sec. 252(b) of the Proposed CIA
Retirement Act17
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Proposed CIA Retirement Act
Sec. 252. (b) A person may obtain
prior civilian service credit in
accordance with the provisions of
paragraph (a)(1) of this section by
making a special contribution to
the fund equal to 5 per oentum of
his basic annual salary for each
year of service for which credit
is sought prior to November 8, 1960,
and at 6i per centum thereafter with
interest compounded annually at 4
per Gent= per annum to the date of
payment, Any such participant may,
=der mach conditions as may be
determined in each instance by the
Director, pay such special contri-
butions in installments.
Foreign Service Act
Sec. 852. (b) A person may Obtain
prior civilian service credit in
accordance with the provisions of
paragraph (a)(1) of this section by
making a special contribution to
the Fund equal to 5 per centum of
his basic annual salary for each
year of service for which credit is
sought subsequent to July 1, 1924,
and prior to the effective date of
the Foreign Service Act Amendments
of 1960, and at 6i per centum
thereafter with interest compounded
annually at 4 per centum per annum
to the date of payment. Any such
person may, under such conditions
as may be determined in each in-
stance by the Secretary, pay such
special contributions in install-
ments.
Civil Service Retirement Act
gee:
Sec. 3(a) quoted above opposite
sec. 251 of the Proposed CIA
Retirement Actj
Sec. 3(j) quoted below opposite
sec. 252(e) of the Proposed CIA
Retirement Actj7
Sec. 4. (c) Each employee or Member
credited with civilian service after
July 31, 1920, for which, for any
reason whatsoever, no retirement
deductions or deposits have been
made, may deposit with interest an
amount equal to the following per-
centages of his basic salary re-
ceived for such service:
Employee:
Percentage of
basic salary
Service Period
2.1-. August]., 1920, to June 30, 1926
3.t July 1$ 1926, to June 30, 1942
5 July 1$ 1942, to June 30, 1948
6 July 1$ 1948, to October 31, 1956
6i After October 31, 1956
Member:
TWI7GEtage of
basic salary
Service Period
2 August 1, 1920, to June 30, 1926
July 1, 1926, to June 30, 1942
5 July 1, 1942, to August 1, 1946
6 August 2, 1946, to October 31, 1956
7i After October 31, 1956
(contld on page 39)
-38-
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Proposed CIA Retirement Act
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Foreign Service Act Civil Service Retirement Act
Sec. 4. (d) Each employee or Member who
has received a refund of retirement
deductions under this or any other re-
tirement system established for em-
ployees of the Government covering
service for which he may be allowed
credit under this Act may deposit the
amount received, with interest. No
credit shall be allowed for the ser-
vice covered by the refund until the
deposit is made.
Sec. 4. (e) Interest under subsection
(c) or (d) shall be computed from the
midpoint of each service period in-
cluded in the computation, or from the
date refund was paid, to the date of
deposit or commencing date of annuity,
whichever is earlier. The interest
shall be computed at the rate of 4 per
centum per annum to December 31, 1947,
and 3 per cent= per annum thereafter
compounded annually. Such deposit may
be made in one or more installments.
No interest shall be charged for any
period of separation from the service
which began before October 1, 1956.
h(f) provides for entering de-
posits for prior service credit an
individual retirement records"?
(g) No deposit shall be required for
any service prior to August 1, 1920,
for periods of military servioe or for
any service for the Panama Railroad
Company prior to January 1, 1924.
(h) For purposes of survivor annuity,
deposits authorised by subsections
(c) and (d) may also be made by the
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Proposed CII Retirement Act
Sec. 252(c)(1) If an officer or
employee under sons other Govern-
ment retirement system becomes a
participant in the system by direct
transfer, such officer or employee's
total contributions and deposits,
including interest accrued thereon,
except voluntary contributions,
shall be transferred to the fund
effective as of the date such
officer or employee becomes a par-
ticipant in the system. Each such
officer or employee shall be deemed
to consent to the transfer of such
funds and such transfer shall be a
complete discharge and acquittance
of all claims and demands against
the other Government retirement
fund on account of service rendered
prior to becoming a participant in
the system.
(2) No participant, whose oon-
tributions are transferred to the
fund in accordance with the provi-
sions of paragraph (c)(1) of this
section, shall be required to make
contributions in addition to those
transferred for periods of service
for which full contributions were
made to the other Government retire-
ment fund, nor shall any rebind be
made to any such participant on
account of contributions made
during any period to the other
Government retirement fund at a
higher rate than that fixed by
motion 211 of this Act for con-
tributions to the fund.
Foreign Service Act
Sec. 852. (c)(1) If an officer or
employee under some other Government
retirement system, becomes a parti-
cipant in the System by direct trans-
fer, such officer or employee's total
contributions and deposits, includ-
ing interest accrued thereon, except
voluntary contributions, shall be
transferred to the Fund effective as
of the date such officer or employee
becomes a participant in the System.
Each such officer or employee shall
be deemed to consent to the transfer
of such funds and such transfer
shall be a complete discharge and
acquittance of all claims and de-
mands against the other Government
retirement fund on account of ser-
vice rendered prior to becoming a
participant in the System.
(2) No officer or employee, whose
contributions are transferred to the
Fund in accordance with the provi-
sions of paragrapil (c)(1) of this
section, shall be required to make
contributions in addition to those
transferredpfor periods of service
for which full contributions were
made to the other Government retire-
ment fund, nor shall any refund be
made to such officer or employee on
account of contributions made during
any period to the other Government
retirement fund, at a higher rate
than that fixed by section 811 of
this Act for contributions to the
Fund,
Civil Service Retirement Act
No comparable provision.
No comparable provision.
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Proposed CIA Retirement Act
Sec. 252. (c)(3) NO participant,
whose contributions are trans-
ferred to the fund in accordance with
the provisions of paragraph (c)(1) of
this section, shall receive credit for
periods of service for which a refund
of contributions has been made, or for
which no contributions were made to
the other Government retirement fund.
A participant may, however, obtain
credit for such prior service by
making a special contribution to the
fund in accordance with the provi-
sions of paragraph (b) of this
section.
(d) No participant may obtain
calor civilian service credit toward
retirement under the system for any
period of civilian service on the
basis of which he is receiving or
will in the future be entitled to
receive any annuity under another
retirement system covering civilian
personnel of the Government.
Foreign Service Act
Sec. 852. (c)(3) No officer or em-
ployee, whose contributions are trans-
ferred to the Fund in accordance with
the provisions of paragraph (c)(1) of
this section, shall receive credit for
periods of service subsequent to
July 1, 19214, for which a refund of
contributions has been made, or for
which no contributions were made to
the other Government retirement bind.
A participant may, however, obtain
credit for such prior service by
making a special contribution to the
Fund in accordance with the provi-
sions of paragraph (b) of this
section.
(d) No participant may obtain
prior civilian service credit toward
retirement under the System for any
period of civilian service on the
basis of which he is receiving sr
will in the future be entitled to
receive any annuity under another
retirement Brahma covering civilian
personnel of the Government,
Civil Service Retirement Act
Sec. 4. (d) Each employee or
Member who has received a refund
of retirement deductions under
this or any other retirement
system established for employees
of the Government covering service
for which he may be allowed credit
under this Act may deposit the
amount received, with interest.
No credit shall be allowed for
the service covered by the refund
until the deposit is made,
eprevision precisely compare-
; however, provisions of
sec. 2(b) and h(c) and (A) operate
to exclude such serviced
eioo. 3(j) quoted below opposite
sec, 252(e) of the Proposed CIA
Retirement Act relates also to
credit for certain Pearce Corps
volenteer mervillg
pee nate on page 42 concerning
exclusion of service on which
entitlement to Social Security
benefit is based.;
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Proposed CIA Retirement Act Foreign Service Act
Civil Service Retirement Act
f: Sec. 115, Social Security
t Amendmentsof 1954:
Covered Employment Not Counted
Under Other Federal Retirement
Systems
Notwithstanding any other provi-
sion of law, in determining eligi-
bility for or the amount of any
benefit (other than a benefit
under title II of the Social Secur-
ity Act or under the Railroad Re-
tirement Act of 1937, as amended)
under any retirement system estab-
lished by the United States or any
instrumentality thereof, there
shall not be taken into account
any service which, by reason of
the amendments to section 201(a)
of the Social Security Act made
by section 101(c) of this Act,
constitutes employment as defined
in such section 210(01,7
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k
Proposed CIA Retirement Act
Sec. 252. (e) A participant may ob-
tain prior military or navel service
credit in accordance with the provi-
sions of paragraph (a)(2) of this
section by applying for it to the
Director prior to retirement or
separation from the Agency. However,
in the case of a participant who is
eligible for and receives retired
pay an account of military or naval
service, the period of service upon
which such retired pay is based
shall not be included, except that
in the case of a participant who is
eligible for and reoeives retired
pay on account of a service-connected
disability incurred in combat with an
enemy of the United States or caused
by an instrumentality of war and in-
curred in line of duty during a
period of war (as that term is used
in chapter 11 of title 38, United
States Code), or is awarded under
chapter 67 of title 10 of the
United States Code, the period of
such military or naval service
shall be included. No contributions
to the fund shall be required in
connection with military or naval
service credited to a participant
in accordance with the provisions
of paragraph (a)(2) of this section.
Foreign Service Act
Sec. 852. (e) A participant may ob-
tain prior military or naval service
credit in accordance with the provi-
sions of paragraph (a)(2) of this
section by applying for it to the
Secretary prior to retirement or
separation from the Service. However,
in the case of a participant who is
eligible for and receives retired
pay on account of military or naval
service, the period of service upon
which such retired pay is based
shall not be included, except that
in the case of a participant who is
eligible for and receives retired
pay oh account of a service-conrkected
disability incurred in combat with an
enemy of the United States or caused
by an instrumentality of war and in-
curred in line of duty during a
period of war (as that term is used
in chapter 11 of title 38, United
States Code), or is awarded under
chapter 67 of title 10 of the
United States Code, the period of
such military or naval service
shall be included. No contribu-
tionsto the Fund shall be required
in connection with military or naval
service credited to a participant in
accordance with the provisions of
paragraph (a)(2) of this section.
Civil Service Retirement Act
Sec. 3. (b) An employee or Member
shall be allowed credit for periods
of military service prior to the
date of the separation upon which
title to annuity is based; however,
if an employee or Member is awarded
retired pay on account of military
service, his military service shall
not be included, unless such retired
pay is awarded on account of a ser-
vice-connected disability (1) in-
curred in combat with an enemy of
the United States or (2) ceased by
an instrumentality of war and in-
curred in line of duty during a
period of war (as that term is used
in Chapter 11 of title 38, United
States Code), or is awarded under
title III of Public Law 810,
Eightieth Congress, except that for
purposes of section 9(c)(1), a
Member (A) shall be allowed credit
only for periods of military per-
vioe not exoeeding five years, plus
any military service performed by
the member upon leaving his office,
for the purpose of performing such
service, during any war or national
emergency proclaimed by the Presi-
dent or declared by the Congress
and prior to his final separation
from service as Member and (B) may
not receive credit for military
service for which credit is
allowed for purposes of retired
pay under any other provision of
law. Nothing in this Act shall
affect the right of an employee
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Approved For Release 2002/01/23 CIA-RDP75600380R000500020007-2
Foreign Service Act Civil Service Retirement Act
Sec. 3(h) (contld)
or a Yember to retired pay, pension,
or compensation in addition to the
annuity herein provided.
ffee. 1. (r) The term "military ser-
vice" shall mean honorable active
service in the Any, Navy, Air Forde,
Marine Corps, or Coast Guard of the
United States, or, after June 30,
1960, in the Regular Corps or
Reserve Corps of the Public Health
Service or, after June 30, 1961,
as a commissioned officer of the
Coast and Geodetic Survey, but shall
not include service in the National
Guard except when ordered to active
duty in the service of the United
Statesj
Sec. 3. (j) Notwithstanding any
other provision of this section or
section 5(f) of the Peace Corps Act,
any military service (other than
military service covered by mili-
tary leave with pay from a civilian
position) performed by an individual
after December 1956 and any period
of service by an individual as a
volunteer under the Peace Corps Act,
shall be excluded in determining the
aggregate period of service upon
which an annuity payable under this
chapter to such individual or to his
widow or child is to be based, if
such individual or widow or child
is entitled (or would upon proper
application be entitled) at the
time of such determination,
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Proposed CIA Retirement Act
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Proposed CIA Act
Credit for Service While on Military
Leave
Sec. 253. Contributions shall not be
required covering periods of leave of
absence from the Agency granted a par-
ticipant while performing active mili-
tary or naval service in the Army,
Navy, Air Force, Marine Corps, or
Coast Guard of the United States.
Foreign Service Act
Sec. 854. Contributions shall not
be required covering periods of
leave of absence from the Service
granted a participant while per-
forming active military or naval
service in the Army, Navy, Marine
Corps, or Coast Guard of the
United Staters?
Civil Service Retirement Act
Sec. 3(j) (cont'd)
to monthly old-age or survivors
benefits under section 202 of the
Social Security Act, as amended
(42 U.S.C. 402), based on such
individual's wages and self-employ-
ment income. If in the case of the
individual or widow such military
service, or service under the Peace
Corps Act is not excluded under the
preceding sentence, but upon attain-
ing age sixty-two, he or she becomes
entitled (or would upon proper appli-
cation be entitled) to such benefits,
the Commission shall redetermine the
aggregate period of service upon
which such annuity is based, effec-
tive as of the first day of the
month in which he or she attains
such age, so as to exclude such
service. The Secretary of Health,
Education, and Welfare shall, upon
the request of the Commission,
inform the Commission whether or
not any such individual or widow
or child is entitled at any speci-
fied time to such benefits.
See. 4. (g) No deposit shall be
required for any service prior to
August 1, 1920, for periods of
military service or for any
service for the Panama Railroad
Company prior to January 1, 1924.
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Proposed CIA Retirement Act
PART G--MONEYS
Estimate of Appropriations Needed
Sec. 261, The Director shall pre-
pare the estimates of the annual
appropriations required to be made
to the fund, and shall cause to be
made actuarial valuations of the
fund at intervals of five years,
or oftener if deemed neoessary by
him.
Foreign Service Act
Sec. 861. The Secretary of the
Treasury shall prepare the esti-
mates of the annual appropriations
required to be made to the Fund,
and shall make actuarial valuations
of such funds at intervals of five
years, or oftener if deemed neces-
sary by him. The Secretary of
State may expend from money to the
credit of the Fund an amount not
exceeding $5,000 per annum for the
incidental expenses necessary in
administering the provisions of
this title, including actuarial
advice.
Sec. 862. The Secretary shall sub-
mit annually to the President and
to the Congress a comparative report
showing the condition of the Fund
and estimates of appropriations
necessary to continue this title
in full force.
Civil Service Retirement Act
Sec. 17. (e) The Commission shall
submit estimates of the appropria-
tions necessary to finance the fund
an a normal cost plus interest
basis and to continue this Act in
full force and effect.
Sec. 16. (I) The Commission shall
publish an annual report upon the
operations of this Act and shall
include in each such report a
statement with respect to the status
of the fund on a normal cost plus
interest basis.
(g) The Commission is hereby au-
thorized and directed to select
three actuaries, to be known as the
Board of Actuaries of the Civil Ser-
vice Retirement System. It shall
be the duty of such Board to report
annually upon the actuarial status
of the system and to furnish its
advice and opinion on matters re-
ferred to it by the Commission, and
it shall have the authority to
recommend to the Commission and to
the Congress such changes as in the
Boardls judgment may be deemed
necessary to protect the public
interest and maintain the system
upon a sound financial basis. The
Commission shall keep or cause to
be kept such records as it deems
necessary for making periodic
actuarial valuations of the Civil
Servizecorticireze: rem, and
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Proposed CIA Retirement Act
Investment of Moneys in the Fund
Sec, 262. The Director may, with
the approval of the Secretary of
the Treasury, invest from time to
time in interest-bearing securities
of the United States such portions
of the fund as in his judgment may
not be immediately required for the
payment of annuities, cash benefits,
refunds, and allowances, and the
income derived from such investments
shall constitute a part of such
fund.
Foreign Service Act
Sec. 863. The Seoretary of the
Treasury Shell invest from time to
time in interest-bearing securities
of the United States such portions
of the Fund as in his judgment may
not be immediately required for the
payment of annuities, cash benefits,
refunds, and allowanoes, and the
income derived from such investments
shall constitute a part of such
Fund.
Civil Service Retirement Act
Sec. 16(g) (contid)
the Board shall make such valuations
at intervals of five years, or of-
tener if deemed necessary by the
Commission. The compensation of the
members of the Board of Actuaries,
exclusive of such members as are in
the employ of the United States,
shall be fixed by the Commission.
Sec. 17. (c) The Secretary of the
Treasury shall immediately invest
in interest-bearing securities of
the United States, such currently
available portions of the fund as
are not immediately required for
payments from the fund, and the
income derived from such invest-
ments shall constitute a part of
the fund.
Sec. 17. (a) The fund is hereby
appropriated for the payment of
benefits as provided in this Act.
(b) The Secretary of the Treasury
is hereby authorized to accept and
credit to the fund moneys received
in the form of donations, gifts,
legacies, or bequests, or otherwise
contributed for the benefit of
civil service employees generallyj
Sec. 17. (d) The purposes for which
obligations of the United States may
be issued under the Second Liberty
Bond Act, as amended, are hereby
extended to authorise the issuance
at per of pnblio-debt obligations
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Proposed CIA Retiremant Act
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k
Foreign Service Act Civil Service Retirement Act
Sec. 17 (d) (contld)
for purchase by the fund. Such
obligations isgued for purchase by
the fund shall have maturities fixed
with due regard for the needs of the
fund and bear interest at a rate
equal to the average market yield
computed as of the end of the calen-
dar month next preceding the date of
such issue, borne by all marketable
interest-bearing obligations of the
United States then forming a part
of the public debt that are not
due or callable until after the
expiration of four years from the
end of such calendar month, except
that where such average market yield
is not a multiple of one-eighth of
1 per centum, the rate of interest
on such obligations shall be the
multiple of one-eighth of 1 per
centum nearest such average market
yield. The Secretary of the
Treasury may purchase other interest-
bearing Obligations of the United
States, or obligations guaranteed
as to both principal and interest
by the United States, on original
issue or at the market price only
if he determines that such purchases
are in the public interest.
418-
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Proposed CIA Retirement Act
Attachment of Mbneys
Sec. 263, None of the moneys men-
tioned in this title shall be assign-
able either in law or equity, or be
subject to execution, levy, attach-
ment, garnishment, or other legal
process, except as provided in sec-
tion 234 (e).
Foreign Service Act
Sec. 664. None of the moneys men-
tioned in this title shall be assign-
able either in law or equity, or be
subject to execution, levy, attach-
ment, garnishment, or other legal
process, except as provided in
section 634 (c).
Civil Service Retirement Act
Sec, 15. (a) None of the moneys
mentioned in this Act shall be
assignable either in law or equity,
or be subject to execution, levy,
attachment, garnishment, or other
legal process.
(b) Notwithstanding any other
provision of law, there shall be
no recovery of any payments under
this Act from any person when, in
the judgment of the Commission, such
person is without fault and such
recovery would be contrary to
equity and good conscience; nor shall
there be any withholding or recovery
of any moneys mentioned in this Act
on account of any certification or
payment made by any former employee
of the United States in the dis-
charge of his official duties
unless the head of the deportment
or agency on behalf of which the
certification or payment was made
certifies to the Commission that
such certification or payment
involved fraud on the part of such
employee.
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Prowled CIA Retirement Act
PART Ho-agTIRED PARTICIPANTS
RECALLED, REINSTATED, OR RE.
APPOINTED IN THE Amor, OR
REEMPLOYED IN TBE aminmsur
Resell
Sec. 271. (a) The Director may re-
call any retired participant to duty
in the Agency whenever he shall de-
termine such recall is in the public
interest.
(b) Any such participant recalled
to duty in the Agency in accordance
with the provisions of paragraph (a)
of this section or reinstated or re-
appointed in accordance with the
provisions of section 231(b) shall,
while so serving, be entitled in
lieu of his annuity to the full
salary of the grade in which be is
serving. During such service, he
shall make contributions to the
Mad in accordance with the provi-
sions of section 211. When he re-
verts to his retired status, his
annuity shall be determined anew
in accordance with the provisions
of sec. 221.
Foreign Service Act
Sec. 520. (b) The Secretary may re-
call any retired Foreign Service offi-
cer temporarily to duty in the Service
whenever he shall determine each
recall is in the public interest.
See. 871. Any annuitant recalled to
duty in the Service in accordance
with the provisions of section 520(b)
a* reinstated or reappointed in ac-
cordance with the provisions of sec-
tion 831(b) shall, while so serving,
be entitled in lieu of his annuity
to the full salary of the class in
which he is serving. During such
service, he shall make contribu-
tions to the Fund in accordance
with the provisions of section 811.
When he reverts to his retired sta-
tus, his annuity shall be deter-
mined anew in accordance with the
provisions of section 821.
Civil Service Retirement Act
nathough there is not a provision
in the Civil Service Retirement
ACV for wrecall" of an annuitant,
the provisions of sec. 13 (Os
quoted immediately below, are
analogous to the provisions of
sec. 271(b) of the Proposed CIA
Retirement Act for purposes of
determining compensation, addi-
tional service credit, reoompu-
tation of annuity, etca7
Sec. 13(b). If an annuitant under
this Act (other than (1) a disability
annuitant whose annuity is terminated
by reason of his recovery or res-
toration of earning capacity, (2) an
annuitant whose annuity was based
upon an involuntary separation from
the service, excluding a separation
under the automatic separation pro.
visions of this Act, or (3) a Member
retired under this Act) hereafter
becomes employed, or on the date of
enactment of the Civil Service Re-
tirement Act Amendments of 1956 is
serving, in an appointive or elect-
ive position, his service an and
after the date he was or is so
employed shall be covered by this
Act. No deductions for the fund
shall be withheld from hie salary,
but there shall be deducted frms
his salary, except for lump-sum
leave payment purposes under the
Act of December as 194h, a sum
equal to the annuity allocable to
the period of actual employment,
and this provision concerning
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Approved For Release 2002/01/2t: CIA-RDP75600380R000500020007-2
Proposed CIA Retirement Act
Foreign Service Act Civil Service Retirement Act
Sec. 13(b) (cont,d)
the lump-sum leave payments 'hall
also be effective in the case of
each retired employee separated
from reemployment after Deoem-
ber 15, 1953, and before the effec-
tive date of the Civil Service Re-
tirement Act Amendments of 1956e
Provide, That if such annuitant
serves on a full-time basis for at
least one year in employment not
excluding him under section 2(b)
from coverage, (1) his annuity upon
termination of employment shall be
increased by an annuity computed
under subsections (a), (b), (d), (e),
and (f) of section 9 as may apply
based upon the period of and the
basic salary (before deduction)
averaged during such employment,
and (2) his lump-sum credit shall
not be reduced by annuity paid
during such employment. The en-
Ployment of an annuitant under
this subsection shall not operate
to create an annuity for or in any
manner affect the annuity of any
survivor. Any such annuitant whose
described employment continues for
at least five years may elect, in
lieu of the benefit authorised by
the proviso herein, to have his
rights redetermined under the
provisions of this Act upon depo-
sit in the fared of an amount com-
puted under section 4(c) covering
such employment. A similar right
to redetermination after deposit
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Proposed CIA Retirement Act
Reemployment
Sec. 272. Notwithstanding any
other provision of law, a parti-
cipant retired under the provi-
sions of this Act shall not, by
reason of his retired statuss be
barred from employment in Feder-
al Goverment service in any ap-
pointive position for which he is
qualified. An annuitant so re-
employed Shall serve at the will
of the appointing officer.
Foreign Service Act
Sec. 520. (c) Notwithstanding the
provisions of title 5, United States
Code, section 62, and title 5, United
States Code, section 715e, a Foreign
Service officer heretofore or hero--
after retired under the provisions of
section 631 or 632 or a Foreign Ser-
vice staff officer or employee here-
after retired under the provisions of
section 803 shall not, by reason of
his retired status, be barred from
employment in Federal Government ser-
vice in any appointive position for
whiehhe is qualified. An annuitant
so reemployed shall serve at the will
of the appointing officer.
-52-
Civil Service Retirement Act
Sec. 13(b) (conttd)
shall be applicable to an annuitant
(1) whose annuity is based on an
involuntary separation from the
service, and (2) who is separated,
on or after the date of enactment
of this sentence, after a period of
reemployment on a full-time basis
which began before October 1, 1956.
276c. 13(0 is concerned with the
reemployment of a retired Membera7
Sec. 13. (a) Notwithstanding any other
provision of law, an annuitant hereto-
fore or hereafter retired under this
Act shall not, by reason of his re-
tired status, be barred from employ-
ment in any appointive position for
which he is qualified. An annuitant
so reemployed shall serve at the will
of the appointing officer.
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Proposed CIA Retirement Act
Reemployment Compensation
Sec. 2730 (a) Notwithstanding any
other provision of law, any annui-
tant who has retired under this Act
and who is reemployed in the Federal
Government service in any appointive
position either on a pert-time or
full-time basis shall be entitled
to receive the salary of the posi-
tion in which he is serving plus so
much of his annuity payable under
this Act which when combined with
such salary does not exceed during
any calendar year the basic salary
such annuitant was entitled to re-
ceive on the date of his retirement
from the Agency. Any such reem-
ployed annuitant who receives sala-
ry during any calendar year in ex-
cess of the maximum amount which
he may be entitled to reoeive under
this paragraph shall be entitled to
such salary in lieu of benefits
hereunder.
Foreign Service Act
Sec. 872. (a) Notwithstanding any
other provision of law, any officer
or employee of the Service, who has
retired under this Act, as amended,
and is receiving an annuity pursuant
theretes and who is reemployed in
the Federal Government service in
any appointive position either on a
part-tire or full-tine basis, shall
be entitled to receive the salary of
the position in which he is serving
plus so much of his annuity payable
under this Act, as amended, which
when combined with such salary does
not exceed during any calendar year
the basic salary such officer or
employee was entitled to receive
under sections 1.112 or 415 of the
Act, as amended, on the date of his
retirement from the Service. Any
such reemployed officer or employee
who receives salary during any
calendar year in excess of the maxi-
mum amount which he may be entitled
to receive under this paragraph
shall be entitled to such salary in
lieu of benefits hereunder.
Civil Service Retirement Act
Lgee sec. 13(b) quoted above opposite
sec. 271 of the Proposed CIA Retire-
ment Act which provides in pert as
follows:
"...but there shall be deducted from
his salary...a sum equal to the annu-
ity allocable to the period of actual
employment.")
-53-
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Fore101 Service Act
Proposed CIA Retirement Act
Sec. 273. (b) When any such re-
tired annuitant is reemployed,
the employer shall send a notice
to the Agency of such reemployment
together with all pertinent infor-
mation relating thereto, and shall
pay directly to such annuitant the
salary of the position in which he
is serving.
(c) In the event of any over-
payment under this section, such
overpayment shall be recovered by
withholding the amount involved
from the salary payable to such
reemployed annuitant, or from any
other moneys, including his an-
nuity, payable in accordance with
the provisions of this title.
Seco 872. (b) When any such retired
officer or employee of the Service
is reemployed, the employer than
send a notice to the Department of
State of such reemployment together
with all pertinent information re-
lating thereto, and shall pay direct-
ly to such reemployed officer or em-
Aloyee the salary of the position
in which he is serving.
(o) In the event of any overpayment
under this section, such overpayment
Shall be recovered by withholding the
amount involved from the salary pay-
able to such reemployed officer or
employee, or from any other moneys,
including his annuity, payable in
0000rdance with the previsions of
Vide Una.
Civil Service Retirement Act
No comparable provision.
No comparable provision. Haver,
sec. 15(b) provides in parts
Notwithstanding any other provi-
sion of law, there shall be me
recovery of any payments under this
Act from any person when in the
judgment of the Commission, such
person is without fault and sueh
recovery would be contrary to
equity and good conaciencej...
(Sec. 15(b) is quoted in full
above opposite WO. 263 of the
Pftposed CIA Retirement Act.)
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Proposed CIA Retirement Act
PART I -- voLummy corimmuTIONs
Sec. 281.(a) Any participant may, at
his option and under such regulations
as may be prescribed by the Director,
deposit additional sums in multiples
of 1 per centum of his basic salary,
but not in excess of 10 per cent=
of such salary, which amounts toge-
ther with interest at 3 per centum
per annum, compounded annually as
of December 31, and proportionately
for the period served during the
year of his retirement, including
all contributions made during or
for such period, shall, at the date
of his retirement and at his elec-
tion, be--
(1) returned to him in a lump
SUR; Or
(2) used to purchase an addi-
tional llis annuity; or
(3) used to Purchase an addi-
tional life annuity for himself
and to provide for a cash payment
on his death to a beneficiary
whose name shall be notified in
writing to the Director by the
participant; or
(4) used to purchase an addi-
tional life annuity for himself
and a life annuity commencing on
his death payable to a beneficiary
whose name shall be notified in
writing to the Director by the
participant with a guaranteed
return to the beneficiary or his
legal representative of an amount
equal to the cash payment referred
to in subparagraph (3) above.
Foreign Service Act
Sec. 881. (a) Any participant may, at
his option and under such regulations
as may be prescribed by the President,
deposit additional sums in multiples
of 1 per centum of his basic salary,
but not in excess of 10 per centum of
such salary, which amounts together
with interest at 3 per centum per annum,
compounded annually at the end of each
fiscal year through June 30, 1960; semi-
annually as of December 31, 1960; amms-
ally thereafter as of December 31, and
proportionately for the period served
during the year of his retirement, in-
cluding all contributions made during
or for such period, shall, at the date
of his retirement and at his election
be--
(1) returned to him in a lump sum;
Or
(2) used to purchase an additional
life annuity; or
(3) used to purchase an additional
life annuity for himself and to pro-
vide for a cash payment on his death to
a beneficiary whose name shall be noti-
fied in writing to the Secretary by the
participant; or
(4) used to purchase an additional
life annuity for himself and a life
annuity commencing on his death payable
to a beneficiary whose name shall be
notified in writing to the Secretary
by the participant with a guaranteed
return to the beneficiary or his
legal representative of an amount
equal to the cash payment referred
to in paragraph 3.
Civil Service Retirement Act
Sec. 12. (a) Any employee or Member
may, under regulations prescribed
by the Commission, voluntarily con-
tribute additional sues in multiples
of $25, but the total may net ex-
ceed 10 per centum of his basic
salary for his creditable service
from and after August 1, 1920.
The voluntary contribution account
in each case shall be the sum of
such unrefbnded contributions, plus
interest at 3 per centum per annum
compounded annually to date of
seperation or transfer to a position
not within the purview of this Act
or in case of an individual who is
separated with title to a deferred
annuity and does not claim the
voluntary contribution account, to
the commencing date fixed for such
deferred annuity or date of death,
whichever is earlier.
(b) Such voluntary contribution
account shall be used to purchase
at retirement an annuity in addi-
tion to the annuity otherwise pro-
vided. For each $100 in such vol-
untary contribution account, the
additional annuity shall consist
of $7, increased by 20 cents for
each full year, if any, such em-
ployee or Member is over the age
of fifty-five years at the date of
retirement.
(c) A retiring employee or Member
may elect a reduced additional
annuity in lieu of the additional
annuity described in subsection (b)
inued on pap 55)
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Foreign Service Act
Proposed CIA Retireannt Act
Sec. 281. (b) The benefits provided
by subparagraphs (2), (3), or (4)
of paragraph (a) of this section
shall be actuarially equivalent in
value to the payment provided for
by subparagraph (a)(1) of this sec-
tion and shall be calculated upon
such tables of mortality as may be
from time to time prescribed for
this purpose by the Director,
(c) In ease a participant shall
become separated from the Agency
for any reason except retirement
an an annuity, the amount of sAY
additional deposits with interest
at 3 per oentun per anomie, van-
pounded as is provided in para-
graph (a) of this section, made by
him under the provisions of said
paragraph (a) shall be refunded in
the same manner provided in sec-
tion 241 for the return of contri-
butions and interest in the case of
death or separation from the
Agency.
Approved
Sec. 881. (b) The benefits provided
by subparagraphs 2, 3, or 4 of para-
graph (a) of this section shall be
actuarially equivalent in value to
the payment provided for by para-
graph (a)(1) of this Election and
shall be calculated upon such tables
of mortality as may be from time to
time prescribed for this purpose by
the Secretary of the Treasury.
(c) In case a participant shall
become separated from the Service for
any reason except retirement on an
annuity, the amount of any additional
deposits with interest at 3 per cent=
per annum, compounded as is provided
in paragraph (a) of this section, made
by him under the provisions of this
paragraph shall be refunded in the
manner provided in section 841 for
the return of contributions and
interest in the case of death or
separation from the Service*
Civil Service Retirement Act
Sec. 12(c) (contsd)
and designate in writing a person to
receive after his death an annuity
of 50 per centum of his reduced addi-
tional annuity. The additional annu-
ity of the employee or Member making
such election shall be reduced by
10 per centum, and by 5 per osntum
for each full five years the person
designated is younger than the
retiring employee or Member, but
such total reduction shall not
exceed 40 per centuno
ffeco 12(b) and (c) quoted immedi-
ately above specify the benefits
provided under the comparable pro-
visions of the Civil Service Re-
tirement Acts7
(d) Any present or farnsr employee
or Member shall be paid the wenn.
tary contribution account provided
application for payment is filed with
the Commission prior to reoeipt of
any annuity, but such account shall
mat in any case include interest be-
yond date of payment. Such individual
Moll thereafter be eligible to de-
posit additional sans under this seo-
tian only if he again becomes subject
to this Act after a separation from
the service of more than three calen-
dar days.
(e) If any present or former em-
gorse or Member not retired dies,
the voluntary contribution account
shall be paid under the provisions
of motion 11(c)0 If all additional
annuities or any right thereto based
-55- an the voluntary contribution account
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Proposed CIA Retirement Act
See. 281, (d) Any benefits payable
to a participant or to his benefi-
ciary in respect to the additional
deposits provided under this mo-
tion shall be in addition to the
benefits otherwise provided under
this title,
Foreign Service Act
Sec. 881. (d) Any benefits payable
to an officer or to his beneficiary
in respect to the additional depo-
sits provided under this paragraph
shall be in additim to the bene-
fits otherwise provided under this
title.
Civil Service Retirement Act
Sec. 12(e) (contld)
of a deceased employee or Member
terminate before the total additional
annuity paid equals such account, the
difference shall be paid under the
provisions of section 11(c).
ffec? 12(b) quoted in fall Acme
opposite sec. 281(a) of the Proposed
CIA Retirement Act states in part:
Such voluntary contribution account
shall be used to purchase at retire-
ment an annuity in addition to the
annuity otherwise provided. (Under-
scoring supplied.)
Sec. 12(c), quoted in full above,
similarly refers to a "reduced addi-
tional annuity,17
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Approved For Release 2002/01/23i CIA-RDP75600380R000500020007-2
Proposed CIA Retirement Act
TITLE III--INTERNAL REVENUE CODE
AMENDMENT
Paragraph (4) of section 10h(a)
of the Internal Revenue Code of
195h, as amended, (26 U.S.C.
10h(a)(4)) (relating to the exclu-
sion from gross income of compen-
sation for injuries and sickness)
is hereby amended to read as fol-
lows:
"(h) amounts received as a pen-
sion, annuity, or similar allowance
for personal injuries or sickness
resulting from active service in
the armed forces of any country or
in the Coast and Geodetic Survey
or the Public Health Service, or
as a disability annuity payable
under the provisions of section
831 of the Foreign Service Act of
191i61 as amended (22 U.S.C. 1081,
60 Stat. 1021), or ad-a disability
annuity payable under the provi-
sions of section 231 of the Cen-
tral Intelligence Agency Retire-
ment Act of 1963."
Jared= Service Act
Itbility annuities under the
gn Service Act are already
imiluded in the provisions of
periegrapb (4) of section 104(e)
st,the Internal Revenue Cod*
of 1,9514,27
Civil Service Retirsomat Act
eemelparlble previidem; hemmer,
ability annuities are covered by
the Nei* pay exclusion" under the
Internal Revenue Code. Thus, until
a disability ennuitamt reaches
"normal" retirement age--construed
to be age 60 for Civil Service dis-
ability annuitants--be may exclude
from groes income the amount of his
disability anriakj, up to a maximms
of $100 per v
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Approved For Release 2002/01/234; CIA-RDP75600380R000500020007-2
AREAS IN WHICH COVERAGE UNDER THE CIVIL SERVICE RETIREMENT ACT IS BROADER OR MORE
LIBERAL THAN COVERAGE UNDER THE FOREIGN SERVICE RETIRaLENT SYSTEM OR THE PROPOSED
CIA EBTIRHAENT ACT
(Page number references are to a paper comparing the text of the Proposed CIA Retirement Act with perti-
nent provisions of the Foreign Service Act and the Civil Service Retirement Act.)
Subject
Definition of "child"
(page 6)
Disposition of contributions
In excess of those for serv-
ice establishing maxim=
annuity
(page 10(b))
Automatic cost-of-living
increases in annuities
(page 10c)
Amount of annuity to surviving
wife or husband
(Page 11)
Reduction in employee's annuity
to provide survivor benefit
(page 11)
Civil Service Retirement Act
Child is defined to include an un-
married child between 18 and 21 who
is a student (in addition to un-
married child under 18 or one in-
capable of self-support).
(Sec.. 1(j) as amended 1962)
Such contributions, with interest,
are considered "voluntary contri-
butions thereby providing basis
for additional annuity.
(Sec. 11(h)(1) - 1960 amendments)
Annuities are automatically in-
creased when price index goes up
3%. (Sec. 18 - 1962 amendments)
ALSO: Part III of the Act of
Oct-her 11, 1962 provided for
increases in 1962 through 1966
:ram 5% down t 1% for annuities
Ir. cq-Tect.)
of employee's annuity.
Sec. 10(a)(1) - nr--,ndments)
21% of first $3 600 of employee's
annuity plus 10% of balance.
(Sec. 9(g) - 1962 amendments)
-1-
Proposed CIA Retirement Act
and Foreign Service Act
E.,..cept for child incapable of self-
support because of physical or mental
disability, child must be under 18
and unmarried. (Sec. 204(b)(3) of
proposed CIA Act; sec. 804(b)(3) of
FSA)
No provision for any additional bene-
fit for such excess contributions.
No comparable provision.
50% of employee's annuity.
(Sec. 221(b) of proposed CIA Act;
sec. 821(b) of FSA)
all of first $22_400 of employee's
annuity plus 10% of balance.
(Sec. 221(b) of proposed CIA Act;
sec. 821(b) of FDA)
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Subject
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Civil Service Retirement Act
Proposed CIA Retirement Act
and Foreign Service Act
"Autoratic" election of
survivor benefit
(page 11)
Survivor benefit to benefi-
ciary of unmarried cmi)loyee
(Page 1)--)
Disability retircment:
anli-
cation within one year after
separation
(page 15)
Continuation of annuity after
recovery of disability
annuitant
(page 17)
Death in service: annuity to
widow or del)endent widower
(i;z;-- 22)
Definition of "military"
service
(pgs 37 and 44)
Employee must state specifically
and in writing that he does not
wish survivor benefit. Otherwise
it is automatically provided.
(Sec. 10(a)(1) - 1962 amendments)
of e_plo:ye's annuity after
reductIon :or providing survivor
benefit.
(Sec. 10(b) - 1962 amendments)
ArrlicatIr'n for disability retire-
nt -lay be filed one year after
s? paran (or later in cases of
mental incompetency).
(flee. .q.b))
Annuit;. 'f.? disability retiree
7tho recovLrs i. continued until
r employmen or for one year,
whichever is less.
(Sec. 7(d) - 1961 amendments)
55(i, of annuity computed on basis
of employee's service and high-5
salary.
(Sec. 10(c) - 1962 amendments)
Military service includes Army,
Navy, Air Force, Marine Corps,
Coast Guard, Regular or Reserve
Corps of Public Health Service,
commissioned service in Coast and
Geodetic Survey.
Approved(FOrRellhffle10401123SPatiA5P75B00380R000500020007-2
-2-
amloyce must specify that he does
wish survivor benefit or it is not
provided. (Sec. 221(b) of proposed
CIA Act; sec. 821(b) of FSA)
.50% of employee's annuity after reduc-
tion for providing survivor benefit,
(Sec. 221(f) of proposed CIA Act;
sec. 821(f) of FSA)
No comparable authority. (Perhaps FSA
is interpreted to permit later appli-
cation; however, CSRA makes specific
provision.)
Annuity of disability retiree who re-
cpvcrs is continued until reemployment
or for six months, whichever is less.
(Sec. 231(b) of proposed CIA Act;
sec. 831(b) of FSA)
of annuity computed on basis of
employee's service and high-5 salary
but with additional provision that, if
employee had less than 20 years serv-
ice, computation will be based on con-
structive years of service to retirement
age.
(Sec. 232(b) and (e) of proposed CIA
Act; sec, 832(b) and (e) of FSA)
Military service includes only Army,
Navy, Air Force, Marine Corps, and
Coast Guard.
(Sec. 252(a) of proposed CIA Act;
sec. 852(a) 2 of FSA)
Subject
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Civil Service Retirement Act
Proposed CIA Retirement Act
and Foreign Service Act
Purchase of prior service
credit by survivor for
annuity purposes
(page 39)
Non-recovery of erroneous
Payments in certain cases
!Page 49')
Survivor may purchase prior service
credit of principal by making re-
quired deposits to fund.
(Sec. 4(h) - 1958 amendkents)
If IDrson is without fault and
recovery would be contrary to
eauity and good conscience, re-
co cry of erroneous payments
is not required.
(Sec. 15(b)
No comparable provision.
No comparable provision.
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Substantive changes from printed
version of HR 7216 are marked in
blue pencil.
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