(UNTITLED)

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP75B00380R000500030001-7
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 70
• Document Creation Date: December 12, 2016
• Document Release Date: December 31, 2001
• Sequence Number: 1
• Publication Date: September 3, 1963
• Content Type: LIST

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Appeal of determinations - page 2
3 SEP
Sec. 16(d) of CSRA permits appeal to Commission---could relate to our
sec. 201(c) on non-reviewability of decisions. (NOTE: He can appeal anyway.)
1N)N, Basic salary not defined - page 8
Basic salary defined in sec. 1(e) of CSRA. Not defined in CIO or Mk.
\(NOTE: Forgets)
Minimum of one year of civilian service in last two before separation
with annuity except in cases of disability and death (Dec. 3(g) of CSRA).
(page 10a) Comment: Doubtful need. (NOTE: Omit.)
Nu. Credit for military service - page 43
Sec. 3(d) of CSRA limits to 5 years (or to 31 Dec 56) for employee who
leaves position during war or national emergency to enter service. NO comparable
limitation in CIO or FSA. (NOTE: Omit)
7 5. Refund of voluntary contributions - page 55
Sec. 12(e) of CSRA permits refund of voluntary contributions. No comparable
provision in CIAR or FSA. (NOTE: Put in regulations.)
NI Advance notice of mandatory age retirement - page 30
Sec. 5(b) of CSRA requires 60 days advance notice to employee or mandatory
retirement doesn't take place without his consent; safeguard to employee.
(NOTE: Unnecessary.)
\ Refund of contributions if separated w/o eligibility for immediate annuity -
page 32 .
Refund optional under CSRA (sec. 11(a)), mandatory under CIO (sec. 241(a)
and FSA. Comment: If comparable provision made in CIAR, will need a paragraph
on designation of beneficiary - see CSRA sec. 11(b). (NOTE: Don't need; adminis-
tratively simpler to require refund.)
8. Payment of unpaid and accrued annuity - page 33
Sec. 11(f) and (g) of CSRA specify payment of accrued and unpaid annuity on .
death of annuitant or survivor annuitant. CIAR and FSA silent on this. (NOTE: "Rags;
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Subject
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Proposed CIA Retirement Act
Civil Service Retirement Act and Foreign Service Act
"Automatic" election of
survivor benefit
(page 11)
Survivor benefit to benefi-
ciary of unmarried employee
(page 14)
Disability retirement: annli-
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 dependent widower
(page 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)
2.7.1 of employee's annuity after
reduction for providing survivor
benefit.
(Sec. 10(b) - 1962 amendments)
Application for disability retire-
ment may be filed one year after
separation (or later in cases of
mental incompetency).
(Sec. 7(b))
Annuity of disability retiree
who recovers is continued until
reemployment or for one year,
whichever is less.
(Sec. 7(d) - 1961 amendments)
551, 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.
(Sec. l(r) - 1960 amendments
' -2-
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aaployee 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)
221 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-
covers is continued until reemployment
or for six months, whichever is less.
(Sec, 231(b) of proposed CIA Act;
sec. 831(b) of FSA)
50% 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. 852(a)
(Sec. 252(a) of proposed CIA Act;
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 amendments)
If person is without fault and
recovery would be contrary to
equity and good conscience, re-
covery of erroneous payments
is not required.
(Sec. 15(b)
No comparable provision.
No comparable provision.
-3-
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Approved For Release 2002/01/10: CIA-RDP75600380R000500030001-7
3 SFP 1963
AREAS IN WHICH COVERAGE UNDER THE CIVIL SERVICE RETIREMENT ACT IS BROADER OR MORE
LIBERAL THAN COVERAGE UNDER TBE FOREIGN SERVICE RETIREMENT SYSTEM OR TBE PROPOSED
CIA RETIREMENT 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
Civil Service Retirement Act
Proposed CIA Retirement Act
and Foreign Service Act
Definition of "child"
(page 6)
Disposition of contributions
in exce.ss of those for serv-
ice establishing maximum
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)
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-sypport).
(Sect 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
October 11, 1962 provided for
increases in 1962 through 1966
:rom 5% down to 1% for annuities
in effect.)
of employee's annuity.
Sec. 10(a)(1) - 1962 nm,mdments)
2% of first $3,600 of employee's
annuity plus 1 of balance.
(Sec: 9(g) - 1962 amendments)
-1-
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.
of employee's annuity.
Sec. 221(b) of proposed CIA Act;
sec. 821(b) of FSA)
21% of first .$2 ,OO of employee's
annuity plus 1 of balance.
(Sec. 221(b) of proposed CIA Act;
sec. 821(b) of FSA)
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Approved For Release 2002/01/10 : CIA-RDP75600380R000500030001-7
GROSS-REMENCZ IN=
PROPOSED CENTRAL INYELLIMCE AGENCY, RESIGN szariag, AND
subiest
Short title and definitions
Rules and Regulations
Authority to prescribe
Administration
Non-reviesebility of decisions
Eetablinhment and Maintenance
of Fund
Participants
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 ohild(ren)
Proposed CUR Act
Title I
Sec, 201(A)
Sec, 201(b)
Sec. 201(o)
Sac. 202
Sec. 203
Sec. 204(a)
Sec. 204(b)(1)
Sec. 204(b)(2)
Seco 204(b)(3)
Seo. 211(a)
Sec. 211(b)
Sec, 221(a)
S. 221(b)
Sec. 221(0(1)
CIVIL SERVICE RETIREMENT SYSTEMS
Foreign Service Act ,0211tAok
Not oomperable See. 19
Sec. 801(a)
Sec, 801(b)
Sec, 802
Sec. 803
Sec. 804(a)
Sec, 804(h)(1)
Sec, 804(b)(2)
Sec. 801(b)(3)
Sec, 811(a)
Sec, 811(b)
See, 821(a)
Sec, 821(b)
Sec. 821(c)(1)
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3 SEP 1963
Sec. 16(a)
Sec. 16(a) & (b)
Sec. 16(e) & (d)
Sec. l(f)
Sec. 2 & See, l(a)t
& (a)
Sec. 1(n), (o), & (p)
Sec. 1(h)
Sec. 1(i)
Sec. 1(j)
14N; Sea. 1(d)
4
Sec, 1(e); Sec. 9(a);
Sec. 3(f) & (g)
Sec. 9(g)
Sac, 19(a)(1) & (2)
Soo. 10(d)
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Proposed CIAR Act Foreign Service Act
CSR Act
,Subleek
Computation of Annuities (eentld)
Amount of annuity to surviving
child(ren) only
Beginning and termination of
annuity to surviving child
Annuity to designated beneficiary
Sec. 221(c)(2)
Sec. 221(e)
Sec. 821(c)(2)
Sec. 821(e)
Sec. 10(d) & 16(c)
Sec. 10(d)
of unmarried employee
Sec. 221(f)
Sec. 821(f)
Sec. 9(h); Seo. 10(b)
Disability Retirement
Determination of disability; appli-
cation for retirement; computation
Seco 1(g);
Sec. 7(s) & (b);
of annuity; guaranteed minimum
Sec. 231(s)
Sec. 831(a)
Sec. 5(e); Sec. 16(c)
Initial examination
Sec. 231(b)
Sec. 831(b)
Sec. 16(e)
Periodic re-examination
Sec. 231(b)
Sec. 831(b)
Sec, 7(07
Payment of fees and travel expenses
Sec. 231(b)
Sec. 831(b)
Sec. 1660
Recovery: rm.empleynent; discontin-
uance of annnity
Seco 231(b)
See. 831(b)
Seco 7(d)
Annuity if not re.imeagYed
fttual exclusiveness of disability
retirement and FECA; employee
election of benefit
Sec. 231(c)
Sec. 23I(d)
Sec. 831(c)
Sec. 83I(d)
Sec. 7(e)
Sec. 7(f)
Exception of lump-eum FECA sward
from general exclusion of con-
current benefits
Seco 231(e)
Sec. 831(e)
Sec. 7(g)
Death in Service
Lump-sum payment if no entitlement
See. 1 (L);
to annuity
Sec. 232(a)
Sec. 832(a)
Sec. 11(c) & (d)
Annuity to surviving spume enly
Sec. 232(b)
Sec. 832(b)
Sec. 10(c)
Annuity to surviving spouse
and child(ren)
Sec. 232(c)
Sec. 832(c)
Sec. 10(d)
Annuity to surviving child en1y
Sec. 232(d)
Sec. 832(d)
Sec. 10(d)
Survivor annuity computed on
basis of minimum of 20 years
of service
Sec. 232(e)
Sec. 832(e)
Sec. 10(d)
Voluntary Retirement
Sec. 233
Sec. 833
Sec. 6(a), (b), & (e)
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Subject
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Proposed CIAR Act Foreign Service Act CSR Act
Discontinued Service Retirement
Option of rebind of contributions
or deferred annuity if separated
with 5 years service but no en-
titlement to immediate annuity
Disposition of contributions of
separated employee who dies
? before eligible for payment of
deferred annuity
Involuntary Retirement:
08-14 and above
OS.13 and below
Right of employee to assign
separation compensation
Mandatory Retirement for Age
03-18 and above
Below 03-18
Sec. 231i(e)
Sec. 234(b)
Sec. 234(c)
Sec. 234(d)
Sec. 234(e)
Sec. 235(e)
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 exoess 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 spouse,
parent, or child Sec. 241(c)
Period of Service for Annuities
Computation of period of service;
exclusion of specified types
of leave
Sec. 253.
Sec. 834(e)
Sec. 8314(b)
Sec. 634(e); 633(b)
Sec. 634(b)
Sec. 634(c)
Seco 8(a)
Sec. 11(d)
Sec. 6(d) & 9(d)
Sec. 6(d) & 9(d)
MO
Sec. 631 Sec. 5(a) thru (d)
Sec, 634 Sec. 803(0)(3) Sec. 5(a) thru (d)
Sec. 841(8)
Sec.841(b)
Sec. 841(0)
Sec. 851
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Sec. 1(1) & u.(e)
Sec. 11(0), (Os & (f)
$Se. Na), (0), (d)
to, (n,
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Prior Service Credit
General provision for credit of
prior military or civilian service
Contribution to tend for prior
civilian service credit
Transfer of contributions from
other Government retirement funds
Special oontribetime for credit for
service for whice refund received
Imoluaism of prior civilian service
establishing tensity entitlement
under other Government retirement
=item
Credit for prier military or naval
service
Contributions not required ror
credit for service while am
military leave
Moneys
Estimate of Appropriations Needed
Investment of Moneys in the Fund
Attachment of Moneys
Recall of Annuitant to Agency Duty:
compensation; reoomputation of
annuity
Reemployment of annuitant in federal
service; compensation; recovery of
overpayments
Reemployment of annuitant in federal
service not prohibited but uadh
annuitant serves at will of
appointing officer
Voluntary Contributions to Fund
Proposed CIAR Act
Sec, 252(a)
Sec. 252(b)
Sec. 252(c)
252(4)(3)
Sea.
See. 252(d)
Sea. 252(e)
Sec. 253
Sec. 261
Sec. 262
Sec, 263
Soo. 271.
Sec1, 272
Foreign Service Act CSR Act
Sec. 852(a)
Sec, 852(a)
Sect. 852(c)
Sec. 852(0)(3)
Sec. 852(d)
Sea. 852(e)
Sec. 854
Sec. 861
Sec. 863
Seco 864
Sec. 520(b) & 811
Sec, 872
Sec. 273 Sec. 520(c)
Sec. 281(a) thru (d) Sec. 881(a) thru (d)
Sec. 3(4)& 0
Sec. 4(c) & (d
Seals h(e), (Os& (g)
See. 11(d)
See. 2(b), 304 k(s)&(d)
related. Also, 30.4 1.0,
Social Secarityaat
Lowismas of 3954
Seal. 1(r)3 8000 304
S.C. ls(g)
See. 16(X)&(g); Sea. 1760
See. 17 (10, (Of (0, & (41)
Sec. 15 (e) & (b)
See. 13(b)
Income tax exclusion of disability
annuity Title III 2:gee. 104(2)(4) of
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See. 13(b)
Sec. 13(a)
Sec. 12(a) thru (e)
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P' 3 SEP 19E2
COMPARISON OF TEXTS OF PROPOSED CENTRAL INTET.LTGENCS AGENCY RETIREMENT
ACT AND PERTINENT PROVISIONS OF THE FOREIGN SERVICE ACT AND THE Civil, SERVICE RETIREMENT ACT
Proposed CIA Retirement Act
TITLE I - =ern= AND DEFlairluNS
Pare A - SNORT TITLE
Soo. 101. Titles I to III indlusive
of this Act may be cited as the "Cen-
tral Intelligence Avon, Retirement
Act ed1983".
Part B - DEFINITIONS
Sec. 111. When used in this Act, the
(1)
-
(1) "Agency" means the Central Intel-
ligence Agency; and
(2) "Director" means the Director of
Central Intelligence or the Deputy
Director of Central Intelligence.
?True n - ifigt Clornua. INI=30111C1
AGENCI RITMO= An DISABILITY
SUTER
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
employee a, referred to hereafter as
the system.
Fomigin Service Ant
SWIG 1010 Titles I to I, inclusive, of
this Act may be cited as the 'Foreign
Service Act of 1946'.
(Provigions net comparable)
TITLE VIfl - THE FOREIGN SERVICE RE
-
?UMW AND DISABILITY SYSTEM
See, 801.(a) The President may pre-
scribe rules and regulations for the
maintenance of a Foreign Servios Retire-
ment and Disability System, criebmill7
established by section 18 of the Act of
May 24, 1924 (43 3tat.144), referred to
hereafter as the Systemic
Civil Service Retirement Act
Sec. 19. This Act may be cited as
the "Civil Service Retirement Ant'.
(Provisions not comparable)
(Not comparable)
Sea. 16.(a) This Act &raU be admin,.
istered by the Commisaiono accept
as otherwise specifically prcmided
herein, the Commission is hereby
authorized and directed to perform,
or canoe to be performed, any and
all eats and to make each rules and
regulations as may to 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
Sect. 201. (b) The Director shall
administer the system in aecordance
with such rules and regulations and
with the principles established by
this Act.
(o) In the interests of the
security of the foreign intelligemos
activities of the United States and
in order farther to implement the
proviso of section 102(d)(3) of the
National Security Act of 1947, as
amended, (5o 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 Prooedure Act
(5 U.S.C. 1001 et mad or any
other provisions of 11110, WV deter-
minations by the Director authorized
by the provisions of this title
shall be deemed to be final and on..
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
than 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 necessary 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 reesiving
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 Consnission.
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Proposed CIA Re tiressnt Act Foreign Service Act
Establishment and Maintenance of Fund
Seo. 202. ?bore is hereby created a
fUnd to be known as the Central In-
telligence Agenc7Retirementi and
Disability Fund mhieh 61411 be mainp.
tained by the Direotor. The Central
Intelligence Agency Retirement and
Disability Find is referred to here-
after in this, title as the Mud.
See. 802. The Secretary of the Trea-
sury shall maintain the special fund,
known as the Foreign Service Retire-
vont and Disability Fund, referred to
hereafter as the Feed, orig4ns:11y
constituted by motion 18 of the Act
of AO 24, 1924 (43 Stat. 144).
Civil Service eatireamt Act
See. 1. (f) The tern ?fund * than
mean the civil service retirement
and disability fund created by the
1st of May 22. 1920.
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Proposed CZLA Retirement AO
Participants ?
Sec, 203. The Director may designate
from time to tire such Agency offioare
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 tine is adjudged
by the Director tm be qualifying for
-
the system may elect to remain a
participant of such system for the
duration of his employment by the
Foreign Service Act
Seo. 803.60The following weans,
hereafter referred to as participants,
shall be entitled to the tenefits of
the System:
(1) All Foreign Service officers;
(2) All other persons making contri-
butions to the Fund an 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 mot-
(l) have served as chief of mission
for an aggregate period of twenty
years or more, =elusive of extra ser-
vice credit in accordance with the
previsions of section 853; and
(2) have paid into the Fund a spe-
cial contribution for each year of such
service in accordance with the previ-
sions of section 852(b).
(c)(1) In accordance with such
regulations as the President nay pre-
scribe, agy Foreign Service staff
officer or employee appointed by the
Secretary of State who has conpleted
at least ton year:, of continuous seri.
vice in the Department's Foreign
Service, exclusive of military ser-
vice, shall become a participant in
the System and shall make a special
contribution to the Fund in accord-
ance with the previsions of section
8
0. 803(0)(2) & (3) relate to the
retirement of participants =der
section 803(e )(31
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Civil Service Retirement Act
Sec. 2. (a) This Act shall apply to
each employee and Member, except as
hereinafter provided.
ec. 1(a). l mean a civilian office" er The term tann "emploee*
y
ployee in or under the Government
and, except for purposes of sectioft
2, shall mean a person to thie
Act applies.
(b) The term *MeMber0 shall mesa
the Tice President, a United States
Senator, Representative in Congress,
Delegate from a Territory, or the
Resident Commissioner from Puerto
Rico, and, except for purposes of
section 2, *hall mean a Member to
whom this Act applies,
(0) --Defines *congressional
engoyee*A7
(b) This Act shall not apply to
the President, to soy Jed& of the
United States as defined under sec-
tion 451 of title 28 of the United
States Cods, or to soy oenloyee of
the Government subject to another
retirement eta. for Government
supOlLed)
and (d) eonoernMhsters
and cengrassionsl employees? See-
tien 2(o) authsrineeemitusiem of
temperery or intermittmei em.
;lopes. Sorties 241 *menden
specified categories at temporary
or intermittent employees. Booties
2(g) applies to Civil Service
Commissioners. Section 2(h) sy011010
to specified persons who are
employed by went, emenittees War
the Seil Oennerinften and Damestie
A1letensibAeta7
00030001-7
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Proposed CIA Retirement let
Ammmitimis
Sec. 20140 (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
Mt.
(b) When used in this title the
term?
(1) "Widow" NOSIns the surviving
wits 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 widcwers means the
surviving husband of a participant
who was married to such participant
far 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.
Approved
Foreign Service Act
Sec. 80k. (a) Annzdtants shall be
persons who are receiving =elitism
from the Fund and all persons, in-
eluding survivingleives 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) tilhen used 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 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-
Civil Service Retirement Act
Sea, 1. (m) The term "annuitants
than mean any former employee or
Member who, on the basis of his
service, has met all requirements
of the Act for title to annuity and
has flied elmdia therefor.
(e) The term "survivors shall mean
Ilk palm* who is entitled to annuity
under this Act based on the service
ea diseased employee or Nether or
of a deceased annuitant.
(p) The term "survivor annuitants
shall mean a survivor who has filed
claim for annuity.
Sec. 1. (h) The term *iridium, for
purposes of section 10, shall seas
the surviving wife of an employee
or Member 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-
ployee 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 10, shall mean a
'widowers who is incapable of self-
support by reseals of mental or PAY-
sisal d1as.1ity,sead who reaeived
more than ommo4halt his support fram
such emOloyes Cr amber,
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Approved
Proposed CIA Retirement Act
Sec. 2040 (b) (oontid)
(3) "Child" means an unmarried
child, under the age of eighteen
years, or such unmarried child re-
gardless of age Who, because of phy-
sicel or mental disability incurred
before age eighteen, is incapable of
self-support. In addition to the
effepring of the partiaipent and his
er her sponse, the term indiudes
(i) an adopted child, and (Si.) a
stepdhiLd or recognised metnrel
child who received mere theft eme.
hal' of his support from the
participant,
Approved
For Release 2002/01/10 : CIA-RDP75600380R000500030001-7
Foreign Service Lot Civil Service Retirement Act
See. 804. (b) (oenttd)
(3) *Chile means an married
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 CO a
step-child or recognized natural
child who received more than one.
half of his support from the
the participant.
For
Sec. 1. (aortic])
(3) The term 'child', for pur-
poses of section 10, shall mean an
unmarried child, including (1) an
adopted child, and (2) a stepohild
or recognised 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 became of physioal or mental
disability incurred before age
eighteen is incapable of self-
support, or such unmarried child
between eighteen and tventy-one
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-
nised educational institution. A
child whose twenty-first birthday
occurs prior to July 1 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-ens
on the first day of July fallowing
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 Commission that be has a
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Approved For Release 2002/01/10 : CIA-RDP75600380R000500030001-7
Proposed CIA RetLrmant Act Foreign Service Act Civil Service Retirement Act
See. 10 (J)(00ntld)
bona fide intention of continvdng to
pursue a course of study or training
in the use or different sohool dur-
ing the school semester (or other
period into which the school year is
divided) immediately following the
interim.
Part B COMPULSORY ammiBuTIons
See. 211. (a) Six and one-halt per
centum of the basic salary received
by each participant shall be contri-
buted to the fund for the payment of
annuities, cash benefits, refs,
and allowances. An equal sum Shall
also be contributed fran the respec-
tive appropriation or fund utioh is
used for payment of his salary. The
amounts deducted and withheld from
basic salary together with the
amounts so contributed fran the
appropriation or fund, shall be de-
posited by the Agency to the credit
of the fund.
Sea. 811. (a) Rix and one-half per
cent= 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 sam shall
also be eautributed from the =spec-
tive appropriation ar food uhleh is
used ferment st Ms salary. Ths
amounts dedmeted amdirUMOiald from
basis salary tagaller mat the
amounts esesatethated Aram the awe-
priation or fund, shall be deposited
by the Department of State in the
Treasury of the United States to the
credit of the Fund.
Soc. 4. (a) From and after the first
day of the first pay period whisk
begins an or after the effective date
of the Civil Service Retirement Act
amendments of 1956, there shall be
deducted and withheld from each en-
ployea's basic salary an amount
equal to 61 per oantma of such basis
salary and from each 'Umber's basic
salary an amount equal to 7i per
cant= of such basic salary. From
and after the first day of the first
pay period which begins after June 30,
1957,
an equal sum shall also be con-
tributed from the respective appre-
priation or fund which is used for
payment of his salary, pay or camps
pensation, or in the case of 1111
elected official, frun such appro-
priation or fund as may be available
for paynant of other salaries of the
sere office 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-
oeduramas 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 an page 8)
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Approved
Proposed CIA Retirement Act
Sec. 211. (b) Each part:alma shall
be deened to oonsent and agree to
such deductions from basic: salary,
and payment less such deductions
ehall 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 hs
shall be entitled under this Act,
notwithstanding any law, rule, or
regulation affecting the individual's
salary.
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Foreign Service Act
Sec. 811. (b) Each participant shall
be deemed to consent and agree to
such deductions from basic salary,
and payment less such deductions
than be a full and complete dis-
charge and acquaintance (sic) if 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 individ-
ual's salary.
Civil Service Hatirement Act
See, 4. (a) (contld)
the fend. There shell also be
credited all deposits made by ern-
ployeas or &abort: under this motion.
Lgeo. 1(d). The term "basic: salary"
shall not include bonuses, allow-
anoes, overtime pay, military pay,
Or salary, pay, Or OOMPOOSOtiall
given in addition to the base pry
of the position an fixed by law or
regulation: Provided, That for em-
ployees paid on a fee basis, the
maximum amount of basic salary
whioh msy be used shall be 1110,000
per annum. --remainder of (41 defines
"basic salary" for a Melberg
(b) Each employee or Member shall
be deemed to consent and agree to
such deductions fram basic salary,
and payment less such deductions
shall be a fall and complete dia-
dharge and aoquittence 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.
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Approved For Release 2002/01/10 : CIA-RDP75600380R000500030001-7
Proposed CIA Retirement Act
PART 0 - COMPUTATION Gramm=
Seo. 221. (a) The annuity of a imr-
ticipent shall be equal to 2 per
?intim of his average bectio salary
for the highest five omisecutive
years of service, for which full
contributions have been made to the
hand, multiplied 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 annaity is
to be based, the fractional part
of a month, if any, shall not be
mounted,
Foreign Service Act
Sec. 821. (a) The annuity of a par-
ticipant shall be equal to 2 per
oentun of his average basic salary
for the highest five consecutive
years of service, for which full
contributions have been =de to the
fund, multiplied by the number of
years, not exceeding thirty-five,
of service credit obtained in act-
?ardent)* with the provisions of
sections 851, 852, and 853. How.
ever, the highest five years of
servioe for which full contribu-
tions have been made to the Fond
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 Searatary to be of eampacabile
impart. la determisitra the
eggragate parted at eareice apse
Ai* the earesite is to be tweed*
the fractional pert ef a =nth, if
soya shall not be counted.
Civil Service Retirement Act
ffec. 1. (e) The tern naverae0
sale shall mean the largest
rate resulting ft= aver-
aging, over any period of five
consecutive years at creditable
imam, or at a Memberis option
over all periods of Member ser-
vice subsequent to the date of
enaotment of the Legislative Re-
organisation Act of 1946 used in
the computation of an annuity
under this Act, a Member's or
en amoloyee,s rates of basic
salary in effect during such
period, with each rate weighted
by the time it was in effect.
(Underscoring eupplied.JJ
Sec. 9. (a) Except as raise
provided in this motion, the
annuity of an employee retiring
under this Act shell be (1) the
larger of (A) per oentum of
the average salary multiplied by
so much of the total service as
does not exceed five years, or
1 percent= of the average
salary, plus $25, multiplied W
so much of the total service as
does not emceed five years, plus
(2) the larger at (i) 1 3,4 per
cent= of the mei* salary
multiplied 47 se musk of the
total service as exam& five
years bat does not exceed ten
pas*, or (0) 3. per mut= of
the amasses salary, plus $25,
naltiplied by se much of the
total marliee as exceeds five
pars but dees not exceed
ten years, plus (3) the larger
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Approved For Release 2002/01/10 : CIA-RDP75600380R000500030001-7
Pr9osed CIA Retirement Act
Foreign Service Act Civil Service Retirement Act
Sao, 9(e) (00mt'd)
of (i) 2 permute= of the average
salary multiplied by so mach of the
total service as exceeds ten 7047ft
or (B) 1 per centum of the average
salary, plus $25, multiplied by so
much of the total service as ex-
ceeds ten years: Provided, That the
annuity shall not exceed 60 per
cent= of the average salary: Pro-
vided fUrther, That the annuity of
an employee retiring under motion
i.eabiLity retire:::Lehall be
at least (1) 40 per of the
average salary or (2) the sun 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 survivor,
erection 9(b) deals with the
annuity of a congressional en-
ployee, Section 9(c) deals with
the annuity of a Member, Section
9(d) deals with the reduction in
annuity of an employee retiring
under age 604 Section 9(e) deals
with the anunitiy of am swages
retiring soder sestion go) Adak
metes spasial rie1 for Mrifs,
tYPam
-(f) The aniy as hereinbefeme
provided shall be rednosd by 10
per cent= of any deposit dessribed
in section h(o) remaining unpaid,
=less the employee or Maher
&all elect to eliminate the ear-
vice involved for the purposes of
Approved For Release 2002/0114M-CIA-RDP75B0038OR00050061411M7conputation,
Approved For Release 2002/01/10 : CIA-RDP75600380R000500030001-7
Proposed CIA Retirement Act
Foreign Service Act Civil Service 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 aredi-
iable 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 annuiV
rights which attached upon a
previous separation. (Underecerimg
supplied)
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Approved For Release 2002/01/10 : CIA-RDP75600380R000500030001-7
Proposed CIA Retirement Act
Foreign Service Act Civil Service Retirement Act
No comparable provision. NO comparable provision.
Sec. 11. (h)(1) Auy amounts de-
ducted and withheld from the bailie
salary of an employee or Member fraa
the first day of the first month
which begins after he shall have
performed sufficient service (exclu-
sive of any service which the em-
ployee or Member elects to elimi-
nate for purposes of annuity com-
putation under section 9) to entitle
hie to the sexing= annuity provided
ty section 2.4,.....ether with interest
an such mounts at the rate of 3 per
?ant= per annum compounded annuallY
from the date of such deductions to
the date of retirement or death,
shall be applied toward any deposit
due under section 4, and any balance
not Bo required shall be deemed to
be a voluntary contribution for the
purposes of section 12. (Under-
scoring supplied.)
Approved For Release 2002/0171VtI1A-RDP751300380R000500030001-7
Approved
NOTE: COST -OPZIVING 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]. 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
Foreign Service Act or the Proposed
CIA Retirement Act.
Sec. 180 (a) After January 1, 1964$
and after each succeeding January].,
the Commission shall determine the
per centum change in the price index
from the later of 1962 or the year
preceding the moat recent cost-of-
living adjastmmat to the latest com-
plete year. On the basis of each
Cammtesica determineticn, the =m-
ing adjustments shall be made:
(1) Effective April 1$ 1964, if the
change in the price index from 1962
to 1963 shall have equaled a rise of
at least 3 per centime, each annuity
payable from the fund which has a
For Release 2002/01/10 : CIA-RDP75600380R000500030001-7
oemeeneing date earlier than Amery 2$
1963 shall be increased by the per sen..
turn rise in the price index adjusted to
the nearest ane-tenth of 1 per centum.
(2) Effective April]. of any year
ether than 1964 after the price index
change shall have equaled a rise of at
least 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 centum.
(b) Eligibility for an annuity increase
under this section shall be governed by
the commencing date of each *enmity pay-
able fram the fund as of the effective
date of an increase, except as follies:
(1) Effective from the data of the
fch:dirs under
tsbelsoenctli0:::):n
annuity payable from the fund to an
annuitant's survivor (other than a
which annuity commented 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 fund
to an annuitant's survivor (other thma
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 centum increase the
annuitant was receiving under this
section at death.
(3) For purposes of computing an
anntdty which commences after the
effective date of the first increase
under this section to a child under
section 10(d), the items $600, $720,
$1,800, and $2.160 appearing in sec-
tion 10(d) shall be increased by the
total per oentme increase allowed and
in force under this motions and, in
case 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 se-
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 effeo-
tiNe date of the first increase?
(c) No increase in annuity pro-
vided by this section shall be
ocmputed on any additional annuity
purchased at retirement by velum-
tary contributions.
(d) The monthly installment of
amenity after adjustment under
this section shall be fixed at
the nearest dollar?
tc. 1(0. The term "price index"
11 mean the annual average over
a calendar year of the Consumer
Price Index (all items?United
States city average) published
moathly by the Bureau of Labor
Statisticag
Approved For Release 2002/01/10738-r-RDP751300380R000500030001-7
Approved
Proceed 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 wife or her husband,
commencing on the date following
such participant's death and
terminating upon the death of each
surviving if or husband. The
annuity payable to the surviving
wife or husband after such perti-
cipent's death shall be 50 per
oembse of the amount of the par-
ticipant's annuity computed as
prescribed in paragraph (a) of
this section, up to the fall
amount of such annuity specified
by him as the base for the sur-
vivor benefits. The annuity of
the participant making such
election shall be reduced by 2i
per oentum of any amount up to
$2,100 he specifies as the base
for the survivor benefit plus
10 per centum of any amount over
$2,400 so specified.
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Foreign Service Act
Sec. 821. (b) At the time of retire-
ment, any married participant mmy
elect to receive a reduoed annuity
and to provide for an annuity payable
to his vile or her husband, ?memo-
ing 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 shell
be 50 per conbee of the amount of
the participant's annuity computed as
prescribed in paragraph (a) of this
section, qp to the full amount of such
annuity specified by blues the bass
for the survivor benefits. The
annuity of the participant asking
such election shall be reduced by
2i per cent= of any amount up to
$2,400 he specifies as the base for
the survivor benefit plus 10 per
oentum of any amount over $2,400
so specified,
Civil Service Retirement Let
Sec. 10. (a)(1) If an employee or
Member dies after having retired
under any provision of this Act and
is survived by a wife or husband to
vihas the employee or Member was mar-
ried at the time of retdrement, Bush
wife or husband shall be paid an
annuity equal to 55 per mutual of
an annuity computed as provided in
subsections (a), (b), (c), (d), (e),
and (f) of section 9, as may spay
with respect to the annuitant, or
of such portion thereof as may have
been designated in writing for such
purpose by the employee or liamber
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 ampler/se
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 Pisability retire:1:
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 21 per
canton of so much thereof as does
not exceed $30600 and by 10 per
centum of so much thereof as
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Proposed CIA Retirement Act
Sea. 221. (e)(I) 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 hustend6
there shall be paid to or an behalf
of each child an annuity equal to
the smallest of: (i) 40 per oentun
of the annuitant's average basic
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 surviv-
ing child shall be paid an annuity
equal to the smallest of (i) 50 per
centun of the annuitant's average
basio 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 nuCher of children.
Foreign Service Act
See. 821. (c)(1) If an annuitant
dies and is survived by a wile 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 smallest of:(i) 40 per canton
of the annuitant's average basis
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 surviv-
ing child khan be paid an annuity
equal to the smallest oft (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 rancher of children.
Civil Service Retirement Act
See. 9(g) (canted)
exceeds $3,600 unless the employee
or Member notifies the COMMUSIOM
in writing at the time of retire-
ment that be 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
Nether dies after oompleting at
least five years of civilian ser-
vice, or an employee or a &Ober
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
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) $600, or (3) $1,800
divided by the nneber of children.
If such employee or Member is not
survived by a wife or husband, each
surviving child shell 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 number
of Children. The Child's annuity
shall commenes on the day after the
employee or &Mbar 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 (ley of the
(cont'd on page 13)
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Proposed CIA Retirement Act
Seco 221. (d) If a surviving vile 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
vile, husband, or Child had not Bur,-
vived the participant.
(s) 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 partial.-
pant dies and such annuity or any
right thereto than be terminated upon
death, marriage, or attainment of the
age of eighteen years, except that, if
a &Lid is incapable of self-support
by reasons of mental or physioal dis-
ability, the annuity shall be termi-
nated say when such child dies,
marries, or recovers from such die-
ability.
Foreign Service Lot
Sec. 821. (d) If a surviving vile
er husband dies or the annuity of a
Child is terminated, the annuities of
any remeining children &min be re-
camputed and paid as though such
vile, husband, or child had not our-
vived the participant?
(e) The annuity payable to a child
under paragraph (c) or (d) of this
section shall begin on the first dgy
of the next month after the partici-
pant dies and such annuity or amy
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 mantel or physical dis-
ability, the annuity Mull be termi-
nated only when such child dies,
marries, or reamers from such dis-
ability.
-13-
Civil Service Retiresunt Act
Sea. 10(d)(cont'd)
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 CO
his marriage, (2) his death, (3) his
ceasing to be such a student, or
(4) his attaining age tweney-one?
Upon the death of the surviving
wife or husband or termination of
the annuity of the Child, the
annuity of any other child or
children shall be meow/tad and
paid as though such wife, husband,
or child had not survived the
employee or *Aber.
ffee Seo. 10(d) above beginning on
page 12 at me child's annniey
Abell conmemne an the day after
the employee or Member dies' and
continuing through 6(3) his ceasing
to be a student, or (4) his attain,-
ing am tweney-onem immediately
abeveg
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Proposed CIA Retirement Act
Sec. 2210 (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 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
cent= 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 payments authorised under
this paragraph shall be doe or
payable.
Foreign Service Act
Sec. 821. (f) At the tins 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 participants 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 se prescribed by the
Secretary. The annuity payable to
a beneficiary under the provisions
of this paragraph shall begin an
the 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 section 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
centum of an annuity computed as
provided in section 9 and Ny 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 centum.
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),
(e), (f), and (h) of section 9 as
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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Proposed CIA Retirement Act
PART D - BENEFITS ACCRUING TO CERTAIN
PARTICIPANTS
Retirement for Disability or Incaps.
atty.-Physical Examinatics--Recovery
Sec. 231. (a) Any participant who Sas
five years of service credit toward
retirement under the vete% *sand-
ing military or naval service that is
credited in accordance with provi-
sions of section 251 or
and who becomes totally disabled or
incapacitated for useful and effi-
cient service by reason of disease,
I llness, 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 system at the time he
is retired, his annuity ehall be
computed on the assumption that he
has had twenty years of service, but
the additional service credit that
sey accrue to a participant under
this provision shall in no case ex-
ceed the difference 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 part,
shall, upon his awn application or
upon order of the Secretary be re-
tired an 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 be
is retired, his annuity shall be
ocmputed on the aasumption that he
has had twenty years of movies,
but the additional earvioe 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**dee.
Weil &moles Retirememt 4e4
See. 1. (g) The terms 6disettled, and
lictigabilite Shall mean totally dis-
abled far useful and efficient service
in the grade or class of position last
oecompied by the employee or Member by
reason of disease or injury not due to
vicious habits, intemperance, or will.
Sal misconduct an his part within the
five years next prior to becoming 80
disabled.
Oft. 7. (a) Any employee who coapletes
five years of civilian service and whe
is found by the Commiseion to have be-
ams disabled shall, upon his own
application or upon application by his
department or agency, be retired en an
amenity computed as provided in sec-
tion 9. Any Member who completes five
years of Member service and who is
Inund by the Commission to have become
disabled shall, upon his own applica-
tion, be retired on an annuity com-
paned as provided in section 9.
(b) No claim shall be allowed under
thin section unless the application is
filed with the Gammission prior to
separation of the employee or Member
&en the service or within ome year
*hereafter. !hie time limitation may
be waived by the Commission for an
individual who at the date of separa-
tion from service or within one year
thereafter is mentally ineempetents
If the application is filed with the
Commission within one year from the
date of restoration of such indivi.
deal to oempetenay or the appointment
-15- tet a fiduciary, ehichever is the
1-1
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Proposed au Retirement Act
Sec. 231. (b) In each ease, the per.ticipent *hall be given a medical
examination by one or moo doily
qualified physicians ar surgeons
designated by the Director to oemduct
essmimetions, am4 disability /hail be
determined by the Director on the
basis of the advice of such physicians
or surgeons. Unless the disability
is pelt:anent, like examinations
Shall be node annually until the
annuitant has reached the statutory
mandatory retirement age for his
grade in the Agendy. If the Direc-
tor determines on the basis of the
Foreign Service Act
Sec. 831. (b) In each case, the
participant shall be given a phisioil
examination by one or more day qual-
ified physicians or surgeons desig-
mated by the Secretary to conduct
examinations and disability ehall be
determined 14 the Secretary on the
basis of the advioe of such physicians
or surgeons. Unless the disability in
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 de
an the basia of the (cantld page 17
Civil Service Retirement Lot
Aec. 9(a) concerning the computation
Tlf annuities (quoted opposite S4944
221 (a) of the Proposed CIA Retire-
ment Act above) specifically pro-
vides as !allows for disability
annuities: *Provided further, That
the annuity of an employee retiring
under section 7 shall be at least
(1) 40 per ?Lotus of the average
salary or (2) the sum obtained under
this subsection after increasing his
total service by the period elapiing
between the date of separation and
the date he attains the age of sixty
year., whichever is the lesser, but
this proviso shall not increase the
annOity of any serviver..9
L16C. 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 revieeg
See, 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 exaW-ned 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.
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Proposed CIA Retirement Act
Sec. 231. (b) (contld)
advice of one or more doly qualified
physicians or surgeons conducting such
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 nay, tak-
ing into consideration the age*
qualifications, and experience of
michamomitant, and the present
grade of his oarteepcwaries in the
Agency, appoint him to a grade
higher than the one in which he was
serving prior to retirement. Pay-
ment of the annuity shall oontinue
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.
Fees 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 anmmitant fails to
submit to eammination as required
under this section, payment of the
annuity shall be suspended until
continuance of the disability is
satisfactorily established.
? Foreign Servile Act
9800 (b) (0eibid)
edeime arms or duly emelithel
ebefleimme
or surgeons mnimatill saa
examtmatiens that an annuitant has MIR ,
covered 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 spelt-
cation the Secretary shall reinstate
azy such recovered disability sanniteat
in the class in 'which be was serving at
time of retirement, or the Secretary
Bey, taking into consideration the age*
qualifications, and experience of such
annuitant, and the present class of his
conteepareries in the Service, appoint
him or, in the come of an annuitant mho
is a former Foreign Service officer*
recommend that the President appoint
him* by amdwith the advice and consent
of the Senate, to a alass higher than
the one in which he was serving prier
to retirement. Payment of the annuity
shall continue until a date mix monthe
after the date of the examination show-
ing recovery or until the date of rein-
statement or reappointment in the Sere
vice, whichever is earlier. hies for
examinations under this provision to-
gether with reasonable traveling provision,
other expenses occurred in order to
submit to examination* shall be paid
out of the Fund. If the annuitant
fails to submit to essaination as VO
quired under this section, poems* of
the annuity shall be suspended mei'
contimanos of the disability is sathee
factorily established.
Civil Service Retirement Act
See. 7. (d) If snob annuitamt* before
reaching age sixty, recovers from his
disability, payment of the annuity
shall mese upon reemployment by the
Cemernment or one year from the date
of the medical examination showing
such recovery, whiehaver is earlier.
If such annuitant, bate(' reaching
ago sixty, is restored to =earning
capacity fairly comparable to the
current rata of compensation of the
position moupied 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
calender year iambic* earning one
-
city is so restored, whichever is eer-
iLter. Farming capeoltw 'hell he
deemed restored if, in each attire
eumeeding colander years, the income
et the annuitant from wages or self-
employment, or both* shall evil at
least 80 per aentum of the current
rate of compensation of the position
emseeLed immedeately prime to
Suilrememte
SW* 16. (e) hoe for weasinatime
'ma wider the provisions of this
Let, by physicians or surgeons who are
mai medical ?Moore of the United
Stetes, shall be fixed by the Com-
mission, and such fees, together
vith reasonable traveling and other
eseenses incurred in connection with
snob examinations, shall be paid out
of the appropriations fee 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 theAgsmay, he shell be
considered to have been separated with-
in the meaning of paragraphs (a) and
(b) of section 23h se etas, date he
was retired for disability sad he shall,
after the discontinuance of the dis-
ability annuity, be entitled to the
benefits of that section or of sec-
tion 241(a) except that he may elect
voluntary retirement in accordance
with the provisions of section 233
if he can qualify under its provi-
clone.
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 shall be
considered to have been ;operated with-
in the meaning of section 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 81i1(a) except that he may
elect voluntary retirement in accord-
awe with the provisions of section
636 if he can qualify under its
provisions.
?18?
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Civil Service Retirement Act
Sec. 7. (e) If such annuitant whose
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 service credit, as having
been involuntarily separated fraa
the service for the purpooes of this
Act as of the date of discontinuance
of the disability annuity and shall,
after each discontinuance, be en-
titled to annuity in accordance with
the applicable provision of this Act,
In the CS90 of an annuitant whose
annuity is heretofore or hereafter
disoontinued because of an earning
capecity 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 first of the
year following any calendar year in
which his income frames's. or self-
omplcyments or loth, is less thin
80 per oentum of the current vets of
compensation of the position cosupied
immediately prior to retirement, if
he has not recovered from the disabil-
ity for which he was retired. In the
08Se 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 net roes-
Played in any position included in
the provisions of this Act, annuity
at the same rata shall be restored ef-
fective from the date of medical exam.
ination showing a recurrence of such
(contid an page 19)
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Proposed CIA Retirement Act
Sec. 231. (d) No participant shall
be entitled to receive 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 1220)
covering the same psriorof 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-
vieian of the said Act of Septem-
ber 7, 1916, as amended, 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
Sec. 831. (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 shill not bar the
right of any olaiment to the greater
benefit conferred by either Act for
any part of the same period of time
Neither this provision nor any pro-
of the Act of September 7,
1916, as amended, shill 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 oonourrently
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(0)(contld)
disability. Neither the seafood 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-
tence 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 compensation 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 part of the same period of time.
Neither this provision nor any pro-
vision in such Act of September 7,
1916, is amended, shall deny to am,
piers= 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 parson.
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FreNOMA (14hU
ia(
Sec. am, (e) Setwithstandiag any
provision of lee to the contrary, the
right of any a_trlslieRnt entitled te
an annuity under this Act shall not
be affected because such participant
has received 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 date such annuity bet:moles
effective, as determined by the Sec-
retary of Labor, shall be refunded to
the Department of Labor, to be paid
into the Federal employees' compen-
sation fund. Before such participant
shall receive such annuity hs shall
(1) refund to the Department of Labor
the amount representing such com-
muted payments for such extended
period, or (2) authorize the deduction
of such amount from the annuity pay-
able to him under this Act, which
amount shall be transmitted to such
Deportment for reimbursement to sulk
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 determine, whenever he finds
that the financial circumstances of
the annuitant are such as to warrant
such deferred refunding,
Foreign Service Act
See, 831. Os) Notwithstending agy
provision of lam to the contrary, the
right of ampere= entitled to an
annuity ender this Act Shall not to
&netted because such person has re-
ceived an award of compensation in a
lump sum under section 14 of the Act
of September 1# 1916, as amended,
except that there such annuity is
payable on accoant of the same dis-
ability for which compensation under
such section has been paid, so mash
of such compensation as has been paid
for any period extended beyond the
date such annuity becomes el/native,
as determined by the Secretary of
Labor, shall be refunded to the De-
partment of Leber, to be paid into
,the Federal Employees' Compeasetioa
Fund. Before such person shall re-
ceive such annuity he shall CO refund
to the Department of Labor the amount
representing such computed payments
for such extended period, or (2) au-
thorize the deduction of such amount
from the annuity payable to hin
under this Act, which amount Shall be
tranamitted to such Department for
reimbursement to such Pied. Nedoe..
time from such annuity may be made
from accrued and accruing payments,
or may be prorated against and paid
from accruing payments in such man-
ner as the Secretary of Labor than
determine, whenever he finds that
the financial circumstanoss of the
annuitant are such as to warrant such
deferred refunding.
Civil Service Retirement Act
Sao. 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 a
lunp sun under section 14 of the Act
of September 7# 1916# as amended,
except that where such annuity is
payable an account of the same dis-
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 =Oh annuity becomes eftective#
as determined by the Department of
Labor, Shell be refunded to the De-
portment of Labor, to be covered into
the Federal Employees' Compensation
Feed. Before such person shall re-
ceive such annuity he shall (1) re-
to such Department the amount
representing such commted payments
for such extended period, or (2) au-
thorize the deduction of such amount
from the annuity payable to Maunder
this Act, which amount shall be trans-
mitted to such Department for reim-
bursement to such fund. Deductions
from such annuity may be made fram
scorned and accruing payments, or
may be prorated against and paid
fres searOngpsymenta in such manner
as the Deportment of Labor shall
determine, whenever it finds that
the finemniel circumstances of the
amanita* are such an to warrant
au& degerred seaman&
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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 provisions of this
Act, his contributions to the fund,
with interest at the rates prescribed
in sections 41(a) and 281(a), shall be
be paid in the order of precedence
ahoen in section 241(b).
Foreign Service Act
Sec. 832. (a) In case a participant
diee and no claim for annuity is m-
ale under the provisions of this Acts
his contributions to the Fund, with
interest at the rates preeoribed in
sections 8111(a) and 881(a), shall be
paid in the order of precedence shown
in section 810(b).
giALOVias_adig"4914411
U. (4) If an dwgdalue ar
Amber dies (1) without a survivor,
Or (2) with a survtvor or survivors
404 the right of all survivors ehall
terminate before claim for survivor
amity is filed, or if a former
employee or Member not retired ides,
the lomp-sum credit shall be paid.
Pies. 1(1). The_term wilampwmma
emedito Shall nom the umrefUmded
Owed eameisting of (1) the row.
Umlaut deductlome rode from the
heels salary of an employee er
Amber, (2) any sums deposited by
eml employee or Member covering
prior service, and (3) interest on
monk deductions and deposits at it
percentse per annum to December 31,
30W, and 3 per centum per semen
thereafter oompounded annually to
Ihmeember 31, 1955, er, in the ease
Oen employee or Member separated
or transferred to a position not
within the purview of this Act be..
fan he has completed five years of
elvilian service, to the date of
Ito separation or transfer, The
leop-sum credit shall not include
Soberest if the service covered
thereby aggregates one year erjess,
Nor Shell it include interest far
the emotional pert of sena in
AO total serviegg
e= opposite seotion WO)
11(e), quoted is fill
of the Proposed C/A Retirement
Act, apecdfles the order of
lump am t
precedence far
g benefi prat of a
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Proposed CIL Retirement Act
Sec. 232. (lb) If a participant, who
has at least five years of service
credit toward retirement under the
systemy excluding military or naval
servioe that is credited in accord-
ance with the provision of section
251 or 252(8)(2), dies before sips-
ration or retirement froze the Agency
and is ourvived by a widow or depen-
dent widower, as defined in section
20k, such widow or dependent widower
shall be entitled to an annuity
equal to 50 per cent am of the annu-
ity computed in accordance with the
previsions of paragraph (e) of this
section and of section 221(a). The
annuity of such widow or dependent
widower shall common on the date
Miming death of the participant
and shall terminate upon death of
the widow or dependent widower, or
upon the dependant widoser's be
capable of self-support.
Iesiiiat porta Lot
Soo. $32. 00 IfePartidiaut lb* he.
at least figs years of mervise 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
eurvived by a widow or. dependent
widower, as defined in section 80h,
such widow or dependent widower shall
be entitled to an annuity equal to
50 per cant= of the annuity computed
in accordance with the provisions of
paragraph (e) of this sectiok and of
section 821(a). The annuity of such
widow or dependent widower shall
commence an the date following death
of the participant and ahall termi-
nate upon death of the widow or
dependant widower, or upon the de-
pendent widower's becoming capable
of self-support.
Civil Service Retirement Act
Soo. 146 (c) If an employee or a
Member dies after completing it
least five years of civilian seri.
vice, the widow or dependent
widower of such employee or Nimeher
shall be paid an annuity equal to
55 per embus of an annuity computed
as provided in seheectioms (a), (b),
(Os (s), and (f) of section 9 as
nay apply with respect to the en*
ployee or Maher. The annuity of
such widow or dependent widower
Shell 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,
-22-
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Approved For Release 2002/01/10 : CIA-RDP75600380R000500030001-7
Proposed CIA Retirom0Agi
See. 232. (c) If a participant who hes
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),
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(0(1). The ahild's an-
nuity shall begin and be teendneted
in accordion with the previsions of
section 221(e). Upon the death of the
surviving wife or husband er termina-
tion of the annuity of a child, the
annuities of any remaining children
shall be recomputed and paid as
though such wile or husband or child
had not survived the participant*
Foreign Service Act
Sea. 832. (c) If a participant who has
et least five years of service credit
toward retirement under the Synten4 ex-
cluding millitary 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
wife or a husband and a child or Chil-
dren, each surviving child ahall be
entitled to an annuity sompubed in
accordance with the provisions of
section 821(c)(1). The child's annu-
ity shall begin and be terminated in
accordance with the proviaione of
section 821(e). Upon the death of the
surviving wife or huaband or termina-
tion 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.
Civil Service Retirement Act
See. 10. (d) If an employee or a
Maeber dies after completing at
least five years of civilian ser-
vice, or an employee or a NaMbor
dies after having retired under any
provision of the Act, and is sur-
vived by a wife or by a husband,
each surviving Child who received
more than one-half of his support
from such employee or &Sher shall
be paid an annuity equal to the
smallest of (1) 40 per cantum of
the employee's or Menher's average
salary divided by the nueber of
children, (2) $600, or (3) $1,800
divided by the number of children.
5ontinued on page 24 opposite
sec. 232 (d) of the Proposed
MA Retirement Lag
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Approved For Release 2002/01/10 : CIA-RDP75600380R000500030001-7
Proposed QA Retirement age.
Sec. 232. (d) If a participant who has
at least five years of service credit
toward retirement under the system,
ax-
c1n'ig 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 than
be entitled to an annuity computed in
accordance with the provisions of sec-
tion 221(c)(2). The child's annuity
shaU 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
remain tag children shall be MOM-.
puted and mid as though that Child
had never been entitled to the
benefit.
Foreign Service Act
Sec. 832. (d) If a participant who has
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 851 or 852(a)(2),
dies before separation or retirement
from the Service and is not survived by
a wife or huaband, but by a child or
children, each surviving child shall
be entitled to en annuity oampetedl in
seeerdemee milk the providing of see.
time 8/1(o)(2). 1he ihildis ammigiVr
shall begin and terminate in seemed.
saes with the provisions of mitten
821(e). Upon termination of the am-
it, of a child, the annmities of any
remaining Children shall be recomputed
and paid as though that Child had
never been entitled to the benefit.
Civil Servioe Retirement Act
Sec. 10. (d) (oont'd)
If such employee or Member is not
survived by a wife OT husband, each
surviving child ehall be paid an
annuity equal to the smallest of
(1) 50 per oentum of the emplajleets
or Member's average salary divided
by the number of children y (2) t71
or (3) $2,160 divided by the ammher
of children. The child's annuity
shall commenoe on 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 on the last day of the
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 mouth before
(1) his marriage, (2) his death,
(3) his ceasing to be such a stu-
dent, or (4) his attaining age
twenty-one. Upon the death of
the surviving wife or husband or
termination of the annuity of the
child, the annuity of any other
child or children shall be recom-
puted and paid as though gadimile,
husband, or child had not survived
the employee or Member.
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Approved
Proposed CIA Retirement Act
Sec. 232. (e) If, at the tine of his
or her death, the participant had lees
than twenty years of service credit
toward retirement under the system,
the annuities payable in accordance
with paragraph NI 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 his or her age on
the date of death and the mandatory
retirement age applicable to his or
her grade in the Ageney. In all
cases arising under paragraphs (b),
(a), (d), or (e) of this section,
it Shall be assumed that the de-
ceased participant was qualified for
retirement an the date of his death.
Voluntary Retizement
Sec. 233. Any participant in the
ante* who is at least fifty years
of age and has rendered twenty years
of service may on his own applica-
tion 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 at least five 'versa
service with the Agency.
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Foreign Service Let
Sec. 832. (e) If, at the time of his
or her death, the participant had less
than tmenty 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 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 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
oases arising under paragraphs 09,
(c), (d), or (e) of this section, it
'hall be assumed that the deceased
participant was qualified for retire-
sent on the date of his death.
Sec. 6$6. Any participant in the
Foreign Service Retirement and Die-
ability System eh* in at least fifty
years of age and has rendered twenty
years of service, including service
within the meaning of section 853,
mey 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 sectiah 821.
Civil Service Retirement Lot
No comparable provision,
Lgeo, 10(e) of the CSRA, is a
special provision for Nembersj
86466. (s)AasiLoys.Awe
obtain, the age al' aftly pars aaj
oompastes thirty years of service
shall, upon separation from the
service, be paid an annuity oomputed
as provided in section 9.
(b) Any employes who attains the
age of fifty-five years and comow,
Plates thirty years of service Ohall,
upon separation from the service
prior to attainment of the age of
sixty years, be paid a reduced an=
nutty computed as provided in '
section 9.
(contid on page 26)
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Proposed CIA Retirement Act
Foreign Service Act Civil Service Retirement Act
(cont,d)
fot::a . 6(c) is a special provision
r ?Any employee the duties of
whose position are primarily the
investigation, apprehension, or
detention of persons suspected or
convicted of offenses against the
criadnal 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 %with twenty
years of service without reduction
in annuity;
Leo. 6(d) concerns involuntary
separation and is quoted below
opposite section 2314(c) of the
Proposed CIA Retirement Act;
Sec. 6. (a) 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 90
gee. 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;
-26-
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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 system, 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, commeno-
ing at the age of sixty years?
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, excluding idlitary or naval
service that is =edited in accordance
with the provisions of section 851 or
852(a)(2). may, upon separation from
the Servioe or at any time prior to
beocming 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 receive an annuity, com-
puted as prescribed in section 821,
commencing at the age of sixty years.
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-
terest, 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 service 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
(cont'd on page 27a)
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Civil Servioe 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 mey
be paid an annuity beginning at the
age of sixty-two years computed as
provided in section 9.
2745c. 8(b) is a provision appli-
cable only to Memberag
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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) (cont'd)
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 Rind, with inter-
est, shall be paid in accordance
with the provisions of sections 841
and 881.
Sea. 834. (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 accord-
ance with the provisions of sec-
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)
LIUmp-uum credit is defined in
WO. 1(1) quoted in fall above
opposite sea. 232(a) of the Pro-
posed CIA Retirement Act17
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Approved
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
GS43 and below to promote the aft-
oieney of the Agency and eaoh'snch
participant shall receive--
(1) are-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
on the let day of January following
the participant's retirement and on
the two anniversaries of this date
immediately followings Provided,
That in special cams, the Director
may in his discretion accelerate or
combine the installments; and
(cont'd on page 29)
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Foreign Service Act
Sec. 634. (a) Any Foreign Service
officer in Classes 1, 2, or 3 who
is retired from the Service in ac-
cordance with the provisions of
section 633 shall receive retire-
ment benefits in acoordance with
the previsions of motion 821.
See. 633. (b) Any Foreign Servioe
officer below the. class of career
sdnister 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 class
shall be retired from the Service
and receive benefits in accordance
with the provisions of section 63k.
Sec, 634. (b) kny Foreign Service of-
ficer in classes 11, 5, 6, or 7 who is
retired from the Service in accord-
ance with the provisions of motion
633 shall receive--
(1) me-twelfth of a year's salary
at his then current salary rate far'
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
data immediately following: Provided,
That in special oases, the Secretary
may in his discretion accelerate or
Gambino the installments; and
(oent'd on page 29)
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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.
gec. 9. (d) The annuity as here-
inbefore provided, for an employee
retiring under election 6(b) or 6 (d)
or a Member retiring under the second
or third sentence of section 6(f) or
the third sentence of section S(b)
shall be reduced by one-twelfth of
1 per oentm 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
Umber is under the age of sixty
years at data of separation. (Under-
scoring supplied)
(No comparable provision.)
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Proposed CIA Retirement AO
Sec. 234(d) (conttd)
(2) a refund of the contribytions
made to the fund, with interest am
provided in section 241(5), 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 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 08-12
and who has elected to receive re-
tirement benefits dies before
reaching the age of sixty, his
death shall be considered 2 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(a), shall be paid in
accordance with the provisions of
section 2141(b).
Foreign Service Lot
Sec. 634(b)(contid)
(2) a refund of the contributions
mode to the Foreign Service Retire-
lent 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
pars of service credit toward retiree
vont under the Foreign Service Retire-
ment and Disabilit, System, excluding
military or naval service that is ere-
dited in accordance with the provisions
of section 651 or 852(a), may elect to
receive retirement benefits an reaching
the age of sixty in accordance with the
provisions of section 821. In the
event that au officer who was separated
rsom eisaik 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 sepia-
rated from class 6 or 7 and who has
*booted to receive retirement benefits
dies before reaching the age of sixty,
the total amount of his contributions
made to the Foreign Service Retirement
and Disability Fund, with interest as
provided in section 841(0, shall be
paid in accordance with the provisiohs
et section 841(b).
Civil Service Retirement Act
ffee sections 6(d) and 90.1
quoted immediately above.,"
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Approved For Release 2002/01/10 : CIA-RDP75600380R000500030001-7
PrIposed CIA Retirement .110%
leo. 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 parson or
corporation the whole or any
part of the benefits receivable
by him pursuant to paragraph
(d)(1) of this sectlem.
Mandatory Retirement for Age
Seco 235. (a) An/ participant in
the system in grade G5-18 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 sadh a participant's ser-
vice for a period not to exceed
five years.
'Weise Service Act
See. 634(c) Notwithstanding the pro-
visions of section 3477 of the Revised
Statutes, as amended (31 U.S.C. 203)
or the provisions of any other law, a
Foreign Servioe officer who is retired
in accordance with the provisions of
section 633 shall have the right to
maim to any parson or corporation
the whole or any part of the benefits
receivable by him pursuant to para-
graph (b)(1) of this section. Any
such 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 Servioe offi-
cer who is a career ambassador or a
career minister, ether than one own-
piing a position as chief emission
Or sey other position to which he hes
been appointed by the Preaidemt, by
amd with the advioe and gamest of
the Senste, 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 exeeed 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 service shall be automatically
separated from the servios. 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 then 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: Providedp That Basso-
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
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 de-
termine it to be in the public
interest, he may extend such a
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 participent's service
for a period not to exceed five
years.
Civil Service Retirement Act
Sea, 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 service, 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 Panama Canal Com-
pany or the Canal Zone Government17
ffee Sec. 5(a) through (d) above2
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Proposed CIA Retirement Act
FART E - DISPOSITION OF CONTRIBUTIONS
AND INTEREST IN EXCESS OF BENEFITS
RECEIVED
Sec. 2141. (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 4 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. 8111. (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 contributions from his salary
with interest thereon at 4 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 Election 8812
shall be returned to him,
Civil Service Retirement Act
Sec, 1. (1) The term wilmw-inus
credit" shall mean the unrefunded
amount consisting of (1) the retire-
ment deductions made from the basic
salary of an employee or Member,
(2) any suns deposited by an employee
or Member covering prior servioes and
(3) interest on such deductions and
deposits at 4 per oentum per annum
to December 31, 1947, and 3 per
centum per annum thereafter com-
pounded annually to December 31,
1956, or, 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 com-
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 emplwee or Member
who is separated from the service, or
is trossibrrod to a position wherein
he does met continue subject to this
Act, Shall be paid the lump-sum .
credit provided his separation or
transfer occurs and application for
payment is filed with the Commiesion
at least thirty-one days before the
earliest oommencing date of any
annuity for which be is eligible.
-32- (cont'd on page 32a)
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Proposed CIA Retirement Act
Foreign Service Act Civil Service Retirement Act
Sea. 11(a) (combid)
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 mom
pleting at least twenty years of
civilian service*
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Proposed CIA Retirement Act
Sec. 2410 (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 cant= per
annum compounded annually as is pro-
vided in paragraph (a) of this sea-
tion added thereto, exneed 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 peyments 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:
(I) 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 each participant;
(3) If none of the above, to the
child or children of such partial.-
pent 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 an page 34)
yereign Service Act
Sec. 841. (b) In the event that the
total contributions of a retired par-
ticipant, other than voluntary contrii,
buttons made in acoordance with the
previeions of section 881, with inter-
est at 4 per cent= per annum com.
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 same rate of interest up to
the date the annuity payments cease
under the terms of the annuity, the
emcees 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 reeovery 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
hmsband of such participant;
(3) If none of the above to the
child or children of such Partici-
pant and desoendants of deceased
Children by representation;
(4) If none of the above, to the
parents of such participant or the
survivor of them;
(continued an page 34)
Civil Service Retirement Act
ffor definition of wimp-sum credit",
see sec. 1(1) quoted immediately
above opposite sec. 241(a) 01 the
Proposed CIA Retirement Acta/
SOC. U. (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), (e), 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;
Seoond, 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 children 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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PrePeeed 01A Retirement Lot
See. 241(b) (oentld)
(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 surviving annuitant.
Foreign Service Lot
See. 841(b) (contsd)
(5) If none of the above, to the
day appointed executor or adminis-
trator of the estate of such parti-
cipant;
(5) 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
ef thirty days from the death of
the retired participant or his
surviving annuitant.
Civil Service Retirement Act
Sec. 11(c) (contld)
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
PART F - PERIOD FOR 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 fraa
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
wbile receiving benefits under the
Moral Employees' Compenestioa
Mt of Septembmr 7, 1916, es
amended, (5 u.s.c. 751 et )
an 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 Civil Service Retirement Act
Sec. 851. For the purposes of this
titles 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 sr from the date 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
NMI sxceed 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
ameadeds and leaves of absence
granted participants while per-
forming active and honorable mili-
tary or naval service in the Are,
Navy, Air Force, Marine Corps, or
Coast Guard of the United States.
Seco 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 eeperation
upon which title to annuity is based
in the civilian service of the
Government. Credit shall similarly
be allowed for service in the Pan
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
see. 252(e) the Proposed Cli
lbotireanatkesto
(t) Credit shell be allowed for
leaves of Asensio granted sa em..
playas while performing military
service or while receiving bene-
fits under the Federal Employees'
Cbmpensation Act of September 7,
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
Congrems, has left or leaves his
position to enter the military
service shall not be sonsidered,
-35-?snivel en pg 36)
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Proposed CIA Retirement Act
Foreign Service Act Civil Service Retirement lot
Sec. 3(d) (contld)
for the purposes of this Act, as
separated from his civilian position
by reason of en& military service,
unless be shall apply for and re-
ceive a lump-sem 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 must
haves within the two-year period
preoeding any separation from ser-
vice, other than a separation by
regson 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 foranunity 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 prsoeding 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 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 henorahas mili-
tary or naval serials* in ths Arm,
Navy, Air Force, Marine Corps, or
Coast Guard of ths United Matas,
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,
levy, 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 wpm a previous separa-
tion.
.060. 3(h) excludes Member service
of an employee under certain arms-
stances, Sec. 3(i) is concerned
with service of U.S. Commissionersg
Cees
c. 3(a) quoted above opposite
sec. 251 of the Proposed CIA
Retirement Act;
Sec. 3(j) quoted below opposite
sec. 252(e) of the Proposed CIA
Retirement Act;
Sec. 4(c), (e), and (g) quoted
below opposite sec. 252(b) of
the Proposed CIA Retirement Act;
Sec. h(d) quoted below opposite
sect. 252(b) of the Proposed CIA
Retirement Actg
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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 centum of
his basic annual salary for each
year of service for which credit
is sought prior to November 8, 1960,
and at 61 per centum thereafter with
interest compounded annually at 4
per canton per annum to the date of
payment. Any sueh participant may,
under imeh conditions as may be
determined in each instenos by the
Director, pay such special contri-
butions in installnents.
Foreign Service Act
Seco 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 an9ual 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 61 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
ee:
. 3(a) quoted above opposite
sec. 251 of the Proposed CIA
Retirement Act;
Seco 3(j) quoted below opposite
seco 252(e) of the Proposed CIA
Retirement Actj
Sec. 4. (c) Each employee or !limber
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 -
oeived for such service:
Employee:
Percentage of
basic salary
Service Period
5
6
August 1, 1920, to June 30, 1926
Jay 1, 1926, to June 30, 1942
July 1$ 1942, to June 30, 1948
July 1$ 1948, to October 31, 1956
After October 31, 1956
Member:
Percentage of
basic salary
Service Period
2i August 1, 1920, to June 300 1926
3* July 1, 1926, to June 300 1942
5 July 1* 1942, to August 1, 1946
6 August 2, 1946, to October 31, 1956
7i Atter October 31, 1956
(contld on page 39)
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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 emo.
ployeen 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 fer the ser-
vioe covered by the refund until the
deposit is made*
See. 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
data 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 comb= 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.
[Sec. 4(f) Provides for entering de-
posits for prior service credit an
individual retirement recordaj
(g) No deposit shall be required for
any arririce prior to August 1, 1920,
for periods of military service 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
employee or Nember.
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Proposed CII Retirement Act
Sec. 252(c)(1) If an offioer or
employee under some 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 acqaittance
of all claims and demands against
the other Government retirement
fund on account of service rendered
per to becoming a participant in
the system.
(2) No participant, whose sem-
tributions are transferred to the
fund in accordance with the provisi
sions of paragraph (c)(1) of this
section, shall be required to maim
contributions in addition to those
trensferred for parieds of service
for which full contributions were
made to the other Government retire-
ment fund, nor shall any refund be
made to any such participant an
account of contributions made
during any period to the other
Government retirement fund at a
higher rate than that fixed by
section 211 of this Act for con-
tributions to the fund.
Foreign Service Act
See. 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
becalms 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 paragraph (c)(1) of this
section, shall be required to make
contributions in addition to those
transferre4for 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. (0)(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
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.
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, 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 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 ewhieh he is reoeiving er
will in the tutors he entitled be
receive any annuity under another
retire/neat system (levering 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 reoeived, with interest.
No credit shall be allowed for
the service covered by the refund
until the deposit is made.
itprevisian precisely ampere-
however, previsions of
see. 2(b) and 4(c) and y operate
We:gaud, snob mervice
4p610. 3(j) quoted bele, opposite
'see. 252(e) of the Proposed CIA
Retirement Act relates also to
credit far certain Pam Corps
volunteer eerviolg
Ape note on page 42 concerning
exclusion of service on which
entitlement to Social Seourity
benefit is baseds7
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Proposed CIA Retirement Act Foreign Service Act Civil Service Retirement Act
Sec. 115, Social Security
etirE Amendments of 19541
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 19372 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(a)j
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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 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 Gauped
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 (0(2) of this section.
Foreign Service Act
Soc. 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 cape 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-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 contrite).-
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 Aet
Sec. 3. (b) An employee or Member
*all 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 each 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) caused by
an instrumentality of war and in-
curred in lime 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 ser-
vice not exceeding five years, palls
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)
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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Proposed CIA Retirement Act
Foreign Service Act Civil Service Retirement Act
Sec. 3(b) (cont'd)
or a Member to retired pay, pension,
or compensation in addition to the
annuity herein provided.
ffee. 1. Cr) The term "military ser-
vice" shall mean honorable active
service in the Army, Navy, Air Fords,
Marine Corps, or Coast Guard of the
United States, or, after JUDO 30,
1960, in the Regular Corps or
Reserve Corps of the Public Health
Service or, after June 30, 1961,
as a co;missioned 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
Statess7
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 Foreign Service Act
Credit for Service While an 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.
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 Coaai Guard of the
United States?
Civil Service Retirement Act
Seo. 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. 4o2), based an 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, affec-
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 be such benefits?
Sec. 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, 19240
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Pr000sed 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 mks 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
administeringthe 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 finange the fund
an a normal cost Plus interest
basis and to continue this Act in
full force and effect?
Sec. 16, (t) 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 Conanission, and
it shall have the authority to
recommend to the Commission and to
the Congress such changes as in the
Board's judgment may be deemed
necessary to protect the public
interest and maintain the system
upon a sound financial basis. The
Commission shall keep or MOO to
be kept such records as it deems
necessary for making periodic
actuarial valuations of the Civil
Service Retirement System, and
446- (cont 'd on pg 47)
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Proposed CIA Retirement Act
Investment of *nous 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
Sea* e63. The Seeretary of the
Tremor, shall invest from time to
tins in intoreet-bearing securities
of the United Stites 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.
Civil Service Retirement Act
Sec. 16(g) (contyd)
the Board shall asks such valuations
at intervals of five years, or of-
tener if doomed necessary by the
Commission. The compensation of the
nelbers of the Board of Actuaries,
exelusivo of such members as are in
the employ of the United States,
shall be fixed by the Commission.
See. 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-
manta shall constitute a part of
the fund.
ffec. 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 authceino the issuance
at par of publio-debt obligations
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Proposed CIA Retirement Act
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Foreign Service Act Civil Service Retirement Act
Sec. 17 (d) (contld)
for purchase by the fund. Such
obligations issued for purchase by
the fund shall have maturities fixed
with due regard for the needs of the
fund and bear interest at a rata
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
an 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.
-h8-
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s ,
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Proposed CIA Retirement Act
Attachment of Moneys
Sec. 263, None of the moneys men-
tioned in this title shall be assign-
able either in lav or equity, or be
subject to execution, levy, attach-
ment, garnishment, or other legal
process, except as provided in sec-
tion 234 (e)0
Foreign Service Act
Sec. 864. None of the moneys men-
tioned in this titic shall be assign-
able either in law or equity, or be
subject to execution, levy, attaoh-
manta garnishment, or other legal
process, except as provided in
section 634 (0).
Civil Service Retirement Act
3r
Sec. 15. (a) None of the moneys
mentioned in this Act shall to
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 department
or mew 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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Proposed CIA Retirement Act
PART S?ANNUITANTS RECALLED, REIN-
STATED* OR REAPPOINTED IN THE
Ammar, aR REEMPLOYED IN THE
GOVERNMENT
Recall
Sec. 271. (a) The Director may re-
call any annuitant to duty in the
Agency whenever he shall determine
such recall is in the public
interest,
(b) Any annuitant recalled to
duty in the Agency or reinstated
or reappointed in accordance with
the provisions of section 231(b)
shall, while so serving, be en-
titled in lieu of his annuity to
the full salary of the grade in
which he is serving. During such
service, he shall make contribu-
tions to the fund in accordance
with the provisions of sec-
tion 211, When he reverts 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 such
recall is in the public interest.
Sec. 871. Any annuitant recalled to
duty in the Service in accordance
with the provisions of emotion 520(b)
or reinstated or reappointed in ac-
cordance with the provisions of mo-
tion 831(b) shall, while so serving,
be entitled in lieu of his annuity
to the full salary of the class in
which be is serving. During such
service, be shall mobs contribu-
tions to the Fund in accordance
with the provisions of section 811.
When be reverts to his retired sta-
tus, his annuity shall be deter-
mined anew in accordance with the
provisions of section 821.
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Civil Service Retirement Act
5i though there is not a provision
in the Civil Service Retirement
Act for "recall" of an annuitant,
the provisions of sec. 13 (b),
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, recompu-
tation of annuity, etc;
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 prom
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 on and
after the date be was or is so
employed shall be covered by this
Act. No deductions for the fund
shall be withheld from his salary,
but there shall be deducted from
his salary, except for lump-eum
leave payment purposes under the
Act of December 21, 1944, a sum
equal to the annuity allocable to
the period of actual employment,
and this provision concerning
(conttd on pg 51)
00030001-7
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Proposed CIA Retirement Act
Foreign Service Act Civil Service Retirement Act
Sec. 13(b) (cont,d)
the lump-sum leave payments shall
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 19561
Provided, 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 em-
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 fund of an amount com-
puted under section 4(0) covering
such employment. A similar right
to redetermination after deposit
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Proposed CIA Retirement Act
ReemplAyment Compeneatien
Soo. 272. (a) latadthataladthig any
other provision of law, my annui-
tant who has retired under this Mot
and who is reemployed in the Feder-
al Government service in any ap-
pointive position either on a
port-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 an the date of his retire-
ment 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 re-
ceive under this paragraph shall
be entitled to such salary in
lieu of benefits hereunder.
Foreign Service Act
3.04, 872. (a) Notwithstanding any
Odber provision of law, any officer
or employee of the Service, who has
retired under this Act, as amended,
aid is receiving an annuity pursuant
thereto, 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 position in which he is eery-
lag plus so much of his annuity pay-
able under this Act, as amended,
*lob when sombimed with mob salary
4000 mot emseed daring an, allendar
year the besio salary meth officer
or employee wee entitled to receive
under sections 412 or 415 of the Act,
as amended, on the date of his re-
tirement from the Serviee. Any such
reemOloyed fellow or empaspee Was
receives selery 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 lien
-et benefits hereunder.
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Civil Service Retirement Act
Sec. 13(b) (contld)
shall be applicable to an ammitant
(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.
gee. 13(c) is concerned with the
reemployment of a retired Nenberj
2:gee sac. 13(b) quoted immediately
above which provides in pert as
follows:
?.but there shall be deducted
fro:this salary..a sum equal to the
annuity allocable to the period of
actual emp1oymentm7
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Proposed CIA Retirement Act
Sec. 272. (b) When any such an-
nuitant is reemployed, the employer
Shall send a notice to the Agency
of such reemployment together with
all pertinent information 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 suoh
reeeployed annuitant, or from any
ether moneys, including his
annmity, payable in accordance
with the provisions of this
title.
Beesigarmat
Sec. 273. Notwithstanding the
provisions of 5 U.S.C. 62 and
5 U.S.C. 2255, a perticipent re-
tired under the provisions of this
Act shall not, by reason of his
retired status, be barred from
anulaymant in Federal Government
serviessin any appointive position
for which he is qualified. An
annuitant so reemployed shall
serve at the will of the appoint-
ing officer.
Approved
Foreign Service Act
Sec. 872. (b) When any such retired
officer or employee of the Servioe
is reemployed, the employer shall
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-
ployee 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 fram any other moneys,
including his annuity, payable in
accordance with the provisions of
this title.
Sec. 520. (c) Notwithstanding the
provisions of title 5, United States
Code, section 62, and title 5, United
States Code, section 715 a, a Foreign
Service officer heretofore or horse-
ter 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 staths, be barred from
employment in Federal Government ser-
vice in any appointive position for
which he is qualified. An annuitant
so reemployed shall serve at the will
of the appointing offioer.
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Civil Service Retirement Act
No comparable provision.
No comparable provision. However,
980. 15(b) provides in pert:
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 such
recovery would be contrary to
equity and good conscience;...
(Sec. 15(b) is quoted in fUll
above opposite see. 263 of the
Proposed CIA Retirement Act.)
Sec. 13, (a) Notwithstanding any
other provision of lay, an annui-
tant heretofore or hereafter rad.
tired under this Act shill not,
by reason of his retired status,
be barred from employment in any
appointive position for which he
is qualified. An annuitant so re-
employed shall serve at the will
of the appointing officer.
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Proposed CIA Retirement Act Foreign Service Act
PART I -- mummy 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 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
sum; or
(2) used to purchase an addi-
tit:malt., annuity; or
(3) need to purchase an addi-
tions'. 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.
Sec. 881. (a) Any participant may, at
his option and under such regulations
as may be prescribed by the President,
deposit additional 'UM 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; snot,
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 sun;
or
(2) used to purchase an additional
life annuity; or
(3) used to purchase an additional
life annuity for himself and to pro.
vide tor 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 an 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
nmys under regulations prescribed
by the Camisole% vamterily con-
tribute additional sossin matiples
of $25, but the total may net ex.
coed 10 per pant= of his bade
salary for his creditable service
from and after August 1, 19200
The voluntary contribution account
in each case shall be the sun of
such unrefunded contributions, plus
interest at 3 per oentum per annum
compounded annually to date of
eeparetion or transfer to a position
not within the purview of this Act
win came of =individual who is
separated with title to a deferred
annuity and dem not Claim the
voluntary contribution account, to
the oommencing 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)
-.514-
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Approved For Release 2002/01/10 :CIA-RDP75600380R000500030001-7
Foreign Service Act
Proposed CIA Retirenent Act
Sec. 281. (b) The benefits provided
by subparagraphs (2), (3)s 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,
(e) In ease a participant shall
become separated from the Agency
for any reason except retirement
on an *omit", the amount of any
additional deposita with interest
at 3 per contuse per mummy oamp.
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 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.
(c) In case a participant shall
become separated from the Servioe for
any reason except retirement on an
annuity, the amount of any additional
deposits with interest at 3 per centum
per annuli, compounded as is provided
in paragraph (a) of this sections 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) (contld)
and designate in writing a person t4
reoeive after his death an annuity
of 5o 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 cent=
for each full five years the person
designated is younger than the
retiring employee or Member, but
such total reduction shall not
exceed ho per centum
ffec. 12(b) and (c) quoted immedi-
ately above specify the benefits
provided under the comparable pro-
visions of the Civil Service ft.
tiroment Acrtjg
(d) Any grommet or ferneremOiree
or Member shall to paid the velum-
tary contribution amount provided
application for payment is filed with
the Commission prior to reoeipt of
say annuity, but such account shall
net in any case include interest be-
yond date of payment. Such individual
atoll thereafter be eligible to de-
posit additional sums under this sec-
tion 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-
ployee or Member not retired dies,
the voluntary contribution account
shall be paid under the provisions
of election 11(c). If all additional
annuities or any right thereto based
-55- an the voluntary contribution amount
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Approved For Release 2002/01/10 : CIA-RDP75600380R000500030001-7
Proposed CIA Retirement Act
Sec. 2e1. (d) Any benefits payable
to a participant or to his benefi-
ciary in respect to the additional
deposits provided under this sec-
tion shall be in addition to the
benefits otherwise provided under
this title,
Foreign Service Act Civil Service Retirement 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 addition to the bene-
fits otherwise provided under this
title.
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).
SOo 12(b) quoted in full above
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 abome,
similarly refers to a "reduced addi-
tional annnityS
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Approved
Proposed CIA Retirement Act
TITLE III?INTERNAL REVENUE CODE
AMENDMENT
Paragraph (4) of section 104(a) of
the Internal Revenue Code of 1954
(26 U.S.C. 104(a)(4))(relating to
the exclusion from gross income of
compensation for injuries and sick-
ness)is hereby anended to read as
follows:
"(4) amounts received as a pension,
annuity, or similar allowance for
personal injuries or sickness result-
ing 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
Lot of 1946, as assadsd (22 U.S.C.
1081). or as a disability annuitY
payable under the previsions of
seetion 231 of the Central Intel-
ligence Agency Retirement Act
of 19630"
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Foreign Service Act
roo
bility annuities under the
ign Service Act are already
included in the provisions of
paragraph (4) of section 104(a)
of the Internal Revenue Code
at 1954.17
Civil Service Retirement Act
tsomparable previsiee4 however,
ability annuities are covered by
the "sick pay exclusion" under the
Internal Revenue Code. Thus, until
a disability annuitant reaches
"normal" retirement age?construed
to be age 60 for Civil Service dies-
ability annuitante?he may exclude
from gross income the amount of his
disability a*nn up to a saximme
of $100 per ve
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