NOTE FOR JSW FROM(Sanitized)

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CIA-RDP71B00364R000500220012-6
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RIPPUB
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K
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14
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December 9, 2016
Document Release Date: 
August 21, 2000
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12
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Publication Date: 
August 23, 1965
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NOTES
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Approved For Release 2002/05/02 : CIA-RDP71 B00364R000500220012-6 2 3 AUK' 1gF)9 NOTE FOR: JSW 1. Attached is my analysis of the retirement annuity adjustment problem. It is very cryptic and possibly intelligible only to me. The analysis covers the CIA Retirement Act, the existing and proposed Civil Service system, the proposed Foreign Service system, and the Military system recently approved in the Pay Act. Also attached are the existing laws and proposed amendments to laws as convenient reference material. 2. The analysis shows that: (a) CIA retirement annuitants will not get a cost-of-living increase on 1 April 1966. (1) Only those who retire before 2 January 1966 could have received such an increase; and, as you know, we had no such retirees. (2) Even if we had retirees before 2 January 1965, the cost of living would have had to increase 3 per cent from 1964 to 1965 before a cost-of-living increase could have been granted (Section 291 (a)(1), P. L. 88-643). (b) Civil Service retirees whose annuities commence by 1 November 1965 would be entitled to an approximately 5. 2 per cent annuity increase. This represents approximately 3. 7 per cent cost- of-living increase from 1962 to June of 1965 (which could go higher since the 1965 base month used for the comparison would be the month preceeding passage for enactment), plus a 1.5 per cent increase granted to annuitants whose annuities commenced after 1 October 1956 (House passed and reported out of Senate Committee H. R. 8469, Sec- tion 18 (a) (c) If H. R. 8469 is enacted, CIA retirement annuitants whose annuities commence by 1 November 1965 (assuming passage of H. R. 8469 in August) will not receive any cost-of-living increase in annuities without some legislative remedy, while their Civil Service counterparts would receive some 5. 2 per cent increase under H. R. 8469. Approved For Release 2002/05/02 : CIA-RDP71 B00364R000500220012-6 Approved For Release 2002/05/02 : CIA-RDP71 B00364R000500220012-6 (d) Further, even if H. R. 8469 is not enacted, Civil Service retirees will receive at least a 3.7 per cent increase under present cost-of-living trends as of 1 April 1966 pursuant to existing law. Such retirees' annuities commencement dates must be earlier than 2 January 1965; and, therefore, under exist- ing legislation CIA annuitants would stir!-be at a disadvantage when compared to cost-of-living adjustments under existing Civil Service retirement statute. 3. The wording of P. L. 88-643, Section 291 (a)(2) leaves unclear what base period is to be used to compute a price index change "of at least 3 per centum" for determining cost-of-living adjustments of annuities after 1 April 1966. Section 291 (a)(1) sets 1964 as the base for any adjustment effective 1 April 1966, yet as pointed out earlier the base period used for such comparison is 1964 rather than 1962, as provided in existing and pro- posed Civil Service retirement legislation, proposed Foreign Service legis- lation, and the recently passed Military legislation, H. R. 9075. Although there is a clearly defined base year for 1 April 1966 adjustments, there is not for subsequent adjustments. For such subsequent adjustments under P. L. 88.643 it may be possible to interpret Section 291 (a) as incorporating the 1962 base period set forth in Section 18 (a) in existing Civil Service retirement annuity legislation. If this improbable interpretation could be sustained, this would mean that CIA retirement annuitants whose annuities commenced before 2 January 1966 could be increased effective 1 April 1967 by the difference between the cost of living in 1962 and the cost of living in 1966. This would, of course, cover all retirees whose annuities commenced before 2 January 1966. However, under that interpretation there would be no way to recoup the 1. 5 per cent bonused adjustment provided in the proposed Civil Service amendment, H. R. 8469. 4. Other than the above points, I will refrain from making any other comments or suggestions, thinking you will want to question me most closely on this. Approved For Release 2002/05/02 : CIA-RDP71 B00364R000500220012-6 Approved For Release 2002/05/02 : CIA-RDP71 B00364R000500220012-6 Consumer Price Index Point Rise and Estimated Percentage of Annuity Adjustment & Average Annual Consumer Price Index, 1962 - 105.4 Average Annual Consumer Price Index, 1964 108. I Consumer Price Index, June, 1965 - 110. 1 Six-month average of Consumer Price Index for calendar year, 1965 . 109.3 Jan. - 108.9 Feb. - 108.9 mar. - 109.0 Apr. - 109.3 May - 109.6 June - 110. 1 655.E1 t~~- ~ 655.8 divided by 6 a 109.3 1962 to June. 1965 rise, 1964 to 1965 Point 109.3 108.1 1.Z Per cent of rise, 1962 to June, 1965 - 4.5 4. 6 Per cent of rise, 1964 to 1965 - 1. 1 4.7 divided b 1.2. divided by 108. 1 4. 6 Approved For Release 2002/05/02 : CIA-RDP71 B00364R000500220012-6 t: P. L. V8643. August First Increase CIA CSR1 Earliest Effective 1 April 66 Sec. 18(a) not oper .date COL increase. able:! April bb Annuity com- Annuity .commence mence before before 2 Jan 65 2Jan65."no one eligible 1964 1962 .Minimum CPI 3% 64-65 3% -over 1962 needed ncrease, ' difference difference between between 64- 1962-65 65 (min. 3%) Subsequent Increases New Base Not 'clear . Year on which unless read recent increase 18(A)"as setting" based. 1962 or year on which increase based whichever later (if latter, later than 2 Jan 6 retirees will be getting large increase which CSR will not get.) CSR 2 H. R. 8469 FS2 1 Nov. if enacted- - 1 April 66 Aug. 1962-:65 Annuity commence Annuity com-' Entitled before by:l Nov.. (if passed mence 2 Jan effective date (1.Sept. Aug.) 65 65) 1962 = .1962 -. 1962 (average difference 1962 ..and latest month's .CPI upon enact- Assume passage August . Mi12 HR. 90T.i Effective date of Act .(1 Sept. 65) monthly index) 3% from None difference difference, average between 62- monthly index and 65 '. CPI for Aug 1965 :ment_plus 6. 5% for 1 .annuiiti.es . commencing on or before 1 Oct. 56. or 1. 5%a after.. Month, upon which most: recent in crease based. Not Clear. "base year of most recent COL increase" -(haven't used) Month upon which most recent in= crease based. Approved For Release 2002/05/02 ;CIA-RDP71 B00364R000500220012-6 Amount CSR2 lst day of 3rd month sustaining month following 3rd consecutive. 3% increase annuity commence by effective date of increase 1 April (after 1st day of 3rd base year?) month following 3rd consecutive month sustaining 3% increase annuity comJ Entitlement before mence before effective date of 2 Jan or year preceding in- crease 3% over new;base 3% .(over most 3%o OVP_r TPw 7-%n co month? sustained recent base. month sustained for 3 months year, 1965?) for 3 months difference between % rise base and highest month of 3 con= secutive months' roved For Release 2002/05/02 : CIQ=RDP71 B00364R000500220012-6 Annuity Annuity com- commence mence before before 2 Jan 2 Jan of year of yr pre- preceding in ceding increase crease rise.-,. % rise difference between base and highest month of 3 con- s ecutive months Approved For Release 2002/05/02 : CIA-RDP71 B00364R000500220012-6 Pub. Law 88-643 __12 - October 13, 1964 78 STAT. 1054. under the provisions of said paragraph (a) shall be refunded in the manner provided in section 241 for the return of contributions and interest in the case of death or separation from the Agency. (d) Any benefits payable to a participant or to his beneficiary in respect to the additional deposits provided tinder this section shall be in addition to the benefits otherwise provided under this Act. PART J-COST-or-LIVING ADJUSTMENT or ANNUITIES Sec. 291. (a) On the basis of determinations made by the Civil Service Commission pursuant to section 18 of the Civil Service Retire- 76 Stat. 069. ment Act, as amended, pertaining to per centum change in the price 5 USC 2268. index, the following"ntljustnnents shall be nnade: (1) Effective April 1, 1906, if the change in the price index from 1964 to 1965 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, 1965, shall be increased by the per centum rise in the price index adjusted to the nearest one-tenth of 1 per centum. .(2) Effective April 1 of any year other than 1966 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 annuity payable from the fund as of the offective date of an increase, except as follows: (1) Effective from the date of the first increase under this section, an annuity payable from the fund to an annuitant's survivor (other than a child entitled under section 221(c) ), which annuity com. menced the day after the annuitant's death shall be increased 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 than a child entitled under section 221(c) ), which annuity commences the day after the annui- tant's death and after the effective date of the first increase under this section, shall be increased by the total per centum increase the annui- tant was receiving under this section at death. (3) For purposes of computing an annuity which commences after the effective date of the first. increase under this section to a child under section 221 (c), the items $600, $120, $1,800, and $2,160 appearing in section- 221(e) shall be increased by the total per centum increase allowed and in force under this section and, in case of a- deceased annuitant, the items 40 per centum and 50 per centum appearing in section 221(c) shall be increased by the total per centum increase allowed and in force under this section to the annuitant at death. Effective from the date of the first increase under this section, the pro- visions of this paragraph shall apply as if such first increase were Approved For Release 2002/05/02 : CIA-RDP71 B00364R000500220012-6 Approved For Release 2002/05/0"2": CIA-RDP71B00364R0005002200126 October 13, 1964 - 13 - Pub. Law 88-643 76 STAT. 1054. in effect ww?itli respect to computation of a child's annuity under section 221 (c) which commenced between January 2 of the year preceding the first increase and the effective date of the first increase. (c) No increase in annuity provided by this section shall be com- puted on any additional annuity, purchased at retirement by volun- i ib ons. ut tar contr (yd) The monthly installment of annuity after adjustment under this section shall be fixed at the nearest dollar. Approved October 13,- 1964. LEGISLATIVE HISTORYs HOUSE REPORT No.?763 (Comm. on Armed Services). SENATE REPORT No. 1589 (Comm. on Armed Services). CONGRESSIONAL RECORD: Vol. 109 1963 s Oot. 30, considered and passed House. Vol. 110 (1964): Sept. 25, considered and passed Senate, amended. Oot. 1, House concurred in Senate amendment. Approved For Release 2002/05/02 : CIA-RDP71 B00364R000500220012-6 Approved For Release 2002/05/02 : CIA-RDP71 B00364R000500220012-6 CIVIL SERVICE RETIREMENT ANNUITY ADJUSTMENTS 11 [COST-OF-LIVING} ADJUSTMENT OF ANNUITIES [SEC.118. (a) After January 1, 19641 and after each succeeding January 1, the Commission shall determine the per centum change in the price index from the later of 1962 or the oar recedin the most reco nt ~nsof=lvang~ju -neat to tfieatest comp otoyear. n the basis of such Commission determmatlon the following adjustments shall be made: [(1) Effective April 1, 1964, if the chap?e in the price index from 1962 to 1963 shall have equaled a rise of at least 3 per centuln, each annuity payable from the fund which has a com- mencing date earlier than January 2, 1963, shall be increased by the per centum rise in the price index adjusted to the nearest one-tenth of 1 per centum. .[(2) Effective April 1 of any year other 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 com- mencing 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 er cent p um: [(b) Eligibility for an annuity increase under this section shall be governed by the commencing date of each annuity payable from the fund as of the effective date of an increase, except as follows: [ 1 E ( ) ffective from the date of the first increase under this secti on, an annuity payable from the fund to an annuitant's sur- vivor (other than a child entitled under section 10(d)), which annuity commenced the day after the annuitant's death, shall be increased as provided in subsection (a) (1) or (a) (2) if the com- mencing 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 than a child en- titled 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 d th ea . [(3) For purposes of computing an annuity which commences after the ff ti e ec ve 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 section 10(d) shall be increased by the total per centum increase allowed and in force under this section, and, in case of a deceased annuitant, the items 40 per centum and 50 per centum 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 section, the provisions of this paragraph shall apply as if such first increase were in effect with respect to com- putation of a child's annuity under section 10(d) which com- menced between January 2 of the year preceding the first increase and the effective date of the first Increase. [(c) No increase in annuity provided by this section shall be com- puted on any additional annuity purchased at retirement by voluntary contributions. Approved For Release 2002/05/02 : CIA-RDP71 B00364R000500220012-6 Approved for Release 2002/05/02 : CIA-RDP71 B00364R000500220012-6 12 CIVIL SERVICE RETIREMENT ANNUITY ADJUSTMENTS amended to July 6, 1950, shall be computed as if the annuity com- mencing date had been the effective date of the first increase under this as of the effective date of an increase, except as follows: (1) Ef ffective from its commencing date, an annuity payable from the fund to an annuitant's survivor (other than a child entitled under section 10(d)), which annuity commences the day after 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, except that the increase in a sur- vivor annuity authorized by section 8 o the Act of May 29, 1930, as to nearest one-tent z of Iper centum, cZetermined by the 0ommi881&on on the -kiis o the annual average price index Qr calendar year 1962 and the price index or t e ha latest uq blislzedon date o e~a'acEment o `his n entf plus (2) p if ri 1 per centum i the commencing in date or in the ame z case of the survivor of a deceased annuitant the commencing (late of the annuity of the retired employee) occurred on or before October 1, 1956, or I % per centum if the commencing date (or in the case of the survivor of a deceased annuitant the commencing date of the annuity of the retired employee) occurred after October 1, 1966. The month used in- deter- mining the increase based on the per centum rise in the price index under this subsection shall be the base month for determining the per centum change in the price index until the next succeeding increase occurs. Each survivor annuity authorized (1) by section 8 of the Act of May 29, 1980, as amended to July 6, 1950, or (2) by section 2 of Public Law 85-1165, . shall be increased by any additional amount which may be required to make the total increase under this subsection equal to 15 per centum or $10 per month, whichever is the lesser. (b) Each month after the first increase under this section, the Commission shall determine the. per cent-um change in. the price index. Effective the first day of the third month which begins after the price index shall have equaled a rise of at least 3 per cent urn for three consecutive months over the price index for the base month, each annuity payable from the fund which has a commencing date not later than such effective (late shall be increased by the per centum rise in the price index (calculated on the highest level of the price index during the three consecutive months) adjusted to the nearest one-tenth of I per centum. (c) Eligibility for an annuity increase under this section shall be governed by the commencing date of each annuity payable from the fund after the date of enactment of this amendi rnent, each annuityZuyaUle' rom tlie`fund which has7a commences e not later than such effective date smell be anereaced list t .e per ceritum e7 ise? as in the price index,-a~ljusted t is section shall be'fixcd at the nearest dollar.] _V 8-re. 18. (a) Effective the crvLdy .of ;th,e third month which begins. (2) For purposes of computing an annuity which commences after the effective date of the first increase under this section to a child under section 10(d), the items $600, $720, $1,800, and $2,160 appearing in section 10(d) shall be increased by the total per centum increase allowed and in force under this section for employee annuities which commenced after. October 1, 1956, and, in case of a deceased annuitant, the items 40 per centum and 50 per centum 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. Approved For Release 2002/05/02 : CIA-RDP71 B00364R000500220012-6 Approved For Release 2002/05/02 : CIA-RDP71 B00364R000500220012-6 CIVIL SERVICE RETIREMENT ANNUITY ADJUSTMENTS 13 on any additional annuity purchased at retirement by voluntary con- tributions. (e) The monthly installment of annuity after adjustment under this section shall be fixed at. the nearest dollar, except that such installment shall after adjustment reflect an increase of at least $1. (d) No increase in annuity provided by this section shall be computed Approved For Release 2002/05/02 : CIA-RDP71 B00364R000500220012-6 Approved For Release 2002/05/02 : CIA-RDP71 B00364R000500220012-6 19 THE FOREIGN SERVICE ANNUITY ADJUSTMENT ACT OF 1965 PART I-VOLUNTARY CONTRIBUTIONS ant may, at his option and under such partici A p ny SLC. 881. (a) regulations as may be prescribed by the President, deposit additional sums in multiples of 1 per centum of his basic salary, but not in excess of 10 per centum of such salary, which amounts together with interest at 3 per centum per annum, compounded annunlly at the end of each s of December 31 ll i , y a annua fiscal year through June 30, -1960; sem 1960; annually thereafter as of December 31, and proportionately for the period served during the year of his retirement, including all con- tributions made during or for such period, shall, at the date of his retirement and at his election, be- (1) returned to him in it lump sum; or urchase an additional life annuity; or d to 2 p ) use ( (3) used to purchase an additional life - annuity for himself and to provide for a cash payment on his death to a beneficiary whose name shall be notified in writing to the Secretary by the participant; or (4) used to purchase an additional life annuity for himself and a life annuity commencing on his death payable to a beneficiary whose name shall be notified in writing to the Secretary by the participant with a guaranteed return to the beneficiary or his legal representative of an amount equal to the cash payment h 3 ra ara i d t f . p g n p o erre re (b) The benefits provided by subparagraphs 2, 3, or 4 of paragraph ~(a) of this section shall be actuarially equivalent in value to the pay- aragraph (a) (1) of this section and shall be d for b id y p e ment prov calculated upon such tables of mortality as may be from time to time prescribed for this purpose by the Secretary of the Treasury. (c) In case a participant shall become separated from the Service for any reason except retirement on an annuity, the amount of any additional deposits with interest at 3 per centum per annum, com- rovided in paragraph (a) of this section, made by him is d a d s p e poun under the provisions of this pparagraph shall be refunded in the man- -nor provided in section 841 for the return of contributions and inter- est in the case of death or separation from the Service. (d) Any benefits payable to an officer or to his beneficiary in re- spect to the additional deposits provided under this paragraph shall be in addition to the benefits otherwise provided under this title. PART J-COST-OF-LIVING ADJUSTMENTS Or ANNUITIES (a) On the basis of determination made by the Civil Service 882 S . EC. 'ommission pursuant to section 18 of the Civil Service Retirement Act, -. __._ ____s.?..,.,,. ..7. ,,,,.. the price index the a , following adjustments shall be made: (1) Effective April 1, 1966, if the change in the price index from 1962 to 1965 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, 1965, shall be increased by the per centum rise in the price index adjusted to the nearest one-tenth of 1 per centum. (2) Effective April 1 of any year other than 1966 after the price index change shall have equaled a rise of at least 8 per centum, each annuity _payable from the fund which has d commencing date earlier than January Approved. For Release 2002/05/02 : CIA-RDP71 B00364R000500220012-6 Approved For Release 2002/05/02 : CIA-RDP71 B00364R000500220012-6 20 THE FOREIGN SERVICE ANNUITY ADJUSTMENT ACT OF 1965 2 of the preceding year shall be increased by the per centum rise in the price index adjusted to the nearest one-tent/b of 1 per centum. (b) Eligibility for an annuity increase under this section shall be governed by the commencing date of each annuity payable from the fund as of the effective date of an increase, except as follows: (1) E, ffective from the date of the first increase under this section, an annuity payable from the fund to an annuitant's survivor (other than a child entitled under section 821(c)), which annuity commenced the day after the annuitant's death, shall be increased 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 than a child entitled under section 821 (c)), which annuity commences the day after the annuitant's death and after the effective elate 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 annuity which commences after the effective date of the first increase under this section to a child under section 821(c), the items $600, $720, $1,800, and $2,160 appearing in section 821 (c) shall be increased by the total per centum increase allowed and in force under this section and, in case of a deceased annuitant, the---- items /0 per centum and 50 per centum appearing in section 821(c) 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 section, the provisions of this paragraph shall apply - as if such first increase were in effect with respect to computation of a child's annuity under section 821(c) which commenced between January 2 of the year preceding the first increase and the effective date of the first increase. (c) No increase in annuity provided by this section shall be computed on any additional annuity purchased at retirement by voluntary con- tributions. (d) No increase in annuity provided by this section shall apply to amounts paid under authority of section 5 of Public Law 84-503 as amended, section 4 of the Foreign Service Annuity Adjustment Act of 1965, or any other law authorizing annuity grants to widows. (e) The monthly installment of annuity after adjustment under this Approved For Release 2002/05/02 : CIA-RDP71 B00364R000500220012-6 Approved For Release 2002/05102 : CIA-RDP71B00364R000500220012-6 28 INCREASE BASIC PAY FOR UNIFORMED SERVICES ? 1401a. Adjustment of retired pay and retainer pay to reflect changes in Consumer Price Index (a) Unless otherwise specifically provided by law, the retired pay or April 1 of that year, be increased by that percent, adjusted to the nee~ rest one-tenth of 1 percent.] e.(b) The Secretary of Defense shall determine the per centum that the Consumer Price Index for each calendar month after the calendar month immediately preceding the effective date of this Act has increased over the base Consumer Price Index (that for the calendar month immediately preceding the effective date of this Act or, if later, that used as the basis for the most recent adjustment' of retired pay and retainer pay under this subsection). If the Secretary determines that, for three consecutive calen- dar months, the index has shown an increase of at least 3 per centum over the base index, the retired pay and retainer pay of members of the Armed Forces who became entitled to that pay before the first day of the third calendar month beginning after the expiration of those three months shall be increased, 'effective that (Iay, by the highest per centum of increase in the index during those "three months,, adjusted to.the nearest one-tenth of armed force who became entitled to that pay before January 2 of the year in which the Secretary makes that determination shall, as of year has increased over that for 1962 or, if later, for the calendar year year preceding that in which the most recent adjustment in retired pay and retainer pay has been made under this subsection. If the Secretary determines the percent of that increase to be 3 or more, the retired pay or retainer pay of a member or former member of an retainer pay of a member or former member of an armed force shall not be recomputed to reflect any increase in the rates of basic pay for members of the armed forces if that increase becomes effective after the effective date of this section. E(b) In January of each calendar year after 1963, the Secretary of De Tense shall determine the percent that the annual average of *the Consumer Price Index (all items-United States city average) pub- lisbed by the Bureau of Labor Statistics for the preceding calendar Section 5 of H:. 9'075': ective date of this Act has increased over the average monthly index fo 1QA2 ri r calendar vear a or tatistics, for the calendar month immediately preceding the eff ex {tems--LTnjte.d States city average), pub= lished by. the 'Bureau of b centum (adjusted to the nearest one-tenth of 1 per centum) that the Consumer Price Ind Nay V1, a member or former member'of a un}foi~ ed service who is entitled to! that pay computed undex rates of basic pay in effect before the effegtive date of this At shall be in- creased, ,effgctive.that date by the' e'r Approved For Release 2002/05/02 : CIA-RDP71 B00364R000500220012-6 41 Approved For Release 2002/05/02 : CIA-RDP71 B00364R000500220012-6 CIVIL SERVICE RETIREMENT ACT (three-month system) First increase based on 1962 to July 1965 rise in cost-of-living = 4. 69/o,, annuity increase to those retiring on or before 30 December 1965. Payable no earlier than 1 December and no later than 31 December. * +1. 5 J/, Second increase based on July 1965 to October 1966 rise in cost-of-living = 3. 9% annuity increase to those retiring on or before 31 December 1966. Payable 1 January 1967. Existing (yeax1 average) 1964 to 1966 cost-of -living = 4. 6%** annuity increase to those retiring on or before 31 December 1965. Payable 1 April 1967. Proposed (three-month system.) and assuming enactment in March 1962 to February 1967 cost-of-living = 9.2%* annuity increase to those retiring on or before 31 May 1967. Payable 1 June 1967 Approved For Release 2002/05/02 : CIA-RDP71 B00364R000500220012-6