NOTE FOR JSW FROM(Sanitized)
Document Type:
Collection:
Document Number (FOIA) /ESDN (CREST):
CIA-RDP71B00364R000500220012-6
Release Decision:
RIPPUB
Original Classification:
K
Document Page Count:
14
Document Creation Date:
December 9, 2016
Document Release Date:
August 21, 2000
Sequence Number:
12
Case Number:
Publication Date:
August 23, 1965
Content Type:
NOTES
File:
Attachment | Size |
---|---|
![]() | 1.11 MB |
Body:
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