JOURNAL - OFFICE OF LEGISLATIVE COUNSEL

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP72-00337R000100200024-0
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 18
• Document Creation Date: December 12, 2016
• Document Release Date: December 31, 2001
• Sequence Number: 24
• Publication Date: September 18, 1970
• Content Type: NOTES

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CET
Journal - Office of Legislative Counsel
Friday - 18 September 1970
Page 3
8. (Secret - JGO) Met with Mr. Vincent Augliere, Staff Administrator,
Subcommittee on Foreign Operations and Government Information, House
Committee on Government Operations, as a follow up to the briefings
provided earlier in the week by
FE Division. I confirmed the information provided during the briefing
concerning and confirmed that the Agency
Mr. Augliere again expressed his appreciation for the briefings and indicated
that he saw no need to pass on any of the information since the current
Subcommittee investigations should not interfere in any way with Agency
activities. See Journal item of 14 September 1970.
9. (Internal Use Only - JGO) Met with Mr. William H. Cook,
Counsel, House Armed Services Committee, and reviewed with him the
draft report of the Special Subcommittee on Survivor Benefits which will be
forwarded to the Subcommittee members later in the day. Mr. Cook advised
that no consideration has been given to the question of anticipatory waiver
of retirement pay by retired military personnel who are employed under
Civil Service. He noted that the draft legislation, which is an entirely new
bill drafted by the Subcommittee, models itself largely on Civil Service
retirement benefits for survivors. He feels that the question of anticipatory
waiver might well be handled under section 1452 of the proposed bill and
suggested that we might want to talk to Paul Bender of DOD who is working
on the bill with the Subcommittee. OGC and Personnel have been advised.
10. (Unclassified - JGO) Met with Captain William Hogan, House
Armed Services Committee staff, and received back from him the copy of
Mader's Who's Who in CIA? that had been loaned to him.
11. (Confidential - JGO) Met with Frances Christy, Immigration
and Nationality Subcommittee, House Committee on Judiciary staff, who
told me that the request for report on H. R. 18715 has not yet been received
from Representative Charles M. Teague (R. , Calif.). In all probability
the request is in the Chairman's office and has not yet been forwarded to
the staff. Miss Christy will keep me advised.
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STATE4ENT BY ANDREW E. RUDDOCK, DIRECTOR
BUREAU OFD TTI CIVILN SERVICE OCCUPATIONAL AL HEALTH
SPECIAL SUBCOMMITTEE ON SURVIVOR BENEFITS
.TO ACTIVE DUTY AND/OR RETIRED MILITARY PERSONNEL
HOUSE ARMED SERVICES COMMITTEE
Thursday, July 9, 1970
10:00 A.M.
MR. CHAIRMAN AND MEMBERS OF THE SUBCOMMITTEE:
lam glad to appear before your special subcommittee to discuss the
survivor benefits under the Civil Service Retirement System provided
to Federal employees during their period of work and after their re-
tirement. As you requested, I will also allude to the main problem
affecting benefits for survivors of employees who have retired from
military service and are now working.for the Federal Government as
By way of background, I.would first like to mention a few statistics:
he dependents of more than 2.7 million civilian employees of the
Federal Government are now protected by the Civil Service Retirement
System against loss of income resulting from death of the employee.
As of June 30, 1969, we had on the Civil Service Retirement rolls
nearly 630,000 retired Federal employees plus over 280,000 survivors
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of Federal employees, most of them widows and children. These retired
employees and survivors are receiving checks totaling $193 million a
month.
The Civil Service Retirement System is a contributory one. Employees
regularly pay 7 percent of their salary into the retirement fund. This
gives rise to two kinds of death benefits, survivor annuities and lump
sum payments.
A lump sum benefit, consisting generally of the employee's contributions,.
is payable upon his death if he is not survived by a widow or child who
qualifies for annuity. If a qualified widow or child survives, a sur-
vivor annuity is payable.
To qualify for survivor annuity, the employee, and the widow and child,
must meet certain legal requirements which, in general, are as follows:
A. The employee must have--
1. completed at least 18 months of civilian service,
and
2. died while employed in a position under the re-
tirement system.
B. The widow must--
1. have been married to the employee for at least
two years immediately preceding his death, or
2. be the parent of a child born of the marriage
with the employee.
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(Benefits are payable to a widower if he meets these
requirements and was dependent on the employee because
of physical or mental disability.)
C. The child must--
1. be under age 18, (or under age 22 if he is a
student) and
2. be unmarried.
In a case where the legal requirements are met, the widow is. paid a
survivor annuity amounting to 55 percent of the annuity earned by.
the deceased employee's length of service and high average pay. For
employees with only short service the retirement law guarantees a
minimum annuity. This minimum amounts to 55 percent of the smaller
a. 40 percent of the deceased employeds high average pay, or
b. his regular annuity obtained by increasing his actual
service by the time between his death and the date he
would have reached age 60.
When the employee is also survived by eligible children, each child is
paid an annuity in whichever of the following amounts is the least:
a. 60 percent of the employee's high average pay divided by
the number of children, or
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b. $2,700'divided by the number of children, or
c. $900.
If the child is what we call a double orphan, that is, where neither
parent survives, the corresponding amounts are higher, namely,
75 percent instead of 60 percent, $3,21+0 instead of $2,700, and $1,080
instead of $900. I might add that the dollar amounts I have mentioned
are subject to automatic increases as the cost of living, as measured
by the Consumer Price Index, goes up.
Survivor benefits to eligible children of a deceased retired employee
are payable under the same conditions and in the same amounts as to
the children of a.deceased active employee.
A survivor benefit is payable to the widow of a deceased retired em-
ployee only if, at the time he retired, he had accepted a reduced annuity
to himself with a survivor benefit continuing to his wife designated at
the time of retirement., The reduction which the retired employee must
take in his own annuity is 22 percent of the first $3,600, plus 10 percent
of any annuity in excess of $3,600. The employee may designate all or
a portion of his annuity as the base on which his widow's annuity is
computed. The. widow will receive a survivor annuity of 55 percent of
whatever base the retired employee designated.
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As I have indicated, civil service annuities (including widows' annuities)
are primarily a function of average pay and length of service. As a
general rule, active military service is creditable, along with civilian,
in computing annuities. However, service which forms the basis for
military retired pay, with certain exceptions, may not be credited toward
civilian retirement unless the military retired pay is waived.
One of the main problems in this connection is that active civilian em-
ployees who are also in receipt of military retired pay die without having
waived their military retired pay and.their widows do not get the advantage
of having the long years of military service included in computing the
amount of civil service survivor annuities.
Some military retirees have tried to execute a future waiver of their
military retired pay which would become effective only upon death. The
Comptroller General, however, ruled in 1966 that such advance waivers
are not permissible. In pertinent part, the Comptroller General said:
It is our opinion, however, that existing law does not contemplate
that any civilian employee prior to retirement may take any action
by waiver, election,, or otherwise with respect to active military
service to be effective presently or in the future for the purpose
of computing his civil service annuity. Had the Congress intended
the result suggested in the department of Defense Military Pay and
Allowance7 committee action we believe it would have made some pro-
vision to accomplish that result.
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Existing law provides an opportunity for a civilian employee to
elect to receive credit for active military service in the compu-
tation of his annuity under the. civil service retirement program
at the time of civilian retirement by then surrendering his
military retired pay, at which time he may elect to provide an
annuity for his widow with credit for active military service in
her survivor's annuity. Since we know of no provision of law
under which such'election can be executed in advance on the basis
suggested in the submission, we think that the resolution of the
problems here involved, including the "apparent inequity" mentioned
in the committee action discussion, should be left to the Congress.
I will be glad to try to answer any questions you may have.
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024-0,, , . i_;, ,
SAF-GC fir, Donahue/al/77430/6 June 66
14DIORANDUDI FOR DIRECTORATE OP ACCOUNTING AND FINANCE, AFAAC
ATTENTION: LT. COLONEL GIITLI
SUBJECT: Advance Waiver off' Retired Pay
5 U.S.C. 2253(b), treating of the computation of years
of creditable service for purposes of Civil Service retire-.
merit, states that "An employee or triembe r [of ConZresal shall
be allowed credit for pcrioc!3 of rr:l.l:ttary service prior to
the date of the separation upon which title to annuity is
based; however, if an employee or 1-1erfoer is awarded retired
pay on account of military service, his military service
shall not be included (with exceptions not relevant here]."
The Federal Personnel Vanua] Supplement 831-1, Subchapter
S3-5f, atatos that "an employee or annuitant who is in
receipt of military retired pay which bars credit for mili-
tary service . . . may elect to waive the retired pay and
have his military service added to his civilian service."
We-have informally learned from the Civil Service
Commission that retired military personnel may exercise
this waiver right at any tirae so that a retired military
man may receive t 1 he retired pay he is entitled to under
the Dual Compensation Act (P.L. 83-X41}3, Aug. 19, 1964,
5 U.S.C. 3102) while he is employed, as a civil servant and
then waive that pay when he becomes cli~,iblc for civilian.
retirement. If, however, such a person dies before his
civilian retirement. and before Waiving his retired pay, his
Civil Service survivor's annuity will not twice into account
his years of military service.
The Secretary of the Air Force recently received a
letter from a retired officer now employed in a civilian
capacity with the Federal 'Govern rent as.cin,, if it is possi-
ble for him to waive his military retired pay in advance, as
of the day before his Civil Service retirement or the day
before his death, whichever comes first.
SAF-GC Subject
SAF-GC Reading
SAF-AAM
Mr. Comarow
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if aucti a waiver were Geffec11*i.vx-, it would eliminate
an apparent inequa.ty in the :rye;,te i , in that there
to be no reaflon why a mar: who ci%rC before h.Ls rc ~j t:t
should not be entitled to have his creditable fe;cc:val
service computed for his survivor annuity in the seance
Manner as his contemporary wno retires. Or, the other hand,
there is no specific provision in the statute which author-
izes waiver In advance arntin';ent upon the happening of
some event. Further, the controversial nature of the Dual
Compensation Act and the lazy;.Se number of people potentially
affected by ouch a procedure make the question a sons~tiv6
one,
The Civil Service Comrnissiol, we have informally ion
determined, takes the position that it will note question
the certificate of a military depart,inent that a retired
member was not in receipt of reef lree pay as of a given
date. This position places or, the 1/',;pertment t e burden
of date mining the validity of such acva.nce waiver. T :e
matter thus ceases to be a qu: eti.on of creditable service
under the Civil Service Retirement Act, properly for the
determination of the Civil Service Commission (see jai Comp.
Gen. 460), and becomes a matter of entitlement to military
retired pay properly vithin the charter of the Military
Pay and Allowance Committee to re"ulate subject to the
rulings of the Comptroller General.
We would therefore recommend that the Committee, after.
obtainin.- formal cord irination of the Commission's position,
submit to the Comptroller General a question substantially
as follows: Msy the military, departments properly certify
to the Civil Service Commission that a retired meraber is
not in receipt of retired pay as of the date of his doat;l
or the date of his civilian retirement if such serviceman
while in receipt of military retired pay executes an ad-
vance waiver of such pay as of the day before the date' of
his death or the day before the date of his retirement,
whichever comes first?"
cat Mr. OallaSher, S-AF-AA
MURFLAY COf4AROW
Assistant General Counsel
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