LETTER TO WILFRED H. ROMMEL FROM JOHN M. MAURY

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP74B00415R000600030034-2
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 3
• Document Creation Date: December 12, 2016
• Document Release Date: January 3, 2002
• Sequence Number: 34
• Publication Date: June 26, 1970
• Content Type: LETTER

Approved For Release 2002/01/23 : CIA-RDP74B00415R000600030034-2
CENTRAL INTELLIGENCE AGENCY
W, si-i1NGTON, D.C. 20505
Mr. Wilfred H. Rommel
Assistant Director for Legislative Reference
Bureau, of the Budget
Washington,. D. C. 20503
Representatives.
comparison with existing law, and a draft of the latter of transmittal
to the President of the Senate and the Speaker of the House of
This submits proposed legislation in accordance with Bureau
of the Budget Circular No. A-19, revised. Enclosed are four copies
of a draft bill, To amend the Central Intelligence Agency Retire-
ment Act of 1964 for Certain Employees, as amended, and for other
purposes. " Also enclosed are copies of a sectional analysis, a
Title I authorizes financing identical to that approved for the
Foreign Service system in P.L. 91-201, as adopted from applicable
law for the Civil Service system, P.L. 91-93.
All but two proposals in Title II have received favorable con-
sideration previously (twice by the Civil Service Commission and twice
by the Bureau of the Budget, as reflected in letters from the Civil.
Service Commission to the Assistant Director for, Legislative Reference
dated 14 February 1966 and 12 January 1967 and to this Agency from the
Acting Assistant Director and the Assistant Director for Legislative
Reference dated 5 April 1966 and 13 February 1967). These proposals
were approved by the House of Representatives in H.R. 16306 on
3 August 1966 but no further action was taken by the 89th Congress.
They were reintroduced in the 90th Congress (H.R. 7315) but deferred,,
without prejudice, to expedite favorable action oncost-of-living amend-
menus (.V.1... VU-53y)q
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The two new proposals in Title 11:
-> Increase the number of retirements authorized during
the period 1 July 1969 through 30 June 1974. (Section 204)
-- Adopt the Civil Service rule for crediting prior civilian
service for which no deductions have been made and for
granting survivors the right to make special contributions
to purchase prior service. (Sections 203(k) and 206)
The financing proposals recommended in Title I of the proposed
legislation are submitted in response to your request of 23 October 1969.
The actuarial study of the system, completed recently under the direc-
tion of Mart Cedric Kroll, Department of Treasury, estimates normal
cost at 38- 38?percent of the salary of the participants. This valuation
was made as of 31 December 1968 but gives effect to the expenditure
and income fez~tu s of P. L. 91-185. Current funding of normal cost
amounts to 16-percent (7 percent each for employee and Agency
contributions and an estimated ".7-percent for employee contributions
transferred from the Civil Service Fund). The current unfunded
percent is treated in the actuarial study as residual normal cost to the
Government. Unfunded liability is jprojected to be
30 June 1970. The amendments in Title II are not considered to have
a measurable cost impact. STATINTL
It is estimated that the fund will be depleted in 1990 if funding
is limited to employee/Agency contributions, transfer of employee
contributions and interest income. Treating normal cost deficiency
as unfunded liability and subject to the interest payment schedule
proposed in section 102 of Title I would exte -solvency to 2033..
Transferring Government contributions as proposed in section 203
would extend solvency to 2049. This suggests that even with the
enactment of Title I additional supplemental funding may be needed-..
M a?hiae-f: we intend to review closely' when the next actuarial study is
completed in the next several years,
i?STAW Tiioved For Release 200!2/01 1 ,,;? 4lAlkDV74B004600030034-2
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Advice is requested as to whether there is any objection
to the submission of the proposed legislation to the Congress from
the, standpoint of, the Administration's program.
Enclosures
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Sincerely,