CENTRAL INTELLIGENCE AGENCY RETIREMENT ACT OF 1964 FOR CERTAIN EMPLOYEES

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP89-00066R000200070008-8
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 39
• Document Creation Date: December 22, 2016
• Document Release Date: June 14, 2010
• Sequence Number: 8
• Content Type: REGULATION

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CENTRAL INTELLIGENCE AGENCY RETIREMENT ACT OF
1964 FOR CERTAIN EMPLOYEES, ' as amended 2
178 Stat. 1043, Pub. L. 88-643, October 13, 1964, 50 U.S.C.A. 403 Note;'
82 Stat. 902, Pub. L. 90-539, September 30, 1968;
83 Stat. 847, Pub. L. 91-185, December 30, 1969;
84 Stat. 1872, Pub. L. 91-626, December 31, 1970;
87 Stat. 65, Pub. L. 93-31, May 8, 1973;
87 Stat. 908, Pub. L. 93-210, December 28, 1973;
90 Stat. 929, Pub. L. 94-361, July 14, 1976;
90 Stat. 2467, Pub. L. 94-522, October 17, 1976;
96 Stat. 1142, Pub. L. 97-269, September 27, 1982;
98 Stat. 3298, Pub. L. 98-618, November 8, 1984;
Executive Orders under section 292, Guide, Part XVI
To provide for the establishment and maintenance of a Central
Intelligence Agency Retirement and Disability System for a limited
number of employees, and for other purposes. Be it enacted by the
Senate and House of Representatives of the United States of America
in Congress assembled,
SI cTIoN 101. This Act may be cited as the "Central Intelligence
Agency Retirement Act of 1964 for Certain Employees."
rI II LI VCIIIIIIIVII) /
" "1~ ' OCAS GrC.I tia t-tt'p L. ,C2' tr d /1 tlv J 'Pn'
Si-(*. I I I.4 hen used in this Act, the term
(I) "Agency" means the Central Intelligence Agency;
(2) "Director" means the Director of Central Intelligence;
(3) "Qualifying service" means service performed as a participant in
the system, or in the case of service prior to designation, service
determined by the Director to have been performed in carrying out
duties described in section 203;
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(4) "Fund balance" means the sum of
(a) the investments of the fund calculated at par value; and
(b) the cash balance of the fund on the books of the Treasury;
(5) "Unfunded liability'' means the estimated excess of the present
value of all benefits payable from the fund to participants and former
participants, subject to this Act, and to their survivors, over the sum
of
(a) the present value of deductions to be withheld from the future
basic salary of participants currently subject to this Act and of
future Agency contributions to be made in their behalf; plus
(b) the present value of Government payments to the fund under
section 261(b) and (c) of this Act; plus
(c) the fund balance as of the date the unfunded liability is
determined; and
(6) "Normal cost" means the level percentage of payroll required to
be,deposited in the fund to meet the cost of benefits payable under the
system (computed in accordance with generally accepted actuarial
practice on an entry-age basis) less the value of retirement benefits
earned under another retirement system for government employees and
less the cost of credit allowed for military service.
TITLE II THE, CENTRAL INTEI_I.IGEENCE AGENCY
RETIREMENT AND DISABILITY SYSTEM
Part A Establishment of System
Rules and Regulations
Si-,(,. 201. (a) The Director may prescribe rules and regulations' for
the establishment and maintenance of a Central Intelligence Agency
Retirement and Disability System for a limited number of employees,
referred to hereafter as the system; such rules and regulations to be
submitted to the Permanent Select Committee on Intelligence of the
House of Representatives and the Select Committee on Intelligence of
the Senate before they take effect.'
. - v11 -w, ouun aunJI ill L I LM, NyZIiclll III ilccuruallce wltn sucn
rules and regulations and with the principles established by this Act."
(c) In the interests of the security of the foreign intelligence activities
of the United States and in order further to implement the proviso of
section I02(dX3) of the National Security Act of 1947, as amended (50
U.S.C. 403(dX3)), that the Director of Central Intelligence shall be
responsible for protecting intelligence sources and methods from
unauthorized disclosure, and notwithstanding the provisions of the
Administrative Procedure Act (5 U.S.C. 1001 (now 551 Jet seq.) or any
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other provisions of lw, any deterniinatnnr, by the Director ,utthoriicd
by the provisions of this Act shall be decried to he final and conclusive
and not subject to review bN an court.
Si,t'. 202. There is hereby created ;t fund io he known is the central
Intelligence Agency Retirement ;end Dis,,hrlity Fund which shall he
maintained by the Director. I he Cer:tr,al Intellieence agency Retire-
ment and Disability fund V. referred to hereafter :rs the fund.
Participants
Set . 203. The Director may desit?natc irmi time to time such
Agency ofliccrs and employees whose dirties ere determined by the
Director to be (i) in support of \gencr .retivities abroad h;vardous to
life or health or iii) so speciali,cd because of sei_ urit\ rcquircnicnts as to
be clearly distinguishable From normal go:ernrnent cnrploynierit. here-
after referred to as participants, ckho shall he en!itied to the benefits of
the system. Any participant who h;rs eonr;,lcrcd fifteen year,, of service
with the Agency and whose career at that arses is adjudged by the
Director to be qualifying for the system nr:ry elect o remain it
participant of such system for the duration ,it his cniploynicnl by the
Agency and such election shall not be suhlect to rcvicw or .rpprotal bs
the Director.
Set'. 204. (a) Annuitants shall he p:irii~ iI iants who are receiving
annuities from the fund and all person',, ink ludine surviving wives and
husbands, former spouses, widows, widowers, children, and beneficia-
ries of participants or annuitants who shall become entitled to receive
annuities in accordance with the previsions of thi.s*ket.
(b) When used in this ~ttLhe tcrru
(1) "Widow' means the surviving wife of it ;i::rticipant who Nas
married to such participant for at least one car Immediately preceding
his death or is the mother of issue by marriage to the participant.
(2) "Widower" means the surviving husband of a participant who
was married to such participant for at least one year inimcdiatefy
preceding her death or is the father of issue by marriage to the
participant.
Ir die,
(3) "Child," for the purposes of sections 221 and 232 of this Act,
nicans an unmarried child, including (i) an adopted child or a child who
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lived with and for whom a petition for adoption was filed by a
participant and who is adopted by the surviving spouse alter- the
participant's death, and (ii) a stepchild or rccogniied natural child"
who lived with the participant in a regular parent-child relationship,
under the age of eighteen years, or such unmarried child regardless of'
age who because of physical or mental disability incurred before age
eighteen is incapable of self-support, or such unmarried child between
eighteen and twenty-two 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 recognired educational institution. A
child whose twenty-second birthday occurs prior to .July I 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 221(e) of thisT 41io have attained the age of
twenty-two on the first day of July following 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
five months and if he shows to the satisfaction of the Director that he
has a bona fide intention of continuing to pursue a course of study or
training in the same or different school during the school semester (or
other period into which the school year is divided) imnicdiatels
following the interim. The term '*child," for purposes of, section _241,
shall include an adopted child and a natural child but shall not include
a stepchild.
(4) "Former spouse'' means a former wife or husband of a partici
pant or former participant who was married to such participant for not
less than It) years during periods of service by that participant xvhich
are creditable under sections 251, 252, and 253 of' this `, at least frxe
years of which were spent outside the United states by both the
participant and the former spouse.
Part B ( ornpulsor'y ('ontributlolls
Sr'. 211. (a)ASeven per centum of the basic salary received by each
participant shall be contributed to the fund for the payment of
annuities, cash benefits, refunds and allowances An equal sum shall
also be contributed from the respective appropriation or fund which is
used for payment of his salary. The amounts deducted and withheld
from basic salary together with the amounts so contributed from the
appropriation or fund shall be deposited by the Agcncy to the credit of
the fund.
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(b) Each participant shall be deemed to consent and agree to such
deductions from basic salary, and payment less such deductions shall
be a full and complete discharge and acquittance 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
allecting the individual's salary.
(c) Amounts deducted and withheld from the basic salary of a
participant under this section from the beginning of the first pay period
after the participant has completed thirty-five years of creditable
service computed under sections 251 and 252 (excluding service credit
for unused sick leave under section 271(h)), together with interest on
these amounts at the rate of 3 percent a year compounded annually
from the date of the deduction to the date of retirement or death, shall
be applied toward any special contribution due under section 252(b),
and any balance not so required shall be refunded in a lump sum to the
participant after separation (or, in the event of a death in service, to a
beneficiary in order of precedence specified in subsection 241(b)(I)),
subject to any restrictions on lump suers tinder section 234 of this Act
regarding notification or consent of a current spouse to such payments,
or the participant may use these sums to purchase an additional
annuity in accordance with section 281, or any other elective benefits
authorized by this Act, including additional retirement or survivor
benefits for it current or former spouse or spouses.
Computation of Annuities for Other Than Former Spouses
Situ. 221. (a) The annuity of a participant shall be equal to 2 per
centum of his average basic salary for the highest three consecutive
ears of service (or, in the case of an annuity computed under section
232 and based on less than three year:, over the total service), for which
full contributions have been made to the fund, multiplied by the
number of years, not exceeding thirty-five, of service credit obtained in
accordance with the provisions of sections 251 and 252. In determining
the aggregate period of service upon which the annuity is to be based,
the fractional part of a month, if any, shall not be counted. Each
annuity shall be stated as an annual amount, one twelfth of which,
rounded to the next lowest dollar, constitutes the monthly rate payable
on the first business day of the month after the month or other period
for which it has accrued
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(b)(INA) Except to the extent provided otherwise under a written
election under subparagraph (B) or (C), if at the time of retirement a
participant or former participant is married (or has a former spouse
who has not remarried before attaining age 60), the participant shall
receive a reduced annuity and provide a survivor annuity for his or her
spouse under this subsection or former spouse under section 122(b), or a
combination of such annuities, as the case may be.
(B1 A married participant or former participant and his or her
spouse may jointly elect in writing to waive it survivor annuity for that
spouse under this section (or under section 222(b) if the spouse later
qualifies as a former spouse under section 204(b)(4)), or to reduce such
survivor annuity under this section (or section 222(b)) by designating a
portion of the annuity of the participant as the base for the survivor
benefit. If the marriage is dissolved following an election for such a
reduced annuity and the spouse qualities as a former spouse, the base
used in calculating any annuity of the former spouse under section
portion of the annuity not designated or committed a, a base for any
survivor annuity, shall be reduced by 715 percent of the first $ 3,600
plus 10 percent of any amount over $3,600. The reduction under this
paragraph shall be calculated before any reduction under section
222(aN4).
(3NA) If a former participant entitled to receive a reduced annuity
under this subsection dies and is survived by a spouse, a survivor
survivor benefit under this section (or section 222(b)), excluding mi-v
participant establishes to the satisfaction of the Director that the
participant does not know, and has taken all reasonable steps to
determine, the whereabouts of the spouse or former spouse.
(2) The annuity of a participant or former participant providing it
ed under this subparagraph.
(Cl If a participant or former participant has a former spouse, the
participant (or former participant) and such former spouse may jointly
elect by spousal agreement under section 263(b) to waiyc a suryi~r(r
annuity under section 222(b) for that former spouse, if the election is
madeti) before the end of the 12-month period beginning on the date of
the divorce or annulment involving that former spouse becomes final or
(ii) at the time of retirement of the participant.
(DI The Director may prescribe regulations under which a partici-
pant or former participant may make an election under subr)araeranh
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d6i
.innuity shall be paid to the surviving spouse equal to 55 percent of the
full amount of the participant's annuity computed under subsection (a),
or 55 percent of any lesser amount elected as the base for the survivor
benefit under paragraph (I XB).
(B) Notwithstanding subparagraph (A), the amount of' the annuity
calculated under subparagraph (A) for a surviving spouse in any case in
which there is also a surviving former spouse of the participant who
qualifies for an annuity under section 222(b) may not exceed 55 percent
of' the portion (if any) of the base for survivor benefits which remains
available under section 222(bX41113).
(C) An annuity payable from the fund to a surviving spouse under
this paragraph shall commence on the day after the participant dies
and shall terminate on the last day of the month before the surviving
spouse's death or remarriage before attaining age 60. If such a survivor
annuity is terminated because of remarriage, it shall be restored at the
same rate commencing on the date such remarriage is dissolved by
death, annulment, or divorce if any lump sum paid upon termination of
the annuity is returned to the fund.
(c01) 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 husband, there shall be paid to or on behalf of' each
child an annuity equal to the smallest of: (i) 60 per centum of the
annuitant's average basic salary, as determined tinder paragraph (a) of
this section, divided by the number of children; (ii) $900; or (iii) $2,700
divided by the number of children.
(2) If an annuitant dies and is not survived by a wife or husband but
by it child or children, each surviving child shall be paid an annuity
equal to the smallest of: (1) 75 per centum of the annuitant's average
basic salary, as determined under paragraph (a) of this section, divided
by the number of children; (ii) $l,0ti0; or (iii) $3,240 divided by the
number of children.
(d) If a surviving wife or husband dies or the annuity of a child is ter-
minated, the annuities of any remaining children shall be recomputed
and paid as though such wife, husband, or child had not survived the
participant.
(e) " The commencing data of an annuity payable to a child under
paragraph (c) or (d) of this section, or (c) or (d) of section 232, shall be
deemed to be the day after the annuitant or participant dies, with
payment beginning on that day or beginning or resuming on the first
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day of the month in which the child later becomes or again becomes a
student as described in section 204(bX3), provided the lumpsunm credit,
if paid, is returned to the fund. Such annuity shall terminate on the last
day of the month before (I) the child's attaining age eighteen unless he
is then a student as described or incapable of self support, (2) his
becoming capable of self support after attaining age eighteen unless he
i; then such a student, (3) his attaining age twenty-two if he is then
such a student and not incapable of self-support, (4) his ceasing to be
such a student after attaining age eighteen unless he in then incapable
of self support, (5) his marriage, or (6) his death, whichever first occurs.
(e$ I) The Director shall, in accordance with this subsection, enter
into an agreement with any State within 120 days of a request for
agreement from the proper State official. The agreement shall provide
that the Director shall withhold State income tax in the case of the
monthly annuity of any annuitant who voluntarily requests, in writing,
such withholding. The amounts withheld during any calendar quarter
shall be held in the Fund and disbursed to the States during the month
following that calendar quarter.
(2) An annuitant may have in effect at any time only one request for
withholding under this subsection, and an annuitant may not have
more than two such requests in effect during any one calendar year.
(3) Subject to paragraph (2) of this subsection, an annuitant may
change the State designated by that annuitant for purposes of having
withholdings made, and may request that the withholdings be remitted
in accordance with such change. An annuitant also may revoke any
request of that annuitant for withholding. Any change in the State
designated or revocation is effective on the first day of the month after
the month in which the request or the revocation is processed by the Di-
rector, but in no event later than on the first day of the second month
beginning after the day on which such request or revocation is received
by the Director.
(4) This subsection does not give the consent of the United States to
the application of a statute which imposes more burdensome require-
mcnts on the United States than on employers generally, or which
subjects the United States or any annuitant to a penalty or liability
because of this subsection. The Director may not accept pay from a
State for services performed in withholding State income taxes from
annuities. Any amount erroneously withheld from an annuity and paid
to a state by the Director shall be repaid by the State in accordance
with regulations issued by the Director.
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(5) For the purpose of this subsection, "State" means a State, the
District of Columbia, or any territory or possession of' the United
States.
(Il( I) Subject to the rights of former spouses under sections 221(b)
and 222, any unmarried participant 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 herein
before provided, and designate in writing a person having an insurable
interest (as that term is used in section 9(h) of the Civil Service
Retirement Act (5 U.S.C. 2259(h) now 8339(k)J ) in the participant to
receive an annuity after the participant's death. The annuity payable to
the participant making such election shall be reduced by 10 per centmn
of an annuity computed as provided in paragraph (a) of this section. and
by 5 per cent urn of an annuity so computed for each full live 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 the paragraph shall be 55 per centuni of the reduced
annuity computed as described above.
(2) A participant, who is unmarried at the time of retiring and who
later marries, may.irrevocably elect, in a signed writing received in the
lgcncy within one scar after the nt;uriagc, a reduced annuity as
provided in section 221(b). The reduced annuity is effective the first
day of the month after the election is received. The election voids
prospectively any election previously made under the provisions of
paragraph (I I of this subsection.
(g)(I ) In the case of remarriage on or after age sixty an annuity shall
be payable if remarriage has occurred on or after July 18, 1966, and if
the surviving wife or husband, immediately before such remarriage,
was receiving an annuity from the Central Intelligence Agency Retire-
ment and Disability Fund. The annuity of a surviving spouse terminat-
ed as a result of remarriage which occurred prior to age sixty and on or
after July 18, 1966, shall be restored at the same rate commencing on
the date the remarriage is dissolved by death, annulment, or divorce,
if -
(A) the surviving spouse elects to receive this annuity instead of a
survivor benefit to which he may be entitled, under this or another
retirement system for Government employees, by reason of the
remarriage; and
(B) any lump sum paid on termination of the annuity is returned to
the fund.
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No annuity shall be paid by reason of this paragraph for any period
prior to October 20, 1969. No annuity shall be terminated solely by
reason of the enactment of this paragraph.
(2) A surviving former spouse of any participant or former partici-
pant shall not become entitled to a survivor annuity or to the
restoration of a survivor annuity payable from the fund unless the
survivor elects to receive it instead of any other survivor annuity to
which he or she may be entitled under this or any other retirement
system for Government employees on the basis of a marriage to
someone other than that participant.
(h) In computing an annuity under this section the service credit of a
participant who retires, except under section 231, on an immediate
annuity or dies leaving a survivor or survivors entitled to annuity
includes, without regard to the limitations imposed by paragraph (a),
the days of unused sick leave to his credit under a formal leave system,
except that these days will not be counted in determining average basic
salary or annuity eligibility. The contribution specified in section 252
shall not be required for days of unused sick leave credited under this
paragraph.
(i) Except as otherwise provided, the annuity of a participant shall
commence on the first day of the month after separation from the
service, or on the first day of the month after pay ceases and the service
and age requirements for title to an annuity are met. With respect to
those participants who serve three days or less in the month of
retirement, the annuity will commence on the day after separation or
the day after pay ceases and the service and age requirements for title
to an annuity are met. The annuity of a participant involuntarily
separated from the service, except for removal for cause on charges of
misconduct or delinquency, or of it participant retiring due to a
disability shall commence on the day after separation from the service
or the day after pay ceases and the service and age or disability
requirements for title to an annuity are met. Any other annuity payable
from the Fund shall commence on the first day of the month after the
occurrence of the event on which payment thereof is based.
0) An annuity payable from the fund on or after date of enactment
of this provision [Dec. 31, 19701 shall terminate (I) in the case of a re-
tired participant, on the day death or any other terminating event
occurs, or (2) in the case of a survivor, on the last day of the month be-
fore death or any other terminating event occurs.
(k) For the purpose of an annuity computed under this section, the
total service of any participant shall not include any period of civilian
service on or after October I, 1982, for which retirement deductions or
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deposits have not been made under section 252(b), unless the partici-
pant makes it deposit for such period as provided in section 252, or no
deposit is required for such service as provided under Section 8334(g) of
Title 5 of the United States Code, or under any statute.
(I)(I ) Notwithstanding any other provision of this section, the month-
ly rate of annuity payable under subsection (a) of this section, shall not
. he less than the smallest primary insurance amount, including any cost-
of-living increase added to that amount, authorized to be paid from
time to time under title II of the Social Security Act (section 401 et
y,eq. of Title 4_].
(31 The provisions of this subsection shall not apply to an annuitant
or to a survivor who is or becomes entitled to receive from the United
States an annuity or retired pay under any other civilian or military
retirement system, benefits under title II of the Social Security Act, a
pension, veterans' compensation, or any other periodic payment of a
similar nature, when the monthly rate thereof is equal to or greater
than the smallest primary insurance amount, including any cost-of-
living increase added to that amount, authorized to be paid from time
to time under title II of the Social Security Act.
(4) This subsection shall not apply to the extent provided in section
(in)'' If a participant retiring under section 231 of this Act is
receiving retired pay or retainer pay for military service (except that
specified in section 252(e)) or Veterans Administration pension or
compensation in lieu of such retired or retainer pay, the annuity of that
participant shall be computed under subsection (a) of this section,
excluding credit for such military service from that computation. If the
:.mount of the annuity so computed, plus the retired or retainer pay
~thich is received, or which would be received but for the application of
the limitation in Section 5532 of Title 5 of the United States Code, or
the Veterans Administration pension or compensation in lieu of such
(2) Notwithstanding any other provision of this section, other than
thi?, subsection, the monthly rate of annuity payable under subsection
(a) of this section to it surviving child shall not be less than the smallest
primary insurance amount, including any cost-of-living increase added
to that amount, authorized to be paid from time to time under title II
of the Social Security Act, or three times such primary insurance
amount divided by the nuinher of surviving children entitled to an
annuity, whichever is the lesser.
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retired or'retainer pay, is less than the annuity that would otherwise be
payable under Section 231, an amount equal to the difference shall be
added to the annuity payable under subsection (a) of this Section.
(mXl) Any married annuitant who reverts to retired status with
entitlement to a supplemental annuity under subsection 271(b) shall,
unless the annuitant and his or her spouse jointly elect in writing to the
contrary at that time, have the supplemental annuity reduced by 10
percent to provide a supplemental survivor annuity for his or her
spouse. Such supplemental survivor annuity shall be equal to 55
percent of the supplemental annuity of the annuitant and shall be
payable to a surviving spouse to whom the annuitant was married at
the time of reversion to retired status or whom the annuitant subse-
quently married.
(2) The Director shall issue regulations to provide for the application
of paragraph (1) of this subsection and of subsection 271(b) in any case
in which an annuitant has a former spouse who was married to the
participant at any time during a period of recall service and who
qualified for an annuity under section 222(b).
(n) An annuity which is reduced under this section or any similar
prior provision of law to provide a survivor benefit for a spouse shall, if
the marriage of the participant to such spouse is dissolved, be
recomputed and paid for each full month during which an annuitant is
not married (or is remarried if there is no election in effect under the
following sentence) as if the annuity had not been so reduced, subject to
any reduction required to provide a survivor benefit under section
222(b) or (c). Upon remarriage the retired participant may irrevocably
elect, by means of a signed writing received by the Director within one
year after such remarriage, to receive during such marriage a reduction
in annuity for the purpose of allowing an annuity for the new spouse of
the annuitant in the event such spouse survives the annuitant. Such
reduction shall be equal to the reduction in effect immediately before
the dissolution of the previous marriage (unless such reduction is
adjusted under section 222(bX5)), and shall be effective the first day of
the first month beginning one year after the date of remarriage. A
survivor annuity elected under this subsection shall be treated in all
respects as a survivor annuity under subsection (b).
(o) The Director shall, on an annual basis--
(1) inform each participant of his or her right of election under
subsections (fX2) and (n); and
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(2) to the maximum extent practicable, inform spouses or former
spouses of participants or former participants of their rights under this
section and sections 22_', 223, and 23/1(e), (d), and (e).
CPS Cl) &-
('ontputatton of Annuities for Forster Spouses
SIc . 222. (aM I 1 Unless otherwise expressly provided by any spousal
agreement or court order under section 263(b), a former spouse of a
participant or former participant is entitled to an annuity-
(A) if married to the participant throughout the creditable service
of' the participant, equal to SO percent of the annuity of the
participant: or
(131 if not married to the participant throughout such creditable
servrcc, equal to a proportion of 50 percent of such annuity which is
the proportion that the number of days of the marriage of the former
spouse to the participant during periods of creditable service of such
participant under this \ct bears to the total number of days of
creditable service.
t2t A former spouse shall not be qualified for an annuity under this
subsection if before the commencement of that annuity the former
spouse remarries before becoming 60 years of age.
(3) The annuity of a former spouse under this subsection commences
on the day the participant upon whose service the annuity is based
becomes entitled to an annuity under this title on the first day of the
month after the divorce or annulnnent involved becomes final, which-
ever is later. The annuity of such former spouse and the right thereto
terminates on
(A) the last dad of the month before the former spouse dies or
remarries before 60 )ears of age: or
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(13) the date the annuity of time participant terminates (except in
the ca,:: of an annuity subject to paragraph 4(13)).
(4)IA) The annuity payable to any participant shall be reduced by
the amount of an annuity under this subsection paid to any former
spouse based upon the service of that participant. Such reduction shall
be disregarded in calculating the survivor annuity for any spouse,
former spouse, or other survivor under this title, and in calculating any
reduction in the annuity of the participant to provide survivor benefits
tender subsection (b) or section 221(b).
(13) If any annuitant whose annuity is reduced under subparagraph
(A) is recalled to service under section 271, or reinstated or reappointed,
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in the else of a rceovcrcd di::ahi!it\ annuitant, or if any annuitant is
reemployed as pro%ided fur under sections 272 and 273, the salary of
that annuitant shall he reduced by the same amount as the annuity
would have been reduced it it had continued. Amounts equal to the
reductions under this ,uhp.rragraph shall be deposited in the Treasury
of the I.nited States to the ervdit of the fund.
Of Notwithstanding parag.rat It (3), in the case of any former spouse
of a disability annuitant
(,\) the annuity of that former spouse shall commence on the date
the participant '.vonld qualify on the basis ol, his or her creditable
service for an annuity under thi, title (other than a disability annuity)
or the date ILc disability annuity begins, whichever is later, and
113) the amount of the annuity of the former spouse shall be
calculated on the basis of the annuity for which the participant
would otheniise su qu.rlif~.
((r) An annuity under this subsection shall be treated the saute as a
sursisor annuity under ,uhscction (b) or purposes of section 221(g)(2)
or any comparable provision of law
(7) No spous;d ;tgrcement or court order under section 263(b)
involving nny participant may pros dc for an annuity or any combina-
tion of, annuities under this 'ubscction which e.xcceds the annuity of the
participant. No such court order relating to an annuity under this
subsection ntay he given clhect if it is issued more than 12 months after
the date the divorce u anntilmcnt involved becomes final.
(bx I) Subject to any electron under section 22I(b)( I )(C) and unless
other%% ise expressly provided by an spousal agreement or court order
under section 2h3(bl, it a former participant who is entitled to receive
an annuity is sureived by at former spouse, the former spouse shall be
entitled to a survivor a inuils
(A) if married to the participant throughout the creditable service
of the participant, equal to 5~ percent of the full amount of the
participants annuity, as computed under section 22I(a), or
(13) if not married to the participant throughout such creditable
service, equal to a proportion of 55 percent of the full amount of such
annuity which is the proportion that the number of days of the
marriage of the former spouse to the former participant during
periods of creditable service of such former participant under this
Act bears to the total number of' days of such creditable service.
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(2) A former spouse shall not be qualified for an annuity under this
subsection if before the commencement of that annuity the former
spouse remarries before becoming 60 years of age.
(3) An annuity payable from the fund to a surviving former spouse
under this subsection shall commence on the day after the annuitant
dies and shall terminate on the last day of the month before the former
spouse's death or remarriage before attaining age 60. If such a survivor
annuity is terminated because of remarriage, it shall be restored at the
same rate commencing on the date such remarriage is dissolved by
death, annulment, or divorce if any lump sung paid upon termination of
the annuity is returned to the fund.
(4)(A) The maximum survivor annuity or combination of survivor
annuities under this section (and section 221(bX3)) with respect to any
participant or former participant may not exceed 55 percent of the full
amount of the participant's annuity, as calculated under section 221(a).
(B) Once a survivor annuity has been provided under this subsection
for any former spouse, a survivor annuity for another individual may
thereafter be provided under this subsection (or section 221(bX3)) with
respect to a participant or former participant only for that portion (if
any) of the maximum available which is not committed for survivor
benefits for any former spouse whose prospective right to such annuity
has not terminated by reason of death or remarriage.
(C) After the death of a participant or former participant, a court
order under section 263(b) may not adjust the amount of the annuity of
any former spouse under this section.
(5)(A) For each full month after a former spouse of a participant or
former participant dies or remarries before attaining age 60, the
annuity of the participant, if reduced to provide a survivor annuity for
that former spouse, shall be recomputed and paid as if the annuity had
not been so reduced, unless an election is in effect under subparagraph
(B).
(B) Subject to paragraph (49B), the participant may elect in writing
within one year after receipt of notice of the death or remarriage of the
former spouse to continue to reduction in order to provide a higher
survivor annuity under section 221(bX3) for any spouse of the
participant.
(cX I) In the case of any participant or former participant providing a
survivor annuity benefit under subsection (b) for a former spouse---
(A) such participant may elect, or
(B) a spousal agreement or court order under section 263(b) may
provide for,
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an additional survivor annuity under this subsection for any other
former spouse or spouse surviving the participant, if the participant
satisfactorily passes a physical examination as prescribed by the
Director.
(2) Neither the total amount of survivor annuity or annuities under
this subsection with respect to any participant of former participant,
nor the survivor annuity or annuities for any one surviving spouse or
former spouse of such participant under this section or section 221,
shall exceed 55 percent of the full amount of the participant's annuity,
as computed under section 221(a).
(3XA) In accordance with regulations which the Director shall
prescribe, the participant involved may provide for any annuity under
this subsection
(i) by a reduction in the annuity or an allotment from the salary of
the participant,
(iii) by any combination thereof.
(B) The present value of the total amount to accrue to the fund
under subparagraph (A) to provide any annuity under this subsection
shall be actuarially equivalent in value to such annuity, as calculated
upon such tables of mortality as may from time to time be prescribed
for this purpose by the Director.
(C) If a former spouse predeceases the participant or remarries
before attaining age 60 (or, in the case of a spouse, the spouse does not
qualify as a former spouse upon dissolution of the marriage)
(i) if an annuity reduction or salary allotment under subparagraph
(A) is in effect for that spouse or former spouse, the annuity shall be
recomputed and paid as if it had not been reduced or the salary
allotment terminated, as the case may be, and
(ii) any amount accruing to the fund under subparagraph (A) shall
be refunded, but only to the extent that such amount may have
exceeded the actuarial cost of providing benefits under this subsec-
tion for the period such benefits were provided, as determined under
regulations prescribed by the Director.
(D) Under regulations prescribed by the Director, an annuity shall
be recomputed (or salary allotment terminated or adjusted), and a
refund provided (if appropriate), in a manner comparable to that
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provided under subparagraph (C), in order to reflect a termination or
reduction of future benefits under this subsection for a spouse in the
event a former spouse of the participant dies or remarries before
attaining age 60 and an increased annuity is provided for that spouse in
accordance with this section.
14) An annuity payable under this subsection to a spouse or former
spouse shall commence on the day after the participant dies and shall
terminate on the last day of the month before the former spouse's death
or remarriage before attaining age 60.
15) Section 291 shall not apply to any annuity under this subsection,
unless authoriicd under regulations by the Director.
id) Section 221(1) shall not apply
(1) to any annuity payable tinder subsection (a) or (b) to any
former spouse if' the amount of that annuity varies by reason of it
;pousal agreement or court order under section 263(b), or an election
under section 221(bX 1911), from the amount which would be calculat-
ed under subsection (al( I ) or (bp I ), as the case may be, in the absence
of such spousal agreement, court order, or election; or
(2) to any annuity payable under subsection (c).
Election of Survivor Benefits for Certain Former Spouses
Sirs . 223. (a) Any participant or former participant in the Central
Ini.elligcnce ;Agcncy Retirement and Disability System who on Novem-
ber I5. 1982, has it former spouse may, by a spousal agreement, elect to
receive a reduced annuity and provide a survivor annuity for such
former spouse under section 222(b).
bH I I If the participant or former participant has not retired under
such system on or before November 15, 1982, an election under this
section may be made at any time before retirement.
12) If the participant or former participant has retired under such
system on or before November 15, 1982, an election under this section
may be made within such period after November 15, 1982, as the
Director may prescribe.
(3) For the purposes of applying this Act, any such election shall be
treated in the same manner as if it were a spousal agreement under sec-
tion 263(b).
i;c) An election under this section may provide for a survivor benefit
based on all or any of that part of the annuity of the participant which
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is not designated or committed as a base for survivor benefits for a
spouse or any other former spouse of the participant. The participant
and his or her spouse may make an election under section 221(bXlXB)
prior to the time of retirement for the purpose of allowing an election to
be made under this section.
(d) The amount of the reduction in the participant's annuity shall be
determined in accordance with section 221(bN2). Such reduction shall
be effective as of
( I ) the commencing date of the participant's annuity, in the case
of an election under subsection (b)(I ), or
(2) November 15, 1982, in the case of an election under subsection
(b)f2).
Part D -Benefits Accruing to Certain Participants "
Retirement for Disability or Incapacity Medical
Examination-Recovery
Si( . 231. (a) Any participant who has five years of service credit
toward retirement under the system, excluding military or naval
service that is credited in accordance with provisions of section 251
or 252(a82) and who has become disabled shall, upon his own
application or upon order of the Director, be retired on an annuity
computed as prescribed in section 221. A participant shall be
considered to be disabled only if the participant is found by the
Director to be unable, because of diseases or injury, to render useful
and efficient service in the participant's position and is not qualified
for reassignment, under procedures prescribed by the Director, to a
vacant position which is in the Agency at the same grade or level and
in which the participant would be able to render useful and efficient
service. If the disabled or incapacitated participant is under sixty and
has less than twenty years of service toward his retirement under the
system at the time he is retired, his annuity shall be computed on the
assumption that he has had twenty years of service, but the
additional service credit that may accrue to a participant under this
provision shall in no case exceed the difference between his age at
the time of retirement and age sixty. Retirement for disability or
incapacity may be approved only if the application is submitted
before the applicant is separated from the Agency or within one year
thereafter. This time limitation may be waived by the Director for a
participant or annuitant who at the date of separation from the
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provided under subparagraph (C), in order to reflect a termination or
reduction of future benefits under this subsection for a spouse in the
event a former spouse of the participant dies or remarries before
attaining age 60 and an increased annuity is provided for that spouse in
accordance with this section.
(4) An annuity payable under this subsection to a spouse or former
spouse shall commence on the day after the participant dies and shall
terminate on the last day of the month before the former spouse's death
or remarriage before attaining age 60.
(5) Section 291 shall not apply to any annuity under this subsection,
unless authorised under regulations by the Director.
(1) to any annuity payable under subsection (a) or (b) to any
former spouse if the amount of that annuity varies by reason of a
spousal agreement or court order under section 263(b), or an election
under section 22I(bX I NB), from the amount which would be calculat-
ed under subsection (a)(I ) or (b)(1), as the case may be, in the absence
of such spousal agreement, court order, or election; or
(2) to any annuity payable under subsection (c(.
Flection of Survivor Benefits for Certain Former Spouses
Sit . 223. (a) Any participant or former participant in the Central
Intelligence Agency Retirement and Disability System who on Novem-
ber I5. 1982, has a former spouse may, by a spousal agreement, elect to
receive a reduced annuity and provide a survivor annuity for such
former spouse under section 222(b).
(b-( I ) If the participant or former participant has not retired under
such system on or before November 15, 1982, an election under this
section may he made at any time before retirement.
(2) II' the participant or former participant has retired under such
system on or before November 1 5, 1982, an election under this section
Director may prescribe.
(3) For the purposes of applying this Act, any such election shall be
treated in the same manner as if it were a spousal agreement under sec-
tion 263(b).
(c) An election under this section may provide for a survivor benefit
based on all or any of that part of the annuity of the participant which
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Agcnc' or within one 'ear thereafter is mentally incuntpctent, if the
application is filed kith the \gcncy cvi!hin one year from the date of
restoration of the participant or annuitant to competency or the
appointment of a fiduciary, tvhlchevcr is earlier.
(bN I ) In each case, the participant shall he given a medical exaniina-
tion b' one or more duly qualified physicians or surgeons designated by
the Director to conduct examinations, and disability shall he deter-
mined b' the Director on the basis of the advice of such physicians ur
surgeons. Unless the disability is permanent, like examinations shall be
made annuall' until the annuitant has reached the statutory manda-
tory retirement age for his grade as provided in section 23~. If the
Director determines on the basis of the advice of one or more duly
qualified physicians or surgeons conducting such examinations that an
annuitant has recovered to the extent that he can return to duty, the
annuitant may apply for reinstatement or reappointment in the .agency
within one year from the date his recover' is ticterntined. Upon
the director may, taknng Into consiucrAlon the :lge, gnahhcat oils, and
experience of such annuitant, and the present grade of his contempo-
raries in the Agency, appoint hint to a grade higher than the one in
which he was serving prior to retirement. Pa'nacnt of the ;uutuit' shall
continue until a date one year after the date of the ex;Jill naIion
sho"ing recovery or until the date of renstatclnent or reappolfit lltent In
the Agency, +hichcver is earlier. I ces for ex;unin;ations under this
application the Director Amy reinstate and such recovered di.sabilit'
annuitant in the grade in which he was serving it time of retirement, or ,
curred in order to submit to cxam ination, shall he paid out of the Fund.
If the annuitant fails to submit to examination as rcgmircd under this
section, pa'ment of the annuit'shill be suspended until continuance of'
this disability is satisfactorily established.
I?I II' the annuitant receiving disability retirement ;utlluit~ is rc
stored to earning capaciry, before becoming sixty years of age, payment
of the annuity terminates (,n rcentpfomcnt b' the Government or ISO
days after the end of the calendar year in which earning capacity is re-
stored, whichever is earlier. Farming rapacity is restored if' in any
calendar year the income of the annuitant from wages or self-
employment or both equals at least 80 per centum of the current rate of
pay of the position occupied at the time of retirement.
(e$ I ) If a recovered or restored disability annuitant whose annuity is
discontinued is for any reason not reinstated or reappointed in the
Agency, he shall be considered except for service credit to have been
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separated within the meaning of paragraphs (a) and (bi of section 234
as of the date of termination of the disability annuity and be shall, after
the discontinuance of the disability annuity, be entitled to the benefits
of that section or of section 241(a) except that he may elect voluntary
retirement in accordance with the provisions of section 233 if he can
qualify under its provisions or he may be placed by the Director in an
involuntary retired status if he qualifies under the provisions of section
235(a). Retirement rights under this section shall be based on the
provisions of this Act in effect as of the date the disability annuity was
discontinued.
(2) If, based on a current medical examination, the Director deter-
mines that a recovered annuitant has, before reaching age sixty-two,
again become totally disabled due to recurrence of the disability for
which he was originally retired, his terminated disability annuity (saUmme
type and rate) is reinstated from the date of such medial examination.
If a restored-to-earning-capacity annuitant has not medically recovered
from the disability for which retired and establishes to the Director's
satisfaction that his income from wages and self-employment in any
calendar year before reaching age sixty-two was less than 80 per
centum of the pay rate attached to the position from which he retired,
his terminated disability (same type and rate) is reinstated from the
first of the next following year. If he has been allowed an involuntar`
or voluntary retirement annuity in the meantime, his reinstated
disability annuity is substituted for it unless he elects to retain the
former benefit.
(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 (5 U.S.C. 751 [now 8102] et seq.), 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 provision of the said Act of
September 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 a n payment under such
Act of September 7, 1916, as amended, by reason of the death of any
other person.
(e) Notwithstanding any provision 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 received an award of compensation in a lump
sum under section 14 of the Federal Employees' Compensation Act of
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1
September 7, 1910, as amended (5 L S.C. 764 1now 8 135 1, except that
where such annuity is payable on account of the same disability 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
such annuity becomes efi'ective, is determined by the Secretary of
Labor, shall be refunded to the Department of Labor, to be paid into
the Federal employees' compensation fund. Before such person shall
receive such annuity he shall (I) refund to the Department of Labor the
amount representing such commuted payments for such extended
period, or (2) authorirc the deduction of' such anmunt from the annuity
payable to him under this Act, which amount shall be transmitted to
such Department for reimbursement to such 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.
Si:(,. 232. (a) In case a participant dies and no claim for annuity is
payable under the provisions of this Act, his contributions to the fund,
with interest at the rates prescribed in sections 241(a) and 281(a), shall
be paid inn the order of precedence shown in section 241(b).
(b) If a participant, who has at least eighteen months of service
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), dies before separation or retirement from the Agency and
is survived by a widow or a widower, as defined in section 204, such
widow or widower shall be entitled to an annuity equal to 55 per
centum of the annuity computed in accordance with the provisions of
section 221(a), except that the computation of the annuity of the
participant under such section shall be at least the smaller of (1) 40 per
centum of the participant's average basic salary, or (ii) the sum
obtained under such section alter increasing the participant's service of
the type last performed by the difference between his age at the time of
death and age sixty. The annuity of such widow or widower shall
commence on the date following death of the participant and shall
terminate upon death or upon remarriage prior to attaining age sixty of
the widow or widower (subject to the payment and restoration provi-
sions of section 221(g)).
(c) If a participant who has at least eighteen months of service credit
toward retirement under the system, excluding military or naval service
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that is credited in accordance with the provisions of' section 251 or
252(a)(2), dies before separation or retircntent front the Agency and is
survived by it wile or a husband and it child or children, each surviving
child shall be entitled to an annuity computed in accordance with the
provisions of section 221(c)(I). fhe child's annuity shall begin and be
terminated in accordance with the provisions of section 221(e). Upon
the death of the surviving wife or husband or termination of the
annuity of it 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.
(d) If it participant who has had at least eighteen months of service
credit toward retirement under the system, excluding military or naval
service that is credited in accordance with the provisions of section 25I
or 252(a) 2), dies before separation or retirement from the Agency and
is not survived by a wile or husband, but by a child or children, each
surviving child shall be entitled to an annuity computed in accordance
with the provisions of section 121(cX2). The child's annuity shall begin
and terminate in accordance with the provisions of section 221(e). Upon
termination of the annuity of it child, the annuities of my remaining
children shall be recomputed and paid as though that child had never
been entitled to the benefit.
Voluntary Retirement
Si c . 233. Any participant in the system who is at ]cast fifty years of
age and has rendered twenty years of service may on his own
application 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 not less than ten years of service with the
Agency of which at (cast five years shall have been qualifying service.
Si(. 234.(a) Subject to the limitations contained in subsections (c),
(d), and (e), any participant who separates front the Agency after
having performed not less than live years of service with the Agency,
may upon separation from the Agency or at any time prior to becoming
eligible for an annuity, elect to have his contributions to the fund
returned to him in accordance with the provisions of section 241, or
(except 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, commencing at the age of sixty-
two wars.
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A
(b) II' 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-two dies before reaching the age of
sixty-two his contributions to the fund, with interest, shall be paid in
accordance with the provisions of sections 241 and 28 1.
(c) Whenever a participant becomes separated from the Agency
without becoming eligible for an annuity or a deferred annuity under
this Act and becomes entitled to receive it lump-sum payment under
this section or section 241, a share of that lump-sum payment shall be
paid to any former spouse of the participant in accordance with
subsections (d) and (c).
(d) t nless otherwise expressly provided by an spousal agreement or
court order under section _'03(b), the amount of a participant's or
former participants lump-semi credit under this section or under
section 241 payable to a former spouse of that participant shall be
(1) if the former spouse was married to the participant throughout
the period of creditable service of the participant, 50 percent of such
lump-sum credit to which such participant
absence of this subsection; or
(2) if such former spouse was not married to the participant
throughout such creditable servicc, an amount equal to a proportion
of 50 percent of such lump-sum credit which is the proportion that
the number of days of the marriage of the former spouse to the
participant during periods of creditable service of such participant
under this Act bears to the total number of days of such creditable
service.
Such lump-sum credit of the participant shall be reduced by the
amount of the lump-sum credit payable to the former spouse.
(e) A lump-suns paynlenf under this section or section 241 of' this
Act may be paid by the Director to or for the benefit of a participant
(I) only upon written notification by the Director to a current
spouse of the participant, if any; and
(2) only if the express written concurrence of that spouse has been
received by the Director.
Mandatory Retirement
Si;(,. 235. (a) The Director may in his discretion place in a retired
status any participant who has completed at least twenty-five years of
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service, or who is at least lifty years of age and has completed at least
twenty years of service, provided such participant has not less than ten
years of service with the Agency of which at least live shall have been
qualifying service. A participant who is separated involuntarily from
service, except by removal for cause on charges of misconduct or
delinquency, is entitled to an annuity only if the participant has not
declined a reasonable offer of another position for which he or she is
qualified, which is not lower than two grades below his or her current
position and which is in the .same corrrrrruting area. Voluntary early
retirements will be permitted only if a major reorganization, reduction
in force, or transfer of function will result in a significant number of
participants being separated or immediately reduced in pay. Partici-
pants retired under this subsection shall receive retirement benefits in
accordance with the provisions of section 221.
(b) Any participant in the system receiving compensation at the rate
of grade GS-I8 or above shall be automatically separated from the
Agency upon reaching the age of sixty-five. Any participant in the
system receiving compensation at a rate less than grade GS-I8 shall be
a utomatically separated from the Agency upon reaching the age of
sixty. Such separation shall be effective on the last day of the month in
which a participant reaches the age sixty or sixty-five, as specified in
i his section, but whenever the Director shall determine it to be in the
public interest, he Amy extend such participant's service for a period
not to exceed live years. A participant separated under the provisions of
this section who has completed five years of Agency service shall
receive retirement benefits in accordance with the provisions of section
221 of the Act.
I incitation on Number of Retirements
Sri. 236. The number of participants retiring on an annuity
pursuant to sections 233, 234, and 235 of this Act shall not exceed a to-
tal of four hundred during the period ending on June 30, 1969, nor a
total of twenty-one hundred during the period beginning on July I,
1969, and ending on June 30, 1974, nor a total of fifteen hundred
during the period beginning on July 1, 1974, and ending on June 30,
1979.
Part F Disposition of Contributions and
Interest in Excess of Benefits Received
St.c. 241. (a) Whenever a participant becomes separated from the
Agency, or is transferred to a position in which he is not subject to this
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Act, for at least thirty-one consecutive days without becoming eligible
for an annuity in accordance with the provisions of this Act, the total
amount of contributions from his salary with interest thereon at 4
percent per year to December 31, 1947, and 3 percent per year
thereafter compounded annually to December 31, 1956, except as
provided in section 281, shall upon application, be returned to him. The
return of contributions shall be made only if the participant is not
reemployed in a position in which he is subject to this Act at the time
he files the application for refund and will not become eligible for an
annuity within thirty-one days after filing such application. The receipt
of the payment of the lump-suns credit by the participant voids all
annuity rights under the Act based on the service on which the lump-
sum credit is based, until the participant is reemployed in the service
subject to the Act. The payment of the lump-sum credit shall include
amounts deposited by a participant covering earlier service as well as
any amounts deposited under section 252(h).
(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 the rates provided in
paragraph (a) of this section added thereto, exceed the total amount
returned to such participant or to an annuitant claiming through him,
in the form of annuities, the excess of the accumulated contributions
over the accumulated annuity payments 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:
(1) To the beneficiary or beneficiaries designated by such partici-
pant in a signed and witnessed writing received by the Agency before
his death. For this purpose, a designation, change, or cancellation of
beneficiary in a will or other document not so executed and filed
shall have no force or effect;
(2) If there be no such beneficiary to the surviving wife or husband
of such participant;
(3) If none of the above, to the child or children of such
participant and descendants of deceased children by representation;
(4) If none of the above, to the parents of such participant or the
survivor of them;
(5) If none of the above, to the duly appointed executor or
administrator of the estate of such participant;
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 (6) If none of the above, to other next of kin of such participant as
may be determined by the I)irector n his judgment to be legally
entitled thereto.
(c) No payment shall be made pursuant to paragraph (b)(6) of this
Section until after the expiration of thirty days from the death of the re-
tired participant or his surviving annuitant.
Part F Period of Service for Annuities
Computation of I cngth of Ser%lcc
Stec. 251. For the purposes of this Act, the period of service of a par-
ticipant shall be computed from the (Lite Ire hecornes 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 aggregate n any calendar year shall be
excluded, except leaves of absences while receiving benefits under
chapter 81 of title 5, United States ( :)dc, or any earlier statute on
which such chapter is based, and je tses of absence granted participants
while performing active and honorable ruilitary or naval service in the
Army, Navy, Air Force, Marine ( ores, or ('oast Guard of the United
States. A participant or former participant vvho returns to government
duty after a separation shall have included in his period of service that
part of the period of separation in which he vN as receiving benefits
under chapter 81 of title 5, United States Code. or any earlier statute
on which such chapter is based.
Prior Service ( red it
St.(,. 252. (a) A participant m;rv, suhject to the provisions of' this
section, include in his period of service
(1) civilian service in the executive, judicial, and legislative
branches of the Federal Government and in the I)istrict of Columbia
government, prior to becoming ;t participant; a rid
(2) active and honorable military or naval service in the Army,
Navy, Air Force, Marine Corps, or ('oast Guard of the United
States prior to the date of the separation upon which title to annuity
is based or active and honorable service in the regular or Reserve
Corps of the Public Health Service after June 30, 1960, or as a
commissioned officer of' the National Oceanic and Atmospheric
Administration after June 30, I96I.
(b) A participant may obtain prior civilian service credit in accord-
ance with the provisions of paragraph la)(I ) of this section by making a
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d A
special contribution to the fund equal to the percentage of his basic
annual sitar for each year of service for which credit is sought
specified with respect to such scar in the table relating to employees
contained in section 4(c) of the ( ivil Service Retirement Act t5 U.S.('.
2-S4(v) lnow 8334(c)j, together with interest computed as provided in
section 4(e) of such Act (5 1 .S.(. 2254(e) now 8334(e)l ). Any such
participant may, under such conditions as naay be determined in each
instance by the Director, pay such special contributions in installments.
(c)(1) If an officer or employce under some other Government
retire'ncnt system becomes a participant in the system bv direct
transfer, the Government's contributions (including interest ;accrued
thereon computed at the rate of 3 per centuni a year contpoundcd
annually) under such retirement system on behalf of the officer or
employee shall be transferred to the fund ;and such officer or employ-
cc's total contributions and deposits (including interest accrued there-
on), except voluntary contributions, shall be transferred to his credit in
the fund effective as of the date such officer or employee becomes a
participant in the system. teach such officer or employee shall he
deemed to consent to the transfer of such funds and such transfer shall
be a complete discharge and acquittance of all claims and demands
against the other Government retirement fund on account of service
rendered prior to becoming a participant in the system."
(2) If a participant in the system becomes an employee under
another Government retirement system by direct transfer to employ-
merit covered by such system, the Government's contributions (includ-
ing interest accrued thereon computed at the rate of 3 per centum a
year computed annually) to the fund on his behalf shall be transferred
to the fund of the other system and his total contributions and deposit,,
including interest accrued thereon, except voluntary contributions,
shall be transferred to his credit in the fund of such other retirement
system effective as of the date he becomes eligible to participate in
such other retirement system. I'ach 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 demands
against the fund on account of service rendered prior to his becoming
eligible for participation in such other system.
(3) No participant, whose contributions are transferred to the fund
in accordance with the provisions of paragraph (c)( I ) of this section,
shall be required to make contributions in addition to those transferred
for periods of' service foe which full contributions were made to the
other Government retirement fund, nor shall any refund be made to
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any such participant on account of contributions made during any
period to the other Government retirement fund at a higher rate than
that fixed for employees by section 4(c) of the Civil Service Retirement
Act (5 U.S.C. 2254(c) [now 8334(c)) for contributions to the fund.
(4) No participant, whose contributions are transferred to the fund
in accordance with the provisions of paragraph (c)(1) of this section,
:;hall 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 provisions 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
bbasis of which he is receiving or will in the future be entitled to receive
any annuity under another retirement system covering civilian person-
inel of the Government.
(eXI) A participant may obtain prior military or naval service credit
in accordance with the provision of paragraph (a)(2) of this section by
applying for it to the Director prior to retirement or separation from
the Agency. (2) 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 caused by an
instrumentality of war and incurred in line of duty during a period of
war (as that term is used in section 301 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.
(3) Except as provided in paragraphs (I) .and (2) of this subsection,
the service of an individual who first becomes a Federal employee
before October I. 1982 shall include credit for each period of military
service performed before the date of' the separation on which the
entitlement to an annuity under this subsection is based, subject to
section 252(1); and the service of' in individual who first becomes a
Federal employee on or after October I, 1982 shall include credit for:
(i) each period of military service performed before January I,
1957; and
(ii) each period of' military service performed after December 31,
1956, and before separation on which the entitlement to annuity
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under this section is based, only if it deposit (with interest, if any) is
made with respect to that period as provided in subsection (h) of this
section.
(IX 1) Notwithstanding ;lily other provision of this section or section
253 any military service (other than military service covered by
military leave with pay) performed by a participant after December
1956 shall be excluded in determining the aggregate period of service
upon which an annuity payable under this Act to such participant or to
his widow or child is to be based, if such participant or widow or child
is entitled (or ~+nuld upon proper application be entitled) at the time of
such determination, to monthly old-age or survivors benefits under
section 202 of the Social Security Act, as amended (42 U.S.C. 402),
based on such participant's wages and self-employment income. If in
the case of' the participant or widow such military service is not
excluded under the preceding sentence, but upon attaining age sixty-
two, he or she becomes entitled (or would upon proper application be
entitled) to such benefits, the aggregate period of service upon which
such annuity is based shall be redetermined, effective as of the first day
of the month in which he or she attains such age, so as to exclude such
service.
(2) The provisions of paragraph (1) above relating to credit for
militarn service shall not apply to -
(A) any period of military service of' a participant with respect to
which he or she has made a deposit with interest, if any, under
section ?52(e) of this Act: or
(13) the military service of any participant who has been awarded
retired pay on account of a service-connected disability caused by an
instrumentality of war and incurred in the line of duty during a
period of war as that terns is defined in section 301 of Title 38 of the
United States (ode.
(3) The annuity recomputation required by paragraph (I) above shall
not apply to any individual who was entitled to an annuity under this
section on or before September 8, 1982. Instead of an annuity
recomputation, the annuities of such individuals shall be reduced at age
02 by an amount equal to a fraction of their Social Security benefit.
This reduction shall be computed by multiplying their monthly Social
Security benefit by a fraction, the numerator of which is their total
military wages that were subject to Social Security deductions and the
denominator of which is their total lifetime wages, including military
wages, that were subject to Social Security deductions. The reductions
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 ..~ thoriied by paragraphs (b), (c$?I). ;tad (h( of this section ntav also be
so computed shall not be permitted to he greater than the reductions
that will be required by paragraph t l ) il' that paragraph applied to the
individual for that period. I'll(, neck formula shall be applicable to all
annuity payments payable ;titer October I, 19t{2, including annuity
paynients to those individuals who had previously reached age 62 and
whose annuities had already been recomputed.
(g) for the purpose of survivor annuity, special contributions au-
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made by the survivor of a par'ticip;rnt.
(hH I ) I?ach participant Mho has perforated nulitars service before
the date of separation on which the cntitlenrcnt to any annuity under
this section is based rots pay, in accordance yNith rules issued by the
Director, to the Agency an amount equal t,, 7 percent of the amount of,
basic pay paid under section 204 of Title 47 of the I muted States ('ode
to the participant for each period of nulit;rry service after December
19j6. The anwturt of such payments shall be based on such evidence of
basic pay for military service as the participant may provide, or if the
Director or his designee determines sullicient evidence has not been
provided to adequately determine basic pay for milimars service, such
payment ,hall be based upon estimates of such basic pay provided to
the Director tinder paragraph (4).
(2) Any deposit made tinder naragr,iph ( I ) of this subsection more
than two scars after the later of
(R) the date on which the participant making the deposits first
becomes stn cniplosec of they Federal government shall include
interest oil such amount computed and compounded annually begin-
ning on the slate of expiration of the tyro-year period. The interest
rate that is applicable in computing interest in ;ray year under this
paragraph shall be equal to the interest rate tli t is applicable for
such sear under subsection (h) of this section.
(3) Any p;t li nt receive:l bs the Agency under this subsection shall
he inutrediatelc remitted to the (mice of finance for deposit in the
Trcasurs of the United States to the Credit of the CIARDS fund.
(4) The Secretary of Defense, the Secretary of Transportation, the
Secret mry of Commerce, or the Secretary of IlcaltIi and Human
Services, as appropriate, shall furnish such information to the Director
as the Director ntay determine to be necessary for the administration of
this subsection.
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Credit for Service While on Military Leave
Si. tc253. (a) A participant who, during the period of' any war, or of
any national emergency as proclaimed by the President or declared by
the Congress, has left or leaves his position to enter the military service
shall not be considered, for the purposes of this Act, as separated from
his Agency position by reason of such military service, unless he shall
apply for and receive a refund of contributions under this Act:
4 Provided, That such participant shall not be considered as retaining his
Agency position beyond December 31, 1956, or the expiration of five
years of such military service, whichever is later.
(b) Contributions shall not be required covering periods of leave of
absence from the Agency granted a participant while performing active
military or naval service in the Army, Navy, Air Force, Marine Corps.
I or Coast Guard of the United States.
Estimate of Appropriations Needed
Sic. 261. (a) The Director shall prepare 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 necessary by him.
(b) Any statute which authorizes --
(I) new or liberalized benefits payable from the fund, including
annuity increases other than under section 291 of this Act:
(2) extension of the coverage of this Act to new groups of'
employees; or
(3) increases in salary on which benefits are computed is deemed
to authorize appropriations to the fund to finance the unfunded
liability created by that statute in thirty equal annual installments
with interest computed at the rate used in the then most recent
valuation of the System and with the first payment thereof due as of
the end of the fiscal year in which each new or liberalized benefit,
extension of coverage or increase in salary is effective.
(c) There is hereby authorized to be appropriated to the fund each
fiscal year, beginning with fiscal year 1977, such amounts as may be
necessary to meet the amount of normal costs for each year which is
not met by contributions under section 21 I(a).
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(d) There is hereby authorized to be appropriated to the fund each
fiscal year such sums as may be necessary to provide the amount
equivalent to (1) interest on the unfunded liability computed for that
year at the interest rate used in the then most recent valuation of the
System, and (2) that portion of disbursement for annuities for that year
which the Director estimates is attributable to credit allowed for
military service, less an amount determined by the Director to be
appropriate to reflect the value of the deposits made to the credit of the
Fund under section 252(e), and not to exceed the following percentages
of such amounts: 70 per centum for 1977: 80 per centum for 1978; 90
per centum for 1979; and 100 per centum for 1960 and for each fiscal
year iLhereafter.
Investment of Moneys 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.
Attachment of Moneys
Si:(,. 263. (a) Except as provided in subsection (b) of this section,
none of the moneys mentioned in this Act shall be assignable either in
law or equity, or be subject to execution, levy attachment, garnishment,
or other legal process."
(b) Payments under this Act which would otherwise be made to it
participant or the child, survivor, or former spouse of a participant
based upon the service of the participant shall be paid (in whole or in
part) by the Director directly to the participant, or child, survivor, or
former spouse of the participant according to the terms of any legally
enforceable spousal agreement or recognized court decree of divorce,
annulment, or legal separation between the participant and that former
spouse, or the terms of any recognized court order or court-approved
property settlement agreement incident to any such spousal agreement
or court decree of divorce, annulment, or legal separation. Any
payment under this subsection to a party to it spousal agreement, or
court decree of divorce, annulment, or legal separation or property
settlement agreement incident thereto shall bar recovery by any other
person.
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J
Recovery of Payments
Si 264. Recovery of payments under this Act may not be made
from an individual when in the judgment of the Director, the individual
is without fault and recovery would be against equity and good
conscience. Withholding or recovery of money mentioned by this Act
on account of a certification or payment made by a former employee of
the Central Intelligence Agency in the discharge of his official duties
may be made if the Director certifies that the certification or payment
involved fraud on the part of the former employee.
Part H Retired Participants Recalled, Reinstated, or Reappointed
in the Agency, or Reemployed in the Government.
Si t . 271. (a) The Director may, with the consent of any retired
participant, recall such participant to duty in the Agency whenever he
shall determine such recall is in the public interest.
)b) Any such participant recalled to duty in the Agency in accord-
ance with the provisions of paragraph (a) of this section or reinstated or
reappointed in accordance with the provisions of section 231(b) shall,
while so serving, be entitled in lieu of his annuity to the full salary of
the grade in which he is serving. During such service, he shall make
contributions to the fund in accordance with the provisions of section
211. When he reverts to his retired status, his annuity shall be
determined anew in accordance with-the provisions of section 221.
p~'~ r-n" t" ec o men W Q"'f ihy a dvi
Si v( 272. Notwithstanding any other provision of law, a participant
retired under the provisions of this Act shall not, by reason of his
retired status, be barred from employment in Federal Government
scrvicc in any appointive position for which he is qualified. An
annuitant so reemployed shall serve at the will of the appointing
oiliccr.
Reemployment Compensation
Stagy. 273. (a) Notwithstanding any other provision of law, any
annuitant who has retired under this Act and who is reemployed in the
Federal Government service in any appointive position either on a part-
time or full-time basis shall be entitled to receive his annuity payable
under this Act, but there shall be deducted from his salary a sum equal
to the annuity allocable to the period of actual employment."
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Part I--Voluntary Contributions
(b) In the event of any overpayment under this section, such
overpayment shall be recovered by withholding the amount involved
from the salary payable to such reemployed annuitant, or from any
other moneys, including his annuity, payable in accordance with the
provisions of this Act.
Si:('- 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 I 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 through December 31, 1984, and thereafter
at the rate computed under Section 8334(e) of Title 5 of the United
States Code, compounded annually as of December 31, and proportion-
ately 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 election, be
(1) returned to him in lump sum;
(2) used to purchase an additional life annuity;
(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 Director 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 Director by the participant
a guaranteed return to me beneficiary or his legal represents
five of an amount equal to the cash payment referred to in paragraph
(3) above.
(b) The benefits provided by subparagraph (2), (3), or (4) of para-
graph (a) of this section shall be actuarially equivalent in value to the
payment provided for by subparagraph (aX I) of this section and shall be
calculated upon such tables of mortality as may be from time to tirie
prescribed for this purpose by the Director.
(c) In case a participant shall become separated from the Agency for
any reason except retirement on an annuity, the amount of any
additional deposits with interest at 3 per centum per annum, com-
pounded as is provided in paragraph (a) of this section, made by him
under the provisions of said paragraph (a) shall be refunded in the
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 --q a
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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 under this section shall be in
addition to the benefits otherwise provided under this Act.
Si-r'. 291. (a) On the basis of determination made by the Director
pertaining to per centum change in the Price Index," the following
adjustments shall be made:
(I) Except as provided in subsection (b) of this section, effective
March I of each year each annuity payable from the Fund having a
commencing date not later than such March I shall be increased by the
percent change in the Price Index published for December of the
preceding year, adjusted to the nearest one-tenth of one percent.
1(2) Omitted)
(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:
(I) The first cost-of-living increase (if any) made under subsection (a)
of' this section to an annuity which is payable from the Fund to a
participant who retires or to the widow or widower of a deceased
participant whose annuity has not been increased under this subsection
or subsection (a) of* this section, shall be equal to the product (adjusted
to the nearest one-tenth of one percent) of
(A) one-twelfth of the applicable percent change computed under
subsection (a) of this section, multiplied by
(13) the number of months (counting any portion of a month is a
month)
(i) for which the annuity was payable from the Fund before the
effective date of the increase, or
(ii) in the case of a widow or widower of a deceased annuitant whose
annuity was first payable to the deceased annuitant.
(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 annuitant's
death and after January I, 1967, shall be increased by the total per
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centum increase the annuitant was receiving under this section at
death: or if death occurred between January 1, 1967, and date of
enactment, the per centum increase the annuitant would have received.
(3) For the purpose of computing the annuity of a child under section
22I(c) that commences after October 3I, 1969, the items $900, $1,080,
$2,700, and $3,240 appearing in section 221(c) shall be increased by the
total per centum increases allowed and in force under this section on or
after such day, and, in case of a deceased annuitant, the items 60 per
centum and 75 per centum appearing in section 221(c) shall be
increased by the total per centum allowed and in force to the annuitant
under this section on or after such day.
(4) The annuity of each surviving child receiving an annuity under
section 221 immediately prior to November I, 1969, shall be recom-
puted effective November 1, 1969, in accordance with paragraph (bX2).
No increase allowed and in force prior to such date under section 291
shall be included in the recomputation of any such annuity and this
paragraph shall not operate to reduce any annuity.
(c) Any annuity increased under this section shall be decreased by
the amount of increase in force and effect with respect to that annuity
under section 291 prior to the date of enactment of this subsection.
(d) The term "price index" shall mean the Consumer Price Index (all
items-- United States city average) published monthly by the Bureau of
Labor Statistics. The term "base month" shall mean the month of
October 1966 for the first increase under section 291(a)(2) and
thereafter the month for which the price index showed a per centum
rise forming the basis for a cost-of-living annuity increase.
(e) No increase in annuity provided by this section shall be computed
on any additional annuity purchased at retirement by voluntary
contributions.
(f) The monthly installment of annuity after adjustment under this
section shall be rounded to the next lowest dollar, except that such
installment shall, after adjustment, reflect an increase of at least $l.
(gX I) An annuity shall not be increased by reason of an adjustment
under this section to an amount which exceeds the greater of
(A) the maximum pay payable for GS-I5 thirty days before the
effective date of the adjustment under this section; or
(B) the final pay (or average pay, if higher) of the participant with
respect to whom the annuity is paid, increased by the overall annual
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average percentage adjustments (compounded) in rates of pay of the
General Schedule under subchapter I of chapter 53 of 'Title 5 of the
United States Code during the period
(1) beginning on the date the annuity commenced (or, in the case
of a survivor of the participant, the date of the participant's annuity
commenced), and
(ii) ending on the effective date of the adjustment under this
section.
(2) For the purposes of paragraph (I ) of this subsection "pay" means
the rate of salary or basic pay as payable under any provision of law,
including any provision of law limiting the expenditure of appropriated
funds.
Part K Conformity with Civil Service
Retirement System
Authority to Maintain Existing Areas of Conformity
Between Civil Service and Central Intelligence Agency
Retirement and Disability Systems
Si-('. 292.(a) Whenever the President determines that it would be
appropriate for the purpose of maintaining existing conformity be-
tween the Civil Service Retirement and Disability System and the
Central Intelligence Agency Retirement and Disability System with
respect to substantially identical provisions, he may, by Executive
order," extend to current or former participants in the Central
Intelligence Agency Retirement and Disability System, or to their
survivors, a provision of law enacted after January I, 1975, which:
(I) amends subchapter III, chapter 83, title 5, United States
Code, and is applicable to civil service employees generally, or
(2) otherwise affects current or former participants in the Civil
Service Retirement and Disability System, or their survivors.''
Any such order shall extend such provisions of law so that it applies in
like manner with respect to such Central Intelligence Agency Retire-
ment and Disability System participants, former participants, or
survivors. Any such order shall have the force and effect of law and
may be given retroactive effect to a date not earlier than the effective
date of the corresponding provision of law applicable to employees
under the Civil Service Retirement System.
(b) Any provision of an Executive order issued pursuant to this
section shall modify, supersede, or render inapplicable, as the case may
be, to the extent inconsistent therewith --
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(I all provisions of law enacted prior to the effective date of the
provision of such Executive order, and
(2) any prior provision of an Executive order issued under author-
ity of this section.
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