CHANGE: PAGE 5, STRIKE LINES 19 AND 20 AND SUBSTITUTES THE FOLLOWING LANGUAGE IN SECTION 302 (A).

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP89-00066R000300060001-5
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 16
• Document Creation Date: December 22, 2016
• Document Release Date: February 28, 2011
• Sequence Number: 1
• Publication Date: May 8, 1986
• Content Type: MISC

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It is imperative that the Director of the Central
Intelligence Agency have the complete authority to administer all
retirement programs for Agency employees. This is so because
under existing statute the Director must protect the names,
identities, and numbers of Agency employees. Without internal
administration (including authority to disburse funds from the
Treasury and Thrift Fund) being undertaken by the Agency, the
Director will be unable to ensure that names and numbers of
Agency employees are properly controlled.
In the past, names in manual records at OPM had been
sufficiently unsophisticated so as not to present a major CIA
concern. The current state-of-the-art and the expectations for
enhancements of existing automation systems caused the Agency to
review what data on employees is contained externally at OPM.
This review has concluded that the only way the Agency can ensure
that the Director satisfies his statutory authority is to
maintain all records on all Agency employees inside Agency
premises. Without providing the Director of Central Intelligence
with the statutory authorities to totally administer the
retirement programs for all Agency employees, there is no way
that Agency identities can be properly protected from becoming
accessible by non-Agency employees.
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 Approved For Release 2011/02/28 :CIA-RDP89-000668000300060001-5
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 Approved For Release 2011/02/28: CIA-RDP89-000668000300060001-5
NO . 5P' the
19 and 20 and substitute
page 5~ strike lines
CHANGE: ollowin9 language in Section 302 (a
f or employee's
such officer's officer or
determining ations as if such in Section
for purposes of oblig defined
retirement benefits and officer as
were a law enforcemetates Code?
employee United S employees
8401(17) of Title 5~ that CIA
intended to clarify section are a
change is the Director under this
REASON: This but who are to receive
nated by categ officers.
desig ecial ?ry' law enforcement
separate in the same manner as
benefits
NO. 7A after Code:
the following
dd
. pa a 7, line 6 to a CHANGE. g as defined in Section
former s ouse
ho has a
nd w
a States Code all CIA
of this Act. exclude
204 (b) (4) 304 (a) aPPears to
chapter
in section ouse provisions of
language former sP that only CIASet
REASON: employees from the intended to clarify
This change is who meet the crite ears
84. with former spouses have served five Y to ee,
emploYees- Act, i?e.~ to the emp Y
In the CIARDbeen married ten years
forth have
overseas and this section.
are covered by
NO. 14AA
and before
immediately after line n~.-S ction to titleoflof
page 13, add the following b Section 404
CHANGE: line ' as enacted Y
of the C tirement Act
the bill: 8331 of
rovisions of Section
the p in the Central
"SEC. 309. Notwithstandin articipants S stem shall be
P
and Disability
Title 5, United States Code' of Section 8350 of such
ence Agency Retireme ur oses
Intelli~o be emploYees for p P
deemed ants to
title." for CIARDS particip manner
savings plan in the same
This change provideshrift
REASON: participate in the T chapter 83.
as emploYees covered by
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 Approved For Release 2011/02/28: CIA-RDP89-000668000300060001-5
NO. 14AAA
line and before
immediately after ne section to title III
page 13' add the following Section 404 of
CHANGE: line Act as enacted by
of the etirement
the bill: chapter 83
any provision of shall
(a) Notwithstandin~ates Code, the Director to
SEC. 310. 5, United S rotected pursuant
ter 84 of Title of 1947, as
11 information p
or chap aired to provide ency Act of
not be req d (3) of the Natioentra1clntelligence Ag is not
102( ) the C to any party who
Section to receive
amended, or Section 6 of Executive ~uchrAct or Order
1949, as amended, or any
the provisions of
authorized under of such
such information. authorize the provision
The Director maY to such conditions and
'~(b) arty subject rescribe."
information to a P may P in the
requirements as the Director nothing
clarify that of records
intended to and examination
language is to review of the Thrift Plan or
REASON: This law with respect to
new Director the DCI's authority
directed by the ExecWillesupercede
the Director of OPM
protect sensitive information.
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 Approved For Release 2011/02/28: CIA-RDP89-000668000300060001-5
NO. 14AAA
and before
after line~eCtion to title III
immediately b Section 404 of
CHANGE: Page 13' add the following new
lines Retirement Act as enacted Y
of the CIA ter 83
the bill: of chap shall
any provision irector
(a) Notwithstandistates Code, the D to
"SEC. 310. United rotected pursuant
84 of Title 5~ information p 1947, as
or chapter rovide ecurity Act ?f ency Act of
not be required to p ence Ag
of the National Intellig arty who is not
Section 102(d)(3) the Central to anY p
or Section 6 of such Act or Order to receive
amended, or any Executive Order,
1949, as amended,the provisions of
authorized under
rovision of such
such information." the p
~~ The Director may author1zSUCh conditions and
(b~ to a party subject to
s as the Director may prescribe. in the
information ,
to clarify that nothing records
requirement
e is intended and examination ?f Plan or
This langua9 respect to review of the Thrift
REASON: law with irector the DCI's authority to
new the Executive D ercede
directed by of OPM will sup
the Director information.
protect sensitive
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r
E
S.T .C.
E f COLL. i~Z
S~ y,CI .T :tLs :rS iZ' :. r
y ~A rovided in this
- except as o ~hez Ri..~ P-
~~Sec. 3132?. (a) f t~t~e 5, Gnited
o
fore Dece^ber 3 i , '1983 , and ~;ho have not
i s;:ch system on or be
since that date,
of i Year
2 ,.=d ~ break in service in excess
ha ter 84 of title 5, United Stages Code,
are rot s~ub~ect to c P
? ether they are subject to title ZI of the
.._ ~~.,.ut regard to ~h
~,.,.; a Security F.ct. t`r s
of chap 4 of
"''- rovlsions
.?(c) the application of the P
5 to officers and er~ployees
title 5, United states Code,
7 stab sect to the
efe=red to in subsection (a) shall be
g r this title. AnY
?ceotions and special rules previded_in
g ek ~istent Kith a
khich is incon..
ig ~ Y=ovisien of such chapter
in this title shall r.ot aPp1Y to =uch
i i ~~ecial =ule provided .
and e:~~ployeeS. ~ G2f"r~o~lf~s
i2 C==i ==s ~.C S~ C1TL`:i 2g3~_..
i ='
i5 s_ct~on, in the
-
iication of chapter 8u
apP- ;rho is
is Stat?s Code, to an
officer cr e:~:PloYGe of tT:e ~gencY
r
1 rt to such chapter
G~~ ~=v
d~5ection 2C3,
and is designated by the
officer or
a t? oI -`
j 233 an
s
- sec t,.or,
the pr_cvisicr,s o= i
(b).. ro ed ,,o n
o~,-ees re~~rr
-, ~ ~ \.o oL ~s and e:~~P-
-~, ~- _fice_ e_iLs shall be
aY~ ,., r,- men. __~
~ -~
?.-
Directo
e,P~ oyee shall be treated
c~~ScCt_G'1
therELSrE:~e ,
(~ excep ~ tha ~ .
L ~, title `-'~
--.,.;,-.nom of c,aPter 8., c~ . -
_ c~=tes Ccae?
S v ~ `~ r.~ o~` ~ q cr~13~. \ S 0.S ~ ~ Q ('G~Gtc a..- o~?
~"t'S U
~. ~(~`~. N \ N W
,~:,}~e.. 5 , U
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 Approved For Release 2011/02/28 :CIA-RDP89-000668000300060001-5
May ~ 15 - 1986
Pierce: ~ hone that Mike O'Neil c~l~
This is the ~zzection we discussed on the p
You about.
e CIA.Retizement Act as contofi 1986,nadd ~e 406
Ch?-"fie ~ ~ Section 303 of th stem Act
of the Fedezal ? ployees Retizer-ent Sy
following subsection: .
~e Dizectoz of Centzal Intelligence shall issue
~~(c)(1) for officers and emPlOyees of the p,3ency
zeg,1lations pzoviding ntez 83 of title 5, United States
to sttbchaPtez III of c~~ zate benefit provided by
subject ice, acrzual
~3,er to receive the spec effect as
a ar~d (b) of this section .with tie ~s the othezwis
subsections ( ) in the same manner.and
applicable rate)
ence shall submit the
pzovide3 in such subsections. rtes on
??(2) The Director of Centzah ~~eto~the Select CQ~.
under paragrap ent Select CAmmittee on
regulations issued mate and the Pezman ations
before the zeg~
f the
zesentatives
Intelligence o
Intelligence~~of the House of ~P `~ n
ta"xe effect.
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PROPOSED CONFERENCE- AGREEMENT - SUPPLEMENTAL RETIREMENT LEGISLATION
1. BASIC ANNUITY PLAN
Proposed conference agreement - May 14, 1986
A. Eligibility Federal ,civilian employees covered by Social
Security (generally, those employees hired
after December 31, 1983).
------------------------------------------
B. Employee 1.3% of pay in 1987,
contributions 0.94% in 1988-89, and
required 0.8% after 1989.
-----------------------------------------------
C. Vesting of retire- 5 years civilian service, provided
ment benefits employee's contributions are not refunded.
------------------------------------------------
D. Salary base Average of high-3 years salary.
--------------------------------
fi. Retirement benefit 1% of high-3 pay times years of service, or
1.1% if retiring after age 62 & 20 years svc.
---------------------------------------------
F. Eligibility for
retirement ~?
1. Unreduced
Age 62 & 5 years service,
age 60 & 20 years service, or
"Minimum Retirement Age" & 30 years service--
Year of birth
Minimum Retirement Age
-------------
-------------
Before 1948
--------
55
1948
55
& 2
months
1949
55
& 4
months
1950
55
& 6
months
1951
55
& 8
months
1952
55
&10
months
1953 - 1964
56
1965
56
& 2
months
1966
55
& 4
months
1967
55
& 6
months
1968
55
& 8
months
1969
56
&10
months
2. Reduced Minimum Retirement Age & 10 years service.
3. Involuntary Age 50 & 20 years service, or any age & 25
years service.
4. Deferred Unreduced benefit at age 62, if employee had
vested 5 years civilian service at termination and
did not get refund of contributions. Reduced
benefit available at Minimum Retirement Age
to vested employee with 10 years service.
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1. BASIC ANNUITY PLAN (continued)
- - - - - - - - - - - - - - - - - - y - - - - - - - - - - - - - -
Proposed conference agreement - May 14, 1986
G. Amount of annuity
1. Unreduced Based on accrual rate, without reduction.
2. Reduced Reduced 5X for each year under age 62.
3. Involuntary Based on accrual rate without reduction. Sup-
plement paid from Minimum Ret. Age to age 62.
4. Deferred vested Full accrued benefit payable at age 62.
1 t d t Minimum
e a
b
loyee retiring after Minimum Retirement
Em
p
H. Supplement payable
to age 62 Age with 30 years service, or age 60 with ZO
years service, gets Supplement to age 62,
equal to estimated Social Security benefit
earned in federal service.
Supplement is subject to earnings test,
similar to the test used by Social Security
at age 62, reducing Supplement if retiree
has earned income in excess of an annual
exempt amount (55,760 in 1986, wage-indexed`.
---------------------------------------
I. Refunds Option to withdraw contributions at separa-
tion with benefits forfeited.
-----------------------------------
J. Cost-of-living
adjustments (COLAs)
1. Annual COLA Increase in CPI Annual COLA percentage
percentage, -------------
based on Up to 2: ...............Same as CPI increase
increase in 2x to 3x ...............2:
Consumer Price 3X or more .............CPI increase minus 1
Index (CPI) percentage point
2. Eligibility Regular retirees over age 62, or
for COLA disabled and survivors at anv age.
----------------------------
H. Optional forms - 1. Joint-&-survivor annuity, automatic if
of benefits married unless jointly rejected.
Employee's annuity is reduced 10: to
provide spouse with 50~ survivor benet'it.
2. Alternative options that are actuarially
equivalent and offered by Office of
Personnel Management.
e a ec
Reduced benefit can
Retirement Age by former employee with 10
years of service.
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page 3
2. THRIFT-SAVINGS PLAN
? Proposed conference agreement - May 14, 1986
A. Eligibility Every 6 months employees have an open season
to join the plan or reallocate investments.
Newly hired employees may join at the second
open season (6 to 12 months after hire).
B
Contributions
by employer
and employees
Employer automatically contributes 1 percent
of pay into each employee's account.
' Employees may contribute up to 10% of pay,
as follows--
hi
t
ng
c
with employer ma
First 3% of pay........
51.00
per
51.00
Next 2Y of pay.........
.5.50
per
51.00.
So employer contributes at
for any employee.
moat
5%
of pay
Employees covered by CSRS also may contribute
up to 5x of pay, with no employer matching,
to invest in Fund A (government securities).
C Vesting Full and immediate vesting of all except the
1X-of-pay automatic government contribution.
This automatic contribution becomes vested at
3 years of service for career civil servants,
2 years of service for non-career SES and
' political (Schedule C) appointees, Members
and Congressional staff.
--------------------------------
D. Investments '
1. Employee may Fund A--Special government securities.
elect to invest
own account in: Fund B--Fixed-income securities, using
insurance company Guaranteed
Investment Contracts (GICs),
bank certificates of deposit or
other private-sector securities.
Fund C--Equities, using a stock index fund
? (invested in proportion to a diversi-
fied common stock portfolio such as
the Wilshire 5000 Equity index).
2. Management of The investment funds are managed by a Board
investment funds of 5 members appointed by the President,
taking into account one recommendation from
the Senate and one from the House. Executive
Director is responisible for investment
operations, employee recordkeeping, etc. '
Voting rights in connection with common stock
owned by the Plan are not exercised. __
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page 4
2. THRIFT-SAVINGS PLAN (continued)
----------------------------------
Proposed conference agreement - May 14, 1986
D. Investments (continued)
3. Phase-in of
private-sector
investment option
in early years of
the thrift plan:
Contributions
in calendar
year Employee Employer
------------- -------- --------
1s8~ loox loox
1988 80 100
1989 60 100
1990 40 100
1991 20 100
(After 1991, no funds derived from
employee contributions are required to
be held in government securities.)
Percentage required to be
in government securities
1992 0
1993 0
1994 0
1995 0
1996 0
(After 1996, no funds
be held in government
E. Payout of employee
retirement accounts
Employee may elect payout
account balance:
1. As annuity for life or
2. In cash (at retirement
disability).
3. As rollover to IRA (at
employment).
100
80
60
40
20
required to
securities.)
for a fixed term.
age, death or
termination of
Active employees may not withdraw funds.
,. - Program of loans to employees is
to be established by January 1, 1988.
.~
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page 5
3. SURVIVOR BENEFITS
Proposed conference agreement - May 14, 1986
A. Pre-retirement At death of married employee with 18 months
death benefit of civilian service, surviving spouse gets--
to spouse or
former spouse 1. Lump sum of 515,000 (indexed to CPI) and
one-half employee's annual rate of pay
or high-3 average if higher. Spouse may
elect payment as an annuity.
2. Annuity equal to 50% of accrued annuity,
if employee had 10 years of service.
These benefits are paid in addition to any
Social Security, group life insurance or
thrift plan death benefits.
------------------------------------------------------------------------
B. Children's benefits, Annually adjusted amounts, offset by Social
payable at death Security children's benefits, varying by
before or after number of children & whether or not orphaned.
retirement In 1986 amount is about $2,800 per child, up
to 3 children, or $3,400 if orphaned.
Payable to unmarried child up to age 18,
age 22 if in school, or any age if disability
started before age 18.
------------------------------------------------------------------------
C. Optional post- Employee's annuity. is reduced 10~ to provide
retirement annuity to surviving spouse.
death benefit
to spouse or Automatic if married unless .jointly
former spouse rejected by both spouses.
Surviving spouse gets (1) 50Y of employee's
unreduced annuity, and (2) supplement payable
to age 60 if ineligible for Social Security.
At spouse's death, employee's annuity is
restored to unreduced amount.
-------------------------------------------------------------------
D. Special provisions Benefits are the same as for surviving
for surviving spouses, subject to elections, court
former spouses, orders and deposits in certain cases.
or new spouses
due to marriage
after retirement
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page 6
4. DISABILITY BENEFITS
Proposed conference agreement - May 14, 1986
A. Administration Disability benefit paid if employee has 18
and eligibility months of civilian service.
8. Definition of Employee must be unable, because of disease
disability or injury, to render useful and efficient
service in the employee's position.
Employee will also qualify for Social
Security benefits if unable to work in any
substantial gainful activity.
Employee may not decline reasonable job offer
in the same agency and commuting area, at the'
same pay grade.
During disability, total income from work may
not exceed 80: of former job's current pay
level. Employee may be given physical exams.
C. Disability benefit
amounts
1. In first year 60~ of high-3 minus 100X of any Social
of payments Security benefit payable to the employee.
2. After 1st year, 40: of high-3 minus 60: of initial Social
up to age 62 Security benefit payable to the employee,
increased by annual COLA percentage (same as
allowed for basic annuity at age 62 & over),
but not below annuity earned to date.
------------------------------------------------------------------------
D. Retirement benefits Recomputed from basic annuity formula, but
after disabled limited to benefit payable to individual who
employee reaches gets Social Security (40:-less-60X formula).
age 62
_ Employee gets credit for years of disability
~~ toward basic annuity formula, and salary for
. purposes of the high-3 goes up at annual
COLA percentage.
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page 7
' Proposed conference agreement - May 14, 1986
A. Credited service
1. Part-time service Pay rate is increased to full-time rate, and
benefit formula uses pro-rated service.
2. Unused sick leave Not credited.
3. Military service To get credit for post-1956 military service,
employee must deposit 3% of military base pay
for period of service, plus interest if
deposit made more than 2 years after hire.
------------------------------------------------------------------------
B. Treatment of special
groups of employees
1. Firefighters,
law enforcement
officers and
air traffic
controllers
Unreduced benefit at age 50 & 20 years of
service, or any age & 25 years service.
Annuity is 1.7y of high-3 pay times years of
service up to 20, 1.OY times years over 20.
Supplement paid to age 62, equals estimated
Soc.Sec. benefit earned in federal service,
earnings-tested above Minimum Retirement age.
Annual COLA percentage applies at all ages.
Employees contribute additional 0.5: of pay.
2. Military reserve Employee separated due to termination of mil-
technicians itary service after age 50 & 25 years service
gets unreduced annuity with Supplement to 62,
earnings-tested above Minimum Retirement Age.
3. Members of Unreduced annuity for Members only at age 50
Congress and & 20 years of service, or any age & 25 years
Congressional of service.
employees
Annuity is 1.7: of high-3 pay times years of
service up to 20, 1.0: times years over ~0.
Earnings-tested Supplement paid from Minimum
Retirement Age to age 62.
No COLA to age retirees before age 62. These
classes contribute additional 0.5: of pay.
4. Employees of non- Not covered. Department of Defense is to
appropriated fund provide a study of how to give such employees
instrumentalities appropriate benefits and portability.
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page 8
5. MISCELLANEOUS PROVISIONS (continued)
Proposed conference agreement - May 14, 1986
C. Transfers of current Current employees may elect between July 1
employees covered by and December 31, 198? to transfer into the
CSRS to new program new plan including Social Security--
-- Credit in current program stops, but the
high-3 pay continues to run.
-- All service counts toward years needed
to be eligible for retirement, disability
' and vesting in both CSRS and new plan.
-- Employee gets survivor and disability
coverage from the new plan only.
-- Unused sick leave is credited under CSRS
based on the amount accumulated at date of
transfer, or date of retirement if lower.
-- Current .law Social Security windfall
benefit reduction provision is retained.
------------------------------------------------------------------------
D. Treatment of employees
re-hired, who were
not covered earlier
by Social Security
1. Employees with Remain out of Social Security and are covered
break-in-service by CSRS. May transfer to the new plan
up to 1 year including Social Security coverage.
2. Employees with Covered by Social Security, and--
break-in-service a) Those with less than 5 years under CSRS
over 1 year are covered by the new plan.
b) Those with 5 or more years under CSRS are
covered by CSRS with 100X offset of Social
Security. May transfer to the new plan.
------------------------------------------------------------------------
E. Transition from New plan's effective date is January 1, 1987.
interim plan in
effect 1984-86
1. Employees newly
hired on or after
January 1, 19134
2. Employees before
January 1, 1984,
covered then by
Social Security
mandatorily
Get credit for all service toward new plan.
Those covered on January 1, 1987 get credit
toward thrift plan of 1 of 1984-86 pay.
These employees get CSRS benefits, offset by
Social Security benefits attributable to
federal service, and pay contributions at the
CSRS rate less Social Security (OASDI) rate.
They may transfer to the new plan.
3. Employees re-hired These employees are treated the same as
during 1984-86 later re-hires (see D. above).
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~-eor '~ ,FNd o~
b'~? ~ stiauld
Co o f ~ ~r%~ ~ 4
DAVID ,S
~
~ ""'~~'
A
,
DDINGTON
COVNBgL
SUBCOMyITTE6 ON LEOIBLATION
HOUSE PERMANENT SELECT
COMMITTEE ON INTELLIGENCE
THE CAp~L
WASHINGTON, OC 20615
(2021 226-7310
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