LETTER TO HONORABLE CARL HAYDEN FROM LIEUTENANT GENERAL MARSHALL S. CARTER

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80B01676R002800260009-7
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 43
• Document Creation Date: December 12, 2016
• Document Release Date: April 22, 2002
• Sequence Number: 9
• Publication Date: August 31, 1962
• Content Type: LETTER

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Honorable, C" I
_. s l chairnion
Co ! on pprojwtatioaeae
United Mates Sensate
Washington 250 D. C.
Den Senator, lia
w ,.- a wwa "Mu'ruee, 'I aareee enclosing a copy of the Agency
comznunteatien. tft #.. x ..-..:~_d. _. _ -
den:
- .' w - _.4. - - rw- -a+-. W"w -MaIM19T
ve its retirement program tsar certain limited numbers of
tat_ 1AjkM a rlt.. -
gi s1 a
l d
. _
w.r.
permit we agency to
this group of-Agency personnel a retirement system
similar to that of as Ioreign Service.
OU 1 AuSaft 1962, liar. 'Vinson intaroduc+ed the proposed
legislation which is now H. p. 1 Z3. 'hereafter, on 28 August
1942, in axe, *e session before the Hose Armed Services Con..
mitten, bearings were hold on this bill. .wring the course of the
House hearings Mir. Vinson requested the Ageney, as a draft
service, to **vise the pr od legislation so that it did not
incorpeerahe by reference legisiatisa pertaining to o0w r departments
and ageeectaeee. essusaa,;t to his request. Such a bill has been drafted
by the Agency to accompljah the eama objectives as H. It. 12923.
A copy of thfs revised legislation is enclosed.
er lntormation is desired concerning this proposal,
?quest.
Marshall S. Carter
Lieutenant General, USA
Acting Diraator
Notes Enclos s
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Orig & 1 Addressee - hand carry
by Legislative Counsel
1 - A/ DCI
1-ED 1-D/Pers
1-ER 1-Leg. C.
I - DD/ S
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H nor&ble
Chairm
it OO en Armed Services
United States Ssnat.
Washington 25, D. C.
Deer
us sell;
On 14 August 1962, Mr. McCoons, forwarded to the
Congress draft legislation relating to an improved retirement
program for certain limited numbers of Agency employees.
Since that Vie, the Rau** A.rcaed Services Conunittee held
hearings in executive session e4 28 .august 1962 to consider
if. R. 129,33 which Mr. Vinson had introduced subsoq t to
our referral of the prop "*d l?gislatjon.
eq steel the A>[ea Ii.. V u ses,
r' cy, as a drafting servicev to revise the
Proposed legislation so that it chid not incorporate by reference
- _ ,_ ....
levislatton pertat j
n t
ILLEGIB
---r~? sir Rys ss
Pursuant to his request Mau axont lo
, such. a bill hue been drafted by the
Agency to accomplish the same Obfectives as H. R. 12923.
For your information. a copy of this rgvised legislation is
enclosed.
If the -gency can be of ar r assistance, is your review
of this proposed legislation I amt available to meet with you at
any t e, ?, j# jfOWVV*
tit, r e`e*p lest tstiv.a h...d.,A
auesiat in any way possible.
Faithfully yours,
shall S.
Lieutenant General, USA
,/,Acting Director
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ILLEGIB
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STATI NPL
xIQU e i Reparesentativos
Washington 25. 'D. C.
Dear Mr. Vinson:
Committee on Armed Services
Honorable Carl Viu#ran,
Chaff rmaaac - - r
to I appreciated the opportunity last Tuesday to present
you and the msmbe:rs
earpltlosa of of the Arn sd Services Committee our
[. R. 12823 and the reasons we believe such
Isgielaattiean is esassntio,l and urgnt.
the haeae;riragi we have redrafted 1-1. It. on your request at
stands On its ear without reference to statutes retiremn
systems of other agencies, snt
The draft which is end s*d substantial)
In s,~ecific lan y provides
for,
6uage, the objecttv0s which were intended to be
a
ccomplished by Ii. R. 12923. In order to provide for a
retirement systom which
necessarily required would stand c its Own merits, it
Also. I am available at a
y tin" to appear and other members of the Committee.
before either the full Cornrnittee o the CIA ubcomelm our mit a roP al
you deem beat.
t e, ate
-__.".?,,? is available to review these adetails
with Mr. r wi
ou
Again let me express my appreciation
CoepNration for your courtesy
.
althfully yours,
Isra~eerne
Marshall S. Carter
ieutersara:t General, USA
Acting Director
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 30 AUG 9M#;2
Hppruveu rur meiease cuuciuoic i : %,iM-murouau ioiomuucouucouuua-i
A B I L L
To amend the Central Intelligence Agency Act of 1949, as amended, and
for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, That this Act may be
cited as the "Central Intelligence Agency Act Amendments of 1962, "
Sec. Z. The Central Intelligence Agency Act of 1949, as amended
(50 U. S. C. 403 (a) et seq. ), is further amended as follows:
(1) In section 4 add the following new paragraphs (1)(G) and (1)(H), and
"(1)(G) Pay the travel expenses of officers and employees of the
Agency and members of their families, while serving at posts specifically
designated by the Director for purposes of this paragraph, for rest and
recuperation to other locations abroad having different environmental
conditions than those at the post at which such officers and employees
are serving, provided that such travel expenses shall be limited to the
cost for each officer or employee and members of his family of one round
trip during any continuous two-year tour unbroken by home leave and two
round trips during any continuous three-year tour unbroken by home leave. "
t9(1)(H) Pay the travel expenses of members of the family
accompanying, preceding, or following an officer or employee if, while
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App;
he is enroute to his post of assignment, he is ordered temporarily for
orientation and training or is given other temporary duty;"
"(8) Provide appropriate orientation and language training to
members of family of officers and employees of the Agency in antici-
pation of the assignment abroad of such officers and employees, or
while abroad. "
"(2) Amend section 4 (3) (A) to read as follows:
"(3) (A) Order to any of the several States of the United States
of America (including the District of Columbia, the Commonwealth of
Puerto Rico, and any territory or possession of the United States) on
statutory leave of absence each officer or employee of the Agency who
was a resident of the United States (as described above) at the time of
employment, upon completion of three years' continuous service abroad
or as soon as possible thereafter and may so order after completion of
eighteen months such service, "
"(3) Amend section 4 (5) by striking out subsections (A) and (C)
and inserting in lieu thereof the following new paragraphs (A) and (C):
"(A) In the event an officer or employee of the Agency or one of
his dependents, requires medical care, for illness or injury not the result
of vicious habits, intemperance or misconduct, while on assignment
abroad in a locality where there is no qualified person or facility to provide
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such care, pay the travel expenses of such person by whatever means
he shall deem appropriate, including the furnishing of transportation,
and without regard to the Standardized Government Travel Regulations and
section 10 of the Act of March 3, 1933, as amended (60 Stat. 808;
5 U. S. C. 73b), to the nearest locality where suitable medical care can
be obtained and on his recovery pay for the travel expenses of his return
to his post of duty. If any such officer, employee, or dependent is too ill
to travel unattended, or in the case of a dependent too young to travel
alone, the Director may also pay the round-trip expenses of an
attendant or attendants. "
"(C) (i) In the event of illness or injury requiring hospitalization or
similar treatment of an officer or employee of the Agency, not the
result of vicious habits, intemperance, or misconduct on his part, pay
for the cost of treatment of such illness or injury.
"(ii) In the event a dependent of an officer or employee of the Agency
who is stationed abroad, incurs an illness or injury while such dependent is
located abroad, which requires hospitalization or similar treatment, and
which is not the result of vicious habits, intemperance, or misconduct
on his part, pay for that portion of the cost of treatment of each such illness
or injury that exceeds $35 up to a maximum limitation of one hundred and
twenty days of treatment for each such illness or injury, except that such
maximum limitation shall not apply whenever the Director, on the basis of
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professional medical advice, shall determine that such illness or injury
clearly is caused by the fact that such dependent is or has been located
abroad."
(4) In section 5, add the following new paragraphs (g) and (h):
"(g) Where an officer or employee of another Government agency
transfers with the consent of such agency and is appointed to a position in
the Agency, such an officer or employee shall be entitled upon separation
from the Agency, to reinstatement to the position occupied at the time of
appointment or to a position of comparable salary in such other Government
agency."
"(h) Paragraph (4) of section 104 (a) of the Internal Revenue Code
of 1954 (26 U. S< C. 104 (a) )(4) (relating to the exclusion from gross income
of compensation for injuries and sickness) is hereby amended to read as
follows:
"(4) amounts received as a pension, annuity, or similar allowance
for personal injuries or sickness resulting from active service in the
armed forces of any country or in the Coast and Geodetic Survey or the
Public Health Service, or as a disability annuity payable under the
provisions of section 831 of the Foreign Service Act of 1946, as amended
(22 U. S. C. 1081; 60 Stato 1021), or as a disability annuity payable under
Title II of the Central Intelligence Agency Act of 1949, as amended
(50 U. S. C. 403 (a) et seq. )o
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Sec. 3. Insert the heading "TITLE I -- Definitions and General
Authorities" before the section title, "Definitions, " of section 1 of the
Central Intelligence Agency Act of 1949, as amended.
Sec. 4, The Central Intelligence Agency Act of 1949, as amended,
is further amended by the addition of TITLE II as follows:
" TITLE II -- THE CENTRAL INTELLIGENCE AGENCY
RETIREMENT AND DISABILITY
SYSTEM
"Part A -- Establishment of System
"Rules and Regulations
"Sec. 201. (a) The Director may prescribe rules and regulations for
the establishment and maintenance of a Central Intelligence Agency Retirement
and Disability System, referred to hereafter as the System.
"(b) The Director shall administer the System in accordance with such
rules and regulations and with the principles established by this Act.
"Maintenance of Fund
"Sec. 202. The Secretary of the Treasury shall maintain the special
fund, known as the Central Intelligence Agency Retirement and Disability
Fund, referred to hereafter as the Fund,
"Participants
"Sec, 203. The Director may designate from time to time such
Agency officers and employees, hereafter referred to as Participants, who
shall be entitled to the benefits of the System,
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"Annuitants
"Sec. 204. (a) Annuitants shall be persons who are receiving
annuities from the Fund and all persons, including surviving wives and
husbands, widows, dependent widowers, children and beneficiaries of
participants or annuitants who shall become entitled to receive annuities
in accordance with the provisions of this Act.
"(b) When used in this title the term --
"(1) "Widow" means the surviving wife of a participant who was
married to such participant for at least two years immediately preceding
his death or is the mother of issue by such marriage.
(2) "Dependent widower" means the surviving husband of a
participant who was married to such participant for at least two years
immediately preceding her death or is the father of issue by such
marriage, and who is incapable of self-support by reason of mental
or physical disability, and who received more than one-half of his
support from such participant.
(3) "Child" means an unmarried child, 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. In addition to the offspring of the participant and his or her
spouse the term includes (a) an adopted child, and (b) a step-child or
recognized natural child who received more than one-half of his
support from the participant.
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"Part B - Compulsory Contributions
"Sec. 211. (a) Six and one-half 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 Central
Intelligence Agency in the Treasury of the United States to the credit
of the Fund.
(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
affecting the individual's salary.
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"Part C -- Computation of Annuities
"Sec, 221, (a) The annuity of a participant shall be equal to
2 per centum of his average basic salary for the highest five consecutive
years of 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.
"(b) At the time of retirement, any married participant may
elect to receive a reduced annuity and to provide for an annuity
payable to his wife or her husband, commencing on the date following
such participant's death and terminating upon the death of such surviving
wife or husband, The annuity payable to the surviving wife or husband
after such participant's death shall be 50 per centum of the amount of
the participant's annuity computed as prescribed in paragraph (a) of this
section, up to the full amount of such annuity specified by him as the base
for the survivor benefits. The annuity of the participant making such
election shall be reduced by 2 1/2 per centum of any amount tap to $2, 400
he specifies as the base for the survivor benefit plus 10 per centum of any
amount over $2, 400 so specified.
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"(c) (1) 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) 40 per centum of the
annuitant's average basic salary, as determined under paragraph (a)
of this section, divided by the number of children; (ii) $600; or (iii)
$1, 800 divided by the number of children.
"(2) If an annuitant dies and is not survived by a wife or husband
but by a child or dhildren, each surviving child shall be paid an annuity
equal to the smallest of: (i) 50 per centum of the annuitant's average
basic salary, as determined under paragraph (a) of this section,
divided by the number of children; (ii) $720; or (iii) $2, 160 divided by
the number of children.
"(d) If a surviving wife or husband dies or the annuity of a child
is terminated, the annuities of any remainingc2phildren shall be recom-
puted and paid as though such wife, husband, or child had not survived
the participant.
(e) The annuity payable to a child under paragraph (c) or (d) of
this section shall begin on the first day of the next month after the par-
ticipant dies and such annuity or any right thereto shall be terminated
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upon death, marriage, or attainment of the age of eighteen years, except
that, if a child is incapable of self-support by reasons of mental or
physical disability, the annuity shall be terminated only when such
child dies, marries, or recovers from such disability.
""(f) At the time of retirement an unmarried participant may
elect to receive a reduced annuity and to provide for an annuity equal
to 50 per centum of the reduced annuity payable after his or her death"
to a beneficiary whose name shall be designated in writing to the
Director. The annuity payable to a participant making such election
shall be reduced by 10 per centum of an annuity computed as provided in
paragraph (a) of this section and by 5 per centum of an annuity so com-
puted for each full five years the person designated is younger than the
retiring participant, but such total reduction shall not exceed 40 per
centum. No such election of a reduced annuity payable to a beneficiary
shall be valid until the partici pant shall have satisfactorily passed a
physical examination as prescribed by the Director. The annuity payable
to a beneficiary under the provisions of this paragraph shall begin on the
first day of the next month after the participant dies, Upon the death of
the surviving beneficiary all payments shall cease and no further annuity
payments authorized under this paragraph shall be due or payable,
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"Part D -- Benefits Accruing to Certain Participants
"Retirement for Disability or Incapacity --
Physical Examination -- Recovery
"Sec. 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(a)(2),
and who becomes totally disabled or incapacitated for useful and efficient
service by reason of disease, illness, or injury not due to vicious habits,
intemperance, or willful misconduct on his part, shall, upon his own
application or upon order of the Director, be retired on an annuity computed
as prescribed in section 221. If the disabled or incapacitated participant
has less than twenty years of service credit 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
the mandatory retirement age applicable to his grade in the Agency.
"(b) In each case, the participant shall be given a physical examination
by one or more duly qualified physicians or surgeons designated by the
Director to conduct examinations, and disability shall be determined by the
Director on the basis of the advice of such physicians or surgeons. Unless the
disability is permanent, like examinations shall be made annually until the
annuitant has reached the statutory mandatory retirement age for his grade
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in the Agency. 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 recovery is determined.
Upon application the Director may reinstate any such recovered disability
annuitant in the class in which he was serving at time of retirement, or the
Director may, taking into consideration the age, qualifications, and
experience of such annuitant, and the present class of his contemporaries
in the Agency, appoint him to a grade higher than the one in which he was
serving prior to retirement. Payment of the annuity shall continue until a
date six months after the date of the examination showing recovery or until
the date of reinstatement or reappointment in the Agency, whichever is
earlier. Fees for examinations under this provision, together with
reasonable traveling and other expenses incurred in order to submit to
examination, shall be paid out of the Fund. If the annuitant fails to submit
to examination as required under this section, payment of the annuity shall
be suspended until continuance of the disability is satisfactorily established.
"(c) If a recovered disability annuitant whose annuity is discontinued
is for any reason not reinstated or reappointed in the Agency, he shall be
considered to have been separated within the meaning of section 234 as of
the date he was retired for disability and he shall, after the discontinuance of
the disability annuity, be entitled to the benefits of that section or of section
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241(a) except that he may elect voluntary retirement in accordance with the
provisions of section 233 if he can qualify under its provisions,
"(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,
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
Act of September 7, 1916, as amended, shall be so construed as to deny
the right of any person to receive an annuity under this Act by reason of his
own services and to receive concurrently any 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 effected
because such person has received an award of compensation in a lump
sum under section 14 of the Act of September 7, 1916, as amended, 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
effective, as determined by the Secretary of Labor, shall be refunded to
the Department of Labor, to be paid into the Federal Employees' Com-
pensation Fund. Before such person shall receive such annuity he shall
(1) refund to the Department of Labor the amount representing such
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computed payments for such extended period, or (2) authorize the
deduction of such amount 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.
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"Death in Service
" Sec. 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 in the order of precedence shown in section 241 (b).
" (b) If a participant, who has at least five years 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 dependent widower, as defined in section 204, such widow or
dependent widower shall be entitled to an annuity equal to 50 per centum of
the annuity computed in accordance with the provisions of paragraph (e)
of this section and of section 221 (a)0 The annuity of such widow or dependent
widower shall commence on the date following death of the participant and
shall terminate upon death of the widow or dependent widower, or upon
the dependent widower's becoming capable of self-support.
"(c) If a participant who has at least five years of service credit
toward retirement under the System, excluding military or naval service
that is credited in accordance with the provisions of section 251aar
252 (a) (2), dies before separation or retirement from the Agency and is
survived by a wife or a husband and a child or children, each surviving
child shall be entitled to an annuity computed in accordance with the
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provisions of section 221(c)(1). The 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 a
child, the annuities of any remaining children shall be recomputed and paid
as though such wife or husband or child had not survived the participant.
"(d) If a participant who has at least five years 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 not survived
by a wife 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 221(c)(2). The child's annuity shall begin and
terminate in accordance with the provisions of section 221(e). Upon
termination of the annuity of a child, the annuities of any remaining children
shall be recomputed and paid as though that child had never been entitled
to the benefit.
" (e) If, at the time of his or her death, the participant had less
than twenty years of service credit toward retirement under the System,
the annuities payable in accordance with paragraph (b) of this section
shall be computed in accordance with the provisions of section 221 on the
assumption he or she has had twenty years of service, but the additional service
credit that may accrue to a deceased participant under this provision
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shall in no case exceed the difference between his or her age on the date
of death and the mandatory retirement age applicable to his or her grade in
the Agency. In all cases arising under paragraphs (b), (c), (d), or (e) of
this section, it shall be assumed that the deceased participant was qualified
for retirement on the date of his death.
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"Voluntary Retirement
"Seca 233. Any participant in the Central Intelligence Agency
Retirement and Disability System who is at least 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.
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"Discontinued Service Retirement
"Sec, 234. (a) Any participant who separates from the Agency
after obtaining at least five years 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), 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 years.
"(b) If 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 dies before reaching the age of sixty his
contributions to the Fund, with interest, shall be paid in accordance with
the provisions of sections 241 and 281,
"(c) The Director may in his discretion retire participants in
Grade GS-14 and above to promote the efficiency of the Agency and they
shall receive retirement benefits in accordance with the provisions of
section 221.
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"(d) The Director may in his discretion retire participants in
Grade GS-13 and below to promote the efficiency of the Agency and each
such officer shall receive--
"(1) one-twelfth of a year's salary at his then current salary rate
for each year of service and proportionately for a fraction of a year, but
not exceeding a total of one year's salary at his then current salary rate,
payable without interest, from the Central Intelligence Agency Retirement
and Disability Fund, in three equal installments on the 1st day of January
following the officer's retirement and on the two anniversaries of this
date immediately following: Provided, That in special cases, the
Director may in his discretion accelerate or combine the installments;
"(2) a refund of the contributions made to the Central Intelligence
Agency Retirement and Disability Fund, with interest as provided in
section 241 (a), except that in lieu of such refund such officer, if he
has at least five years of service credit toward retirement under the
Central Intelligence Agency Retirement and Disability System, excluding
military or naval service that is credited in accordance with the
provisions of section 251 or 252 (a), may elect to receive retirement
benefits on reaching the age of sixty in accordance with the provisions
of section 221. In the event that an officer who was separated from Grade
GS-13 or GS-12 and who has elected to receive retirement benefits dies
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before reaching the age of sixty, his death shall be considered a death
in service within the meaning of section 232. In the event that an officer
who was separated from Grade GS-11 or below and who has elected to receive
retirement benefits dies before reaching the age of sixty, the total amount
of his contributions made to the Central Intelligence Agency Retirement
and Disability Fund, with interest as provided in section 241(a), shall
be paid in accordance with the provisions of section 241 (b)0
"(e) Notwithstanding the provisions of section 3477 of the Revised
Statutes, as amended (31 U. S. C. 203) or the provisions of any other law,
an Agency officer who is retired in accordance with the provisions of
section 234 (d) shall have the right to assign to any person or corporation
the whole or any part of the benefits receivable by him pursuant to
paragraph (d) (1) of this section. Any such assignment shall be on a
form approved by the Secretary of the Treasury and a copy thereof shall
be deposited with the Secretary of the Treasury by the officer executing
the assignment.
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"Mandatory Retirement for Age
"Sec, 2350 (a) Any participant in the System in Grade GS-18 or
above, shall upon reaching the age of sixty-five, be retired from the Agency
and receive retirement benefits in accordance with the provisions of section
221, but whenever the Director shall determine it to be in the public interest,
he may extend such an officer's service for a period not to exceed five
years,
"(b) Any participant in the System, other than in Grade GS-18 or
above, shall upon reaching the age of sixty, be retired from the Agency
and receive retirement benefits in accordance with the provisions of
section 221, but whenever the Director shall determine it to be in the
public interest, he may extend such an officer's service for a period not
to exceed five years.
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"Part E -- Disposition of Contributions and Interest in Excess of
Benefits Received
''Sec, 241. (a) Whenever a participant becomes separated from the
Agency without becoming eligible for an annuity or a deferred annuity in
accordance with the provisions of this Act, the total amount of contributions
from his salary with interest thereon at 4 per centum per annum, compounded
annually as of December 31, and proportionately for the period served
during the year of separation including all contributions made during or
for such period, except as provided in section 281, shall be returned to
him.
"(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 4 per centum per annum compounded annually
as is 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, accumulated at the same rate of interest up
to the date the annuity payments cease under the terms of the annuity, 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:
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" (1) To the beneficiary or beneficiaries designated by the retired
participant in writing to the Director;
"(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;
"(6) If none of the above, to other next of kin of such participant
as may be determined by the Director in 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 retired participant or his surviving annuitant,
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"Part F -- Period for Service for Annuities
"Computation of Length of Service
" Sec. 251, For the purposes of this title, the period of service
of a participant shall be computed from the date he becomes 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 in any calendar year shall be excluded,
except leaves of absence while receiving benefits under the Federal
Employees' Compensation Act of September 7, 1916, as amended, and
leaves of absence granted partipants while performing active and
honorable military or naval service in the Army, Navy, Air Force,
Marine Corps, or Coast Guard of the United States.
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"Prior Service Credit
" Sec. 252. (a) A participant may, subject 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 District of Columbia
government, prior to becoming a participant; and
"(2) active and honorable military or naval service in the Army,
Navy, Marine Corps, Air Force, or Coast Guard of the United States.
"(b) A person may obtain prior civilian service credit in accordance
with the provisions of paragraph (a) (1) of this section by making a special
contribution to the Fund equal to 5 per centurn of his basic annual salary
for each year of service for which credit is sought prior to November 8,
1960, and at 6 1/2 per centum thereafter with interest compounded annually
at 4 per centum per annum to the date of payment. Any such person may,
under such conditions as may be determined in each instance by the
Director, pay such special contributions in installments.
"(c)(1) If an officer or employee under some other Government
retirement system, becomes a participant in the System by direct transfer,
such officer or employee's total contributions and deposits, including interest
accrued thereon, except voluntary contributions, shall be transferred to
the Fund effective as of the date such officer or employee becomes a
participant in the System. Each such officer or employee shall be deemed
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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) No officer or employee, whose contributions are transferred to
the Fund in accordance with the provisions of paragraph (c)(1) of this
section, shall be required to make contributions in addition to those
transferred, for periods of service for which full contributions were made
to the other Government retirement fund, nor shall any refund be made to any
such officer or employee on account of contributions made during any period
to the other Government retirement fund, at a higher rate than that fixed
by section 211 of this Act for contributions to the Fund.
"(3) No officer or employee, whose contributions are transferred to
the Fund in accordance with the provisions of paragraph (c)(1) of this
section, shall 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 basis of
which he is receiving or will in the future be entitled to receive any annuity
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under another retirement system covering civilian personnel of the
"(e) A participant may obtain prior military or naval service credit
in accordance with the provisions of paragraph (a) (2) of this section by
applying for it to the Director prior to retirement or separation from the
Agency. However, in the case of a participant who is eligible for and
received 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
chapter 11 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. No contributions to the Fund shall be required in
connection with military or naval service credited to a participant in
accordance with the provisions of paragraph (a) (2) of this section,
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"Credit for Service While on Military Leave
"Sec, 254, 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, or Coast Guard of the United States,
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"Part I - - Voluntary Contributions
"Sec. 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 1 per centum of his basic salary, but not in excess
of 10 per centum of such salary, which amounts together with interest
at 3 per centum per annum, compounded annually as of December 31, and
proportionately 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; or
(2) used to purchase an additional life annuity; or
(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
with a guaranteed return to the beneficiary or his legal representative
of an amount equal to the cash payment referred to in paragraph 3,
" (b) The benefits provided by subparagraphs 2, 3, or 4 of paragraph
(a) of this section shall be actuarially equivalent in value to the payment
provided for by paragraph (a) (1) of this section and shall be calculated
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'Part G -- Moneys
" Estimate of Appropriations Needed
"Sec. 261. The Secretary of the Treasury shall prepare the
estimates of the annual appropriations required to be made to the Fund,
and shall make actuarial valuations of such funds at intervals of five
years, or oftener if deemed necessary by him, The Director may expend
from money to the credit of the Fund an amount not exceeding $5, 000 per
annum for the incidental expenses necessary in administering the
provisions of this title, including actuarial advice.
" Investment of Moneys in the Fund
"Sec. 262. The Secretary of the Treasury shall 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
"Sec. 263. None of the moneys mentioned in this title shall be
assignable either in law or equity, or be subject to execution, levy,
attachment, garnishment, or other legal process, except as provided in
section 234 (e),
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"Part H -- Annuitants Recalled, Reinstated or Reappointed in
the Service or Reemployment in the Government
''Recall
"Sec. 271, (a) The Director may recall any annuitant to duty in the
Agency whenever he shall determine such recall is in the public interest.
"(b) Any annuitant recalled to duty in the Agency 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,
31
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"Reemployment Compensation
"Sec. 272. (a) Notwithstanding any other provision of law, any
officer or employee of the Agency, who has retired under this Act,
as amended, and is receiving an annuity pursuant thereto, and who is
reemployed in the Federal Government service in anyappointive
position either on a part-time or full-time basis, shall be entitled to
receive the salary of the position in which he is serving plus so much
of his annuity payable under this Act, as amended, which when com-
bined with such salary does not exceed during any calendar year the
basic salary such officer or employee was entitled to receive on the
date of his retirement from the Agency. Any such reemployed officer
or employee who receives salary during any calendar year in excess of
the maximum amount which he may be entitled to receive under this
paragraph shall be entitled to such salary in lieu of benefits -hereunder,
"(b) When any such retired officer or employee of the Agency is
reemployed, the employer shall send a notice to the Central Intelligence
Agency of such reemployment together with all pertinent information
relating thereto, and shall pay directly to such officer or employee the
salary of the position in which he is serving,
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NO 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 officer or employee, or from any
other moneys, including his annuity, payable in accordance with the
provisions of this title,
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"Reemployment
"Sec. 273. Notwithstanding the provisions of title 5, United
States Code, section 62, and title 5, United States Code, section 715a,
an Agency officer or employee heretofore or hereafter retired under the
provisions of this Act shall not, by reason of his retired status, be barred
from employment in Federal Government service in any appointive position
for which he is qualified. An annuitant so reemployed shall serve at the
will of the appointing officer,
35
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upon such tables of mortality as may be from time to time prescribed
for this purpose by the Secretary of the Treasury.
" (c) In case a participant shall become separated from the Agency
for any reaton except retirement on an annuity, the amount of any
additional deposits with interest at 3 per centum per annum, compounded
as is provided in paragraph (a) of this section, made by him under the
provisions of this paragraph shall be refunded in the manner provided
in section 241 for the return of contributions and interest in the case of
death or separation from the Agency.
'(d) Any benefits payable to an officer or to his beneficiary in
respect to the additional deposits provided under this paragraph shall be
in addition to the benefits otherwise provided under this title. '
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 STATINTL Approved For Release 2002/08/21 : CIA-RDP80BO1676R002800260009-7
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 /1NNr VV U rur rCCICabG LVVLIVO/L I. %.II -rCVrOV V I of OF cowLUVVV -I-
Z4 August 196::
Honorable Peter Frelinghuyssn,
House of R resestatires
Washington 2.5, D. C.
Dear Peter:
Tuis in in and to your call last month concerning
STATINTL I talked to
STATINTL I Ishortly after your Call an ova t that he was
concerned about his future assignment. Our Personnel 0f-
fice reviewed other opportunities in the Agency, but in the
meantime his own office cane up with a new assignment
which apparently he likes. I think it is a all settled and that
hie is happy. Thanks a lot for calling it to my attention.
With best wishes as always.
Sincerely youm
(signet;) D. _iirkpatrick
Lyman B. Kirkpatrick
Executive Director
LBK/kg
Distribution:
0 - Addressee
1 - ED
. ER
1 - D/Fears.
l - Leg. C.
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