LETTER TO HONORABLE NELSON A. ROCKEFELLER FROM W.E. COLBY

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP77M00144R000600100013-4
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 40
• Document Creation Date: December 16, 2016
• Document Release Date: July 19, 2005
• Sequence Number: 13
• Publication Date: November 24, 1975
• Content Type: LETTER

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WASHING70N,D.C. 20505
~~ov ~97~
Honorable Nelson A , Rockefeller
President of the Senate
Washington, P . C . 20510
This, letter transmits for the consideration of the Congress a draft
bill to amend the Central Tntelligence Agency Retirement Act of 1964 for
Certain Employees , as amended .
Title I of the proposed legislation improves the financial soundness
of the CIA retirement system by adopting the same funding procedures
approved by the 91st Congress for .the Civil Service and Foreign Service
systems and as proposed to the 94th Congress for the Foreign Service
system .
Title II conforms the CIA I~.etirement Act to changes approved in
Public Latins 9I-658, 92-243, 93-260, 93-273, and 93-474 for the Civil Ser. vice
retirement system. Under these changes a widower of a female participant
is accorded the same treatment as a widow of a deceased male participant;
survivorship protection is extended to a spouse acquired after retirement
under certaixi conditions; the definition of a child entitled to an annuity is
expanded; the entitlement far a surviving spouse annuity is expanded; a
reduced annuity to provide for a surviving spouse is restored to a full
annuity if the annuitant is predeceased and does not remarry; certain
annuities granted prior to October 20, 1969 are increased and a minimum
annuity tied to Social Security levels is established; and retirement credit
is provided fox periods of separation covered by compensation for work
injuries. Title II also conforms the CIA Retirement Act to changes approved
in Public Laws 89-554, 86-415, and 87--233 far the Civil Service retirement
system. Under these changes recovery of payments may be waived in
certain instances and credit as military service is given for certain service
in the Public IIealth Service or the Coast and Geodetic Survey (now func-
tionally within the National Oceanic anal Atmospheric Administration) .
Further, Title II conforms the Act to Public Law 89-373 which revises the
regluirement to designate or change a beneficiary.
A number of the lcey features in the GIA Retirement Act are based
upon Civil Service retirement provisions. Enactment of the proposed
legislation will assure tho` the CIA ret~.rement system remains in line
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with the Civil Sex?vice system in important ax-eas concerning financial
soundness and survivorship annuities. Title II al:>o proposes an admini=
strative procedure to facilitate the comparable adopfion by the Agency
system of future changes in the Civil Service system which are substantially
identical to provisions in the Agency system . Thi;~ is based on a similar
proposal far the Foreign Service which was submitted to the 94th Congress .
We would appreciate early and favorable consideration of the
proposed bill. The Office of I~~fanagement and Budget has advised that
there is no objection to presenting the proposed bill to the Congress
from the standpoint of the Administration's program .
Sincerely,
SIG~3E]~??
W . E . Colby
Director
Distribution:
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WASHINGTON,D.C. `LO5O5
OLG 75-2944/a
Honorable Carl Albert
Speaker of the House of Representatives ~ ~ 1~~V 1975
4dashington, D . C . 20515
Dear 1~4r . Speaker:
~.Chis letter transmits for the consideration of the Congress. a draft
-bill to amend the Central Intelligence Agency Retirement Act of 1964 for
Certaizz Employees , as amended .
Title I of the proposed legislation improves the financial soundness
of the CIA retirement system by adopting the same funding procedures
approved by the 91st Congress for the Civil Service and Foreign Service
systems and as proposed to the 94th Congress for the Foreign Service
system . ?
~~
Title II conforms 'the CIA Retirement Act to changes approved in
Public Laws 91-65$, 92-243, 93-260, 93-2.73, and 93-474 for the Civil Service
retirement system. Under these changes a widower of a female participant
is actor. ded the same treatment as a widow of a deceased male participant;
survivorship protection is extended to a spouse acquired after retirement
under certain conditions; the definition of a child entitled to an annuity is
expanded; the entitlement for a surviving spouse annuity is expanded; a
reduced annuity to provide far a surviving spouse is restored to a full
annuity if the annuitant is predeceased and does not remarry; certain
annuities granted prior to 4ctaber 20, 1969 are increaser'. and a zninirnum
annuity tied to Social Security levels is established; and retirement credit
is pxovided for periods of separation covered by compensation for work
injuries, Title II also conforms the CIA Retirement Act to changes approved
in Public Laws 89-554, 86-415, and 87-233 for the Civil Service retirement
system . Under these changes recovery of payments may be waived in
certain instances and credit as military service is given for certain service
in -the Public Health Service or the Coast and Geodetic Survey (now func-
tionally ~,vithin the National Oceanic and Atmospheric Aclministratiaza) .
Further, Title II conforms the Act to Public Law $9-373 which revises the
requirement to designate or change a beneficiary.
A number of the key features in the CIA Retirement Act are based
upon Civil Service retirement provisions. Enactment of the proposed
legislation will assure that the CIA retirement system remains in Line
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with the Civil Service system in important areas concerning financial
soundness and survivorship annuities, Title II also proposes an admini-
strative procedure to facilitate th.e comparable adoption by the Agency
system o# future changes in the Civil Service system which are substantially
identical to provisions in the Agency system, This is based on a similar
proposal for the I~'ox?eign Service which was submitted to the 94th Congress,
We would appreciate early and favorable consideration of the
proposed bill, x'he Office of Management and Budget has advised that
there is no objection to presenting the proposed bi l to the Congress
from the standpoint of the Administration's program .
Sincerely,
sz~a~~~
W . E . Colby
Director
Distribution:
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STAT
1 - OLC/Chrono wo/encl.
ULC/PLC/dlw~(19: Nov. 1975)
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To amend the Central Intelligence Agency Retirement Act of 1964 for
Certain Employees, as amended, and for other purposes,
1 .,. Be it enacted by the Senate and House of Representatives of
2 the United States of America in Congress assembled,
3 TITLE I -- RETIREMENT FINANCING
4 SEC. 101. Section 111 of the Central Intelligence Agency
5 Retirement Act of 1964 for Certain Employees, as amended,
6 (78 Stat . 1043; 50 U . S . C . 403 note) is amended--
? (a) by striking out "and" at the end of paragraph (2);
$ (b) by striking out the period at the end of paragraph (3)
9 and inserting a semicolon in lieu thereof; and
10 (c) by adding the following new paragraphs (4), (5), and (6):
11 "(4) 'Fund balance' means the sum of--
12 ~ "(a) the investments of the fund calculated at
13 par value; and
14 "(b) the cash balance of the fund on the books
15 of the Treasury;
16 "(5) 'Unfunded liability' means the estimated excess of
17 the present value of all benefits payable from the fund to
18 participants and former participants, subject to this Act,
19 and to their survivors, over the sum of --
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1 "(a) the present value of deductions to be
2 ~ withheld from the future basic salary of participants
3 currently subject to this Act and of future Agency
4 contributions to be made in their behalf; plus
5 ~?? "(b) the present value of Government .payments
6 to the fund under section 261 (b) and (c) of this Act;
? plus
8 "(c) the fund balance as of the date the unfunded
9 liability is determined; and
10 "(6) 'Normal cost' means the level percentage of
11 payroll required to be deposited in the fund to meet the cost
12 of benefits payable under the System (computed in accordance
13 with generally accepted actuarial practice on an entry-age
14 basis) less the value of retirement benefits earned under
15 another retirement system for Government employees and less
16 the cost of credit allowed for military service."
1? SEC . 102. Section 261 of the Central Intelligence Agency
1$ Retirement Act of 1964 for Certain Employees, as amended, (?8 Stat.
19 1043; 50 U . S . C . 403 note) is amended by inserting "(a)" after "261. "
20 and by adding the following new paragraphs (b), (c), and (d):
21 "(b) Any statute which authorizes--
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1 "(1) new ar liberalized benefits payable from
2 the fund, including annuity increases other than under
3 section 291 of this Act;
4 "(2) extensian of the coverage of this Act to new
5 groups of employees; or
6 "(3) increases in~~salary on which benefits are
7 computed is deemed to authorize appropriations to the
g fund to finance the unfunded liability created by that
q statute in thirty equal annual installments with interest
10 computed at the rate used in the then most recent
Il valuation of the System and with the first payment
12 thereof due as of the end of the fiscal year in which
13 each new or liberalized benefit, extensian of coverage,
14 or increase in salary is effective.
15 "(c) At the end of each fiscal year, effective with
16 Fiscal Year 1976, the Director shall notifg the
1? Secretary of the Treasury of the amount of the normal
lg cost far that year which was not met by contributions
19 under section 211(a) . Before closing the account. for
20 that year, the Secretary of the Treasury shall credit
21 such amount to the fund as a Government contribution
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out of any money iri the Treasury of the United States
not otherwise appropriated.. The Secretary shall.
report to the President and to the Congress the sums
credited to the fund under this section.
"(d) At the end of each fiscal year, the Director
shall notify the Secretary of the Treasury of 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. Before closing
the accounts for each fiscal year, the Secretary shall
credit to the fund, as a Government contribution, out
of any money in the Treasury of the United States not
otherwise appropriated, the fallowing percentages of
such amounts: 60 percent for 1976; 70 percent for 1977;
80 percent for 1978; 90 percent for 1979; and 100 percent
for 1980 and for each fiscal year thereafter . "
TITLE II -- RETIREMENT ACT AMENDMENTS
SEC . 201. Section 204 of the Central Intelligence Agency
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5
1 Retirement Act of 1964 for Certain Employees, as amended,
2 (7$ Stat. 1043; 50 U , S . C . 403 note) is amended--
3 (a) by striking "dependent" in subsection (a);
4 (b) by striking "Dependent widower" and inserting
5 "Widower" in lieu thereof in subsection (b) (2);
6 (c) by inserting a period before first comma and striking
7 the remainder of the sentence in subsection (b) (2);
8 (d) by inserting before the comma in subsection (b) (3) (i)
9 the words: "or a child who lived with and for whom a petition for
10 adoption was filed by a participant and who is adopted by the
11 surviving spouse after the participant's death. "; and
12 . (e) by striking out "two .years" wherever it appears and
13 inserting in lieu thereof "one year . "
14 SEC. 202. Section 221 (b) of the Central Intelligence Agency
15 Retirement Act of 1964 for Certain Employees, as amended, (7$
16 5tat.. 1043; 50 U . 5 . C . 403 note) is amended to read as follows:
1? "(b) (1) If a participant dies after having retired and
18 is survived by a spouse to whom he or she was married at
19 the time of retirement, or by a widow or widower whom he
20 or she married after retirement, the spouse, widow, or
21 ~ widower is entitled to an annuity equal to 55 percent of the
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1 amount of the participant's annuity computed as prescribed
2 in paragraph (a) of this section, up to the full amount of
3 such annuity specified by the participant. as the base far
4 such survivor benefits at the time of retirement. The annuity
5 ~ of the participant shall be reduced by 2 1/2 per centum of any
6 amount up to $3, 600 specified by the participant as the base
7 for such survivor benefit plus 10 per centum of any amount
$ over $3, 600 so specified .
9 "(2) If an annuitant dies after having elected a reduced
10 annuity provided in paragraph (2) of section 221 (f) the
11 surviving widow or widower is entitled to an annuity computed
12 as prescribed in paragraph (1) of this subsection.
13 "t3~ A spouse acquired after retirement is entitled to a
14 .survivor annuity under this subsection only upon electing
15 this annuity instead of any other survivor benefit to which he
16 or she may be entitled under this or another retirement system
17 for Government employees. The annuity of the spouse, widow,
18 ar widower under this subsection commences on the day after.
19 the annuitant dies . This annuity and the right thereto
20 terminate can the last day of the month before the spouse, widow,
21 or widower--
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1 "(A) dies; or
2 "(B) remarries before becoming 60 years of age, rr
3 "(4) An annuity which is reduced under this subsection
4 shall, for each full month during which an annuitant is not
5 "~ married, be recomputed and paid as if the annuity had not
6 been so reduced . Upon remarriage of the annuitant, the
7 annuity shall be reduced by the s~.me percentage reductions
8 which were in effect at the time of retirement."
9 SEC. 203. Section 221(f) of the Central Intelligence Agency
10 Retirement Act of 1964 for Certain Employees, as amended, (78 Stat.
li 1043; 50 U . S , C . 403 note) is amended--
12 .(a) by inserting "(1)" immediately after "(f)"; and
13 (b) by adding at the end thereof the following new paragraph (2)
14 "(2) A participant, who is unmarried at the time of
15 retiring and who later marries, may irrevocably elect,- in a
16 signed writing received in the Agency within one year after
17 the marriage, a reduced annuity as provided in section 221(b) .
18 The xeduced annuity is effective the first day of the month x
19 after the election is received . The election voids prospectively
24 .any election previously made under the provisions of par. agraph
Zl (1) of this s~zbsection."
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1 SEC. 204.. Section 221 of the Central Intelligence Agency
2 Retirement Act of 1964 for Certain Employees, as amended, (?8 Stat:
3 1043; 50 U . S . C , 403 note) is amended by adding at the end thereof.
4 the following new subsection:
"(I) (1) Notwithstanding any other provision of this
section, the monthly rate of annuity payable under subsection'
(a) of this section, shall not be less than the smallest
primary insurance amount, including any cost-of-living
9 increase added to that amount, authorized to be paid from
10 time to tame under title II of the Social Security Act.
11 '" (2) Notwithstanding any other provision of this
section, other than this subsection, the monthly rate of
13 annuity payable under subsection (a) of this section to a
14 surviving child shall not be less than the smallest primary
15 insurance amount, including any cost-of-living increase added
16 to that amount, authorized to be paid from time to time under
17 title II of the Social Security Act, or three times such primary
18 insurance amount divided by the number of surviving children
19 entitled to an annuity, whichever is the lesser .
"' (3) The provisions of this subsection shall not apply
to an annnsitant or to a survivor who is or becomes entitled
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1 to receive from the United States an annuity or retired pay
2 under any other civilian or military retirement system,
3 benefits under title II of the Social Security Act, a pension,
4 veterans' compensation, or any other periodic payment of a
5 similar nature, when the monthly rate thereof, is equal to or
6 greater than the smallest primary insurance amount, including
7 any cost-of-living increase added to that amount, authorized
8 to be paid from time to time under title II of the Social
9 Security Act."
10 SEC. 205. Section 232(b) of the Central Intelligence Agency
11 Retirement Act of 1964 for Certain Employees, as amended, (78 Stat.
I2 1043; 50 U . S . C . 403 note) is amended--
13 (a) by striking "dependent" wherever it occurs; and
14 (b) by inserting a period after "section 221(8)" and striking
15 the remainder of the section.
16 SEC. 206. Section 241 (b) (1) of the Central Intelligence Agency
1? Retirement Act of 1964 for Certain Employees, as amended, (7$ Stat.
18 .1043; 50 U . S , C . 403 note) is amended to read as follows:
T9 "(1) To the beneficiary ar beneficiaries designated by
20 such participant in a signed and witnessed writing received
21 by the Agency before his death. For this purpose, a
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1 designation, change, or cancellation of beneficiary in a will
2 or other document not so executed and filed shall have no
3 force ar effect; "
4 SEC. 207. Section 251 of the Central Intelligence Agency
5 Retirement Act of 1964 for Certain Employees, as amended, (78 Stat.
6 1043; 50 U . S . C . 403 note) is amended--
7 (a) by striking "the Federal Employees' Compensation Act of
8 ~ September 7, 1916, as amended (5 U .S . C ..751 et seq. )" and inserting
9 in lieu thereof "chapter 81 of title 5, United States Code or any earlier
10 statute on which such chapter is based"; and
11 (b) by adding at the end thereof the following new sentence:
12 "A participant or former participant who returns to
13 Government duty after? a period of separation shall have
14 ,included in his period of service that part of the period of
15 separation in which he was receiving benefits under chapter
lb 81 of title 5, United States Code or any earlier statute on
17 which such chapter is based . "
18 SEC. 208. Section 252 of the Central Intelligence Agency
19 Retirement Act of 1964 for Certain Employees, as amended, (78 Stat.
20 1043; 50 U .5 . C . 403 note) is amended by striking the period at the
21 end of paragraph (a) (2) thereof and adding the following:
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1 "or active and honorable service in the Regular or Reserve
2 Corps of the Public Health Service after June 30, 1960 or as a
3 commissioned officer of the National Oceanic and Atmosphez-ic
4 Administration after June 30, 1961."
5 ~ SEC. 209. The Central Intelligence Agency Retirement Act of
6 1964 for Certain Employees , as amended, (78 Stat . 1043; 50 U .S . C .
7 403 note) is amended by adding iri "Part G--Moneys" thereof the
8 ~ following new section 264:
9 "RECOVERY OF PAYMENTS
10 "SEC. 264. Recovery of payments under this Act may
11 not be made from an individual when in the judgment of the
12 Director, the individual. is without fault and recovery would
13 be against equity and good conscience. Withholding oF?
14 recovery of money mentioned by this Act on account of a
15 certification or payment made by a former employee of the
16 Central Intelligence Agency in the discharge of his official
17 duties may be made if the Director certifies that the certifi-
18 cation or payment involved fraud on the part of the former
19 employee . "
20 SEC . 210. The Central Intelligence Agency Retirement Act of
21 1964 for Gertain Employees , as amended , (78 Stat . 1043; 50 U . S . C .
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1 403 note) is amended by adding at the end thereof the following
2 new section:
3 "PART K -- CONFORMITY WITH CIVIL SERVICE RETIREMENT
4 SYSTEM
5 "AUTHORITY TO MAINTAIN EXISTING AREAS OF
6 CONFORMITY BETWEEN CIVIL SERVICE AND CENTRAL
7 INTELLIGENCE AGENCY RETIREMENT AND DISABILITY
8 SYSTEMS:
9 "SEC . 292. (a) Whenever the President determines
10 that it would be appropriate for the purpose of maintaining
11 existing conformity between the Civil Service Retirement and
12 ? Disability System and the Central Intelligence Agency Retire-
13 ment and Disability System with respect to substantially
14 identical provisions, he may, by Executive order, extend to
15 current or former participants in the Central Intelligence
16 Agency Retirement and Disability System, or to their
17 survivors, a provision of law enacted after January 1, 1975
18 which:
"(1) amends subchapter III, chapter 83, title 5,
United States Code, and is applicable to Civil Service
employees generally, or
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1 "(2) otherwise affects current or former partici-
2 pants in. the Civil Service Retirement and Disability
3 System, or their survivors. '
4 Any such order shall extend such provision of law so
5 that it applies in like rzianner with respect to such Central
6 Intelligence Agency Retirement and Disability System partici-
? pants, former participants or survivors. Any such order shall
8 have the force and effect of law and~rnay be given retroactive
9 effect to a date not earlier than the effective date of the
10 corresponding provision of law applicable to employees under
11 the Civil Service retirement system .
12 ~ "(b) Any provisions of an Executive order issued
13 pursuant to this section shall modify, supersede, or render
14 inapplicable, as the case may be, to the extent inconsistent
15 therewith--
"(1) all provisions of law enacted prior to the
effective date of the provision of such Executive order,
18 and
19 "(2) any prior provision of an Executive order
20 issued under authority of this section."
21 SEC . 211. (a) An annuity payable from the Central Intelligence
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i
14
1 Agency Retirement and Disability Fund to an annuitant which is based
2 on a separation occurring prior to October 20, 1969, is increased by
3 $240 per annum .
4 (b) In lieu of any increase based on an increase under sub-
5 section (a) of this section, an annuity payable from the Central
6 Intelligence Agency Retirement and Disability Fund to the surviving
7 spouse of an annuitant, which is based on a separation occurring
8 prior to October 20, 1969, shall be increased by $132 per annum.
9 (c) The monthly rate of an annuity resulting from an increase
10 under this section shall be considered as the monthly rate of annuity
11 payable under Section 221 (a) of the Central Intelligence Agency
12 Retirement Act of 1964 for Certain Employees, as amended, (78 Stat.
13 1043; 50 U . S . C . 403 note) far purposes of computing the minimum
14 annuity under new Section 221(1) of the Act, as added by Section 204
15 of this Act .
16 SEC . 212. (a) This Act shall become effective on the date of
17 enactment.
18 (b) The amendments made by sections 201 (a) , (b) , (c) , and
19 (d) , 202 , and 205 shall not apply in the case of participants who died
20 before January 8, 1971. The amendments made by section 201 (e) shall
21 not apply in the case of participants who died before April 9, 1974.
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1 T,he rights of such persons and their survivors shall continue in
2 the same manner and to the same extent as if such amendments had
3 not been enacted .
4 (c) The amendment made by section 203 shall apply to a parti-
5 cipant who married prior to enactment but only if the election is made
6 within one year after enactment.
? (d) The amendment made by section 207 is effective only with
$ respect to annuity accruing for full months beginning after January 8,
9 1971; but any part of a period of separation referred to in such amend-
10 ment in which the participant or farmer participant was receiving
11 benefits under chapter 81 of title 5, United States Code, or any earlier
12 statute on which such chapter is based shall be counted whether the
13 person returns to duty before, on, or after January 8, 1971. With
14 respect to any person retired before such date of enactment, any such
15 part of a period of separation shall be counted only upon application
16 of the retired person.
17 (e) The amendment in Section 208 to credit certain service in
18 the Public Health Service is effective as of April 8, 1960 and the
19 amendment to credit certain service in the National Oceanic and Atmas-
20 pheric Administration is effective as of September 14, 19b1.
21 (f) The amendment in Section 209 is effective as of June 30, 1974.
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16
1 (g) The amendment to recompute a reduced annuity during
2 periods when not married in section 202 shall apply to annuities
3 which commence before, an, or after the date of enactment of this
4 Act, but no increase in annuity shall be paid far any period prior to
5 November 1, 1974.
6 (h) Annuity increases under sections 204 and 211 shall apply
7 to annuities which commence before, on, or after. the date of enact-
S ment of this Act, but na increase in annuity shall be paid for any
9 period prior to August 1, 1974, or the date on which the annuity
10 commences, whichever is later.
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. 5ECTIONAL ANALYSIS AND EXPLANATION
Section 101 amends section 111 of the Central Intelligence Agency Retire-
ment Act of 1.964 for Certain Employees, as amended, to add three definitions
concerning the funding of the System:
"Fund balance" is defined as the par value of securities
in which retirement money is invested plus the uninvested cash
remaining in-the Retirement Fund."
" "Unfunded liability" is defined as the estimated amount
needed to finance all benefits payable from the Fund less the
money now in the Fund and to be placed in the Fund in the
future.
"Normal cost" is defined as the level percentage of
payroll required to meet the cost of benefits payable under
the System, less the expenses attributable to service
performed under another retirement system .
The preceding definitions are necessary for implementing subsequent
provisions of the bill; definitions comparable to the first two were adopted
by the Civil Service Retirement System under section 101(3) of Public Law
91-93; the normal cost definition is similar to that proposed for the Foreign
Service system,
Sectian 102 amends section 261 of the Act to add three new paragraphs
cancerning the funding of the System:
New paragraph (b) authorizes appropriations to the Fund-
in equal annual installments over a 30-year period to finance
any newly created unfunded liability incurred by the enactment
of future legislation, or the exercise of authority based on
statute, including benefit improvements for active employees,
extension of coverage to new groups of employees, general
Salary increases , and any new statutory annuity increases
(other than automatic cost-of-living adjustments) . Interest
would be required to be included "in these amartized payments at
the rate used in the then most recent valuation of the system .
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New paragraph (c) provides for direct appropriations, under
permanent indefinite authority, to be made to meet that portion of
the normal cost of the System which is not being currently defrayed
by contributions. This paragraph would direct the Secretary of
Treasury to report to the President and to. the Congress, the sums
credited to the Retirement Fund under this section.
-New paragraph (d) provides for direct appropriations, under
permanent indefinite authority, to be made to meet the Government's
obligations for: (1) the present unfunded liability which arises from
legislation already enacted, authority, based on statute already
exercised plus. any that may arise as a result of Title II of this bill,
-and (2) the cost of military service credit. New paragraph (d) would
direct the Secretary of Treasury to pay into the Fund each year:
- (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. Payments under this paragraph would commence an
June 30, 1976, at b0 percent of the prescribed amount. An additional
10 percent would be paid in each subsequent year until, in 1980 and
in each subsequent year, 100 percent of the prescribed amount would
be paid . -The Director would be required to report to the President
and to the Congress the sums credited under this procedure .
Provisions identical to new paragraphs (b) and (d) , except for
appropriate updating, were adopted for the Civil Service by sections 103(a)
(2) and 10.3{b) of Public Law 91-93 and for the Foreign Service by sections
104(a) and 104 (b) of Public Law 91-201. A provision similar to new para-
graph (c) has been proposed for the Foreign Service system.
TITLE II--RETIREMENT ACT AMENDMENTS
Section 201 removes dependency requirements from the definition of
the term '?widower" and thereby conforms the Act to the requirement of
Public Law ''92-18? concerning equality of benefits for married women Federal
employees. As a result, widowers of female participants or retirees will be
accorded the same benefits as widows of deceased male participants or
retirees . Section 201 also changes the definition of child to include an adopted
child who is under a petition for adoption at the time of the partici'pant's
death and r?sakes such child eligible for survivorship benefits if the surviving
spouse proceeds with the adoption. Section 201 further changes the definition
of "widow" .and "widower" to reduce from two years to one year the marriage
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3
requirement'to be entitled to a survivor annuity and thereby conform the Act
to Public Law 93-260.
Section 202 does five things:
First, it amends the current provision for annuity for
.surviving spouse to whom the retiree was married at the .time
of retirement by authorizing payment of that annuity to a
subsequent spouse. The spouse acquired after retirement
must qualify as a widow or widower as those terms. are defined
in section 204 of the Act as amended by section 201 of the bill.
Second, it authorizes a survivor annuity for a widow or
widower of a retiree who was unmarried at the time of retire-
ment, subject to the election of a reduced annuity for this purpose
by the retiree pursuant to section 203 of the bill.
.
Third, it requires the surviving spouse, widow, or
widower to elect between the benefits afforded under section 202
of the bill and any other entitlements to survivor benefits from a
retirement system for Government employees.
Fourth, it provides far the commencement and termination
.date for the survivor annuities provided under section 202 of the
bill .
Finally, it provides that annuities reduced to provide for a
surviving spouse shall for each full month during which an annui-
tant is not married, be recomputed and paid as if the annuity had
not been reduced . Upon remarriage, the annuity would be reduced
by the same percentage as in effect at the time of retirement. All
annuities are covered except no increase in annuity may be made
for any period prior to November 1, 1974. This conforms the Act
to Public Law 93-474, which became effective October 26, 1974.
Section 203 provides a retiree who is unmarried at the time of retire-
ment with an irrevocable election to select a reduced annuity and provide,
under section 202 of the bill, survivorship protection for a spouse acquired
after retirement . The election must be received within one year after the
marriage anti. voids any election made at the time of retirement for a
survivor annuity for an individual with' an insurable interest as authorized
under currexit law (section 221 of the Act) . The retiree's annuity is paid
at the reduced xate starting with the first day of the month fallowing receipt
of the election .
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Section 204 imposes a minimum retirement annuity based upon the
Social Security minimum primary insurance amount and conforms the Act to
the requirements of Public Law 93-273, which increased certain annuities
and was signed into law April 26, 1974. The annuitant's monthly benefit
would not be increased to such minimum if the individual receives any other
periodic payment from the United States Government of a similar nature,
including, but not limited to, social security, annuity, other civilian or
military retired pay, pension, or veterans compensation, and the monthly
rate of such periodic payment equals or exceeds the smallest primary
insurance amount which may be in effect from time to time.
Section 205 changes the "Death in Service" provisions of the Act
(section 232) to remove the dependency "requirements currently attached to
the payment of a survivor annuity to a widower of a female participant who
dies in service. The changes are compatible with the changes made in the
definition of the term "widower" under section 201 of the bill.
Section 206 amends Section 241 of the Act with regard to filing desig-
nation of beneficiary for the payment of contributions and interest in excess
of benefits received to survivors of participants under the Act. The amend-
ment states clearly that the order of preference set out in that section shall
prevail over any extraneous document designating a beneficiary unless the
designation has been received by the Director . This conforms the Act to a
similar provision in the Civil Service Retirement system under Public Law
89-373- approved March 23, 1966. The provision was sought by the Civil
Service Commission to make clear that the statutory order of precedence
prevails and avoid the problems of conflicting case law and resultant
serious. delays in paying insurance claims to survivors.. Adoption of the
provision by the Central Intelligence Agency Retirement Act will avoid
these same problems .
Section 207 updates the citation in Section 251 of the Act. Section 207
also provides retirement service credit for periods of separation from
Federal Government employment covered by employees' compensation for
work. injuries under 5 U . S . C . 8101 et seq.
Section 208 amends.Section 252 of the Act to credit service in the
Regular or Reserve Corps of the Public Health Service after June 30, 1960,
or as a commissioned officer in the Coast and Geodetic Survey after June 30,
1961, This conforms the Act to Public Law 86-415, approved April 8, 1960,
which credits, as military service under the Civil Service Retirement Act,
certain prior service in the Regular or Reserve Corps of the Public Health
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Service after June 30, 1960, and. conforms the Act to Public Law 8?-233,
approved September 14, 1961, which similarly credits under the Civil
Service system service as a commissioned officer in the Coast and
Geodetic Survey (now functionally within the National Oceanic and
Atmospheric Administration) .
Section 209 adds a new section to "PART G--MONEYS" to grant the
Director the authority to waive recovery of payments from a recipient made
under the Act if in the judgment of the Director the individual is without
fault and recovery would be against equity and good conscience. This
section also allows the Director to withhold or recover moneys mentioned
under the Act from a former employee of the Agency where there is a
finding and certification by the Director that the former employee exercised
fraud. This section conforms the Act to a similar provision in the Civil
Service retirement system (section 8346 of Title 5, U . S . C . , Public Law 89-
554), which became effective September 6, 1966. The necessity for this
provision was highlighted as the result of the recent overpayment in
cost-of-living increases for all G~ivernrnent retirement systems based on a
miscalculation of the data utilized'. This section would be made effective
sufficiently retroactive to allow the Director to waive the overpayment to
annuitants under the Agency!s retirement system as was done by the
Civil Service Commission in December 1974 for Civil Service retirees.
Section 210 adds a new "PART K--CONFORMITY WITH CIVIL SERVICE
RETIREMENT SYSTEM" to the Act to authorize administrative changes in
Central Intelligence Agency retirement provisions to maintain existing con-
formity between the Civil Service and Central Intelligence Agency retirement
systems. Under this amendment, whenever a law enacted after January 1,
1975 amends a provision of the Civil Service retirement system or otherwise.
changes retirement benefits for employees or annuitants under that system
which prior thereto had been substantially identical to a corresponding
provision of law governing benefits payable under the Central Intelligence
Agency retirement system, the President, if he determines it appropriate
to maintain the- previous conformity between the two systems could issue:an
order to apply the new Civil Service provision or benefit to the Central
Intelligence Agency . This could be done retroactively in the interest of "
equity where necessary.
In addition to the applicability of this proposal to amendments of
Civil Service retirement provisions that were substantially identical to '
corresponding Central Intelligence Agency retirement provisions immediately
prior fo enactment of the Civil Service amendment, it is intended that the
proposal apply to amendments of Civil S"ervice provisions enacted after
January 1, 1975 but before enactment of this bill which were substantially
identical either to corresponding Central Intelligence Agency retirement
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provisions when this bill is introduced or to Central Intelligence Agency
retirement provisions as proposed in this bill.
Authority would not be available under the proposal to change a
Central Intelligence Agency retirement provision that had not been sub-
stantially identical to the Civil Service provision prior to the latter's
amendment. For example, if the present regular Civil Service multipli-
cation factor, which is less than 2 a for the first ten years of service, were
increased, a corresponding increase could not be extended to the Central
Intelligence'~Agericy retirement system under this authority because the
Central Intelligence Agency retirement system multiplication factor is 2$
for all years of service. Neither could a change affecting only a special
group, such as the change in the law-enforcement employee multiplication
factor made by P,L. 93-350, be extended to the Central Intelligence Agency
retirement system under this authority because this proposal would be
applicable only to amendments of Civil Service retirement provisions
applicable generally.
Section 210 is based upon a similar proposal in S . 1943, which amends
the Foreign Service Retirement Act and was submitted to the 94th Congress.
This authority would save appreciable man-hours within the Executive
branch and the Congress riow expended to process legislation to adopt
separately far the Agency retirement system each applicable change in the
Civil Service system . rI'he change does not in any way abridge the right
of Congress to enact future laws changing the Central Intelligence Agency
retirement system provisions or benefits . .
Section 211 increases annuities that occurred prior to. October 20, 1969,
and further conforms the Act to the requirements of Public Law 93-273,
which authorized payment effective August 1, 1974. Retirees under the Act
(and Civil Service retirees) prior to October 20, 1969, did not receive the
liberalization in retirement computation made under Public Law 91-185,
effective December 30, 1969. Under Public Law 91-185 the computation of
annuities was changed from ahigh -5 years average salary to a high -3
years average salary and unused sick leave was counted as service for
annuity computation purposes . _r
Section 212 provides effective dates in phase with those- established
for the Civil Service Retirement System in connection with identical changes .
These dates assure that the treatment afforded retirees and their survivors
under the CIA Retirement Act will not be different than that afforded retirees
and their survivors under the Civil Service Retirement System .
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Changes in existing law made by the draft bill are shown as follows:
existing law in which no change is proposed is shown in roman; existing
law proposed to be omitted is enclosed in brackets; new matter is under-
scored.
-?? CENTRAL INTELLIGENCE AGENCY RETIREMENT ACT
OF 1964 FOR CERTAIN EMPLOYEES, as amended
(78 Stat . 1043; 50 U . S . C . A . 403 Note)
TITLE I--TITLE AND DEFINITIONS
PART B--DEFINITIONS
SEC . 111. When used in this Act, the term--
(1) "Agency" means the Central Intelligence Agency;
(2) "Director" means the Director of Central Intelligence;
[ [and]
(3) "Qualifying service" means service performed as a
participant in the system or , in the case of service prior to
designartion, service determined by the Director to have been
performed in carrying out duties described in section 203 [ [ . ])
(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;
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(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
re uired to be de osited 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 INTELLIGENCE AGENCY
. RETIREMENT AND DISABILITY SYSTEM
PART A--ESTABLISHMENT OF SYSTEM
Rules and Regulations
SEC . 204.. (a) Annuitants shall be participants who are receiving
annuities from the fund and all persons, including surviving wives and
husbands, widows, [ [dependent] ] widowers, children, and beneficiaries
participants or annuitants who shall become entitled to receive annuities
in accordance with the provisions of this Act.
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(b) When used in this Act the term--
(1) "Widow" means the surviving wife of a participant
?who was married to such participant far at least [ [two years] ]
one year immediately preceding his death or is the mother of
issue by marriage to the participant.
(2) [ ["Dependent widower"] ] "Widower" means the surviving
husband of a participant who was married to such participant for
at least [ [two years] ] one year immediately preceding her death
or is the father of issue by marriage to the participant. [ [, 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," for the purposes of sections. 221 and 232 of this
Act, means an unmarried child, including (i) an adapted child
ar a child who lived with and for whom a petition for adoption
?was filed b a artici ant and who is ado ted b the survivin
spouse after the articipant's death, and ii a stepchild or
recognized 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, ar such unmarried child between eighteen and tweniy-
two years of age who is a student regularly pursuing afull-time
course of study or training in residence in a high school, trade
school, technical or vocational institute, junior- college, college,
university, or comparable recognized educational institution. A
child whose twenty-second birthday occurs prior to July 1 or
? after August 31 of any calendar year, and while he is regularly
pursuing such a course of study or training, shall be deemed far
the purposes of this paragraph and section 221 (e) of this Act to
have attained the age of twenty-two on the first day of July fallowing
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 T
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) immediately following the interim.
The term "child," for purposes of section 241, shall include an
adopked child and a natural child, but shall not include a stepchild.
* * ~
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PART C--COMPUTATION OF ANNUITIES
(b) (1) If a participant dies after having retired and is survived
by a s ouse to wham he or she was married at the time of retirement,
or by a widow or widower whom he or she married after retirement,
the spouse, widow, or widower is entitled to an annuity equal to 55
ercent of the amount of the artici ant's annuit com uted as rescribed
in ara raph a of -this section, up to the full amount of such annuity
specified by the participant as the base for such survivor benefits at
the firne of retirement. The annuity of the participant shall be reduced
by 2 1 2 per centum of any amount up to $3, 600 specified by the partici-
ant as the base for such survivor benefit lus 10 er centum of an
amount over 3, 00 so specified.
(2) If an annuitant dies after having elected a reduced annuity
provided in paragraph 2) of section 221(f), the surviving widow or
widower is entitled to an annuity computed as prescribed in paragraph.
(1) of this- subsection.
(3) A spouse acquired after retirement is entitled to a survivor
annuity under this subsection only upon electing this annuity instead
of any .other survivor benefit to which he or she may be entitled under.
this or another retirement system fop Government employees . Th_e
annuity of the sp.otise, widow or widower under this subsection
commences on the day after the annuitant dies . This annuity -and the
right thereto terminate on~ the Iast day of the month before the spouse,
widow ox- widower--
(A) dies; or
(B) remarries before becoming 60 years of age.
(4) An annuity which is reduced under this- subsection, shall, for
each full month during which an annuitant is not married, be recomputed
and paid as if the annuity had not been so reduced. Upon remarriage
of the annuitant, the annuity shall be reduced by the same percentage
reductions which were in effect at the time of retirement.
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[ L (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 or upon remarriage prior to attain-
ing age sixty of such surviving wife or husband, The annuity payable to
the surviving wife or husband after such participant's death shall be 55
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 up to $3,600 he specified as the base for the survivor benefit
plus 10 per.?centum of any amount over $3,b00 so specified.] ]
~ x~
(f) (1) Any unmarried participant retiring under the provisions of
this Act and found by the Director to be ~in good health may at the tame of
retirement elect a reduced annuity, in lieu of the annuity as hereinbefore
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) )) 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 p~;r centum of an annuity computed as
provided in paragraph (a) of this section, and by 5 per centum of an
annuity sa computed for each full five years the person designated is younger
than the participant, but such total x?eduction shall. not exceed 40 per
centum . The annuity of a survivor designated under this paragraph
shall be 55 per centum of the reduced annuity computed as prescribed
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 Agency, within one year after the marriage, 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 (1) of this subsection.
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(1) (1) Notwithstanding any other provision of this section, the
m_anthly rate of annuity payable under subsection (a) of this section,
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.
(2) Notwithstanding any other provision of this section, other
than this subsection, the monthly rate of annuit pa able under sub-
section a) of this section to a surviving child shall not be less than
the srzi_allest 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 number of surviving children
entitled to an annuity, whichever is the lesser .
(3) 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_m_ilitary 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 ~rirnary 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.
(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 survives3. by a widow or a [ [dependent] ] widower, as defined in
section 204, such widow or [ [dependent] ] widower shall be entitled to an
annuity ecg~ual to 55 per centum of the annuity computed in accordance
with the lrovisions of section 221(a) , except that the computation of the
annuity of the participant under such section shall be at least the smaller
of (i) 40 per centum of the participant's average basic salary, or (ii) the
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sum obtained under such section after 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 [ [dependent] ] 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 [ [dependent] ] widower (subject to the payment and restoration
provisions of section 221(g) ) . [ [, or upon the dependent widower's
becoming capable of self-support . ] ]
.,. PART E--DISPOSITION OF CONTRIBUTIONS
AND INTERESTS IN EXCESS OF BENEFITS RECEIVED
(1) To the beneficiary or beneficiaries designated by such participant
in [ [writing to the Director] ] a si ned and witnessed writin received b
the Agencgr before his death. For this purpose, a esignation, change,
or cancellation of beneficiary in a will or .other document not so
executed and filed shall have no farce or effect;
PART F--PERIOD OF SERVICE FOR ANNUITIES
COMPUTATION OF LENGTH OF SERVICE
SEG.. 251. For the purposes of this Act, 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' Compensa=
tion Act of September 7, 1916, as amended (5 U,5.C. 751 et seq. )] ] cha ter
81 of title 5, United States Code or any earlier statute on which such
chapter is based, and leaves o awe granted participants while perform-
ing active. and honorable military or naval service in the Army, Navy, Air
Force, Marine Corps, or Coast Guard of the United States. A participant or
former participant who returns to Government duty after a period of
separation shall have included in his period of service that part of the
period of separation in which he was receiving benefits under chapter $1
o_ title 5, United States Code or an earlier statute on which such
chapter is 1~ased,
SEG. -252. (a) A participant may, subject to the provisions of this
section, ii~clude in his period of service--
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(2). active and honorable military or naval service in the
Army, Navy, Air Fox?ce, Marine Corps, or Coast 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, 1961.
PART G--MONEYS
ESTIMATE GF APPROPRIA~`IONS NEEDED
SEC. 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--
(1) 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 an 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,
ar increase in salary is effective.
(c) At the -end of each fiscal year, effective with Fiscal Year
1976, the- Director shall notify the Secretary of the Treasury of the
amount of the normal cost for that ear which was not met 'b contri-
butions under section 211 a Be ore. closing the accounts for that
year, the Secretary of the Treasury shall credit such amount to the
fund as a Government contribution aut of an mone in the Treasur
o the United States not otherwise appropriated. The Secretary shall
report to the President and to the Congress the sums- credited to the
fund under this section.
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(d) At the end of each fiscal ear, the Director shall notify the
Secretary o the Treasury of the amount equivalent to 1) interest on
the unfunded liabilit com uted for that ear at the interest rate used
in the then most recent valuation of the S stem,. and 2) that ortion
of disbursement or annuities foz- that year which the Director estimates
is attributable to credit allowed far militar service. Before clos_ ing
the accounts ar each fiscal year, the Secretary shall credit to the fund,
as a Government contribution, out of any money in the Treasury of the
United States not otherwise appro rioted, the following percentages of
such amounts: 60 percent far 1976; 70 percent for 1977; 80 percent for
1978; 90 P~e~r-cent for 1979; and 100 percent for 1980 and far each fiscal
year thereafter
RECOVERY OF PAYMENTS
. SEC._ 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
goad conscience. Withholdin or recover of mone mentioned b
this Act an. account o a certification or payment made by a former
eznplayee of the Central Intelligence Agency in the discharge of. his
official duties rna be made if the Director certifies that the certification
or payment involved fraud on the part of the ormer employee .
.PART K--CONFOR.T.RI'TY WITH CIVIL SERVICE
RETIREMENT SYSTEM
AUTHORITY TO MAINTAIN EXISTING AREAS OF CONFORMITY
BETWEEN? CIVIL SERVICE AND CENTRAL INTELLIGENCE AGENCY
RETIREMENT AND DISABILITY SYSTEIviS:
SEC . 292. (a) Whenever the President determines. that it would
be appropriate for the purpose of maintaining existing conformity
between the Civil Service Retirement and Disability System and the
Central Intelligence Agency Retirement and Disability System with
respect to substantiall~dentical 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 1, 19'75 which:
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(1) amends subchapter III, chapter $3, 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 .
(b) Any provisions 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--
(1) all provisions of law enacted prior to the__.eff_eetive
date of the provision of such Executive order, and
(2) any prior provision of an Executive order issued
. under authority of this section.
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~_,~ _ ;,
/.*. c,; .~, EXECUTIVE OFFICE OF THE PRESItDENT
~' i y'`` ~~~d" '` OFFICE OF MANAGEMFN7 AND ElUDGF_T
...rte ?/,~
?,.~ ~ .
,K"'w,r WASHINGTON, D.C. 2D5D3
_. s-`^'
~~~ ~ ~~~~
Honorable William E. Colby
D9.rector
Central Intelligence Agency
Washington, D.C. 20505
.Attention: Mr. George L. Cary
Legislative Counsel
Dear Mr. Colby: ,
This is in reply to Mr. Cory's request for advice on a
draft bill, "To amend the Central Intelligence Agency Re-
tirement Act of 1964 for Certaa_n Employees, as amended, .
and for other purposes," which the Agency desires to su}a-
mit to Congress.
The purpose of the bill is to provide full funding and
financing f_or the Central Intelligence Agency Retirement
system to parallel provisions contained in the Civil Service
Retirement law, and those enacted and proposed for the
Foreign Service retirement system.
The bill would also provide numerous "catch-~up" benefits. as
well as certain technical changes to conform the CIA retire-
ment system with new .featu.res enacted in recant years for
the civil service system.
In the course of informal discussions with
of your_ staff, it was agreed that certain c anges wou
made in the draft bi11 and accompanying papers to conform
the provision for future changes in the system with an
identical pr_avision of S. 1.943, 94th Congress, the pending
Foreign Service Retir.ernent Act amendments. As so modified.,
that provision of the bill would provide: far future ad-
ministrat.ive adjustments in the CIA rct~.rement system to be
STAT
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made by the President. The President wr~uld effect canform-
ing changes in the CIA system after enactment of new or
improved civil service retirement benefits, in those in-
stances where the twa systems have substantially identical
provisions and application of the civil service provisions
would be appropriate.
`I'I~xere is na objection from the standpoint of the Administra-
tion's program to submission of the draft bill to Congress,
modified as indicated above.
Sincerely,
~s_~~neda J~-~~ ~? ~~re~i
James M. Frey
Assistant Director far
Legislative Reference
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