View all text of Chapter 46 [§ 3501 - § 3533]
§ 3523. Intelligence operations and cover enhancement authority
(a) DefinitionsIn this section—
(1) the term “designated employee” means an employee designated by the Director of the Central Intelligence Agency under subsection (b); and
(2) the term “Federal retirement system” includes the Central Intelligence Agency Retirement and Disability System, and the Federal Employees’ Retirement System (including the Thrift Savings Plan).
(b) In general
(1) AuthorityNotwithstanding any other provision of law, the Director of the Central Intelligence Agency may exercise the authorities under this section in order to—
(A) protect from unauthorized disclosure—
(i) intelligence operations;
(ii) the identities of undercover intelligence officers;
(iii) intelligence sources and methods; or
(iv) intelligence cover mechanisms; or
(B) meet the special requirements of work related to collection of foreign intelligence or other authorized activities of the Agency.
(2) Designation of employees
(c) Compensation
(d) Retirement benefits
(1) In general
(2) Conversion to other Federal retirement system
(A) In generalA designated employee participating in the retirement system established under paragraph (1) may convert to coverage under the Federal retirement system which would otherwise apply to that employee at any appropriate time determined by the Director of the Central Intelligence Agency (including at the time of separation of service by reason of retirement), if the Director of the Central Intelligence Agency determines that the employee’s participation in the retirement system established under this subsection is no longer necessary to protect from unauthorized disclosure—
(i) intelligence operations;
(ii) the identities of undercover intelligence officers;
(iii) intelligence sources and methods; or
(iv) intelligence cover mechanisms.
(B) Conversion treatmentUpon a conversion under this paragraph—
(i) all periods of service under the retirement system established under this subsection shall be deemed periods of creditable service under the applicable Federal retirement system;
(ii) the Director of the Central Intelligence Agency shall transmit an amount for deposit in any applicable fund of that Federal retirement system that—(I) is necessary to cover all employee and agency contributions including—(aa) interest as determined by the head of the agency administering the Federal retirement system into which the employee is converting; or(bb) in the case of an employee converting into the Federal Employees’ Retirement System, interest as determined under section 8334(e) of title 5; and(II) ensures that such conversion does not result in any unfunded liability to that fund; and
(iii) in the case of a designated employee who participated in an employee investment retirement system established under paragraph (1) and is converted to coverage under subchapter III of chapter 84 of title 5, the Director of the Central Intelligence Agency may transmit any or all amounts of that designated employee in that employee investment retirement system (or similar part of that retirement system) to the Thrift Savings Fund.
(C) Transmitted amounts
(i) In general
(ii) Offset
(D) Records
(e) Health insurance benefits
(1) In general
(2) Conversion to Federal employees health benefits program
(A) In generalA designated employee participating in the health insurance program established under paragraph (1) may convert to coverage under the program under chapter 89 of title 5 at any appropriate time determined by the Director of the Central Intelligence Agency (including at the time of separation of service by reason of retirement), if the Director of the Central Intelligence Agency determines that the employee’s participation in the health insurance program established under this subsection is no longer necessary to protect from unauthorized disclosure—
(i) intelligence operations;
(ii) the identities of undercover intelligence officers;
(iii) intelligence sources and methods; or
(iv) intelligence cover mechanisms.
(B) Conversion treatmentUpon a conversion under this paragraph—
(i) the employee (and family, if applicable) shall be entitled to immediate enrollment and coverage under chapter 89 of title 5;
(ii) any requirement of prior enrollment in a health benefits plan under chapter 89 of that title for continuation of coverage purposes shall not apply;
(iii) the employee shall be deemed to have had coverage under chapter 89 of that title from the first opportunity to enroll for purposes of continuing coverage as an annuitant; and
(iv) the Director of the Central Intelligence Agency shall transmit an amount for deposit in the Employees’ Health Benefits Fund that is necessary to cover any costs of such conversion.
(C) Transmitted amounts
(f) Life insurance benefits
(1) In general
(2) Conversion to Federal employees group life insurance program
(A) In generalA designated employee participating in the life insurance program established under paragraph (1) may convert to coverage under the program under chapter 87 of title 5 at any appropriate time determined by the Director of the Central Intelligence Agency (including at the time of separation of service by reason of retirement), if the Director of the Central Intelligence Agency determines that the employee’s participation in the life insurance program established under this subsection is no longer necessary to protect from unauthorized disclosure—
(i) intelligence operations;
(ii) the identities of undercover intelligence officers;
(iii) intelligence sources and methods; or
(iv) intelligence cover mechanisms.
(B) Conversion treatmentUpon a conversion under this paragraph—
(i) the employee (and family, if applicable) shall be entitled to immediate coverage under chapter 87 of title 5;
(ii) any requirement of prior enrollment in a life insurance program under chapter 87 of that title for continuation of coverage purposes shall not apply;
(iii) the employee shall be deemed to have had coverage under chapter 87 of that title for the full period of service during which the employee would have been entitled to be insured for purposes of continuing coverage as an annuitant; and
(iv) the Director of the Central Intelligence Agency shall transmit an amount for deposit in the Employees’ Life Insurance Fund that is necessary to cover any costs of such conversion.
(C) Transmitted amounts
(g) Exemption from certain requirementsThe Director of the Central Intelligence Agency may exempt a designated employee from mandatory compliance with any Federal regulation, rule, standardized administrative policy, process, or procedure that the Director of the Central Intelligence Agency determines—
(1) would be inconsistent with the nonofficial cover of that employee; and
(2) could expose that employee to detection as a Federal employee.
(h) Taxation and social security
(1) In generalNotwithstanding any other provision of law, a designated employee—
(A) shall file a Federal or State tax return as if that employee is not a Federal employee and may claim and receive the benefit of any exclusion, deduction, tax credit, or other tax treatment that would otherwise apply if that employee was not a Federal employee, if the Director of the Central Intelligence Agency determines that taking any action under this paragraph is necessary to—
(i) protect from unauthorized disclosure—(I) intelligence operations;(II) the identities of undercover intelligence officers;(III) intelligence sources and methods; or(IV) intelligence cover mechanisms; and
(ii) meet the special requirements of work related to collection of foreign intelligence or other authorized activities of the Agency; and
(B) shall receive social security benefits based on the social security contributions made.
(2) Internal Revenue Service review
(i) Regulations
(j) Finality of decisions
(k) Subsequently enacted laws
(June 20, 1949, ch. 227, § 23, as added Pub. L. 108–487, title IV, § 402, Dec. 23, 2004, 118 Stat. 3946.)