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hie | ie - . . . ; ( ? eee ( . * f . SZ \ Se ee Fol ce a noes —— I “"" Mr. DeLoach 12-17 -84 - foo 7, _ . f d, f r ‘ ac. + oe on ’ woe ato Pays ast is nie whe get ory s ui iinet! BL A. Jones °° Bees yo2y, WALTER BH, SCHULTZ “-"-""- CHICAGO, ILLINOIS Ly beetepe te peut Bre. cahette, INQUIRY RE “TAX-FREE”. PENSION (2008 lrecsaro, bn reat Wir, ae hb OF DIRECTOR'S BACKGROUND; By letter dated 12-12-64, captioned individual, who resides at 7224 Nortt Hamilton Avenue, Chicago, Itinois, forwarded a news clipping pertaining to the iatervic Air. Hoover had with Don Whitehead. Corresscndent circled a portion of this news elip; which reflected the Director stating, "If I retired, I could, under the new law, draw ats. free pension of $30,000 a year.” Mr. Schultz requests an exolarcv‘icn as to how a Federal employee secure - & “tax-free" pension, and alao a description and title of the “new law’ as referred to. INFOR MATION IN BUFILES: On the basis of information available, it was not possible to identify Schult in Bullles. Public Law 66-734, 7Section’s (74 Stat.- 868), °, states, “Any person who \| Shall retire for age after serving at least thirty years as Director of the Federal Bureau 14] . Of Investigation shall receive an annuity during the remainder of his life equal to the : Wi «Salary pzyable to Alm at the time of his retirement.” (Approved September 8, 1960.) e{ tn his interview with Don Whitehead, the Director, of course, was reforrin iw) to the fact that all Fedcral employces upon retiring do not pay Fedcral income tax on thet -} annaltles until after they have received back an amount equal to the contribution they madg to the retirement fund while in Government service. When he mentioned the “new law,” the Director was referring to the law passed by Concress increasing his salary from $22, 000 to $30, O59 a year. (public Law 88-426, approved 8-14-64) | Therefore, based on the above information, the Director could currently , Fociyat 330, 000 per year which would be tax-free up to the period when the amount he 4 < ~ DeLoach - Enclosure p E 2- ir. Callahai~ Enclosures(2) a —_—— . Attention: SA Jobn P. Dunphy and Mr. Maurice F. Row a_i IC Reng oo, ~*~ (Continued sext page) es sae, ae ce