Title 50War and National DefenseRelease 119-73

§3523 Intelligence operations and cover enhancement authority

Title 50 › Chapter CHAPTER 46— - CENTRAL INTELLIGENCE AGENCY › § 3523

Last updated Apr 6, 2026|Official source

Summary

Gives the CIA Director the power to protect secret work by treating some undercover staff as "designated employees." The Director can pick agency workers who are under nonofficial cover and pay them salaries, allowances, and benefits that match their cover. These payments can ignore normal federal limits if needed to protect secret operations, undercover identities, sources and methods, or cover arrangements, or to meet special foreign‑intelligence needs. The Director can also excuse these employees from federal rules that would risk exposing their cover. Allows the Director to run separate retirement, health, and life‑insurance plans for designated employees and their families. A designated employee cannot be in those CIA plans and regular federal plans at the same time, but may switch to the regular plans when the Director decides secrecy is no longer needed. When someone switches, their service counts as creditable service, the CIA must send money (including required interest and any amounts needed so the switch causes no unfunded liability, and for FERS as set in section 8334(e) of title 5) and records to the agency that runs the federal plan, and the payments come from the fund used to pay the designated employee. The Director must write rules for how all this works, make sure total pay and benefits do not greatly exceed normal federal pay except when needed for secrecy, and set tax procedures so a designated employee may file taxes as if not a federal worker when necessary. The Director’s decisions are final and not subject to court review. No later law changes these authorities unless it specifically names this section.

Full Legal Text

Title 50, §3523

War and National Defense — Source: USLM XML via OLRC

(a)In 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)(1)Notwithstanding 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)The Director of the Central Intelligence Agency may designate any employee of the Agency who is under nonofficial cover to be an employee to whom this section applies. Such designation may be made with respect to any or all authorities exercised under this section.
(c)The Director of the Central Intelligence Agency may pay a designated employee salary, allowances, and other benefits in an amount and in a manner consistent with the nonofficial cover of that employee, without regard to any limitation that is otherwise applicable to a Federal employee. A designated employee may accept, utilize, and, to the extent authorized by regulations prescribed under subsection (i), retain any salary, allowances, and other benefits provided under this section.
(d)(1)The Director of the Central Intelligence Agency may establish and administer a nonofficial cover employee retirement system for designated employees (and the spouse, former spouses, and survivors of such designated employees). A designated employee may not participate in the retirement system established under this paragraph and another Federal retirement system at the same time.
(2)(A)A 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)Upon 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)(i)Amounts described under subparagraph (B)(ii) shall be paid from the fund or appropriation used to pay the designated employee.
(ii)The Director of the Central Intelligence Agency may use amounts contributed by the designated employee to a retirement system established under paragraph (1) to offset amounts paid under clause (i).
(D)The Director of the Central Intelligence Agency shall transmit all necessary records relating to a designated employee who converts to a Federal retirement system under this paragraph (including records relating to periods of service which are deemed to be periods of creditable service under subparagraph (B)) to the head of the agency administering that Federal retirement system.
(e)(1)The Director of the Central Intelligence Agency may establish and administer a nonofficial cover employee health insurance program for designated employees (and the family of such designated employees). A designated employee may not participate in the health insurance program established under this paragraph and the program under chapter 89 of title 5 at the same time.
(2)(A)A 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)Upon 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)Any amount described under subparagraph (B)(iv) shall be paid from the fund or appropriation used to pay the designated employee.
(f)(1)The Director of the Central Intelligence Agency may establish and administer a nonofficial cover employee life insurance program for designated employees (and the family of such designated employees). A designated employee may not participate in the life insurance program established under this paragraph and the program under chapter 87 of title 5 at the same time.
(2)(A)A 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)Upon 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)Any amount described under subparagraph (B)(iv) shall be paid from the fund or appropriation used to pay the designated employee.
(g)The 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)(1)Notwithstanding 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)The Director of the Central Intelligence Agency shall establish procedures to carry out this subsection. The procedures shall be subject to periodic review by the Internal Revenue Service.
(i)The Director of the Central Intelligence Agency shall prescribe regulations to carry out this section. The regulations shall ensure that the combination of salary, allowances, and benefits that an employee designated under this section may retain does not significantly exceed, except to the extent determined by the Director of the Central Intelligence Agency to be necessary to exercise the authority in subsection (b), the combination of salary, allowances, and benefits otherwise received by Federal employees not designated under this section.
(j)Any determinations authorized by this section to be made by the Director of the Central Intelligence Agency or the Director’s designee shall be final and conclusive and shall not be subject to review by any court.
(k)No law enacted after the effective date of this section shall affect the authorities and provisions of this section unless such law specifically refers to this section.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

References in Text

The

Effective Date

of this section, referred to in subsec. (k), is the date of enactment of Pub. L. 108–487, which was approved December 23, 2004. See section 801 of Pub. L. 108–487, set out as an

Effective Date

of 2004

Amendments

note under section 2656f of Title 22, Foreign Relations and Intercourse. Codification Section was formerly classified to section 403w of this title prior to editorial reclassification and renumbering as this section.

Reference

Citations & Metadata

Citation

50 U.S.C. § 3523

Title 50War and National Defense

Last Updated

Apr 6, 2026

Release point: 119-73