SECTION 1. SHORT TITLE.

    This Act may be cited as the ``District of Columbia Retirement 
Reform Technical Corrections Act of 1998''.

SEC. 2. TECHNICAL AND CLARIFYING AMENDMENTS RELATING TO DISTRICT OF 
              COLUMBIA RETIREMENT FUNDS.

    (a) Permitting Other Federal Entities to Administer Program.--
Section 11003 of the Balanced Budget Act of 1997 (DC Code, sec. 1-
761.2) is amended--
            (1) in paragraph (1), by inserting ``, and includes any 
        agreement with a department, agency, or instrumentality of the 
        United States entered into under that section'' after ``the 
        Trustee''; and
            (2) in paragraph (10), by striking ``, partnership, joint 
        venture, corporation, mutual company, joint-stock company, 
        trust, estate, unincorporated organization, association, or 
        employee organization'' and inserting ``; partnership; joint 
        venture; corporation; mutual company; joint-stock company; 
        trust; estate; unincorporated organization; association; 
        employee organization; or department, agency, or 
        instrumentality of the United States''.
    (b) Permitting Waiver of Recovery of Amounts Paid in Error.--
Section 11021(3) of such Act (DC Code, sec. 1-763.1(3)) is amended by 
inserting ``, or waive recoupment or recovery of,'' after ``recover''.
    (c) Permitting Use of Trust Fund To Cover Administrative 
Expenses.--Section 11032 of such Act (DC Code, sec. 1-764.2) is 
amended--
            (1) by amending subsection (a) to read as follows:
    ``(a) In General.--Amounts in the Trust Fund shall be used--
            ``(1) to make Federal benefit payments under this subtitle;
            ``(2) subject to subsection (b)(1), to cover the reasonable 
        and necessary expenses of administering the Trust Fund under 
        the contract entered into pursuant to section 11035(b);
            ``(3) to cover the reasonable and necessary administrative 
        expenses incurred by the Secretary in carrying out the 
        Secretary's responsibilities under this subtitle; and
            ``(4) for such other purposes as are specified in this 
        subtitle.''; and
            (2) in subsection (b)(2), by inserting ``(including 
        expenses described in section 11041(b))'' after ``to administer 
        the Trust Fund''.
    (d) Promoting Flexibility in Administration of Program.--Section 
11035 of such Act (DC Code, sec. 1-764.5) is amended--
            (1) by redesignating subsection (c) as subsection (e); and
            (2) by inserting after subsection (b) the following new 
        subsections:
    ``(c) Subcontracts.--Notwithstanding any provision of a District 
Retirement Program or any other law, rule, or regulation, the Trustee 
may, with the approval of the Secretary, enter into one or more 
subcontracts with the District Government or any person to provide 
services to the Trustee in connection with its performance of the 
contract. The Trustee shall monitor the performance of any such 
subcontract and enforce its provisions.
    ``(d) Determination by the Secretary.--Notwithstanding subsection 
(b) or any other provision of this subtitle, the Secretary may 
determine, with respect to any function otherwise to be performed by 
the Trustee, that in the interest of economy and efficiency such 
function shall be performed by the Secretary rather than the 
Trustee.''.
    (e) Process for Reimbursement of District Government for Expenses 
of Interim Administration.--Section 11041 of such Act (DC Code, sec. 1-
765.1) is amended--
            (1) in subsection (b), by striking ``The Trustee shall'' 
        and inserting ``The Secretary or the Trustee shall, at such 
        times during or after the period of interim administration 
        described in subsection (a) as are deemed appropriate by the 
        Secretary or the Trustee'';
            (2) in subsection (b)(1), by inserting ``the Secretary or'' 
        after ``if''; and
            (3) in subsection (c), by striking ``the replacement plan 
        adoption date'' and inserting ``such time as the Secretary 
        notifies the District Government that the Secretary has 
        directed the Trustee to carry out the duties and 
        responsibilities required under the contract''.
    (f) Annual Federal Payment Into Federal Supplemental Fund.--Section 
11053 of such Act (DC Code, sec. 1-766.3) is amended--
            (1) by amending subsection (a) to read as follows:
    ``(a) Annual Amortization Amount.--At the end of each applicable 
fiscal year the Secretary shall promptly pay into the Federal 
Supplemental Fund from the General Fund of the Treasury an amount equal 
to the annual amortization amount for the year (which may not be less 
than zero).'';
            (2) in subsection (b), by striking ``freeze date'' and 
        inserting ``effective date of this Act'';
            (3) by redesignating subsections (b) and (c) as subsections 
        (c) and (d); and
            (4) by inserting after subsection (a) the following new 
        subsection:
    ``(b) Administrative Expenses.--During each applicable fiscal year, 
the Secretary shall pay into the Federal Supplemental Fund from the 
General Fund of the Treasury amounts not to exceed the covered 
administrative expenses for the year.''.
    (g) Technical Corrections.--(1) Section 11012(c) of such Act (DC 
Code, sec. 1-752.2(c)) is amended by striking ``District of Columbia 
Retirement Board'' and inserting ``District Government''.
    (2) Section 11033(c)(1) of such Act (DC Code, sec. 1-764.3(c)(1)) 
is amended by striking ``consisting'' in the first place that it 
appears.
    (3) Section 11052 of such Act (DC Code, sec. 1-766.2) is amended by 
inserting ``to'' after ``may be made only''.

SEC. 3. CLARIFYING TREATMENT OF DISTRICT OF COLUMBIA EMPLOYEES 
              TRANSFERRED TO FEDERAL RETIREMENT SYSTEMS.

    (a) Eligibility of Nonjudicial Employees of District of Columbia 
Courts for Medicare and Social Security Benefits.--Section 11246(b) of 
the Balanced Budget Act of 1997 (Public Law 105-33; 111 Stat. 755) is 
amended--
            (1) by redesignating paragraphs (2) and (3) as paragraphs 
        (3) and (4); and
            (2) by inserting after paragraph (1) the following new 
        paragraph:
            ``(2) Conforming amendments to internal revenue code and 
        social security.--(A) Section 3121(b)(7)(C) of the Internal 
        Revenue Code of 1986 (relating to the definition of employment 
        for service performed in the employ of the District of 
        Columbia) is amended by inserting `(other than the Federal 
        Employees Retirement System provided in chapter 84 of title 5, 
        United States Code)' after `law of the United States'.
            ``(B) Section 210(a)(7)(D) of the Social Security Act (42 
        U.S.C. 410(a)(7)(D)) (relating to the definition of employment 
        for service performed in the employ of the District of 
        Columbia), is amended by inserting `(other than the Federal 
        Employees Retirement System provided in chapter 84 of title 5, 
        United States Code)' after `law of the United States'.''.
    (b) Vesting Under Previous District of Columbia Retirement 
Program.--For purposes of vesting pursuant to section 2610(b) of the 
District of Columbia Government Comprehensive Merit Personnel Act of 
1978 (DC Code, sec. 1-627.10(b)), creditable service with the District 
for employees whose participation in the District Defined Contribution 
Plan ceases as a result of the implementation of the Balanced Budget 
Act of 1997 shall include--
            (1) continuous service performed by nonjudicial employees 
        of the District of Columbia courts after September 30, 1997; 
        and
            (2) service performed for a successor employer, including 
        the Department of Justice or the District of Columbia Offender 
        Supervision, Defender, and Courts Services Agency established 
        under section 11233 of the Balanced Budget Act of 1997, that 
        provides services previously performed by the District 
        government.

SEC. 4. METHODOLOGY FOR DESIGNATING ASSETS OF RETIREMENT FUND.

    Section 11033 of the Balanced Budget Act of 1997 (DC Code, sec. 1-
764.3) is amended by adding at the end the following new subsection:
    ``(e) Methodology for Designating Assets.--
            ``(1) In general.--In carrying out subsection (b), the 
        Secretary may develop and implement a methodology for 
designating assets after the replacement plan adoption date that takes 
into account the value of the District Retirement Fund as of the 
replacement plan adoption date and the proportion of such value 
represented by $1.275 billion, together with the income (including 
returns on investments) earned on the assets of and withdrawals from 
and deposits to the Fund during the period between such date and the 
date on which the Secretary designates assets under subsection (b). In 
implementing a methodology under the previous sentence, the Secretary 
shall not be required to determine the value of designated assets as of 
the replacement plan adoption date. Nothing in this paragraph may be 
deemed to effect the entitlement of the District Retirement Fund to 
income (including returns on investments) earned after the replacement 
plan adoption date on assets designated for retention by the Fund.
            ``(2) Employee contributions; judicial retirement and 
        survivors annuity fund.--The Secretary may develop and 
        implement a methodology comparable to the methodology described 
        in paragraph (1) in carrying out the requirements of subsection 
        (c) and in designating assets to be transferred to the District 
        of Columbia Judicial Retirement and Survivors Annuity Fund 
        pursuant to section 124(c)(1) of the District of Columbia 
        Retirement Reform Act (as amended by section 11252).
            ``(3) Discretion of the secretary.--The Secretary's 
        development and implementation of methodologies for designating 
        assets under this subsection shall be final and binding.''.

SEC. 5. EFFECTIVE DATE.

    This Act and the amendments made by this Act shall take effect as 
if included in the enactment of title XI of the Balanced Budget Act of 
1997.
District of Columbia Retirement Reform Technical Corrections Act of 1998 - Amends the Balanced Budget Act of 1997, with respect to provisions regarding District of Columbia retirement funds, to include Federal agencies within the definition of "person" under such provisions. 
Permits the District of Columbia Federal Pension Liability Trust Fund to be used to cover administrative expenses. 
Authorizes the Trustee of the Trust Fund, with the Secretary of the Treasury's approval, to enter into subcontracts with the District government or any person to provide services to the Trustee in connection with the contract to administer the Trust Fund. 
Revises provisions regarding reimbursement of the District government for interim administration of retirement benefits. 
Makes nonjudicial employees of the District of Columbia courts transferred to the Federal Employees' Retirement System eligible for Medicare and Social Security benefits. 
Requires, for purposes of vesting pursuant to the District of Columbia Government Comprehensive Merit Personnel Act of 1978, creditable service with the District for employees whose participation in the District Defined Contribution Plan ceases as a result of the Balanced Budget Act of 1997 to include:  (1) continuous service by nonjudicial employees of the District courts after September 30, 1997; and (2) service performed for a successor employer that provides services previously performed by the District government. 
Requires this Act to take effect as if included in the enactment of title XI (the National Capital Revitalization and Self-Government Improvement Act of 1997) of the Balanced Budget Act of 1997.
District of Columbia Retirement Reform Technical Corrections Act of 1998