SECTION 1. SHORT TITLE.

    This Act may be cited as the ``District of Columbia Retirement 
Protection Improvement Act of 2004''.

SEC. 2. ESTABLISHMENT OF DISTRICT OF COLUMBIA FEDERAL PENSION FUND FOR 
              PAYMENT OF FEDERAL BENEFIT PAYMENTS TO DISTRICT OF 
              COLUMBIA TEACHERS, POLICE OFFICERS, AND FIRE FIGHTERS.

    (a) In General.--Subtitle A of title XI of the Balanced Budget Act 
of 1997 (sec. 1--801.01 et seq., D.C. Official Code) is amended--
        (1) by redesignating chapter 9 as chapter 10;
        (2) by redesignating sections 11081 through 11087 as sections 
    11091 through 11097; and
        (3) by inserting after chapter 8 the following new chapter:

         ``CHAPTER 9--DISTRICT OF COLUMBIA FEDERAL PENSION FUND

``SEC. 11081. CREATION OF FUND.

    ``(a) Establishment.--There is established on the books of the 
Treasury the District of Columbia Teachers, Police Officers, and 
Firefighters Federal Pension Fund (hereafter referred to as the `D.C. 
Federal Pension Fund'), consisting of the following:
        ``(1) The assets transferred pursuant to section 11083.
        ``(2) The annual Federal payments deposited pursuant to section 
    11084.
        ``(3) Any amounts otherwise appropriated to such Fund.
        ``(4) Any income earned on the investment of the assets of such 
    Fund pursuant to subsection (b).
    ``(b) Investment of Assets.--The Secretary shall invest such 
portion of the assets of the D.C. Federal Pension Fund as is not in the 
judgment of the Secretary required to meet current withdrawals. Such 
investments shall be in public debt securities with maturities suitable 
to the needs of the D.C. Federal Pension Fund, as determined by the 
Secretary, and bearing interest at rates determined by the Secretary, 
taking into consideration current market yields on outstanding 
marketable obligations of the United States of comparable maturities.
    ``(c) Recordkeeping for Actuarial Status.--The Secretary shall 
provide for the keeping of such records as are necessary for 
determining the actuarial status of the D.C. Federal Pension Fund.

``SEC. 11082. USES OF AMOUNTS IN FUND.

    ``(a) In General.--Amounts in the D.C. Federal Pension Fund shall 
be used--
        ``(1) to make Federal benefit payments under this subtitle;
        ``(2) subject to subsection (b), to cover the reasonable and 
    necessary administrative expenses incurred by any person in 
    administering the D.C. Federal Pension Fund and carrying out this 
    chapter;
        ``(3) for the accumulation of funds in order to finance 
    obligations of the Federal Government for future benefits; and
        ``(4) for such other purposes as are specified in this 
    subtitle.
    ``(b) Budgeting, Certification, and Approval of Administrative 
Expenses.--The administrative expenses of the D.C. Federal Pension Fund 
shall be paid in accordance with an annual budget set forth by the 
Pension Fund Trustee which shall be subject to certification and 
approval by the Secretary.

``SEC. 11083. TRANSFER OF ASSETS AND OBLIGATIONS OF TRUST FUND AND 
              FEDERAL SUPPLEMENTAL FUND.

    ``(a) Transfer of Obligations.--Effective October 1, 2004, all 
obligations to make Federal benefit payments shall be transferred from 
the Trust Fund to the D.C. Federal Pension Fund.
    ``(b) Transfer of Assets.--Effective October 1, 2004, all assets of 
the Trust Fund and all assets of the Federal Supplemental Fund as of 
such date shall be transferred to the D.C. Federal Pension Fund.

``SEC. 11084. DETERMINATION OF ANNUAL FEDERAL PAYMENTS INTO D.C. 
              FEDERAL PENSION FUND.

    ``(a) Annual Amortization Amount.--
        ``(1) In general.--At the end of each fiscal year (beginning 
    with fiscal year 2005), the Secretary shall promptly pay into the 
    D.C. Federal Pension 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) Determination of amount.--For purposes of paragraph (1)--
            ``(A) the `original unfunded liability' is the present 
        value as of the effective date of this Act of expected future 
        benefits payable from the Federal Supplemental Fund; and
            ``(B) the `annual amortization amount' means the amount 
        determined by the enrolled actuary to be necessary to amortize 
        in equal annual installments (until fully amortized)--
                ``(i) the original unfunded liability over a 30-year 
            period,
                ``(ii) a net experience gain or loss over a 10-year 
            period, and
                ``(iii) any other changes in actuarial liability over a 
            20-year period.
        ``(3) Schedule for amortization.--In determining the annual 
    amortization amount under paragraph (2)(B), the enrolled actuary 
    shall include amounts necessary to complete the amortization 
    schedules used for determining the annual amortization amount for 
    payments into the Federal Supplemental Fund under section 11053 (as 
    in effect prior to the enactment of this chapter).
    ``(b) Administrative Expenses.--During each fiscal year (beginning 
with fiscal year 2009), the Secretary shall pay into the D.C. Federal 
Pension Fund from the general fund of the Treasury the amounts 
necessary to pay the reasonable and necessary administrative expenses 
described in section 11082(a)(2) for the year.

``SEC. 11085. ADMINISTRATION THROUGH PENSION FUND TRUSTEE.

    ``(a) In General.--The Secretary shall select a Pension Fund 
Trustee to carry out the responsibilities and duties specified in this 
subtitle in accordance with the contract described in subsection (b).
    ``(b) Contract.--The Secretary shall enter into a contract with the 
Pension Fund Trustee to provide for the auditing of D.C. Federal 
Pension Fund assets, the making of Federal benefit payments under this 
subtitle from the D.C. Federal Pension Fund, and such other matters as 
the Secretary deems appropriate. The Secretary shall enforce the 
provisions of the contract and otherwise monitor the administration of 
the D.C. Federal Pension Fund.
    ``(c) Subcontracts.--Notwithstanding any provision of a District 
Retirement Program or any other law, rule, or regulation, the Pension 
Fund 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 Pension Fund Trustee in connection with its performance 
of the contract. The Pension Fund 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 Pension Fund Trustee, that in the interest of economy and 
efficiency such function shall be performed by the Secretary rather 
than the Pension Fund Trustee.
    ``(e) Reports.--The Pension Fund Trustee shall report to the 
Secretary, in a form and manner and at such intervals as the Secretary 
may prescribe, on any matters under the responsibility of the Pension 
Fund Trustee as the Secretary may prescribe.

``SEC. 11086. APPLICABILITY OF OTHER PROVISIONS TO D.C. FEDERAL PENSION 
              FUND.

    ``The following provisions of this subtitle shall apply with 
respect to the D.C. Federal Pension Fund in the same manner as such 
provisions applied with respect to the Trust Fund prior to October 1, 
2004:
        ``(1) Section 11023(b) (relating to the repayment by the 
    District Government of costs attributable to errors or omissions in 
    transferred records).
        ``(2) Section 11034 (relating to the treatment of the Trust 
    Fund under certain laws).
        ``(3) Section 11061 (relating to annual valuations and reports 
    by the enrolled actuary), except that in applying section 11061(b) 
    to the D.C. Federal Pension Fund, the annual report required under 
    such section shall include a determination of the annual payment to 
    the D.C. Federal Pension Fund under section 11084.
        ``(4) Section 11062 (relating to reports by the Comptroller 
    General).
        ``(5) Section 11071 (relating to judicial review).
        ``(6) Section 11074 (relating to the treatment of 
    misappropriation of Trust Fund amounts as a Federal crime).''.
    (b) Termination of Current Funds.--
        (1) District of columbia federal pension liability trust 
    fund.--Chapter 4 of subtitle A of title XI of such Act (sec. 1--
    807.01 et seq., D.C. Official Code) is amended by adding at the end 
    the following new section:

``SEC. 11036. TERMINATION OF TRUST FUND.

    ``Effective upon the transfer of the obligations and assets of the 
Trust Fund to the D.C. Federal Pension Fund under section 11083--
        ``(1) the Trust Fund shall terminate; and
        ``(2) the obligation to make Federal benefit payments from the 
    Trust Fund, and any duty imposed on any person with respect to the 
    Trust Fund, shall terminate.''.
        (2) Federal supplemental district of columbia pension fund.--
    Chapter 6 of subtitle A of title XI of such Act (sec. 1--811.01 et 
    seq., D.C. Official Code) is amended by adding at the end the 
    following new section:

``SEC. 11056. TERMINATION OF FEDERAL SUPPLEMENTAL FUND.

    ``Effective upon the transfer of the assets of the Federal 
Supplemental Fund to the D.C. Federal Pension Fund under section 
11083--
        ``(1) the Federal Supplemental Fund shall terminate; and
        ``(2) any duty imposed on any person with respect to the 
    Federal Supplemental fund shall terminate.''.
    (c) Conforming Definitions.--
        (1) Trustee.--Section 11003(16) of such Act (sec. 1--
    801.02(16), D.C. Official Code) is amended by striking the period 
    at the end and inserting the following: ``, or, beginning October 
    1, 2004, the Pension Fund Trustee selected by the Secretary under 
    section 11085.''.
        (2) D.C. federal pension fund.--Section 11003 of such Act (sec. 
    1--801.02, D.C. Official Code) is amended--
            (A) by redesignating paragraphs (3) through (16) as 
        paragraphs (4) through (17); and
            (B) by inserting after paragraph (2) the following new 
        paragraph:
        ``(3) The term `D.C. Federal Pension Fund' means the District 
    of Columbia Teachers, Police Officers, and Firefighters Federal 
    Pension Fund established under section 11081.''.
    (d) Other Conforming Amendment.--Section 11041(b) of such Act (sec. 
1--809.01(b), D.C. Official Code) is amended in the heading by striking 
``From Trust Fund''.
    (e) Clerical Amendments.--The table of contents of subtitle A of 
title XI of such Act is amended--
        (1) by adding at the end of the items relating to chapter 4 the 
    following:
``Sec. 11036. Termination of Trust Fund.'';
        (2) by adding at the end of the items relating to chapter 6 the 
    following:
``Sec. 11056. Termination of Federal Supplemental Fund.'';
        (3) by redesignating the item relating to chapter 9 as relating 
    to chapter 10;
        (4) by redesignating the items relating to sections 11081 
    through 11087 as relating to sections 11091 through 11097; and
        (5) by inserting after the items relating to chapter 8 the 
    following:

         ``Chapter 9--District of Columbia Federal Pension Fund

``Sec. 11081. Creation of Fund.
``Sec. 11082. Uses of Amounts in Fund.
``Sec. 11083. Transfer of Assets and Obligations of Trust Fund and 
          Federal Supplemental Fund.
``Sec. 11084. Determination of Annual Federal Payment Into D.C. Federal 
          Pension Fund.
``Sec. 11085. Administration Through Pension Fund Trustee.
``Sec. 11086. Applicability of Other Provisions to D.C. Federal Pension 
          Fund.''.

SEC. 3. ADMINISTRATION OF DISTRICT OF COLUMBIA JUDICIAL RETIREMENT AND 
              SURVIVORS ANNUITY FUND.

    (a) Procedures for Resolving Denied Benefit Claims.--
        (1) In general.--Section 11--1570(c), D.C. Official Code, is 
    amended by adding at the end the following new paragraph:
        ``(3)(A) In accordance with procedures approved by the 
    Secretary, the Secretary shall provide to any individual whose 
    claim for a benefit under this subchapter has been denied in whole 
    or in part--
            ``(i) adequate written notice of such denial, setting forth 
        the specific reasons for the denial in a manner calculated to 
        be understood by the average participant in the program of 
        benefits under this subchapter; and
            ``(ii) a reasonable opportunity for a full and fair review 
        of the decision denying such claim.
        ``(B) Any factual determination made by the Secretary pursuant 
    to this paragraph shall be presumed correct unless rebutted by 
    clear and convincing evidence. The Secretary's interpretation and 
    construction of the benefit provisions of this subchapter shall be 
    entitled to great deference.''.
        (2) Effective date.--The amendment made by paragraph (1) shall 
    apply with respect to claims for benefits which are made after the 
    date of the enactment of this Act.
    (b) Treatment of Misappropriation of Fund Amounts as Federal 
Crime.--
        (1) In general.--Section 11--1570, D.C. Official Code, is 
    amended by adding at the end the following new subsection:
    ``(l) The provisions of section 664 of title 18, United States Code 
(relating to theft or embezzlement from employee benefit plans), shall 
apply to the Fund.''.
        (2) Effective date.--The amendment made by paragraph (1) shall 
    take effect on the date of the enactment of this Act.

SEC. 4. ADMINISTRATION OF RETIREMENT PROGRAM FOR POLICE OFFICERS, FIRE 
              FIGHTERS, AND TEACHERS BY OTHER THAN CHIEF FINANCIAL 
              OFFICER.

    (a) In General.--Section 424(c)(21) of the District of Columbia 
Home Rule Act (sec. 1--204.24c(21), D.C. Official Code) is amended by 
striking ``systems'' and inserting the following: ``systems (other than 
the retirement system for police officers, fire fighters, and 
teachers)''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply with respect to fiscal year 2005 and each succeeding fiscal year.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.
District of Columbia Retirement Protection Improvement Act of 2004 - (Sec. 2) Amends the Balanced Budget Act of 1997 to establish in the Treasury the District of Columbia Teachers, Police Officers, and Firefighters Federal Pension Fund (D.C. Federal Pension Fund) consisting of transfers of all: (1) District of Columbia Federal Pension Liability Trust Fund obligations to make Federal benefit payments; and (2) assets of such Trust Fund and the Federal Supplemental District of Columbia Pension Fund.

Specifies the use of the D.C. Federal Pension Fund, including but not limited to: (1) making Federal benefit payments; and (2) financing Federal obligations for future benefits.

Transfers as of October 1, 2004: (1) all obligations to make Federal benefit payments from the Trust Fund to the D.C. Federal Pension Fund; and (2) all assets of the Trust Fund and all assets of the Federal Supplemental Fund to the D.C. Federal Pension Fund.

Requires the Secretary of the Treasury to make annual Federal payments into the D.C. Federal Pension Fund from the general fund of the Treasury.

Provides for the administration of the D.C. Federal Pension Fund by a Pension Fund Trustee selected by the Secretary.

Requires the Secretary to enter into a contract with the Pension Fund Trustree to provide for the auditing of the D.C. Federal Pension Fund's assets, the making of such Federal benefit payments, and such other matters as the Secretary deems appropriate.

Authorizes the Pension Fund Trustee, with the Secretary's approval, to enter into one or more subcontracts with the District government or any person to provide services to the Pension Fund Trustee in connection with its performance of the contract.

Permits the Secretary to determine, in the interest of economy and efficiency, with respect to any function otherwise to be performed by the Pension Fund Trustee, that such function shall be performed by the Secretary.

Applies the same specified Federal law to the D.C. Federal Pension Fund that applied to the Trust Fund before October 1, 2004.

Terminates the Trust Fund and the Federal Supplemental Fund upon transfer of all their assets and obligations to the D.C. Federal Pension Fund.

(Sec. 3) Sets forth procedures for resolving denied benefit claims with respect to the District of Columbia Judicial Retirement and Survivors Annuity Fund.

Treats misappropriation of the D.C. Federal Pension Fund as a Federal crime.

(Sec. 4) Amends the District of Columbia Home Rule Act to provide that the Chief Financial Officer shall not administer the retirement system for police officers, fire fighters, and teachers.
To amend the Balanced Budget Act of 1997 to improve the administration of Federal pension benefit payments for District of Columbia teachers, police officers, and fire fighters, and for other purposes.