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[108th Congress Public Law 489]
[From the U.S. Government Printing Office]

<DOC>
[DOCID: f:publ489.108]

[[Page 3965]]

   DISTRICT OF COLUMBIA RETIREMENT PROTECTION IMPROVEMENT ACT OF 2004

[[Page 118 STAT. 3966]]

Public Law 108-489
108th Congress

                                 An Act

 
 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. <<NOTE: Dec. 
                       23, 2004 -  [H.R. 4657]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress <<NOTE: District of Columbia 
Retirement Protection Improvement Act of 2004.>> assembled,

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.

[[Page 118 STAT. 3967]]

    ``(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. <<NOTE: Effective dates.>> 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 <<NOTE: Effective date.>> 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

[[Page 118 STAT. 3968]]

        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 <<NOTE: Effective 
date.>> 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

[[Page 118 STAT. 3969]]

        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 <<NOTE: Effective date.>> 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 <<NOTE: Effective date.>> 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.'';

[[Page 118 STAT. 3970]]

            (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) <<NOTE: Notice.>> 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

[[Page 118 STAT. 3971]]

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.

    Approved December 23, 2004.

LEGISLATIVE HISTORY--H.R. 4657:
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CONGRESSIONAL RECORD, Vol. 150 (2004):
            Sept. 28, considered and passed House.
            Dec. 8, considered and passed Senate.

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