I

103D CONGRESS

2D SESSION H. R. 3728

To eliminate the unfunded liability of the teachers’, firefighters’, police officers’, and judges’ pension funds of the District of Columbia by increasing

and extending the contributions of the Federal Government to such

funds, increasing employee contributions to such funds, and establishing

a single annual cost-of-living adjustment for annuities paid from such

funds, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

JANUARY 25, 1994

Ms. NORTON (for herself, Mr. DELLUMS, Mr. JEFFERSON, Mr. LEWIS of

Georgia, and Mr. MCDERMOTT) introduced the following bill; which was

referred to the Committee on the District of Columbia

A BILL

To eliminate the unfunded liability of the teachers’, firefighters’, police officers’, and judges’ pension funds of

the District of Columbia by increasing and extending

the contributions of the Federal Government to such

funds, increasing employee contributions to such funds,

and establishing a single annual cost-of-living adjustment

for annuities paid from such funds, and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,
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1 SECTION 1. SHORT TITLE.

2 This Act may be cited as the ‘‘District of Columbia

3 Pension Liability Funding Reform Act of 1994’’.

4 TITLE I—FEDERAL CONTRIBU5 TION TO DISTRICT OF CO6 LUMBIA PENSION FUNDS

7 SEC. 101. INCREASE IN AND EXTENSION OF FEDERAL CON8 TRIBUTION.

9 (a) IN GENERAL.—Section 144(a) of the District of

10 Columbia Retirement Reform Act (sec. 1–724(a), D.C.

11 Code) is amended—

12 (1) in the matter preceding paragraph (1), by

13 striking ‘‘2004—’’ and inserting ‘‘2035 the following

14 amounts:’’;

15 (2) in paragraph (1)—

16 (A) by striking ‘‘as’’ and inserting ‘‘As’’,

17 and

18 (B) by striking ‘‘Fund, the sum’’ and all

19 that follows and inserting the following:

20 ‘‘Fund—

21 ‘‘(A) for each fiscal year through fiscal

22 year 1995, the sum of $34,170,000, reduced by

23 the amount of any reduction required under

24 section 145(c),
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1 ‘‘(B) for fiscal year 1996, the sum of

2 $35,879,000, reduced by the amount of any

3 such reduction, and

4 ‘‘(C) for fiscal year 1997 and each subse5 quent fiscal year, the amount calculated in ac6 cordance with this paragraph for the previous

7 fiscal year increased by 5 percent, reduced by

8 the amount of any such reduction;’’;

9 (3) in paragraph (2)—

10 (A) by striking ‘‘as’’ and inserting ‘‘As’’,

11 and

12 (B) by striking ‘‘Fund, the sum’’ and all

13 that follows and inserting the following:

14 ‘‘Fund—

15 ‘‘(A) for each fiscal year through fiscal

16 year 1995, the sum of $17,680,000,

17 ‘‘(B) for fiscal year 1996, the sum of

18 $18,564,000, and

19 ‘‘(C) for fiscal year 1997 and each subse20 quent fiscal year, the amount calculated in ac21 cordance with this paragraph for the previous

22 fiscal year increased by 5 percent; and’’; and

23 (4) in paragraph (3)—

24 (A) by striking ‘‘as’’ and inserting ‘‘As’’,

25 and
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1 (B) by striking ‘‘Fund, the sum’’ and all

2 that follows and inserting the following:

3 ‘‘Fund—

4 ‘‘(A) for each fiscal year through fiscal

5 year 1995, the sum of $220,000,

6 ‘‘(B) for fiscal year 1996, the sum of

7 $231,000, and

8 ‘‘(C) for fiscal year 1997 and each subse9 quent fiscal year, the amount calculated in ac10 cordance with this paragraph for the previous

11 fiscal year increased by 5 percent.’’.

12 (b) CONFORMING AMENDMENTS.—The District of

13 Columbia Retirement Reform Act is amended—

14 (1) in section 144(e) (sec.1–724, D.C. Code)—

15 (A) by striking ‘‘2004’’ in paragraph (1)

16 and inserting ‘‘2035’’, and

17 (B) by striking paragraph (2);

18 (2) in section 145 (sec. 1–725, D.C. Code), by

19 striking ‘‘2004’’ each place it appears in subsections

20 (a)(1) and (c)(1) and inserting ‘‘2035’’; and

21 (3) in section 162(d) (sec. 1–732(d)(1), D.C.

22 Code), by striking paragraph (5).
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1 TITLE II—CHANGES IN

2 RETIREMENT BENEFITS

3 Subtitle A—Police Officers’ and

4 Fire Fighters’ Contribution

5 SEC. 201. INCREASE IN CONTRIBUTION.

6 The first sentence of subsection (d)(1) of the Police7 men and Firemen’s Retirement and Disability Act (sec.

8 4–612(a), D.C. Code) is amended by inserting after ‘‘per

9 centum’’ the following: ‘‘(or, with respect to a member who

10 is an officer or member of the Metropolitan Police force

11 or the Fire Department of the District of Columbia, 8 per

12 centum for each pay period which begins on or after Octo13 ber 1, 1995)’’.

14 SEC. 202. ESTABLISHMENT OF SINGLE ANNUAL COST-OF15 LIVING ADJUSTMENT.

16 Subsection (m) of the Policemen and Firemen’s Re17 tirement and Disability Act (sec. 4–624, D.C. Code) is

18 amended—

19 (1) in paragraph (2), by striking ‘‘the Mayor

20 shall’’ and all that follows and inserting the follow21 ing: ‘‘on January 1 of each year (or within a reason22 able time thereafter), the Mayor shall determine the

23 per centum change in the price index for the preced24 ing year by determining the difference between the

25 index published for December of the preceding year
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1 and the index published for December of the second

2 preceding year.’’; and

3 (2) by amending paragraph (3) to read as fol4 lows:

5 ‘‘(3)(A) If (in accordance with paragraph (2)) the

6 Mayor determines in a year (beginning with 1997) that

7 the per centum change in the price index for the preceding

8 year indicates a rise in the price index, each annuity hav9 ing a commencing date on or before March 1 of the year

10 shall, effective March 1 of the year, be increased by an

11 amount equal to—

12 ‘‘(i) in the case of an annuity having a com13 mencing date on or before March 1 of such preced14 ing year, the per centum change computed under

paragraph (2), adjusted to the nearest 1 15 ⁄10 of 1 per

16 centum; or

17 ‘‘(ii) in the case of an annuity having a com18 mencing date after March 1 of such preceding year,

19 a pro rata increase equal to the product of—

‘‘(I) 1 20 ⁄12 of the per centum change com21 puted under paragraph (2), multiplied by

22 ‘‘(II) the number of months (not to exceed

23 12 months, counting any portion of a month as

24 an entire month) for which the annuity was

25 payable before the effective date of the increase,
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adjusted to the nearest 1 1 ⁄10 of 1 per centum.

2 ‘‘(B) On January 1, 1996 (or within a reasonable

3 time thereafter), the Mayor shall determine the per cen4 tum change in the price index published for December

5 1995 over the price index published for June 1995. If such

6 per centum change indicates a rise in the price index, ef7 fective March 1, 1996—

8 ‘‘(i) each annuity having a commencing date on

9 or before September 1, 1995, shall be increased by

10 an amount equal to such per centum change, adjusted to the nearest 1 11 ⁄10 of 1 per centum; and

12 ‘‘(ii) each annuity having a commencing date

13 after September 1, 1995, and on or before March 1,

14 1996, shall be increased by a pro rata increase equal

15 to the product of—

‘‘(I) 1 16 ⁄6 of such per centum change, multi17 plied by

18 ‘‘(II) the number of months (not to exceed

19 6 months, counting any portion of a month as

20 an entire month) for which the annuity was

21 payable before the effective date of the increase,

adjusted to the nearest 1 22 ⁄10 of 1 per centum.’’.
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1 SEC. 203. EQUALIZATION OF CONTRIBUTION RULES FOR

2 FORMER RETIREES.

3 (a) IN GENERAL.—Section 209(a)(2)(B) of the Dis4 trict of Columbia Retirement Reform Act (sec. 4–625(2),

5 D.C. Code) is amended by striking ‘‘having a commencing

6 date after the effective date of such amendment.’’.

7 (b) REPEAL OF RELIEF ALLOWANCE OR COMPENSA8 TION INCREASE.—Section 301 of the District of Columbia

9 Police and Firemen’s Salary Act of 1953 (sec. 4–605,

10 D.C. Code) is repealed.

11 Subtitle B—Teachers’ Contribution

12 SEC. 211. INCREASE IN CONTRIBUTION.

13 The first sentence of section 1 of the Act entitled ‘‘An

14 Act for the retirement of public-school teachers in the Dis15 trict of Columbia’’, approved August 7, 1946 (sec. 31–

16 1221(a), D.C. Code), is amended by inserting after ‘‘per

17 centum’’ the following: ‘‘(or, with respect to each pay pe18 riod which begins on or after October 1, 1995, 8 per cen19 tum)’’.

20 SEC. 212. ESTABLISHMENT OF SINGLE ANNUAL COST-OF21 LIVING ADJUSTMENT.

22 Section 21(b) of the Act entitled ‘‘An Act for the re23 tirement of public-school teachers in the District of Co24 lumbia’’, approved August 7, 1946 (sec. 31–1241(b), D.C.

25 Code) is amended—
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1 (1) in paragraph (1), by striking ‘‘The Mayor

2 shall—’’ and all that follows and inserting the fol3 lowing: ‘‘On January 1 of each year (or within a

4 reasonable time thereafter), the Mayor shall deter5 mine the per centum change in the price index for

6 the preceding year by determining the difference be7 tween the index published for December of the pre8 ceding year and the index published for December of

9 the second preceding year.’’; and

10 (2) by amending paragraph (2) to read as fol11 lows:

12 ‘‘(2)(A) If (in accordance with paragraph (1)) the

13 Mayor determines in a year (beginning with 1997) that

14 the per centum change in the price index for the preceding

15 year indicates a rise in the price index, each annuity hav16 ing a commencing date on or before March 1 of the year

17 shall, effective March 1 of the year, be increased by an

18 amount equal to—

19 ‘‘(i) in the case of an annuity having a com20 mencing date on or before March 1 of such preced21 ing year, the per centum change computed under

paragraph (1), adjusted to the nearest 1 22 ⁄10 of 1 per

23 centum; or
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1 ‘‘(ii) in the case of an annuity having a com2 mencing date after March 1 of such preceding year,

3 a pro rata increase equal to the product of—

‘‘(I) 1 4 ⁄12 of the per centum change com5 puted under paragraph (1), multiplied by

6 ‘‘(II) the number of months (not to exceed

7 12 months, counting any portion of a month as

8 an entire month) for which the annuity was

9 payable before the effective date of the increase,

adjusted to the nearest 1 10 ⁄10 of 1 per centum.

11 ‘‘(B) On January 1, 1996 (or within a reasonable

12 time thereafter), the Mayor shall determine the per cen13 tum change in the price index published for December

14 1995 over the price index published for June 1995. If such

15 per centum change indicates a rise in the price index, ef16 fective March 1, 1996—

17 ‘‘(i) each annuity having a commencing date on

18 or before September 1, 1995, shall be increased by

19 an amount equal to such per centum change, adjusted to the nearest 1 20 ⁄10 of 1 per centum; and

21 ‘‘(ii) each annuity having a commencing date

22 after September 1, 1995, and on or before March 1,

23 1996, shall be increased by a pro rata increase equal

24 to the product of—
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‘‘(I) 1 1 ⁄6 of such per centum change, multi2 plied by

3 ‘‘(II) the number of months (not to exceed

4 6 months, counting any portion of a month as

5 an entire month) for which the annuity was

6 payable before the effective date of the increase,

adjusted to the nearest 1 7 ⁄10 of 1 per centum.’’.

8 Subtitle C—Judges’ Contribution

9 SEC. 221. INCREASE IN CONTRIBUTION.

10 (a) AMOUNT OF WITHHOLDING.—The first sentence

11 of section 11–1563(a), D.C. Code, is amended by inserting

12 after ‘‘per centum’’ the following: ‘‘(or, with respect to

13 each pay period which begins on or after October 1, 1995,

41 14 ⁄2 per centum)’’.

15 (b) COMPUTATION OF RETIREMENT SALARY.—Sec16 tion 11–1564(d)(1), D.C. Code, is amended by inserting

17 after ‘‘United States Code,’’ the following: ‘‘with respect

18 to services performed before October 1, 1995, and equal

to 41 19 ⁄2 per centum of such salary, pay, or compensation

20 with respect to services performed on or after October 1,

21 1995,’’.

22 TITLE III—EFFECTIVE DATE

23 SEC. 301. EFFECTIVE DATE.

24 The amendments made by this Act shall take effect

25 October 1, 1995.
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