District of Columbia Pensions Program

Fiscal Year 2019 

Annual Report

Department of the Treasury 

Office of D.C. Pensions

MESSAGE FROM THE DIRECTOR

January 2020

On behalf of the Office of D.C. Pensions, I am pleased to present the

Fiscal Year (FY) 2019 Annual Report, which provides highlights of the 

significant accomplishments achieved by the program for this fiscal 

year as well as plans for upcoming years. 

Pursuant to the Balanced Budget Act of 1997, as amended (the Act), the Office of D.C. Pensions 

is responsible for carrying out the Secretary of the Treasury's responsibility to fund and 

administer the District of Columbia Judges' Retirement Plan and the federal portion of the 

District of Columbia Police Officers and Firefighters’, and Teachers’ Retirement Plans. As of 

September 30, 2019, the District of Columbia Judicial Retirement and Survivors Annuity Fund, 

and the District of Columbia Federal Pension Fund held assets totaling $4.0 billion. During 

FY 2019, $758.4 million in benefit payments were processed to 14,391 annuitants and refunds of 

employee contributions were made to former active employees or their beneficiaries.

During the fiscal year, the Office of D.C. Pensions efficiently managed finances: the number of 

benefit payments made via Electronic Fund Transfer reached 98.7% while continuing to make all 

benefit payments on time. Significant program management initiatives were executed: the 

Multi-Year Plan for FY 2019 – FY 2020 was revised, the Long-Term Business Planning project 

continued, and SharePoint was upgraded and is now the document repository for the office. The 

enrolled actuary for the Office of D.C. Pensions completed an experience study to validate the 

assumptions used in the calculations for the annual actuarial valuation. In addition, the quality of 

the census data used by actuaries to project future liabilities continued to improve. 

The Office of D.C. Pensions and our partners continued to enhance the System to Administer 

Retirement (STAR), its pension/payroll system. The STAR Payment Review Tracking Tool 

(PRTT) was improved to increase data transparency in the quality review process and to 

facilitate collaboration between business partners. 

An independent public accounting firm rendered an unmodified opinion on the FY 2019 

financial statements of the Office of D.C. Pensions. The audit opinion was issued with no 

findings or recommendations. This was accomplished through partnership with the District of 

Columbia Retirement Board, the Bureau of the Fiscal Service, and other Department of the 

Treasury and District entities. 

The Office of D.C. Pensions continued to work collaboratively with all entities associated with 

the District of Columbia Pensions Program to provide high quality service to the annuitants and 

to carry out the Department of the Treasury’s responsibilities under the Act.

Nancy A. Ostrowski, Director 

Office of D.C. Pensions 

Department of the Treasury
The Office of D.C. Pensions contact information is: 

Address: U.S. Department of the Treasury

Office of D.C. Pensions

1500 Pennsylvania Avenue NW

Washington, DC 20220

Telephone: (202) 622-0800

E-mail: DCPENSIONS@treasury.gov

Website: http://www.treasury.gov/about/organizationalstructure/offices/Pages/D.C.-Pensions.aspx
TABLE OF CONTENTS

PART 1 MANAGEMENT’S DISCUSSION AND ANALYSIS (Unaudited) PAGE

I. Introduction ...................................................................................................................... 1

II. Executive Summary ......................................................................................................... 3

III. Strategic Goals, Objectives, Outcomes, and Performance Measures .............................. 4

IV. Limitation of the Financial Statements .......................................................................... 32

PART 2 INDEPENDENT AUDITORS’ REPORT 

Independent Auditors’ Report ....................................................................................... 35 

PART 3 FINANCIAL STATEMENTS AND NOTES

Consolidated Balance Sheets ......................................................................................... 41 

Consolidated Statements of Net Cost ............................................................................ 42 

Consolidated Statements of Changes in Net Position .................................................... 43 

Combined Statements of Budgetary Resources ............................................................. 44 

Notes to Consolidated Financial Statements ................................................................. 45 

PART 4 REQUIRED SUPPLEMENTARY INFORMATION (Unaudited)

Combining Statements of Budgetary Resources ........................................................... 61 

PART 5 OTHER INFORMATION (Unaudited)

Consolidating Balance Sheets – By Fund ...................................................................... 65 

Consolidating Statements of Net Cost – By Fund ......................................................... 66 

Consolidating Statements of Changes in Net Position – By Fund ................................ 67 

Schedule of Pension Expense – By Fund ...................................................................... 68 

Actuarial Valuation Report, FY 2019 (Executive Summary)........................................ 69
(This page intentionally left blank.)
Part 1

Management's Discussion 

and Analysis (Unaudited)

1 

MANAGEMENT'S DISCUSSION AND ANALYSIS

FISCAL YEAR 2019 (Unaudited)

Vision:

The vision of the Office of D.C. Pensions is successful stewardship of the pension funds; high 

quality benefits administration services; and effective use of program resources, while fostering 

mutually beneficial relationships with our business partners at the District of Columbia, the 

Treasury’s Bureau of the Fiscal Service, and other Treasury entities.

Mission:

The mission of the Office of D.C. Pensions is to implement the Secretary's responsibilities under 

Title XI of the Balanced Budget Act of 1997, Public Law 105-33 (111 Stat. 251, 712), as amended. 

The responsibilities are to make timely and accurate benefit payments associated with the District 

of Columbia retirement programs for police officers and firefighters, teachers, and judges by 

managing investments, providing oversight and program management, and ensuring funding is 

available for future payments.

I. Introduction

A. Statutory Basis and Responsibilities

Under provisions in Title XI of the Balanced Budget Act of 1997, as amended (the Act1),

the Secretary of the Treasury (the Secretary) assumed certain responsibilities for a 

specific population of annuitants under the following District of Columbia (the District)

retirement plans: the Police Officers and Firefighters’ Retirement Plan, the Teachers’ 

Retirement Plan, and the Judges’ Retirement Plan. Specifically, the Secretary is 

responsible for administering the retirement benefits earned by District teachers, police 

officers, and firefighters based upon service accrued on or before June 30, 1997, and 

administering the retirement benefits earned by District judges, regardless of when

1

There have been six amendments to the Balanced Budget Act of 1997. These include the District of Columbia 

Courts and Justice Technical Corrections Act of 1998, Pub. L. 105-274, 112 Stat. 2419 (Oct. 21, 1998); the 

Technical and Clarifying Amendments Relating to District of Columbia Retirement Funds, Title VIII of Pub. L. 

105-277, 112 Stat. 2681-530 (Oct. 21, 1998); the Law Enforcement Pay Equity Act of 2000, Title IX of Pub. L. 106-

554, 114 Stat. 2763A-303 (Dec. 21, 2000); an Act to Amend the District of Columbia Retirement Protection Act of

1997, Pub. L. 107-290, 116 Stat. 2051 (Nov. 7, 2002); the District of Columbia Military Retirement Equity Act of

2003, Pub. L. 108-133, 117 Stat. 1386 (Nov. 22, 2003); and the District of Columbia Retirement Protection

Improvement Act of 2004, Pub. L. 108-489, 118 Stat. 3966 (Dec. 23, 2004).
2 

service accrued. These benefits are referred to as Federal benefit payments. Benefit 

payments to which an individual is entitled under the District of Columbia Replacement 

Plan (pertaining to police officers, firefighters, and teachers based upon service accrued 

after June 30, 1997) are referred to as District benefit payments. Police officers, 

firefighters, and teachers’ benefit payments based upon service accrued before and after 

June 30, 1997, are the financial responsibility of both the Department of the Treasury 

(Treasury) and the District. Payments resulting from such service are referred to as split 

benefit payments.

The Secretary’s responsibilities include: (1) making accurate and timely benefit 

payments; (2) investing fund assets; and (3) funding pension benefits. To carry out these 

responsibilities, Treasury’s Office of D.C. Pensions (the Office) engages in a wide range 

of legal, policy, and operational activities in the areas of benefits administration, 

information technology, financial management, and program management. The Office 

coordinates with many District entities and stakeholders to administer its responsibilities.

Since September 26, 2005, the District of Columbia Retirement Board (DCRB) has 

served as the interim benefits administrator for the Police Officers and Firefighters’, and 

Teachers’ Retirement Plans. The Office reimburses DCRB for expenses associated with 

administrating the Federal benefit payments. Also, as of that date, the Office assumed 

benefit administration responsibility for the Judges’ Retirement Plan.

B. Organizational Structure and Staffing

The Office reports to the Deputy Assistant Secretary for Human Resources and Chief 

Human Capital Officer (DASHR/CHCO). The DASHR/CHCO reports to the Assistant 

Secretary for Management (ASM). The ASM reports through the Deputy Secretary to 

the Secretary.

The Office fulfills its responsibility through key functional areas: Benefits 

Administration, Information Technology Systems Administration, Finance and Resource 

Administration, and Program Management.

 Benefits Administration: The Office provides oversight of the benefit administration

functions for certain District of Columbia retirement plans. Approximately

$758.4 million in Federal and District benefit payments were made to 14,391

annuitants for the year ended September 30, 2019.

 Finance and Resource Administration: The Office is responsible for ensuring

compliance with various financial laws and regulations. The Office provides

oversight for investments in Government Account Series (GAS) securities in the

federal pension funds totaling approximately $4.0 billion as of September 30, 2019.

The Office contracts with a third-party enrolled actuary to perform an annual actuarial

valuation to determine the pension liability of the retirement plans and the annual

contributions from the Treasury General Fund to the District of Columbia Teachers,

Police Officers and Firefighters Federal Pension Fund (D.C. Federal Pensions Fund)
3 

and the District of Columbia Judicial Retirement and Survivors Annuity Fund 

(Judicial Retirement Fund).

 Information Technology Systems Administration: The Office operates and maintains

the System to Administer Retirement (STAR), an automated pension/payroll system,

in support of benefits administration and annuitant payroll. The Office conducts

annual assessments of STAR security requirements to ensure compliance with the

Federal Information Security Management Act. The Office continues to utilize the

STAR Change Control Board (CCB) first established in 2002 which acts as the

approving authority for all STAR requirement changes.

 Program Management: The Office executes its responsibilities through program

management activities, which include planning and project management, quality

management, and risk management. The Office also produces, analyzes, and acts

upon performance management information to continually improve operations.

As of September 30, 2019, the D.C. Federal Pensions Fund and the Judicial Retirement 

Fund paid for 19 Treasury positions. In addition, the Office funds four positions in other 

Treasury offices performing critical functions to accomplish the Office’s mission.

Pursuant to Interagency Agreements (IAA) with the Treasury’s Bureau of the Fiscal 

Service (Fiscal Service), the Administrative Resource Center (ARC) provides financial 

management, annuitant payroll, and information technology support services. The 

financial management services include: financial management system platforms, budget 

processing, financial reporting and investment accounting. Annuitant payroll services 

include: STAR payroll processing, debt management, split benefit reconciliation and 

reporting, third party payroll reporting, and mailings. Information technology support 

services include: systems administration and hosting for STAR and security support 

services which include Federal Information Security Management Act compliance.

II. Executive Summary

During Fiscal Year (FY) 2019, the Office of D.C. Pensions (the Office) successfully

worked with the District of Columbia Retirement Board (DCRB), the Treasury’s Bureau

of the Fiscal Service (Fiscal Service), Administrative Resource Center (ARC), and other

Department of the Treasury (Treasury) entities to execute responsibilities under the

provisions in Title XI of the Balanced Budget Act of 1997, as amended (the Act).

The Office completed an actuarial experience study covering the period FY 2014 through 

FY 2018. This study analyzes the actual demographic experience of the Plans, such as 

deaths and rates of retirement, against the expected experience. As a result of the study,

the demographic assumptions used for determining the actuarial liability were updated to 

better reflect experience. The most significant impact was driven by the change in the 

mortality assumptions to the public retirement plans mortality tables published by the 

Society of Actuaries in October 2018.
4 

The Office continued to oversee DCRB’s benefit administration activities, conducted 

reviews, and provided training to ensure benefit payments were accurate. The Office 

improved the Payment Review Tracking Tool (PRTT) which tracks the results of the 

monthly quality reviews. Improvements to the PRTT made during FY 2019 include 

expanded reporting capabilities, additional functionality for users, and updated manager 

dashboards. The Office held monthly Quality Assurance Forums with DCRB staff to 

provide targeted training and feedback based on quality review findings. 

STAR continues to utilize Oracle’s PeopleSoft new delivery model and updates to the 

“commercial off-the-shelf” (COTS) software are applied quarterly. These new features 

are analyzed to determine if any are beneficial to the STAR users. In FY 2019, STAR 

updated the underlying tools used to develop STAR and the user display. 

The Office’s Leadership Team supports long-term strategic planning with a focus on 

program oversight, quality management, risk management, and performance 

management. A team comprised of the Director, Senior Program Manager, Risk 

Manager, Assistant Director for Benefits Administration, Assistant Director for Finance 

and Resource Administration, and the Assistant Director for Information Technology 

Systems Administration, continued with a Long-Term Business Planning (LTBP) project 

focusing on the review of the Act. Additionally, the Office’s Multi-Year Plan was 

revised to include key focus areas across the program. 

The following sections of the Management’s Discussion and Analysis provide more 

details about the FY 2019 program results and plans for future years. 

III. Strategic Goals, Objectives, Outcomes, and Performance

Measures

The Office of D.C. Pensions (the Office) has three Strategic Goals that contribute to the 

achievement of one of the five Treasury Fiscal Year (FY) 2018 – 2022 Strategic Goals 

and Objectives. The Treasury goal that the Office contributes to is Achieve Operational 

Excellence, as shown below.

Treasury Strategic Goal: Achieve Operational Excellence

Strategic Objectives:

• Workforce Management

• Customer Value and Experience
5 

The Office goals that contribute to the Treasury goal are as follows: 

1. Office Strategic Goal: Effectively Managed Finances

Office Outcomes:

 Benefit payments are accurate and timely

 Pension funds are effectively invested

 Pension funds meet future needs

2. Office Strategic Goal: Management and Organizational Excellence

Office Outcomes:

 Program is effectively managed

3. Office Strategic Goal: Effective Quality Assurance Program

Office Outcomes:

 Program pursues continuous improvement

The table on the following pages displays the Office’s Strategic Goals, Objectives and 

Outcomes linked to Treasury’s 2018 – 2022 Strategic Goal. It also identifies the Office’s 

Performance Measures and Results. 
6 

Office of D.C. Pensions Strategic Goals, Objectives, Outcomes, and Performance Measures

Fiscal Years 2018 – 2022 Fiscal Year 2019 

Treasury Goals and Objectives ODCP Strategic Goals, Objectives, and Outcomes ODCP Performance 

Measures

Treasury

Strategic Goal

Treasury 

Strategic Objective

ODCP

Strategic Goal

ODCP

Strategic Objective

ODCP

Outcomes

ODCP

Performance Measure

Achieve Operational 

Excellence

Workforce 

Management

Effectively 

Managed 

Finances

Skilled staff and 

technology are available to 

administer benefits

Benefit payments are 

accurate and timely

FY 2019 projected monetary 

error rate for benefit 

calculations

Target: 5% or less

Actual: 8.2% (See footnote #1)

STAR is available to users

Target: 99% or more

Actual: 99.4%

Skilled staff and funds are 

available to manage 

financial activities

Pension funds are 

effectively invested

FY 2019 investment strategy 

executed timely

Target: 100%

Actual: 100%

FY 2020 investment strategy 

developed timely

Target: September 26, 2019

Actual: September 24, 2019

Pension funds are 

effectively managed

FY 2019 minimum daily cash 

balance exceeds the minimum 

balance as defined in the 

FY 2019 investment strategy

Target: 100%

Actual: 100% 

FY 2019 annual required 

contribution from General Fund 

received timely into pension 

program funds

Target: September 26, 2019 

Actual: September 25, 2019
7 

Fiscal Years 2018 – 2022 Fiscal Year 2019 

Treasury Goals and Objectives ODCP Strategic Goals, Objectives, and Outcomes ODCP Performance 

Measures

Treasury

Strategic Goal

Treasury 

Strategic Objective

ODCP

Strategic Goal

ODCP

Strategic Objective

ODCP

Outcomes

ODCP

Performance Measure

Achieve Operational 

Excellence 

(continued)

Workforce 

Management 

(continued)

Effectively 

Managed 

Finances

(continued)

Skilled staff and funds are 

available to manage 

financial activities

(continued)

Pension funds are 

effectively managed 

(continued)

Monthly benefit payments 

made to annuitants by the first 

business day of the month

Target: 100%

Actual: 100%

Electronic benefit payments 

made to annuitants

Target: 98.7%

Actual: 98.7%

Pension funds meet 

future needs

FY 2019 request for annual 

contribution from General Fund 

prepared timely

Target: September 24, 2019

Actual: September 23, 2019

Customer Value and 

Experience

Management 

and 

Organizational 

Excellence

Skilled staff and 

management tools are 

available 

Program is 

effectively managed

Risks are reviewed in 

accordance with the schedule 

outlined in the Risk 

Management Plan

Target: Quarterly Meetings

Actual: Quarterly Meetings

FY 2019 financial statement 

audit opinion received from an 

independent external auditor

Target: Unmodified opinion 

Actual: Unmodified opinion
8 

Fiscal Years 2018 – 2022 Fiscal Year 2019 

Treasury Goals and Objectives ODCP Strategic Goals, Objectives, and Outcomes ODCP Performance 

Measures

Treasury

Strategic Goal

Treasury 

Strategic Objective

ODCP

Strategic Goal

ODCP

Strategic Objective

ODCP

Outcomes

ODCP

Performance Measure

Achieve Operational 

Excellence 

(continued)

Customer Value and 

Experience

(continued)

Management 

and 

Organizational 

Excellence

(continued)

Skilled staff and 

management tools are 

available (continued)

Program is 

effectively managed

(continued)

FY 2019 Annual Report and 

Financial Statements printed

Target: December 19, 2019

Actual: January 31, 2020 (ETA)

(See footnote #2)

FY 2018 open material 

weakness on 

September 30, 2019

Target: 0

Actual: 0

FY 2019 Actuarial Valuation 

Report delivered timely

Target: September 24, 2019

Actual: September 24, 2019

Effective 

Quality 

Assurance 

Program

Quality plans are 

operational in each area

Program creates 

continuous 

improvement

FY 2019 Quality Assurance 

Plans approved by 

September 30, 2019

Target: 100%

Actual: 100%

Footnotes: 

1) The monetary error rate for FY 2019 showed an improvement over FY 2018 (14.5%). The decrease in the error rate may be attributed to the Office 

conducting targeted training to address the cause of monetary errors.

2) The Independent Auditors’ Report was issued on January 15, 2020.
9 

Teachers

Police Officers 40.9%

& Firefighters

58.4%

Judges 0.7%

A. Benefit payments are accurate and timely

1. Program Results

a. Benefits Administration

General Operations 

Benefits administration services were provided to 14,391 annuitants, as of

September 30, 2019, in three District of Columbia retirement plans: the Police Officers and

Firefighters’ Retirement Plan, the Teachers’ Retirement Plan, and the Judges’ Retirement 

Plan. The annuitant population within each plan is as follows: teachers 5,883; police officers 

and firefighters 8,409; and judges 99. 

The average monthly Federal and District benefit payments in Fiscal Year (FY) 2019 was

$63.2 million. All annuitant payroll files were submitted on time, ensuring timely payment 

of annuitant benefits on the first business day of the month. With oversight and support by 

the Office, the District of Columbia Retirement Board (DCRB) performed benefits 

administration services for the Police Officers and Firefighters’ Retirement Plan and the 

Teachers’ Retirement Plan. The Office performed benefits administration for the Judges’ 

Retirement Plan. 

General benefit administration operations focused largely on transaction processing and 

customer service activities. On a monthly basis, benefit administration activities included the 

processing of new retirements and/or survivor benefits, identifying individuals no longer 

eligible for benefits, and updating annuitants’ personal and benefits information. In addition 

to focusing on the accuracy and timeliness of transaction processing, the Office and its 

business partners strive to deliver high quality customer service.

The Office encourages annuitants to receive their benefit payments through direct deposit, as 

it is a more convenient, secure, and timely method of delivering benefits. At the end of the 

fiscal year, the Electronic Funds Transfer (EFT) participation rate for annuitants in all 

retirement plans was 98.7 percent.
10 

The table below illustrates the EFT participation rates for annuitants by retirement plan as of 

September 30: 

District of Columbia Retirement Plans

Electronic Funds Transfer (EFT) 

Participation Rate

FY 2019 FY 2018 

Police Officers & Firefighters 98.5% 98.5% 

Teachers 99.0% 98.8% 

Judges 100.0% 100.0% 

In FY 2019, a variety of outreach efforts continued to ensure that accurate and timely 

information was provided to annuitants, including: 

 Letters notifying annuitants when their benefits changed;

 DCRB newsletters which provides retirement plan information for active and retired

police officers, firefighters, and teachers;

 Earning statement messages alerting annuitants to changes in benefits such as a cost-ofliving adjustments (COLA), informing annuitants of the opportunity to make changes to 

the annuitant data (e.g., signing up for direct deposit, changing tax withholdings or 

updating mailing addresses), and providing information regarding customer service 

improvements;

 Letters to retired judges providing information regarding the COLA effective

December 2018;

 Letters to retired judges announcing Federal Employees Dental and Vision Insurance

Programs (FEDVIP) and Federal Employees Health Benefits (FEHB) Program open 

seasons; and

 Judges Summary Plan Description updated booklets were distributed to annuitants and

active plan members.

Annuitant Payroll Operations 

Pursuant to an Interagency Agreement (IAA) with the Treasury’s Bureau of the Fiscal 

Service (Fiscal Service), Administrative Resource Center (ARC) Pension Payroll utilizes the 

System to Administer Retirement (STAR), the automated pension/payroll system that 

supports benefit administration and annuitant payroll operations, to process monthly benefit 

payments. ARC Pension Payroll works closely with DCRB to process monthly benefit 

payments, and is responsible for reconciling the payroll reports generated from STAR to 

ensure the annuitant payroll is processed correctly.

In FY 2019, ARC Pension Payroll staff made 173,175 benefit payments totaling 

approximately $758.4 million for a monthly average of $63.2 million. These monthly 

benefits represent payments for annuitants, beneficiaries, and Qualified Domestic Relations 

Orders (QDROs). In addition, off-cycle payments totaling approximately $814.8 thousand 
11 

were paid to annuitants when benefits were not processed in time for the regular on-cycle 

schedule. 

During FY 2019, ARC Pension Payroll reported the share of Federal and District benefit 

payments. This information is calculated by STAR and is included in the Split 

Reimbursement Summary Report (SRSR). The SRSR supports the reimbursement to the 

Office from DCRB for District benefit payments. ARC Pension Payroll also provided mail 

management support to ensure that monthly earnings statements and other annuitant 

communications are distributed in an efficient and timely manner.

In FY 2019, the Office will continue to focus on making accurate and timely payments. 

ARC Pension Payroll generates the Preliminary Statistics Report to conduct a preliminary 

review of the monthly payroll statistics before the close of pension processing. Meetings will 

continue to be held with the Office, DCRB, and ARC Pension Payroll to review the statistical 

data for consistency from month-to-month, percentage differences, large payment amounts to 

annuitants, and variations in the gross and/or net pay to individual annuitants. All identified 

anomalies will be explained, validated and/or corrected before the close of pension 

processing. 

In FY 2020, the Office will collaborate with DCRB and ARC Pension Payroll to process OffCycle payments in STAR. This is currently a manual process done outside of STAR and 

recorded by ARC Pension Payroll at the end of the processing month. Processing Off-Cycle 

payments in STAR will allow users to have access to “real-time” payment information. 

Additionally, processing Off-Cycle payments in STAR will minimize the creation of 

overpayments that are caused by the manual process. The expected implementation date for 

processing Off-Cycle payments in STAR is August 2020. 

Benefit Administration Activities and Projects

During FY 2019, the Office continued to collaborate with DCRB to focus on key benefit 

activities and data integrity. In support of these efforts, the Office contracted with a 

consulting firm with experience in benefits administration to assist with benefit 

administration support activities and projects. This allows the Office to have maximum 

flexibility to simultaneously execute various benefit activities and projects. 

In an effort to make benefits administration process improvements, the Office continued to 

make incremental improvements, which included enhancements to the Payment Review 

Tracking Tool, incorporating DCRB staff input for topics to cover during the monthly 

Quality Assurance Forums, and assessing the training needs to address quality review 

findings and to fill in knowledge gaps. 

In FY 2020, the Office will continue to utilize contractors to assist with benefit 

administration support activities. The Office will continue assessing training requirements to 

ensure skills and knowledge exists to effectively manage and execute benefits administration 

activities. In addition, the Office will review business processes, procedures, and reporting 

to ensure benefit payments are processed accurately and timely. 
12 

Summary Plan Description (SPD) 

The SPDs are designed to provide Plan members accurate and easy to understand 

information about the retirement plans. In FY 2019, the Office published and distributed the 

District of Columbia Judges’ Retirement Plan SPD. 

Former District Employees Retirement Contributions 

Former District employees who have not requested a refund or retirement benefits and have 

retirement contributions remaining in the retirement funds, are entitled to a deferred 

retirement benefit or a refund of the contributions. Former employees with service totaling 

less than five years are entitled to a refund. Former employees with service totaling five 

years or greater are entitled to a deferred retirement benefit. The Office is working with

DCRB to analyze the data to identify the former District employees who may be entitled to a

deferred benefit or refund of retirement contributions. Once the population has been 

identified, the Office and DCRB will collaborate to determine the necessary next steps. 

b. System to Administer Retirement (STAR)

Background and History 

STAR is an automated pension/payroll system developed by the Office in cooperation with 

the District. STAR supports the end-to-end business processes for retirement, streamlines the 

administration and payment of pension benefits to annuitants, and enhances customer 

service. STAR enables retirement analysts to quickly access information and provide 

annuitants with real-time customer service. In addition to processing retirements, STAR 

calculates the share of Federal and District benefit payments.

STAR is based on Oracle/PeopleSoft’s “commercial off-the-shelf” (COTS) software for 

human resources, pensions, and payroll administration. The STAR implementation was 

phased and deployed in bundles known as releases. 

 Release 1 was implemented in December 2002 to serve all annuitants of the Judges’ 

Retirement Plan.

 Release 2 was implemented in September 2003 to serve teachers, police officers, and

firefighters who retired on or before June 30, 1997, and their survivors.

 Release 3 was deployed in August of 2005 for teachers, police officers, and firefighters

whose initial retirement was processed in STAR after August 1, 2005 (and their 

survivors). This release also converted teachers, police officers, and firefighters who 

retired after July 1, 1997, and before August 1, 2005, and whose initial retirement 

processing took place in the District’s legacy system, the Pension Administration and 

Payroll System (PAPS).

 Release 4 started the implementation of the split benefit calculation to enable STAR to

calculate the Federal and District share (split) for benefit payments. Release 4 was 

implemented in June 2007 to calculate the split for future payments to those annuitants
13 

who were brought into pay status on or after June 4, 2007. This release also included an 

upgrade of Oracle/PeopleSoft from version 8.0 to 8.9. 

 Release 5 was implemented in November 2007 and completed the implementation of the

split benefit calculation. The split was calculated for future benefit payments to 

annuitants whose initial retirement processing took place in STAR between August 2005

and June 2007. In addition, STAR calculated the split for the future benefit payments to 

annuitants who retired after June 30, 1997, and whose initial retirement processing took 

place in PAPS.

 Release 6 was deployed in May 2012, which upgraded the Oracle/PeopleSoft version

8.9 to version 9.1, and included the implementation of the “person model.” The upgrade

leveraged existing and newly delivered functionality to reduce the overall number of

Oracle/PeopleSoft application customizations.

 Release 7 was deployed in April 2017, which upgraded the Oracle/PeopleSoft version

from 9.1 to version 9.2. The 9.2 upgrade introduced a new model for future upgrades.

STAR Update Model 

The Office adopted Oracle/PeopleSoft update methodology introduced with the 

implementation of PeopleSoft 9.2. The Office is now implementing smaller 

Oracle/PeopleSoft updates annually, rather than the previous model where typically one large 

update was implemented every three or four years. 

In May 2019, the Office implemented its second annual update using the new strategy. This 

update keeps the STAR system up-to-date with Oracle’s latest version, but did not introduce 

any new features. In July 2019, STAR was updated with the most recent PeopleTools 

version (8.57). The PeopleTools update allowed the use of PeopleSoft’s “Classic Plus” 

pages. In FY 2020, the Office will continue to execute this update strategy.

STAR Technical Production Support and Hosting 

System hosting and technical production support for STAR is performed by Fiscal Service, 

Information Security Services (ISS). Since September 2003, ISS staff members have 

provided production support activities, including routine system operations, application and 

database administration, help desk operations, and problem resolution. A supplemental 

support contract is also in place to provide assistance to ISS in both operations and 

maintenance activities. In FY 2019, STAR was available 99.4 percent of the time. 

STAR System Security 

In FY 2019, as a part of the Security Assessment and Accreditation (SA&A) process, the 

Office conducted an annual security assessment of the STAR system. The SA&A is a 

process that ensures that federal systems and major applications are well-documented, 

authorized, and adhered to formal and established security requirements. The annual 

assessment is a part of ODCP’s continuous monitoring effort to test STAR’s securityrelevant changes that occur out of the SA&A cycle but do not necessarily constitute a 

'significant change' necessitating a new SA&A. This effort was conducted to ensure the
14 

STAR system remains in compliance with all relevant security requirements and to renew the 

system’s Authorization to Operate. There were fourteen vulnerabilities identified in the 

assessment and documented as Plan of Action and Milestone (POA&M) items. The 

POA&Ms have since been mitigated and closed. The next full assessment is scheduled for 

FY 2020. 

As required by NIST 800-53, the Office conducted a contingency test and the first of two 

information system backup tests in FY 2019. The contingency exercise consisted of testing

connectivity to the STAR contingency site. The first information system backup exercise 

consisted of testing the reliability and integrity of backup data from one of STAR’s schedule 

system backups. The second information system backup exercise is scheduled to be 

conducted in March of 2020. In FY 2019, the Office also conducted its annual incident 

response exercise that consisted of investigating a failed migration and then refreshing STAR 

Production from a backup file. Lessons learned from all the exercises are used to update 

STAR security documentation. STAR security management adheres to the Federal 

Information Security Management Act (FISMA) calendar year which starts July 1 and ends 

June 30. 

Change Control Board 

The Office’s Change Control Board (CCB) acts as the approving authority for all STAR 

requirement changes. The Board is comprised of representatives from the Office, the Office 

of General Counsel (OGC), DCRB, Fiscal Service, ISS, and ARC Pension Payroll. The CCB 

evaluates the benefits and risks associated with any proposed change; makes a determination 

as to whether or not the proposed change should be implemented; and establishes the priority 

for each approved change. The CCB process enhances internal controls and accountability 

for new proposed changes. 

In FY 2019, the Office has undertaken a major refinement to STAR’s Payment Review 

Tracking Tool (PRTT) which is used for tracking and reporting of quality reviews. In 

FY 2020, the Office plans to continue to enhance reporting and functionality. Also, in 

FY 2020 the CCB has a robust schedule of STAR Change Requests. 

B. Pension Funds are effectively invested, financed and meet future needs

1. Program Results

a. Pension Funds

Pursuant to the District of Columbia Retirement Protection Improvement Act of 2004, Public 

Law 108-489, the Office administers Federal benefit payments through two funds: 

 The District of Columbia Teachers, Police Officers and Firefighters Federal Pension 

Fund (D.C. Federal Pension Fund) makes Federal benefit payments and pays necessary 

administrative expenses for the Police Officers and Firefighters’, and Teachers’ 

Retirement Plans. The D.C. Federal Pension Fund is not a typical pension fund in that it
15 

does not receive employee and employer contributions. The sources of funding for the 

D.C. Federal Pension Fund are:

• An annual federal payment from the Treasury General Fund which amortizes the 

original unfunded liability and any additional liabilities identified in annual actuarial 

valuations; and

• Interest earned on investments.

Total assets for the D.C. Federal Pension Fund as of September 30, 2019 are $3.8 billion.

 The District of Columbia Judicial Retirement and Survivors Annuity Fund (Judicial 

Retirement Fund) accumulates funds to finance Federal benefit payments and necessary 

administrative expenses of the Judicial Retirement Plan. There are three funding sources 

for the Judicial Retirement Fund:

• An annual federal payment from the Treasury General Fund which amortizes the 

original unfunded liability and any additional liabilities identified in annual actuarial 

valuations;

• Interest earned on investments; and

• Judges’ employee contributions.

Total assets for the Judicial Retirement Fund as of September 30, 2019 are $177.2 million.

To ensure the Office achieves its strategic goal #1 (Effectively Managed Finances), our Risk 

Management Program tracks risks directly related to the stated objective, “pension funds 

meet future needs” for both the D.C. Federal Pension Fund and the Judicial Retirement Fund. 

These risks have been evaluated and categorized as low. 

b. Fund Deposits

Warrants

As authorized by the Act, the D.C. Federal Pension Fund and the Judicial Retirement Fund 

receive annual payments from the Treasury General Fund to cover administrative expenses 

for the year and amortize the unfunded liabilities of the retirement programs assumed by the 

Federal Government over 30 years, the annual net experience gains or losses over 10 years, 

and any annual changes in actuarial liabilities over 20 years. The annual payment to the 

Judicial Retirement Fund also includes amounts necessary to fund the normal cost of the 

retirement program. 

In accordance with the Act, the annual payments to the D.C. Federal Pension Fund and the 

Judicial Retirement Fund are calculated by an enrolled actuary. These funds are requested in 

September each year, and invested upon receipt in Government Account Series (GAS) nonmarketable Treasury securities, with maturities and par amounts consistent with the expected 

payment dates and payout amounts of the pension liabilities. 
16 

The table reflects FY 2019 and FY 2018 annual payments from the Treasury General Fund as 

of September 30: 

A major component of each of the above annual payments is the 30-year payment established 

in 1997 to amortize the unfunded liabilities of the retirement programs assumed by the 

Federal Government. There are eight years remaining of these 30-year payments of 

$348.6 million for the D.C. Federal Pension Fund and $2.1 million for the Judicial 

Retirement Fund after which the original unfunded liabilities will be fully amortized. 

The year-to-year differences in the annual payments from the Treasury General Fund resulted 

from the amortization of actuarial gains or losses in the current year, the re-amortization of 

remaining payments from previous amortizations, and completion of previous amortizations.

Interest

The amount of Interest Payments (deposits) in the table below reflects three sources of 

interest: interest earned on GAS long-term securities, interest earned on overnight securities, 

and interest earned through the amortization of discounts. There are two methods of 

calculating interest: the Interest Earned (recognized) reflects the amortization of premiums 

and discounts from GAS securities in the portfolio; while the Rate of Return is calculated by 

dividing interest earned from GAS securities by the average par value of investments in GAS 

securities. The FY 2019 and FY 2018 annual interest as of September 30 from the pension 

funds are summarized in the following tables:

Office of D.C. Pensions’ Funds

FY 2019 Annual Interest 

(in Millions)

Interest 

Payments 

(deposits)

Interest 

Earned 

(recognized)

Rate of 

Return

District of Columbia Federal Pension Fund $91.8 $68.2 1.95% 

District of Columbia Judicial Retirement and 

Survivors Annuity Fund $4.0 $3.8 2.33% 

Totals $95.8 $72.0 

Office of D.C. Pensions’ Funds

Annual Payments from the 

Treasury General Fund 

(in Millions)

FY 2019 FY 2018 Difference

District of Columbia Federal Pension Fund $498.3 $467.3 $31.0 

District of Columbia Judicial Retirement and 

Survivors Annuity Fund $16.6 $16.0 $0.6 

Totals $514.9 $483.3 $31.6 
17 

Year-to-year differences in the Interest Earned (recognized) and Rates of Return are driven 

primarily by the interest rates for available GAS non-marketable Treasury securities available

at the time investments are placed. 

Judges’ Employee Contributions 

Active judges are required to contribute 3.5 percent of salary to the Judicial Retirement Fund 

to pay for part of the cost of their retirement benefits. Active judges who elect a survivor 

annuity contribute an additional 3.5 percent of salary. The table below summarizes the 

contributions of active judges’ contributions for the most recent fiscal years as of 

September 30: 

Office of D.C. Pensions’ Funds 

FY 2018 Annual Interest 

(in Millions)

Interest 

Payments 

(deposits)

Interest 

Earned 

(recognized)

Rate of 

Return

District of Columbia Federal Pension Fund $97.1 $57.6 1.65% 

District of Columbia Judicial Retirement and 

Survivors Annuity Fund $3.8 $3.5 2.28% 

Totals $100.9 $61.1 

Office of D.C. Pensions’ Fund

Employee Contributions 

from Active Judges 

(in Thousands)

FY 2019 FY 2018 Difference

District of Columbia Judicial Retirement and 

Survivors Annuity Fund $620.7 $640.6 $(19.9)
18 

Summary of Fund Deposits 

The following table reflects the fund deposits to the D.C. Federal Pension Fund and the 

Judicial Retirement Fund as of September 30: 

c. Collections

District Benefit Payments

Treasury pays all benefit payments under the Police Officers and Firefighters’ and Teachers’ 

Retirement Plans from the D.C. Federal Pension Fund. DCRB makes an advance payment to

the D.C. Federal Pension Fund prior to the last business day of the month for benefit 

payments made by Treasury on behalf of the District. The STAR Split Reimbursement 

Summary Report supports DCRB reimbursements made to Treasury each month. 

The table below summarizes activity for the most recent fiscal years as of September 30:

Office of D.C. Pensions’ Funds

(in Millions)

Fund Type of Deposit FY 2019 FY 2018 

District of Columbia 

Federal Pension Fund 

Warrant $498.3 $467.3 

Interest $91.8 $97.1 

District Benefit Payments $202.8 $185.2 

Post-1987 D.C. Health & Life 

Employer Payments 

$17.6 $14.6 

STAR Administrative Expense 

Reimbursements 

$1.9 $2.5 

District of Columbia 

Judicial Retirement and 

Survivors Annuity Fund 

Warrant $16.6 $16.0 

Interest $4.0 $3.8 

Employee Contributions $0.6 $0.6 

Totals 

Warrant $514.9 $483.3 

Interest $95.8 $100.9 

Contributions $0.6 $0.6 

Reimbursements and Payments $222.3 $202.3 

Office of D.C. Pensions’ Fund

District Benefit Payments

(in Millions)

FY 2019 FY 2018 Difference

District of Columbia Federal Pension Fund $202.8 $185.2 $17.6 
19 

Post-1987 D.C. Health & Life Insurance 

Treasury pays the employer share of Post-1987 D.C. health and life insurance premiums on 

behalf of the District from the D.C. Federal Pension Fund. The District makes an advanced 

payment to the D.C. Federal Pension Fund prior to the last business day of the month for the 

premiums that are paid by Treasury. 

The table below summarizes reimbursement activity for the most recent fiscal years as of 

September 30: 

The District’s advances of the employer share of Post-1987 D.C. health and life insurance 

premiums continues to increase year over year as the number of retirees who were hired after 

October 1, 1987 increases. 

STAR Administrative Expenses 

The Office and DCRB have developed a methodology for allocating STAR administrative 

costs incurred by the Office when administering Federal and District benefit payments. The 

methodology takes into consideration the number of 100 percent Federal annuitants, 

100 percent District annuitants, and split annuitants. Applying this methodology, the Office 

and DCRB entered into a cost sharing agreement for reimbursement of FY 2019 actual 

expenses. The following table summarizes STAR administrative expense reimbursements 

for the most recent fiscal years as of September 30:

*Amount includes a receivable of $601 thousand for the fourth quarter of FY 2019.

The year-to-year differences in the reimbursements for STAR administrative expenses are 

driven primarily by cost of living increases and STAR enhancement during FY 2019. 

Office of D.C. Pensions’ Fund

D.C. Health and Life

Insurance Payments

(in Millions)

FY 2019 FY 2018 Difference

District of Columbia Federal Pension Fund $17.6 $14.6 $3.0 

Office of D.C. Pensions’ Fund

STAR 

Administrative Expenses

(in Millions)

FY 2019* FY 2018 Difference

District of Columbia Federal Pension Fund $2.1 $1.8 $0.3 
20 

Debt Management 

The ARC Pension Payroll manages the debt collection and prevention activities for the 

Office. During FY 2019, the Office collaborated with ARC Pension Payroll, the Office of 

the General Counsel (OGC), and DCRB to pursue debt prevention and collection efforts. 

Approximately $1.2 million was recovered after the notification of an annuitant’s death. In 

addition, $237 thousand was collected through offsets, lump sum payments, or installment 

payments. 

In FY 2019, the Benefit Overpayment & Collection Re-engineering (BOCR) Project was 

implemented. This project provided annuitants and non-annuitants (those no longer eligible 

to receive a payment) who owe debt with a clear explanation of their due process rights, 

minimize the burden when making a request, and shorten the time from a request to a final 

agency decision. 

During FY 2020, the Office will continue to collaborate with ARC Pension Payroll and 

DCRB to streamline the due process for benefit changes and collection of debt. To 

accomplish the above, the Office, ARC Pension Payroll, and DCRB will review Standard 

Operating Procedures, roles and responsibilities, and letters to debtors to ensure processes are 

being followed as intended. 

Additionally, the Office has an agreement with the Treasury’s Bureau of the Fiscal Service

(Fiscal Service), Debt Management Services’ (DMS) Cross-Servicing Program. The 

FY 2019 agreement allows collection processes for delinquent debt through a number of 

tools including: issuing demand letters, conducting telephone follow-up calls, initiating skip 

tracing, referring debts for administrative offset, performing administrative wage 

garnishment, and referring debts to private collection agencies.

In FY 2019, the Office continued discussions with the Fiscal Service, Debt Management 

Services’ (DMS) Treasury Offset Program. In FY 2020, meetings will continue between the 

Office, Fiscal Service, and DCRB to evaluate impacts to the D.C. Pensions Program, STAR, 

and the relationship with the District and Treasury. 

d. Investments

As required by the Act, amounts received in the D.C. Federal Pension Fund and the Judicial 

Retirement Fund are invested in non-marketable securities issued to mirror the characteristics 

of marketable securities. The Fiscal Service invests the assets of the D.C. Federal Pension 

Fund and the Judicial Retirement Fund based on investment guidance from the Office. The 

Office follows a “ladder” approach, scheduling maturities in amounts sufficient to meet the 

obligations to pay benefits and administrative expenses projected by annual actuarial 

valuations. Investment policy in the D.C. Federal Pension Fund and the Judicial Retirement 

Fund strikes a balance between ensuring the Office can meet short-term obligations and 

extending the ladder. 

In FY 2019, the cash balances in the D.C. Federal Pension Fund and Judicial Retirement 

Fund, available for contingencies, were targeted to remain above $95.0 million and 
21 

$2.6 million, respectively, which represent approximately two months of federal obligations. 

Typically, the Office invests the cash balance in one-day certificates, except for an uninvested balance of $500 thousand at month-end to cover unanticipated withdrawals on the 

last day of the calendar month. At the end of FY 2018, the Office did not invest excess funds 

in the amount $86.3 million in one-day certificates resulting in $88.1 million in FY 2018 

Fund Balance with Treasury reported on the Office’s Consolidated Balance Sheet. Available 

funds were fully invested per the Office’s Investment Guidance as of September 26, 2019. 

In FY 2019, the Office extended the maturity dates of securities in the D.C. Federal Pension 

Fund to February 2026 and for securities in the Judicial Retirement Fund to August 2029. 

The Office invested a portion of the FY 2019 warrant in a February 2036 bond for the 

Judicial Retirement Fund. The Office normally invests in 10-year notes with maturities 

selected to immunize the funds projected future costs, but available funds from the FY 2019 

warrant exceeded the securities available with this profile. The Office will return to 

investing in 10-year notes for the Judicial Retirement Fund as they become available.

Investments are valued at cost, and, if applicable, adjusted for unamortized premiums and 

discounts. The premiums and discounts are recognized as adjustments to interest income, 

utilizing the effective interest method. 

The following table reflects the net investments breakdown as of September 30 for the two 

most recent years:

Office of D.C. Pensions’ Funds 

Net Investments 

(in Millions)

FY 2019 FY 2018 Difference

District of Columbia Federal Pension Fund $3,822.0 $3,731.3 $90.7 

District of Columbia Judicial Retirement and 

Survivors Annuity Fund $176.6 $164.4 $12.2 

Totals $3,998.6 $3,895.7 $102.9 

To ensure the Office achieves its strategic goal #1 (Effectively Managed Finances), our Risk 

Management Program tracks risks directly related to the stated objective, “pension funds are 

effectively invested” for both the D.C. Federal Pension Fund and the Judicial Retirement 

Fund and Survivors Annuity Fund. These risks have been evaluated and categorized as low. 

e. Payments

Federal Benefit Payments 

Treasury pays all federal benefit payments under the Police Officers and Firefighters’, 

Teachers’, and Judges’ Retirement Plans. 
22 

The following table summarizes the Federal benefit payments as of September 30: 

Refunds of Employee Contributions 

DCRB processes refunds of contributions for active police officers, firefighters, and teachers, 

and later, requests reimbursement from the Office for the Federal portion of those refund 

payments. The Office also processes refunds of contributions for active judges when 

requested. The table below summarizes the refunds of employee contributions processed as 

of September 30: 

The year-to-year difference in the District of Columbia Federal Pension Fund refunds is 

driven by year-to-year differences in employee terminations. 

Benefit Administration Expense Reimbursements 

The Office reimburses DCRB for administrative expenses incurred in administering Federal 

benefit payments. The Office and DCRB have developed a methodology for estimating costs 

incurred by DCRB while administering Federal and District benefit payments and entered 

into a cost sharing agreement for reimbursement of FY 2019 actual expenses. The 

methodology takes into consideration: (1) the number of active employees, 100 percent 

Federal annuitants, 100 percent District annuitants, and split annuitants; (2) the estimated 

DCRB resources needed to support these populations; (3) the number of employees 

throughout DCRB who are dedicated to supporting the benefits administration function; and 

(4) the level of effort associated with processing Federal benefit payments.

Office of D.C. Pensions’ Funds 

Federal Benefit Payments 

(in Millions)

FY 2019 FY 2018 Difference

District of Columbia Federal Pension Fund $543.3 $542.0 $1.3 

District of Columbia Judicial Retirement and 

Survivors Annuity Fund $13.5 $12.8 $0.7 

Totals $556.8 $554.8 $2.0 

Office of D.C. Pensions’ Funds 

Refunds of Federal Portion

of Employee Contributions 

(in Whole Dollars)

FY 2019 FY 2018 Difference

District of Columbia Federal Pension Fund $75,532 $69,794 $5,738 
23 

The table below is an estimate of the amounts the Office expects to reimburse DCRB as of 

September 30 for FY 2019 administrative expenses incurred while administering Federal 

benefit payments; and the actual reimbursement for FY 2018: 

*Amount includes third and fourth quarters estimates for FY 2019.

Administrative Expenses 

The Office funds administrative expenses from the D.C. Federal Pension Fund and the 

Judicial Retirement Fund. When administrative expenses related to activities that benefit all 

of the retirement programs occur, expenses are usually allocated 99 percent to the 

D.C. Federal Pension Fund and one percent to the Judicial Retirement Fund for majority of 

contracts and interagency agreements. The remaining administrative expenses such as Office 

staff salaries and benefits, are allotted at 95 percent to the D.C. Federal Pension Fund and 

five percent to the Judicial Retirement Fund. The allocation percentages are based on the 

number of annuitants covered by each Fund. When expenses benefit only one group, or 

when a different allocation is clearly appropriate, expenses are charged accordingly.

The Office’s major administrative expenses consisted of DCRB benefit administration 

(discussed above), the Office’s staff salaries, and contractors engaged to provide benefit 

administration and IT system support. 

The following table reflects administrative expenses by fund for two most recent fiscal years 

ending September 30: 

In FY 2019, the Office was again subject to the Sequestration under the Bipartisan Budget 

Act of 2015 (Public Law 114-74) which modified the caps on defense and nondefense 

funding for Fiscal Year 2018 that were established by the Budget Control Act of 2011. The 

Office of D.C. Pensions’ Fund

Reimbursements to DCRB for 

Administrative Expenses 

(in Millions)

FY 2019* FY 2018 Difference

District of Columbia Federal Pension Fund $3.2 $3.4 $(0.2) 

Office of D.C. Pensions’ Funds

Administrative Expenses 

(in Millions)

FY 2019 FY 2018 Difference

District of Columbia Federal Pension Fund $22.0 $18.7 $3.3 

District of Columbia Judicial Retirement and 

Survivors Annuity Fund $0.5 $0.4 $0.1 

Totals $22.5 $19.1 $2.4 
24 

Office of Management and Budget (OMB) issued a report to the Congress on the Joint 

Committee Reductions for Fiscal Year 2018. OMB prepared the report consistent with the 

requirements of the Balanced Budget and Emergency Deficit Control Act of 1985 

(BBEDCA), as amended. The report provided calculations of the amounts by which 

FY 2018 direct spending is required by section 251A of BBEDCA to be reduced and listed 

the required reductions for each non-exempt budget account with direct spending. 

Based on this report, the Office identified the District of Columbia Federal Pension Fund and 

the District of Columbia Judicial Retirement and Survivors Annuity Fund as budget authority 

subject to sequestration. Although reductions due to sequestration had no impact on 

payments to annuitants, the Office absorbed these reductions in FY 2019 in the area of 

administrative expenses by delaying approved hiring actions and delaying the award of 

several contract actions (postponing planned projects). 

The table below summarizes these reductions for the two most recent fiscal years as of 

September 30: 

Unless language within the Sequestration Transparency Act of 2012 is changed by Congress, 

the Office will continue to be subject to sequestration reductions until 2027 per the Bipartisan 

Budget Act of 2018 (Public Law 115-123 Division C, Title I, Sec. 30101), and will comply 

with implementation guidance issued by OMB and the Department of the Treasury. 

Improper Payments Elimination and Recovery Improvement Act (IPERIA) 

The Office of Management and Budget (OMB) Circular A-123 Appendix C, Requirements 

for Payment Integrity Improvement, requires agencies to periodically review all programs 

and activities and identify those that may be susceptible to significant improper payments. 

An improper payment is defined as any payment that should not have been made or that was 

made in an incorrect amount under statutory, contractual, administrative, or other legally 

Fund Payment Type

Sequestration Impact

(in Millions)

FY 2019 FY 2018 Difference

District of Columbia Federal 

Pension Fund

Annuitant Benefit 

Payments $0.0 $0.0 $0.0 

Administrative 

Expenses $1.4 $1.3 $0.1 

District of Columbia Judicial 

Retirement and Survivors 

Annuity Fund

Annuitant Benefit 

Payments $0.0 $0.0 $0.0 

Administrative 

Expenses $0.1 $0.1 $0.0 

Total Reduction due to Sequestration $1.5 $1.4 $0.1 
25 

applicable requirements. Incorrect amounts are overpayments, underpayments, or duplicate 

payments that are made to eligible recipients. An improper payment also includes any 

payment that was made to an ineligible recipient or for an ineligible good or service, or 

payments for goods or services not received (except for such payments authorized by law). 

Agencies are required to annually report amounts and causes of improper payments to the 

President and Congress, and their plans for monitoring and reducing improper payments. 

In FY 2019, the Office worked with ARC’s IPERIA Team to analyze the various types of 

payments disbursed by the Office and reported these results using a standardized, risk-based 

model. Additionally, the Office reported and reviewed results from ongoing internal benefit 

payment quality reviews. The Office will continue to work with Treasury’s Office of the 

Deputy Chief Financial Officer (ODCFO) to comply with IPERIA reporting requirements. 

The results of the FY 2019 Payment Recapture Audit found the Office with a 69.23% Benefit 

Recovery Rate, which is below the target rate of 85%. However, the missed target is driven 

primarily by a single late-year August 2019 receivable. The $593 thousand individual debt 

case represented 38% of the total. An installment payment plan has been established and 

payments have been made against the debt. 

In FY 2019, the Office was selected by the Treasury’s Office of the Inspector General (OIG) 

as part of its IPERIA Compliance Audit for the Office’s submission of the FY 2018 Payment 

Recapture Audit Spreadsheet reporting requirement. The OIG auditor reviewed supporting 

documentation provided by the Office and did not note any matters involving FY 2018 

IPERIA activities that it considered to be significant, or any instances of noncompliance with 

laws and regulations.

The Office and ARC’s IPERIA team participated in a pilot program conducted by Treasury’s 

ODCFO for a new IPERIA qualitative risk assessment. The draft questionnaire was 

streamlined and made to be more efficient and effective in identifying susceptibility of 

improper payments. The questions on the form better aligned with the risk factors outlined in 

OMB Circular A-123 Appendix C. After the success of the pilot, the new questionnaire was 

adopted and implemented for use by components for FY 2019 qualitative risk assessment 

reporting. 

Prompt Payment Act and Electronic Invoice Payments

The Prompt Payment Act was enacted to ensure that suppliers doing business with the 

Federal Government are paid by the government in a timely manner. The Office paid 

100% of the 95 payments by electronic funds transfer. 

f. Financial Operations

Accounting Support

Pursuant to an Interagency Agreement (IAA) with ARC, ARC Fiscal Accounting provides 

accounting support services that include processing accounting transactions such as 
26 

commercial invoices, purchase cards, obligations, accruals, and revenue transactions. 

Transaction processing consists of a full range of accounting transactions necessary to 

maintain a complete general ledger, including budgetary transactions, accounts payable, 

accounts receivable, and fixed assets. ARC Fiscal Accounting uses Oracle Federal Financial 

(Oracle) as the core financial management system to record and process financial 

transactions. The Office’s transactions are entered into Oracle, both manually and via 

custom interfaces, from ancillary systems such as PRISM and Concur Government Edition 

(CGE). Accounting entries that are recorded in the Oracle accounting system are supported 

by Treasury Financial Manual (TFM) to ensure compliance with standard general ledger 

reporting requirements. ARC Fiscal Accounting also prepares the Office’s financial 

statements and other useful data for managerial reporting. ARC Fiscal Accounting provides 

a report writer package called Oracle Business Intelligence (OBI), which allows the Office to 

generate various accounting reports to monitor obligations and expenditures. 

In FY 2020, ARC will offer a cloud-based solution named OneStream. OneStream will 

streamline the financial reporting process and will improve data analytics while improving 

management’s visibility and controls. The Office anticipates implementing the first phase of 

the OneStream solution after the June 2020 close. The first phase will produce financial 

statements and notes and the second phase, which is expected in FY 2021, will produce 

publishable annual financial reports.

g. Actuarial Valuation

In FY 2019, the Office’s actuarial contractor performed the annual actuarial valuation for the 

Office, as required by the Act. The actuarial valuation is used to determine the pension 

liability of the retirement programs administered by the Office. The actuarial accrued 

liability, as of October 1, 2019, was determined using the demographic rates from the 

FY 2019 Actuarial Experience Study and economic assumptions in accordance with 

Statement of Federal Financial Accounting Standards (SFFAS) No. 33, Pensions, Other 

Retirement Benefits, and Other Postemployment Benefits: Reporting the Gains and Losses 

from Changes in Assumptions and Selecting Discount Rates and Valuation Dates. The 

Federal Government’s total liability for Federal benefit payments for the Police Officers and 

Firefighters’ Retirement Plan, Teachers’ Retirement Plan, and Judges’ Retirement Plan is 

summarized in the table below for the two most recent years. 

Office of D.C. Pensions’ Funds

Actuarial Accrued Liability 

(in Millions)

FY 2019 FY 2018 Difference

District of Columbia Federal Pension Fund $8,188.7 $8,163.0 $25.7 

District of Columbia Judicial Retirement and 

Survivors Annuity Fund $255.4 $255.6 $(0.2) 
27 

The year-to-year differences in the actuarial accrued liability are driven primarily by actuarial 

gains and losses associated with demographic experience and changes in demographic and 

economic assumptions. 

During FY 2019, the Office completed the quinquennial actuarial experience study. The 

experience study analyzed the demographic experience (e.g., deaths and retirements) over 

FY 2014 through FY 2018 and compares the actual results to the expected results. The 

experience study determines the demographic assumptions to be used for the actuarial 

valuation beginning with FY 2020 until the next experience study is performed. 

Other key results from the October 1, 2019, actuarial valuation report can be found on 

page 69 of this Annual Report. 

C. Program is effectively managed and pursues continuous improvement

1. Program Results

a. Leadership Team

In FY 2019, the Director created a Leadership Team composed of the Office Director, the 

Assistant Director for Benefits Administration, Assistant Director for Finance and Resource 

Administration, Assistant Director for IT Systems Administration, and the Senior Program 

Manager. The Team focused on major external deliverables in addition to execution and 

impact of cross-functional/organizational activities. Regular meetings between the Office’s 

Leadership Team and their DCRB counterparts take place quarterly to ensure alignment of 

major operational activities and timely creation of and adherence to Memoranda of 

Understanding, Service Level Agreements, and Quality Plans.

b. Multi-Year Planning

For several years, the Program Management Group (PMG) has created and monitored a 

Multi-Year Plan. In FY 2019, the ODCP Leadership Team continued to focus attention on 

major functional areas and activities assessed as having longer term and multi-entity impact. 

In FY 2019, the Leadership Team tracked the performance indicators developed along with 

the FY 2017 through FY 2019 Multi-Year Plan to ensure that the Office and its business 

partners make progress toward achieving the results contemplated in the Plan. The 

Leadership Team updated the Multi-Year Plan for FY 2019 – FY 2020. Until the Long-Term 

Business Planning (LTBP) project is completed and its results can be assessed, one year will 

be added to the Multi-Year Plan each year.

c. Long-Term Business Planning

The Long-Term Business Planning (LTBP) project began in FY 2018 to consider potential 

future program impacts and proactively assess those impacts. During FY 2019, the team 

continued to address area’s outlined on the “roadmap” which was developed in FY 2018. 
28 

The “roadmap” will guide leadership with determining the appropriate timing and 

circumstances for future decision making and for the creation of actionable activities. In FY 

2020, the Office will continue to determine an approach to address items outlined in the 

“roadmap.” 

d. Program Management

A key component of program management involves setting the Office’s annual project 

activities and major priorities. In FY 2019, the Office’s major priorities included the annual 

financial statements audit, the actuarial valuation, the experience study, and the records 

management and enterprise content management projects. In addition, the Office reviewed

various processes to ensure benefit payments were made accurately and timely. 

e. Capstone Project

In FY 2019, the Office strengthened email records management practices as a means of 

complying with the National Archives and Records Administration (NARA) and Office of 

Privacy, Transparency, and Records (PTR) regulations. This required government 

employees to treat email messages created or received in the course of official business as 

federal records and manage them accordingly. The Office adopted the Capstone approach 

and during FY 2019 continued to identify email records that are to be preserved and managed 

in a manner that provides accountability, transparency and complies with the Federal 

Records Act (FRA). 

As the Office awaits further Capstone implementation direction, the focus during FY 2020 

will be an assessment of the email records management approach while examining potential 

methods best suited to manage email records. 

f. SharePoint Project

As a result of requirements set forth by the Office of the Chief Information Officer (OCIO) to 

upgrade Departmental Offices’ Enterprise Content Management (ECM)/SharePoint to the 

2013 version, the Office embarked on a comprehensive SharePoint upgrade and migration 

project in FY 2018 and FY 2019. This OCIO mandate provided an opportunity to design a 

SharePoint solution that integrated daily business operations. The project focused on 

improving document management, organization, and storage across the Office and with its 

service organizations. Some of the top priorities included coordinating content for improved 

document sharing, archival, retrieval, and retention. The Office unveiled its recently 

redesigned and upgraded 2013 Microsoft SharePoint site in the latter half of FY 2019. 

In an effort to maintain the structural and organizational improvements made, the Office 

developed, and is implementing a robust governance model. It defines and outlines 

administrative roles and responsibilities that supports business functions and processes. 

Strong governance has also contributed to an improved user experience, enhanced knowledge 

management and improved program efficiency. A much savvier user group has emerged, in 

turn improving office-wide collaboration and information transparency. The risks of 
29 

document loss and retrieval associated with emailing and tracking large and/or important 

content were seriously minimized by using SharePoint. In FY 2020, the Office plans to 

capitalize on these efforts and the features offered by this platform to facilitate records 

digitization and other electronic document management requirements. 

g. Service Level Agreements

The Office has annual Service Level Agreements (SLAs) in place with Fiscal Service, ARC

for the STAR administration and hosting, and annuitant payroll operations. In FY 2019, the 

SLAs were reviewed and revised to more accurately define responsibilities, required 

services, and reporting requirements for service providers and to ensure the Office is 

providing high quality service to annuitants. 

In FY 2020, the Office will collaborate with DCRB to develop a robust SLA to ensure a 

comprehensive view of service requirements for benefit administration. 

h. Quality Program

Benefits Administration

As part of the Office’s Quality Program, a quality plan guided the review of benefit 

administration activities. In FY 2019, the Office’s staff and benefits administration 

contractor focused reviews on complex benefit cases. The Office provided feedback to 

DCRB and assessed staff training needs. 

In FY 2020, the Office’s Quality Program for benefits administration activities will focus on 

payment types and data points that can impact the actuarial liability, in addition to 

calculations that have had historically higher error rates. The Quality Assurance Forums at 

DCRB will continue to provide feedback on discrepancies as well as deliver training targeted 

to address quality review findings. Improvements to the Payment Review Tracking Tool will 

enable the Office to monitor the impact of the Quality Assurance Forums. The Office will 

work with the benefits administration contractor to develop and begin implementing a plan to 

transition quality review activities from the benefits administration contractor to the Office’s 

staff by December 2020. 

Annuitant Payroll Administration 

The Office’s Quality Program includes reviews of annuitant payroll processing functions. 

The Office reviews preliminary and final payroll statistics, large annuitant payments, and 

third-party payroll reporting. In addition to the aforementioned reports, each month the 

Office monitors death audit verification, that includes reviewing obituaries provided by the 

vendor, Do Not Pay (DNP) notifications, pending issues escalated for resolution, checks 

which have not been cashed for an extended period of time, payment reclamations, and 

returned mail. 
30 

In FY 2019, the Office developed a Change Request to add functionality in STAR to replace 

manually intensive processes used by the Office to track returned mail. This new 

functionality will improve the process for tracking and providing details on returned earnings

statements, annuitant letters, 1099R forms, and rejected/returned payments. The returned 

1099R’s and returned earnings statements portion was implemented in FY 2019. The 

returned payments portion will be implemented in FY 2020. 

In FY 2019, ARC Pension Payroll initiated a project with the Federal Do Not Pay system to 

test the feasibility of weekly prepayment obituary matching. Prior to this project, Do Not 

Pay provided obituary matches one time per month and after payments were issued. ARC 

Pension Payroll requested to receive weekly prepayment obituary reporting from Do Not Pay 

to align with other service providers and to strengthen the overall prepayment death audit 

process. The project involved submitting the STAR population to Do Not Pay and receiving 

possible obituary matches for research. ARC Pension Payroll then provided Do Not Pay 

with details regarding the validity of matches. After three months, Do Not Pay decided to 

offer prepayment obituary matching to all agencies through its Continuous Monitoring 

service. ARC Pension Payroll incorporated Do Not Pay obituary matches into the weekly 

death audit process in May 2019.

Information Technology Systems Administration

During FY 2019, the Office continued to include system administration activities and the 

review of user accounts in its Quality Program. The quality plan tracks system availability, 

number and type of open production trouble tickets and completion time of trouble tickets. 

As part of the quality review, user accounts are reviewed semi-annually to ensure that users 

have the least amount of access privileges necessary to perform their duties. The semiannual reviews are used by the Office to manage resources, maintain system security, and 

track the quality of STAR production support and hosting services. Additionally, in 

FY 2019, the Office continued the monthly active account verification reviews to ensure 

departing employee accounts were locked/terminated in a timely manner. 

i. Office of D.C. Pensions Program Performance Reporting

In FY 2019, the Office tracked, collected, and reported performance data in an effort to 

continue to promote transparency, and improve decision making using the performance 

measurement reporting tool. The performance measures are reported and reviewed during 

the Office’s monthly status meeting. The performance data is utilized to make improvements 

in program management areas, such as operational planning and resource needs assessments. 

j. Risk Management Program

In FY 2019, the Office worked with staff to incorporate the revised Risk Management 

process into their work. In addition to the Risk Management Plan, staff were given a Risk 

Management Process Aid to walk them through the steps of assessing risks in the activities 

they are responsible for or take part in. 
31 

In FY 2019, the Office developed a Summarized Fraud Management Overview that 

highlighted the different tools utilized to identify, prevent, and report fraud. The overview 

was used in support of the Treasury Office of Risk Management (ORM) and Risk and 

Control Group’s (RCG) response to OMB’s initiative to create an interagency library of 

fraud-related data. In FY 2020, the Office will develop a Fraud Risk Management 

Framework to be included in the Risk Management Plan. This framework will be developed 

in accordance with guidance from the Government Accountability Office (GAO) Framework 

for Managing Fraud Risks in Federal Programs, which outlines fraud risk management 

strategies to manage fraud risk and ensures the integrity of federal programs.

k. Internal Control Program

In accordance with requirements as outlined in the OMB Circular A-123 Appendix A, the 

Office’s Senior Assessment Team (SAT) together with the help of a contractor, tested, 

documented, and reported on the Office’s internal control over financial reporting as required 

by the Federal Manager’s Financial Integrity Act of 1982 (FMFIA). The Office used the 

FY 2019 Treasury Implementation Guide for OMB Circular A-123 Appendix A: 

Management of Reporting and Data Integrity Risk issued by Treasury’s Office of the Chief 

Financial Officer, Risk and Control Group as its guide to conduct the review. The scope for 

FY 2019 OMB Circular A-123 testing covered July 1, 2018 through June 30, 2019, which is 

in support of the Office’s Interim Assurance Statement. The following activities were 

performed: 

 Quantitative and qualitative materiality assessments were conducted to determine the 

scope of OMB Circular A-123;

 An Internal Control Framework Assessment was performed to document and evaluate 

controls design;

 Twelve test plans were prepared and executed to confirm the design and evaluate the 

operating effectiveness of internal controls; and

 After execution of test plans, results were evaluated and no material weaknesses were 

identified.

The result concluded that the Office’s internal controls activities are operating effectively as 

management intended. 

In FY 2019, to further demonstrate proper oversight to all areas of operations covered under 

the OMB Circular A-123, Appendix A, the Office included the testing of the controls over 

the IPERIA Payment Recapture Audit. This test plan replaced the testing of the Net Plan 

Assets which was a part of the FY 2018 OMB Circular A-123 Appendix A: Internal Control 

Over Reporting assessment. In FY 2020, the Office will continue to rotate test plans 

allowing other areas within the organization to be evaluated as part of the OMB Circular 

A-123, Appendix A assessment.

In connection with the audit of the Office’s FY 2018 Financial Statements, the external 

auditors issued a Management Letter that identified two Internal Controls weaknesses that 

were not required to be included in the audit report. The first finding cited a control 
32 

weakness within the review of reinvestment activities was cited as a result of insufficient 

Internal Controls. Not all amounts from the annual appropriation warrants were properly 

invested into government securities, in accordance with the annual investment guidance. To 

rectify this problem, the Office implemented an enhanced review process for long-term and 

overnight investments. There was also a second finding regarding a control gap within 

financial reporting. The Office failed to include a note disclosure on Apportionment 

Categories of New Obligations and Upward Adjustments, in the preparation of its financial 

statements and note disclosures. The Office has since expanded its review of the entire OMB 

Circular A-136 as part of its financial statement preparation process to ensure the necessary 

information is communicated to its stakeholders. 

l. Financial Statement Audit Opinion

KPMG LLP (KPMG), an independent public accounting firm, rendered an unmodified 

opinion on the Office’s FY 2019 Consolidated Financial Statements. 

KPMG noted no material weakness in the Office internal controls over financial reporting. 

Also, results of KPMG’s tests of compliance with laws and regulations disclosed no 

instances of noncompliance or other matters that require reporting under Government 

Auditing Standards or OMB Bulletin No. 19-03, Audit Requirements for Federal Financial 

Statements.

IV. Limitation of the Financial Statements

The consolidated financial statements have been prepared to report the financial position and 

results of operations of the Office of D.C. Pensions (the Office), pursuant to the requirements 

of the 31 U.S.C. 3515 (b).

The consolidated financial statements have been prepared from the books and records of the 

Office in accordance with U.S. generally accepted accounting principles for federal entities 

and the formats prescribed by the Office of Management and Budget Circular A-136,

Financial Reporting Requirements. The financial reports used to monitor and control 

budgetary resources are prepared from the same books and records.

The consolidated financial statements should be read with the realization that it is for a 

component of the U.S. Government, a sovereign entity.
Independent Auditors' 

Report

Part 2

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Financial Statements and 

Notes

Part 3

39 

S 

41 

Department of the Treasury

Departmental Offices

Office of D.C. Pensions

Consolidated Balance Sheets

As of September 30, 2019 and September 30, 2018 

(in thousands)

2019 2018 

Assets: 

Entity Assets

Intragovernmental

Fund Balance with Treasury 

(Note 2) $ 491 $ 88,057

Investments, Net (Note 3) 3,998,634 3,895,738

Interest Receivable 22,577 24,482

Total Intragovernmental 4,021,702 4,008,277

Accounts Receivable, Net (Note 4) 3,069 2,905 

Taxes Receivable 6 6 

Total Assets $ 4,024,777 $ 4,011,188 

Liabilities:

Intragovernmental

Accounts Payable $ 116 $ 115

Accrued Payroll and Benefits 33 28

Total Intragovernmental 149 143

Accounts Payable 5,136 4,402

Advances from Others 19,359 17,339

Accrued Pension Benefits Payable 46,084 46,142

Actuarial Pension Liability (Note 6) 8,397,990 8,372,470

Accrued Payroll and Benefits 354 337

Total Liabilities 8,469,072 8,440,833

Net Position:

Cumulative Results of Operations (4,444,295) (4,429,645) 

Total Net Position (4,444,295) (4,429,645) 

Total Liabilities and Net Position $ 4,024,777 $ 4,011,188 

The accompanying notes are an integral part of these financial statements.
42 

Department of the Treasury

Departmental Offices

Office of D.C. Pensions

Consolidated Statements of Net Cost

For the Years Ended September 30, 2019 and September 30, 2018

(in thousands)

2019 2018 

Program Costs 

Administrative Expenses (Note 5) $ 22,482 $ 19,148

District Benefit Payments and Employer Share of 

 DC Health and Life Plans 218,350 198,128

Pension Expense before Actuarial Assumption 

Changes (Note 6) 94,450 127,786

Total Program Costs 335,282 345,062

Less: Earned Revenues

Reimbursable Income 220,232 200,601

Interest Earned 71,924 61,113

Employee Contributions 621 641

Total Earned Revenues 292,777 262,355

Net Expense Before Loss from Actuarial Assumption

Changes 42,505 82,707

Loss on Actuarial Assumption Changes, Net (Note 6) 487,272 115,767

Net Cost of Operations $ 529,777 $ 198,474

The accompanying notes are an integral part of these financial statements.
43 

Department of the Treasury

Departmental Offices

Office of D.C. Pensions

Consolidated Statements of Changes in Net Position

For the Years Ended September 30, 2019 and September 30, 2018 

(in thousands)

2019 2018 

Unexpended Appropriations:

Beginning Balance $ - $ - 

Budgetary Financing Sources:

Appropriations Received 514,898 483,325

Appropriations Used (514,898) (483,325) 

Total Budgetary Financing Sources - - 

Total Unexpended Appropriations - - 

Cumulative Results of Operations:

Net Position - Beginning of Year $ (4,429,645) $ (4,714,709) 

Budgetary Financing Sources:

Appropriations Used 514,898 483,325

Other Financing Sources (Nonexchange):

Imputed Financing 229 213

Total Financing Sources 515,127 483,538

Net Cost of Operations (529,777) (198,474) 

Net Change (14,650) 285,064

Cumulative Results of Operations $ (4,444,295) $ (4,429,645) 

Net Position $ (4,444,295) $ (4,429,645) 

The accompanying notes are an integral part of these financial statements.
44 

Department of the Treasury

Departmental Offices

Office of D.C. Pensions

Combined Statements of Budgetary Resources

For the Years Ended September 30, 2019 and September 30, 2018 

(in thousands)

2019 2018 

Budgetary Resources:

Unobligated Balance from Prior Year Budget Authority, Net $ 18,391 $ 16,368

Appropriations (Discretionary and Mandatory) 1,092,452 1,054,465

Spending Authority from Offsetting Collections 222,252 202,288

Total Budgetary Resources $ 1,333,095 $ 1,273,121

Status of Budgetary Resources:

New Obligations and Upward Adjustments (Note 8) $ 1,313,736 $ 1,255,782

Unobligated Balance Exempt from Apportionment, End of Year 19,359 17,339

Total Status of Budgetary Resources $ 1,333,095 $ 1,273,121

Outlays, Net (Discretionary and Mandatory) $ 1,088,915 $ 1,050,196

Distributed Offsetting Receipts (593,347) (579,417) 

Agency Outlays, Net (Discretionary and Mandatory) $ 495,568 $ 470,779

The accompanying notes are an integral part of these financial statements.
45 

Department of the Treasury

Departmental Offices

Office of D.C. Pensions (the Office)

Notes to Financial Statements

September 30, 2019 and September 30, 2018 

1) Summary of Significant Accounting Policies

a. Reporting Entity

Under provisions in Title XI of the Balanced Budget Act of 1997, Public Law 105-33 

(111 Stat. 251, 712), as amended (the Act), the Secretary of the Treasury (the Secretary) 

assumed certain responsibilities for a specific population of annuitants under the following 

District of Columbia (District) retirement plans: the Police Officers and Firefighters’ 

Retirement Plan, the Teachers’ Retirement Plan and the Judges’ Retirement Plan. 

Specifically, the Secretary is responsible for administering the retirement benefits earned by 

District teachers, police officers and firefighters based upon service accrued prior to 

July 1, 1997, and retirement benefits earned by District judges, regardless of when service 

accrued. 

District of Columbia Teachers, Police Officers, and Firefighters Federal Pension Fund 

Pursuant to the District of Columbia Retirement Protection Improvement Act of 2004, Public 

Law 108-489, Treasury established the District of Columbia Teachers, Police Officers, and 

Firefighters Federal Pension Fund (the D.C. Federal Pension Fund – 20X5511). Effective 

October 1, 2004, the assets and liabilities of the District of Columbia Federal Pension 

Liability Trust Fund (the Trust Fund - 20X8230) and the Federal Supplemental District of 

Columbia Pension Fund (the Supplemental Fund – 20X5500) were transferred to the 

D.C. Federal Pension Fund. The D.C. Federal Pension Fund is used for the accumulation of 

funds to finance obligations of the Federal Government for benefits and necessary 

administrative expenses for the Police Officers and Firefighters’, and Teachers’ Retirement 

Plans under the provisions of the Act.

The D.C. Federal Pension Fund consists of the following: 

• Amounts deposited from the proceeds of assets transferred from the Trust Fund and the 

Supplemental Fund, which included the proceeds of assets transferred to Treasury from 

the District of Columbia Retirement Board (DCRB) pursuant to the Act;

• Amounts deposited from the General Fund of the Treasury;

• Income earned on the investments held in the D.C. Federal Pension Fund;

• Reimbursement from DCRB for the District’s share of annuitant benefits paid from the

D.C. Federal Pension Fund;

• Reimbursement from the District for the District’s employer contribution for Post-1987

D.C. Health and Life benefits; and
46 

• Reimbursement of the Office’s actual expenses incurred in support of administering 

District benefit payments.

The portion of the D.C. Federal Pension Fund that is not needed to meet the level of current 

Federal benefit payments, refunds, and net administrative expenses is invested in nonmarketable Government Account Series (GAS) securities issued by the Bureau of the Fiscal 

Service. Investments are made in securities with maturities suitable to the needs of the 

D.C. Federal Pension Fund.

By the end of each fiscal year, the Act requires the Secretary to pay into the D.C. Federal 

Pension Fund (from the General Fund of the Treasury) an annual amortization amount and, 

beginning in FY 2009, the covered administrative expenses for the year. The annual 

amortization amount, as determined by an enrolled actuary, is the amount necessary to 

amortize the original unfunded liabilities of the retirement programs assumed by the Federal 

Government over 30 years, the net experience gains or losses over 10 years, and any other 

changes in actuarial liability over 20 years. The amounts paid into the D.C. Federal Pension 

Fund during FY 2019 and FY 2018 were $498.3 million and $467.3 million, respectively. 

District of Columbia Judicial Retirement and Survivors Annuity Fund 

Pursuant to the Act, Treasury established the District of Columbia Judicial Retirement and 

Survivors Annuity Fund (the Judicial Retirement Fund – 20X8212). 

The Judicial Retirement Fund is used for the accumulation of funds to finance obligations of 

the Federal Government for benefits and necessary administrative expenses of the Judges’ 

Retirement Plan under the provisions of the Act.

The Judicial Retirement Fund consists of the following:

• Amounts deposited from the proceeds of assets transferred to Treasury from DCRB 

pursuant to the Act;

• Amounts deposited from the General Fund of the Treasury;

• Income earned on the investments held in the Judicial Retirement Fund; and

• Employee contributions to the Judicial Retirement Fund.

The portion of the Fund that is not needed to meet the level of current benefit payments, 

refunds and net administrative expenses is invested in GAS securities. Investments are made 

in securities with maturities suitable to the needs of the Judicial Retirement Fund. 

By the end of each fiscal year, the Act requires the Secretary to pay into the Judicial 

Retirement Fund (from the General Fund of the Treasury) an amount equal to the normal cost 

for the year, an annual amortization amount, and the covered administrative expenses for the 

year. The annual amortization amount, as determined by an enrolled actuary, is the amount 

necessary to amortize the original unfunded liability of the retirement program assumed by 

the Federal Government over 30 years, the net experience gains or losses over 10 years, and 

any other changes in actuarial liability over 20 years. The annual payment to the Judicial 

Retirement Fund also includes an amount necessary to fund the normal cost of the retirement 

program not covered by employee contributions. 
47 

The amounts paid into the Judicial Retirement Fund during FY 2019 and FY 2018 were

$16.6 million and $16.0 million, respectively. 

b. Basis of Accounting and Presentation

The Office is presenting Consolidated Financial Statements that consist of the Consolidated 

Balance Sheet, the Consolidated Statement of Net Cost, the Consolidated Statement of 

Changes in Net Position, the Combined Statement of Budgetary Resources, and the related 

notes. The Consolidated Financial Statement Notes consist of a summary of significant 

accounting policies and other relevant explanatory information. The Consolidated Financial 

Statements have been prepared from the accounting records of the Office in accordance with 

accounting principles generally accepted in the United States of America for federal entities. 

Accounting principles generally accepted for federal entities are the standards prescribed by 

the Federal Accounting Standards Advisory Board (FASAB). FASAB is designated by the 

American Institute of Certified Public Accountants as the official accounting standardssetting body for the Federal Government. 

The Consolidated Financial Statements present balances and activities of the D.C. Federal 

Pension Fund and the Judicial Retirement Fund. There were no transactions between the 

Funds that require elimination during consolidation. 

c. Fund Balance with Treasury

Fund Balance with Treasury represents appropriated funds from which the Office is 

authorized to make expenditures and pay liabilities resulting from operational activity, except 

as restricted by law.

d. Investments, Net

Pursuant to the Act and Section 130 of Division A of Public Law 105-277 (1998), the 

Secretary invests the assets of the D.C. Federal Pension Fund and the Judicial Retirement 

Fund in GAS, market-based (“MK”) securities — special non-marketable Treasury securities 

that mirror the prices of marketable securities with similar terms, issued and redeemed by 

Fiscal Service. The Office follows Treasury's investment policy guidelines and determines 

whether the investments should be made in MK bills, MK notes, or MK bonds. The 

maturities on investments typically range from less than one year to approximately 10 years, 

with the exception of one investment in the Judicial Retirement Fund with a maturity of 

February 15, 2036. 

Amounts that are not necessary to meet current obligations are invested in MK securities. 

Amounts needed to meet current obligations are invested overnight in one-day MK 

securities, which are redeemed at face value plus accrued interest. If amounts held in cash, 

overnight securities and maturing securities are inadequate to meet required outlays, 

investments would be selected for redemption based on a review of the advantages of each of 

the alternatives and an assessment of the appropriateness of the securities in the portfolio 

under current investment policy. 

Investments are valued at cost, adjusted for unamortized premiums and discounts, if 

applicable. The premiums and discounts are recognized as adjustments to interest income, 
48 

utilizing the effective interest method. Investments held in one-day securities are shown in 

the footnotes as Non-Marketable Par Value Securities.

e. Accounts Receivable, Net

Accounts receivable consist primarily of:

• The amount due from the D.C. government for the District’s share of benefits paid by the 

Office to which the recipients became entitled during the reporting period, but which, by

law, are paid on the first business day of the subsequent period;

• Pending amounts due from annuitants as a result of benefit overpayments that have not 

completed collection due process; and

• Amounts due from annuitants as the result of benefit overpayments.

f. Advances from Others

The Office is authorized to disburse funds for the District’s share of monthly benefits, and 

the employer contribution for Post-1987 Health and Life benefits. Under a memorandum of 

understanding with the District, the Office is to receive an advance of these monies prior to 

the actual disbursements. 

g. Accrued Pension Benefits Payable

Accrued pension benefits payable relate primarily to retirement benefits to which the 

recipients became entitled during the reporting period, but which, by law, are paid on the first 

business day of the subsequent period. This accrual may also include amounts for refund 

claims for which processing was not completed during the reporting period, but will be paid 

in the subsequent period. 

h. Actuarial Pension Liability

The actuarial cost method used to determine costs for the Police Officers and Firefighters’ 

Retirement Plan and Teachers’ Retirement Plan is the Projected Unit Credit Cost Method. 

Under this funding method, the accrued liability is determined based on service earned to the 

valuation date. Because the benefits under the Police Officers and Firefighters’ Retirement 

Plan and the Teachers’ Retirement Plan were fully accrued at June 30, 1997, the accrued 

liability is calculated as the present value of future benefits expected to be paid and there is 

no normal cost. 

The actuarial cost method used to determine costs for the Judges’ Retirement Plan is the 

Individual Entry Age Normal Cost Method. Under this funding method, the normal cost is a 

level percent of covered salary, which, along with the member contributions, will pay for 

projected benefits at retirement for the active plan participants. The level percent developed 

is called the normal cost rate and the product of that rate and payroll is the normal cost. The 

actuarial accrued liability is that portion of the present value of projected benefits that will 

not be paid by future normal costs or member contributions. The difference between this 

liability and the funds accumulated at the same date is referred to as the unfunded actuarial 

pension liability. 
49 

The economic assumptions (rate of return, inflation, and salary increases) are based upon the 

requirements of SFFAS No. 33, Pensions, Other Retirement Benefits, and Other 

Postemployment Benefits: Reporting the Gains and Losses from Changes in Assumptions and 

Selecting Discount Rates and Valuation Dates. 

To calculate the actuarial pension liabilities as of October 1, 2019 and October 1, 2018, the 

Office used a 100-year yield curve of spot rates developed by Treasury’s Office of Economic 

Policy. The yield curve is based on a 10-year average of quarterly rates, consistent with the 

requirements of SFFAS No. 33. The assumptions for inflation and salary increases were also 

the average of 10-year historical values. The assumptions used to calculate the pension 

liabilities as of October 1, 2019, were spot rates gradually increasing from 0.74 percent to 

discount FY 2020 payments, to a maximum of 3.84 percent to discount longer term 

payments; annual inflation and cost-of-living adjustments of 1.36 percent for judges, 1.82 

percent for teachers, and 1.80 percent for police officers and firefighters; and salary increases 

at an annual rate of 0.83 percent for judges, 2.30 percent for teachers, 1.95 percent for police 

officers, and 2.00 percent for firefighters.

The assumptions used to calculate the pension liabilities as of October 1, 2018, were spot 

rates gradually increasing from 0.59 percent to discount FY 2019 payments, to a maximum 

of 3.89 percent to discount longer term payments; annual inflation and cost-of-living 

adjustments of 1.66 percent for judges, 1.64 percent for teachers, and 1.62 percent for police 

officers and firefighters; and salary increases at an annual rate of 0.97 percent for judges, 

2.36 percent for teachers, 1.80 percent for police officers, and 2.20 percent for firefighters.

The economic assumptions used by the Office for the Police Officers and Firefighters’, 

Teachers’, and Judges’ Retirement Plans differ from those used by OPM for the following 

reasons: (1) the annual rate of salary increase assumptions are based on different plan 

member experience; (2) the annual rate of inflation and cost-of-living adjustment 

assumptions are based on different statutory requirements (applicable Consumer Price Index 

and period of calculation); and (3) for the discount rate assumption, OPM and the Office use 

Treasury spot rate yield curves, but the averaging periods differ and OPM converts the yield 

curve to a single equivalent rate while for teachers, police officers, and firefighters, the 

Office uses the individual yield curve rates.

i. Appropriations Received and Used

Treasury is required to make annual payments from the General Fund of the Treasury to the 

D.C. Federal Pension Fund and Judicial Retirement Fund and to amortize the original 

unfunded liabilities assumed by the Federal Government and any subsequent changes in 

liabilities over a period of time and to fund the normal cost and necessary administrative 

expenses of the D.C. Federal Pension Fund and the Judicial Retirement Fund. The 

appropriations are received into the Office’s appropriation funds and are transferred out to 

the D.C. Federal Pension Fund and the Judicial Retirement Fund to be invested in nonmarketable GAS securities. In accordance with SFFAS No. 7, Accounting for Revenue and 

Other Financing Sources, the payment from the Office’s appropriation funds results in an 

appropriation used, as reported in the accompanying Consolidated Statements of Changes in
50 

Net Position. Appropriations received and used for the years ended September 30, 2019 and 

2018 were $514.9 million and $483.3 million, respectively.

j. Treasury Employee Retirement Plans

The D.C. Federal Pension Fund and Judicial Retirement Fund pay the salaries and benefits of 

Treasury employees who support the Office as reasonable and necessary expenses incurred in 

carrying out the Secretary’s responsibilities under the Act. In FY 2019 and FY 2018, Office 

staff salaries and benefits are split 95 percent and 5 percent between the D.C. Federal 

Pension Fund and the Judicial Retirement Fund. 

The Office’s employees participate in the Civil Service Retirement System (CSRS) or the 

Federal Employees Retirement System (FERS). FERS was established by Public 

Law 99-335. Pursuant to this law, FERS and Social Security automatically cover most 

employees hired after December 31, 1983. Employees hired before January 1, 1984, elected 

to either transfer to FERS or remain in CSRS.

All employees are eligible to contribute to the Thrift Savings Plan (TSP). For employees 

participating in FERS, TSP accounts are automatically established and the D.C. Federal 

Pension Fund and the Judicial Retirement Fund make mandatory contributions of one percent 

of the Treasury employees’ base pay to the accounts. In addition, the D.C. Federal Pension 

Fund and the Judicial Retirement Fund make matching contributions, ranging from one 

percent to four percent of base pay, for FERS eligible employees who contribute to their TSP 

accounts. Pursuant to law, mandatory and matching contributions are not made to the TSP 

accounts established for CSRS employees.

FERS employees and certain CSRS reinstatement employees participate in the Social 

Security program. The D.C. Federal Pension Fund and Judicial Retirement Fund remit the 

employer’s share of the required contributions for eligible employees.

The D.C. Federal Pension Fund and Judicial Retirement Fund do not report information 

pertaining to the CSRS and FERS retirement plans covering Treasury employees. The 

U.S. Office of Personnel Management is responsible for reporting amounts such as plan 

assets, accumulated plan benefits, and related unfunded liabilities, if any. 

k. President’s Budget

The President’s Budget for 2021, which includes actuals for FY 2019, has not yet been 

published as of the date of these financial statements. The President’s Budget is currently 

expected to be published and delivered to Congress in early February 2020. The 

FY 2018 Combined Statement of Budgetary Resources (SBR) was reconciled to the Program 

and Financing (P&F) Schedules within the President’s Budget for 2020, published in 

February 2019, and there were no differences for budgetary resources, status of budgetary 

resources, or net outlays. 

The President's Budget for 2020, which includes the Office’s budget within the Other 

Independent Agencies’ budget appendix, is available at the Office of Management and 

Budget website. 
51 

l. Revenue and Financing Sources

All proceeds received and deposited by the Office are used for the purpose of providing 

annuity payments for retired District of Columbia teachers, police officers and firefighters for 

services earned prior to July 1, 1997, and for retirement benefits earned by District of 

Columbia judges, regardless of when services were earned. 

Funding for the Judicial Retirement Fund is authorized by 111 Stat. 757, Sec. 11251, Public 

Law 105-33 as amended by 112 Stat. 2681-534, Sec. 804(a)(4), Public Law 105-277. 

Funding for the D.C. Federal Pension Fund is authorized by 118 Stat. 3967, Sec. 11084, 

Public Law 108-489. Sources of revenue or other financing sources for the years ended 

September 30, 2019, and 2018, respectively, were annual federal payments, employee 

contributions, and interest earnings from investments. 

m. Income Taxes

The Office, a component of an agency of the Federal Government, is not subject to Federal, 

state, or local income taxes and accordingly, no provisions for income taxes have been 

recorded in the accompanying consolidated financial statements. 

n. Classified Activities

Accounting standards require all reporting entities to disclose that the accounting standards 

allow certain statements and disclosures to be modified if needed to prevent the disclosure of 

classified information. 

o. Overall Estimates Disclosures

The use of estimates in the preparation of financial statements requires management to make 

certain estimates and assumptions that effect the recorded amounts of assets and liabilities 

and the reported amount of revenues and expenses during the reporting period. Actual 

results could differ from those estimates. 

2) Fund Balance with Treasury

The Status of Fund balance with Treasury as of September 30, 2019 and 2018 consisted of 

the following (in thousands):

2019 2018 

Status of Fund Balance with Treasury:

Obligated Balance Not Yet Disbursed $ - $ 55,947

Unobligated Balance - Available 491 17,339

Budget Authority Unavailable for Obligation - 14,771

Total $ 491 $ 88,057

Fund Balance with Treasury decreased by $87.6 million from FY 2018. This difference 

is due to the Office having fully invested available balances in one day securities at the 
52 

close of FY 2019 leaving an unobligated, available Fund Balance with Treasury of $491 

thousand. 

In contrast, $86.3 million in un-invested balances were not invested in one day securities 

at the close of FY 2018. These funds remained available within Fund Balance with 

Treasury at FY 2018 year end as presented above.

3) Investment, Net

Investments, Net as of September 30, 2019 and 2018 consisted of the following (in 

thousands):

2019 

Unamortized

Investments, Premium, Investments, Market 

Gross Net Net Value

Intragovernmental Securities

Non-Marketable Par Value $ 217,515 - 217,515 217,515

Non-Marketable Market-based 3,755,810 25,309 3,781,119 3,828,776

Total $ 3,973,325 25,309 3,998,634 4,046,291

2018 

Unamortized

Investments, Premium, Investments, Market 

Gross Net Net Value

Intragovernmental Securities

Non-Marketable Par Value $ 128,129 - 128,129 128,129

Non-Marketable Market-based 3,732,549 35,060 3,767,609 3,674,196

Total $ 3,860,678 35,060 3,895,738 3,802,325

The amortization method utilized by the Office is the effective interest method. The market 

value for notes and bonds is calculated using rates for September 30, 2019 and 2018, as 

published in the Treasury Quote Sheets prepared by Treasury’s Office of Market Finance. 

Included in these figures is a net unrealized gain of $47.7 million as of September 30, 2019 

and a net unrealized loss of $93.4 million as of September 30, 2018. 
53 

The amortized cost of Investments, Net (including par value securities invested overnight) as 

of September 30, 2019 and 2018, by maturity date is as follows (in thousands): 

2019 2018 

Less than or Equal to 1 Year $ 830,786 $ 728,183

More than 1 Year and Less than

or Equal to 5 Years 2,323,699 2,402,935

More than 5 Years and Less than

or Equal to 10 Years 840,613 764,620

More than 10 Years 3,536 - 

Total $ 3,998,634 $ 3,895,738

4) Accounts Receivable, Net

The components of Accounts Receivable, Net as of September 30, 2019 and 2018, are as 

follows (in thousands):

2019 2018 

Accounts Receivable, Gross $ 3,701 $ 3,582

Allowance for Loss on Accounts Receivable (632) (677)

Accounts Receivable, Net $ 3,069 $ 2,905

The allowance for loss on Accounts Receivable was based on a historical average rate that is 

reviewed on a quarterly basis by the Office. During FY 2019 and FY 2018, the allowance 

rates were 63 percent and 69 percent, respectively. The allowance were applied to debts that 

meet the revenue recognition standards. However, the rates were not used for debts with 

internal offset status. 

Accounts Receivable, Net also includes criminal restitution. For FY 2019 and FY 2018, the 

Office had three instances of criminal debt in the gross amount of $789.3 thousand and 

$807.4 thousand, respectively. The net realizable value of the criminal debt reported in 

FY 2019 and FY 2018 was $286.4 thousand and $250.3 thousand, respectively. 
54 

5) Administrative Expenses

Administrative expenses for the years ended September 30, 2019 and 2018 are as follows (in 

thousands):

2019 2018 

Intragovernmental Expenses

Salaries and Related Benefits $ 957 $ 944

Contractual Services 5,909 5,362

Rent 690 557

Total Intragovernmental Expenses 7,556 6,863

Public Expenses

Salaries and Related Benefits 3,045 3,032

Contractual Services 11,612 8,137

Other 269 1,116

Total Public Expenses 14,926 12,285

Total Administrative Expenses $ 22,482 $ 19,148

6) Pension Expense

Pension expense for the plan years ended September 30, 2019, and 2018, includes the 

following components (in thousands):

2019 2018 

Beginning Liability Balance $ 8,372,470 $ 8,681,608

Pension Expense:

Normal Cost 5,600 5,900

Interest on Pension Liability During the 

Period 54,607 66,564

Actuarial (Gains) Losses During the Period:

From Experience 34,243 55,322

From Discount Rate Assumption Change 290,082 377,362

From Other Assumption Changes 133,487 (176,943) 

From Non-Economic Changes 63,703 (84,652) 

Pension Expense before Other / NonActuarial Adjustments 581,722 243,553

Less Amounts Paid and Accrued: (556,202) (552,691) 

Ending Liability Balance $ 8,397,990 $ 8,372,470
55 

Reconciliation to amounts reported in the Consolidated Statements of Net Cost 

(in thousands): 

2019 2018 

Pension Expense before Actuarial Assumption Changes:

Normal Cost $ 5,600 $ 5,900

Interest on Pension Liability During the Period 54,607 66,564

Actuarial (Gain) Loss During the Period from Experience 34,243 55,322

Total Pension Expense before Actuarial Assumption Changes 94,450 127,786 

Loss on Actuarial Assumption Changes, Net

Actuarial (Gains) Losses During the Period:

From Discount Rate Assumption Change 290,082 377,362

From Other Assumption Changes 133,487 (176,943) 

From Non-Economic Changes 63,703 (84,652) 

Total Loss on Actuarial Assumption Changes, Net 487,272 115,767

Total Pension Expense $ 581,722 $ 243,553

Federal Benefit Payments 

Federal pension benefits paid and accrued during the plan years were $542.9 million and

$13.3 million from the D.C. Federal Pension Fund and Judicial Retirement Fund, 

respectively, for 2019, and $540.0 million and $12.7 million, respectively, for 2018. For 

FY 2019 and FY 2018, approximately $76 thousand and $70 thousand, respectively, 

represent contribution refunds to plan participants of the D.C. Federal Pension Fund and the 

Judicial Retirement Fund. 

Actuarial Gains and Losses 

In FY 2019, the Office reported a net liability actuarial loss in the D.C. Federal Pension Fund 

and the Judicial Retirement Fund. The liability actuarial losses were $290.1 million due to 

the new discount rate assumptions; $133.5 million due to new pay and cost-of-living 

assumptions; $63.7 million due to other assumption changes; and a $34.2 million resulting 

from experience. The net result was a total liability actuarial loss of $521.5 million for the 

D.C. Federal Pension Fund and Judicial Retirement Fund.

In FY 2018, the Office reported a net liability actuarial loss in the D.C. Federal Pension Fund 

and Judicial Retirement Fund. The liability actuarial losses of $377.4 million were due to the 

new discount rate assumptions; $55.3 million resulting from experience were offset by the 

liability actuarial gains of $176.9 million due to new pay and cost-of-living assumptions; and 

$84.6 million due to other assumption changes. The net result was a total liability actuarial 

loss of $171.1 million for the D.C. Federal Pension Fund and Judicial Retirement Fund. 
56 

7) Reconciliation of Net Cost of Operations to Agency Outlays, Net

This reconciliation is required by Statement of Federal Financial Accounting Standard

(SFFAS) 53, which amends requirements for a reconciliation between budgetary and 

financial accounting information established by SFFAS 7. The requirements of SFFAS 53

are effective for reporting periods beginning after September 30, 2018. In the initial year of 

implementation, the disclosure requirements that were applicable in prior reporting periods 

are not required for comparative presentations.

The Reconciliation of Net Cost of Operations to Agency Outlays, Net explains the difference 

between the financial accounting information and budgetary accounting information.

Financial accounting is intended to provide a picture of the government’s financial operations 

and financial position and is presented on an accrual basis. The accrual basis includes 

information about costs arising from the consumption of assets and the incurrence of 

liabilities. Budgetary accounting is used for planning and control purposes and relates to 

both the receipt and use of cash. The reconciliation of net cost, presented on an accrual basis,

and the net outlays, presented on a budgetary basis, provides an explanation of the 

relationship between financial accounting and budgetary information. The reconciliation 

serves not only to identify costs paid for in the past and those that will be paid in the future,

but also to assure integrity between financial and budgetary financial accounting. Key 

differences noted between proprietary net cost and budgetary net outlays include the impact 

of loss on Assumption changes and Experience on Other Liabilities and Resources the Fund 

Expenses Recognized in Prior Periods.
57 

For the fiscal year ended September 30, 2019, the Reconciliation of Net Cost of Operations 

to Agency Outlays, Net consisted of the following (in thousands): 

Total

Net Cost of Operations $ 529,777

Components of Net Operating Cost Not Part of the Budgetary Outlays:

Increase/(Decrease) in Assets:

Accounts Receivable 164

Interest Receivable (1,907)

 Premiums and Amortization of Premiums/Discounts (8,383)

Total Increase/(Decrease) in Assets: (10,126) 

(Increase)/Decrease in Liabilities Not Affecting Budget Outlays:

Accounts Payable and Advances from Others (2,755)

Salaries and Benefits (23)

Other Liabilities (25,461) 

Total (Increase)/Decrease in Liabilities Not Affecting Budget Outlays: (28,239) 

Other Financing Sources:

Imputed Financing Sources (230)

 Other 616

Total Other Financing Sources: 386

Total Components of Net Operating Cost Not Part of the Budget Outlays (37,979) 

Components of the Budget Outlays That Are Not Part of Net Operating Cost: 

 Other 3,770

Total Components of the Budgetary Outlays That Are Not Part of Net 

Operating Cost 3,770

Agency Outlays, Net $ 495,568 
58 

8) Additional Information Related to the Combined Statements of Budgetary Resources

Undelivered Orders

Undelivered orders for the Office represent goods and services ordered and obligated which 

have not been received or paid. Undelivered orders as of September 30, 2019 and 2018

consisted of the following (in thousands):

2019

Federal Non-Federal Total

Unpaid $ 487 $ 5,254 $ 5,741

Undelivered Orders at the 

End of the Year $ 487 $ 5,254 $ 5,741

2018

Federal Non-Federal Total

Unpaid $ 1,541 $ 3,383 $ 4,924

Undelivered Orders at the 

End of the Year $ 1,541 $ 3,383 $ 4,924
Required Supplementary 

Information (Unaudited)

Part 4

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Other Information 

(Unaudited)

Part 5

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Actuarial Valuation Report FY 2019 (unaudited)
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