77500 Federal Register / Vol. 65, No. 239 / Tuesday, December 12, 2000 / Rules and Regulations

DEPARTMENT OF THE TREASURY

31 CFR Part 29

Federal Benefit Payments Under

Certain District of Columbia

Retirement Plans

AGENCY: Departmental Offices, Treasury.

ACTION: Final rule.

SUMMARY: The Department of the

Treasury, Departmental Offices, is

issuing final regulations to implement

the provisions of Title XI of the

Balanced Budget Act of 1997, as

amended (Act). The Act assigns the

Secretary of the Treasury responsibility

for payment of benefits under the

District of Columbia (District) retirement

plan for judges regardless of when

accrued and under the District

retirement plans for police and

firefighters, and teachers for benefits

based on credit for service accrued as of

June 30, 1997. The regulations establish

the general rules for the Department of

the Treasury’s administration of its

program responsibilities and the

methodology for determining the

amount of Federal Benefit Payments.

DATE: This final rule is effective January

11, 2001, except § 29.102(a)(3) and

subpart C of part 29 are effective March

31, 2001.

FOR FURTHER INFORMATION CONTACT:

Harold L. Siegelman, (202) 622–1540,

Department of the Treasury,

Metropolitan Square Building, Room

6033, 1500 Pennsylvania Avenue, NW.,

Washington, DC 20220.

SUPPLEMENTARY INFORMATION: On

December 13, 1999, the Department of

the Treasury published (at 64 FR 69432)

proposed regulations to implement Title

XI of the Balanced Budget Act of 1997,

Public Law 105–33, 111 Stat. 251, 712–

731, 756–759, enacted August 5, 1997,

as amended by the Omnibus

Consolidated and Emergency

Supplemental Appropriations Act for

Fiscal Year 1999, Public Law 105–277,

112 Stat. 2681, 2681–530 through 538,

2681–552. The Act transferred certain

unfunded pension liabilities from the

District of Columbia (District)

government to the Federal Government.

The Act also required the Federal

Government to assume responsibility for

payment of benefits under the District

retirement plan for judges regardless of

when accrued and under the District

retirement plans for police and

firefighters, and teachers for benefits

based on credit for service accrued as of

June 30, 1997.

The proposed regulations addressed

both the general rules for the

Department of the Treasury’s

administration of its program

responsibilities and the methodology for

determining the amount of Federal

Benefit Payments for police, firefighters,

and teachers. The Department has

determined that it is impracticable to

end the interim benefits administration

period described in section 11041(a) of

the Act until it has developed an

automated data processing system that

will make Federal Benefit Payments

calculations in accordance with these

regulations. Consequently, the effective

date of the final regulations concerning

the methodology for determining the

amount of Federal Benefit Payments

must be delayed until the automated

system becomes operational, which is

expected to occur on March 31, 2001.

Accordingly, the regulations pertaining

to the methodology for determining the

amount of Federal Benefit Payments

(subpart C of the proposed rules) are

scheduled to become effective on March

31, 2001.

The general rules for the Department

of the Treasury’s administration of its

program responsibilities (subparts A

and B of the proposed rules) will be

effective 30 days after publication of

this rule, with the exception of section

29.102(a)(3), which shall become

effective on March 31, 2001. The general

rules establish the regulatory framework

for other regulations the Department is

preparing pursuant to section 11083 of

the Act.

In the notice of proposed rulemaking

(NPRM), subparts A through C were

designated to become a new part 28 of

Title 31, Code of Federal Regulations.

However, before publication of the

NPRM, proposed regulations on

Nondiscrimination on the Basis of Sex

in Education Programs and Activities

Receiving Federal Financial Assistance

were published (at 64 FR 58568) on

October 29, 1999, as part 28. The final

regulations on Federal Benefit Payments

Under Certain District of Columbia

Retirement Plans have been renumbered

as part 29. The following discussion of

the comments received under the

proposed rule uses the old section

numbers for convenience.

The Department received two

comments on the proposed regulations.

The Department has accepted 9 of the

10 suggestions made in the comments.

Proposed section 28.105(a) provided

the rule for computing the end date for

a period of time for filing documents

under these regulations. One comment

observed that District offices are closed

on District holidays as well as Saturday,

Sunday, and Federal holidays. Since the

regulations generally require that

documents be filed with the District, the

last day of the filing must be extended

by a day if the last day for filing falls

on a District holiday. Section 29.105(a)

has been changed to treat District

holidays in the same manner as Federal

holidays for filing time limits.

Proposed section 28.105(c) provided

the rule for computing the amount of

unused sick leave creditable for annuity

computation purposes. One comment

noted that paragraph (c)(1) of that

section incorrectly stated the rule under

the Police and Firefighters Plan. Under

section 4–622 of the D.C. Code,

survivors of participants who die in

service do not receive credit for unused

sick leave. The calculation of a survivor

annuity in such cases depends only on

the average salary of the policeman or

firefighter at the time of death.

Similarly, certain disability annuity

calculations, which are based on a

disability percentage rather than the

length of service, do not include credit

for unused sick leave. The regulatory

text has been corrected by deleting

references to unused sick leave in such

circumstances.

Proposed section 28.106 provided for

recognition of representative payees for

recipients of Federal Benefit Payments

under the same rules as apply to other

benefits under each plan. The section

includes a reference to section 4–629(b)

of the DC Code as an example of a plan

provision for payment to a

representative payee. One comment

suggested that the reference be clarified

to indicate that section 4–629(b) applies

to the Police and Firefighter Plan. The

reference has been changed to so

indicate.

Proposed section 28.203 provided that

legal process to affect Federal Benefit

Payments should be served upon

District officials in three specific

situations. The supplementary

information to the proposed regulations

stated that in all other situations service

of process was to be made upon the

United States and the Department of the

Treasury. One comment requested an

explanation of the extent to which legal

process should be served upon the

United States and the Department of the

Treasury in disputes over annuity

amounts.

The Department of the Treasury has

reconsidered the entire issue of service

of process affecting Federal Benefit

Payments. The Department has

concluded that legal process under

section 659 of title 42, United States

Code and part 581 of Title 5, Code of

Federal Regulations, that is, process

implementing an order for alimony or

child support; or any request for or

notice of appointment of a custodian,

guardian, or other fiduciary to receive

Federal Benefit Payments as

Federal Register / Vol. 65, No. 239 / Tuesday, December 12, 2000 / Rules and Regulations 77501

representative payees under section

29.106 must be served upon the

Department of the Treasury. The

address for service of these types of

process has been added as an appendix

to subpart B of part 29. The Department

will also request the U.S. Office of

Personnel Management to make a

similar change to appendix A of part

581 of Title 5, Code of Federal

Regulations. Any qualifying court order

under chapter 30 of title 1 of the DC

Code (1997) must be served upon the

District of Columbia in accordance with

any rules issued under section 1–3005

of the DC Code. All other process

regarding Federal Benefit Payments

must be served upon the United States

in accordance with applicable law.

Process involving retirement benefits

payable by the District of Columbia

must be served upon the District in

accordance with applicable law.

Proposed section 28.302 defined the

term disability retirement for use in

subpart C of part 28. One comment

noted that the definition should have

referred to the statutory provision for

teacher disability retirement for teachers

who retired after June 30, 1946. The

statutory reference in the final

regulation has been changed to reflect

the statute applicable to teachers who

retire on disability retirement after June

30, 1946.

Proposed section 28.302 also defined

the term military service for use in

subpart C of part 28. One comment

noted that the definition erroneously

included a deposit requirement for a

teacher to be eligible for credit for

honorable active military service. The

definition has been corrected to

eliminate the error.

Proposed section 28.322 provided

service credit rules concerning

disability retirement after June 30, 1997.

Paragraph (b) of that section also

contained information about the

commencing date of Federal Benefit

Payments in such cases. One comment

noted that paragraph (b) of that section

contained an incorrect reference to

proposed section 28.342 that pertains to

maximum annuity calculations. The

reference should have been to proposed

section 28.343, which relates to the

calculation of the Federal Benefit

Payment in disability retirement cases.

The supplementary information to the

proposed regulation contained several

similar errors that appear to be the

result of a change in section numbering

late in the drafting process. The

references have been corrected in the

final regulations.

One comment objected to proposed

section 28.322(b) and suggested that

Federal Benefit Payments should

commence at separation in cases of

disability retirement where the former

employee has not met the criteria for

optional retirement. The relevant

language in the proposed regulation

states:

If an employee separates for disability

retirement after June 30, 1997, and, on the

date of separation, the employee * * * [d]oes

not satisfy the age and service requirements

for optional retirement, the Federal Benefit

Payment begins when the disability retiree

reaches deferred retirement age.

The suggested change would not be

consistent with the statutory language

that the regulation implements. Section

11012(c) of the Balanced Budget Act

states, in pertinent part:

Special Rule Regarding Disability

Benefits.—To the extent that any portion of

a benefit payment to which an individual is

entitled under a District Retirement Program

is based on a determination of disability

made by the District of Columbia Retirement

Board or the Trustee after [June 30, 1997], the

Federal benefit payment with respect to the

individual shall be in an amount equal to the

deferred retirement benefit * * * the

individual would receive if the individual

left service on the day before the

commencement of the disability retirement

benefits.

Since the disability retiree is not

entitled to any amount of deferred

retirement benefit until he or she

reaches the appropriate age for deferred

retirement, there is no ‘‘amount equal to

the deferred retirement benefit’’ for the

period between separation and the

commencing date for the deferred

retirement benefit. Accordingly, the

proposed regulation correctly reflects

the statutory provision.

Moreover, if Federal Benefit Payments

began at separation in cases of disability

retirement where the employee had not

yet reached the age for deferred

retirement, the District government

would control the commencement of

such benefits by finding the employee

eligible for disability retirement. This

would be contrary to sections 11021 and

11035(d) of the Act, which provide that

only the Secretary or the Trustee shall

determine whether an individual is

eligible to receive a Federal Benefit

Payment under the Act.

Proposed section 28.344 provided the

rule for calculating Federal Benefit

Payments in cases involving death

benefits. Examples 13A through 13C of

appendix A to proposed part 28

illustrated the death-benefit

calculations. One comment noted that

no example illustrates the survivor

annuity calculation in cases in which

the guaranteed minimum is based on a

projection of service to age 60. Example

13D has been added in the final

regulations to illustrate such a case. The

projection to age 60 only affects the total

survivor-annuity computation. As in 40-

percent guaranteed minimum cases,

Federal Benefit Payments are in the

same proportion to the total survivor

annuity as the amount of service as of

June 30, 1997, is to the amount of total

service.

Example 10B in appendix A to

proposed part 28 illustrated the

computation of a reduced annuity to

provide a survivor annuity. One

comment noted an error in the amount

labeled ‘‘Total Reduced.’’ The annual

amount should have been $42,374.13,

but was published as $43,374.13. The

annual amount has been corrected in

the final regulations. The monthly

amount was correctly computed based

on the lower amount.

Executive Order 12866, Regulatory

Review

Because this rule is not a significant

regulatory action for purposes of

Executive Order 12866, a regulatory

assessment is not required.

Regulatory Flexibility Act

It is hereby certified that this

regulation will not have a significant

economic impact on a substantial

number of small entities. The regulation

will only affect the determination of the

Federal portion of retirement benefits to

certain former employees of the District

of Columbia. Accordingly, a regulatory

flexibility analysis is not required by the

Regulatory Flexibility Act (5 U.S.C. 601

et seq.).

List of Subjects in 31 CFR Part 29

Administrative practice and

procedure, Claims, Disability benefits,

Firefighters, Government employees,

Intergovernmental relations, Law

enforcement officers, Pensions,

Retirement, Teachers.

Department of the Treasury.

Lisa G. Ross,

Acting Assistant Secretary of the Treasury.

Accordingly, the Department of the

Treasury, is amending subtitle A of title

31 of the Code of Federal Regulations to

add part 29 to read as follows:

PART 29—FEDERAL BENEFIT

PAYMENTS UNDER CERTAIN

DISTRICT OF COLUMBIA

RETIREMENT PROGRAMS

Subpart A—General Provisions

Sec.

29.101 Purpose and scope.

29.102 Related regulations.

29.103 Definitions.

29.104 Schedule for Federal Benefit

Payments.

77502 Federal Register / Vol. 65, No. 239 / Tuesday, December 12, 2000 / Rules and Regulations

29.105 Computation of time.

29.106 Representative payees.

Subpart B—Coordination With the District

Government

29.201 Purpose and scope.

29.202 Definitions. [Reserved]

29.203 Service of Process.

Appendix A to Subpart B of Part 29—

Addresses for Service of Process Under

§ 29.203

Subpart C—Split Benefits

29.301 Purpose and scope.

29.302 Definitions.

General Principles for Determining Service

Credit To Calculate Federal Benefit

Payments

29.311 Credit only for service performed on

or before June 30, 1997.

29.312 All requirements for credit must be

satisfied by June 30, 1997.

29.313 Federal Benefit Payments are

computed based on retirement eligibility

as of the separation date and service

creditable as of June 30, 1997.

Service Performed After June 30, 1997

29.321 General principle.

29.322 Disability benefits.

All Requirements for Credit Must be

Satisfied by June 30, 1997

29.331 General principle.

29.332 Unused sick leave.

29.333 Military service.

29.334 Deposit service.

29.335 Refunded service.

Calculation of the Amount of Federal Benefit

Payments

29.341 General principle.

29.342 Computed annuity exceeds the

statutory maximum.

29.343 Disability benefits.

29.344 Survivor benefits.

29.345 Cost-of-living adjustments.

29.346 Reduction for survivor benefits.

Appendix A to Subpart C of Part 29—

Examples

Authority: Sections 11083 and 11251(a) of

Pub. L. 105–33, 111 Stat. 730 and 756, as

amended by Pub. L. 105–277, 112 Stat. 2681–

530 through 2681–538.

Subpart A—General Provisions

§ 29.101 Purpose and scope.

(a) This part contains the

Department’s regulations implementing

Title XI of the Balanced Budget Act of

1997, Public Law 105–33, 111 Stat. 251,

enacted August 5, 1997, as amended.

(b) This subpart contains general

information to assist in the use of this

part including—

(1) Information about related

regulations (§ 29.102),

(2) Definitions of terms used in more

than one subpart of this part (§ 29.103),

and

(3) The Department’s general rules

and procedures, applicable to the

retirement plans for District of Columbia

teachers, police and fire fighters, and

judges that concern the administration

of Federal Benefit Payments (§§ 29.104–

29.106).

(c) This part applies to all Federal

Benefit Payments made on or after

October 1, 1997.

(d) This part does not apply to the

program of annuities, other retirement

benefits, or medical benefits for

members and officers, retired members

and officers, and survivors thereof, of

the United States Park Police force, the

United States Secret Service, or the

United States Secret Service Uniformed

Division.

§ 29.102 Related regulations.

(a) This part contains the following

subparts:

(1) General Provisions (Subpart A);

(2) Coordination With the District

Government (Subpart B); and (3) Split

Benefits (Subpart C).

(b) Part 581 of Title 5, Code of Federal

Regulations, contains information about

garnishment of certain Federal

payments to enforce awards of alimony

or child support.

(c) Part 831 of Title 5, Code of Federal

Regulations, contains information about

benefits under the Civil Service

Retirement System.

(d) Part 870 of Title 5, Code of Federal

Regulations, contains information about

benefits under the Federal Employees

Group Life Insurance Program.

(e) Part 890 of Title 5, Code of Federal

Regulations, contains information about

benefits under the Federal Employees

Health Benefits Program.

§ 29.103 Definitions.

(a) In this part—

District government means the

government of the District of Columbia.

Department means the United States

Department of the Treasury.

Federal Benefit Payment means a

payment for which the Department is

responsible under Title XI of the

Balanced Budget Act of 1997 (Public

Law 105–33, 111 Stat. 251), as amended,

to which an individual is entitled under

the Judges Plan, the Police and

Firefighters Plan, or the Teachers Plan,

in such amount and under such terms

and conditions as may apply under such

plans.

Freeze date means June 30, 1997.

Judges Plan means the retirement

program (under subchapter III of chapter

15 of title 11 of the D.C. Code) for judges

of the District of Columbia Court of

Appeals or Superior Court or with

judicial service with the former Juvenile

Court of the District of Columbia,

District of Columbia Tax Court, police

court, municipal court, Municipal Court

of Appeals, or District of Columbia

Court of General Sessions.

OPM means the United States Office

of Personnel Management.

Police and Firefighters Plan means

any of the retirement programs (under

chapter 6 of title 4 of the D.C. Code) for

members of the Metropolitan Police

Force and Fire Department in effect on

June 29, 1997.

Secretary means the Secretary of the

United States Department of the

Treasury or his or her designee.

Teachers Plan means any of the

retirement programs for teachers (under

chapter 12 of title 31 of the D.C. Code)

in effect on June 29, 1997.

(b) In this subpart—

Legal process means—

(1) Any document that qualifies as

legal process as defined in § 581.103 of

Title 5, Code of Federal Regulations; or

(2) Any court order that Federal or

District of Columbia law permits to

cause all or any portion of a payment

under the Judges Plan, the Police and

Firefighters Plan, or the Teachers Plan

to be made to a former spouse under

chapter 30 of title 1 of the D.C. Code

(1997).

Representative payee means a

fiduciary to whom a payment under the

Judges Plan, the Police and Firefighters

Plan, or the Teachers Plan is made for

the benefit of a plan participant or a

survivor.

§ 29.104 Schedule for Federal Benefit

Payments.

Federal Benefit Payments are payable

on the first business day of the month

following the month in which the

benefit accrues. (See § 29.105(b).)

§ 29.105 Computation of time.

(a) For filing documents. In

computing the number of days allowed

for filing a document, the first day

counted is the day after the action or

event from which the period begins to

run. If the date that ordinarily would be

the last day for filing falls on a Saturday,

a Sunday, a Federal holiday, or a

District holiday, the period runs until

the end of the next day that is not a

Saturday, a Sunday, or a Federal or a

District holiday.

(b) For benefit accrual. (1) Annuity

accrues on a daily basis; one-thirtieth of

the monthly rate constitutes the daily

rate.

(2) Annuity does not accrue on the

31st day of any month except that

annuity accrues on the 31st day of the

initial month if the employee’s annuity

commences on the 31st day of a 31-day

month.

(3) For accrual purposes the last day

of a 28-day month counts as 3 days and

Federal Register / Vol. 65, No. 239 / Tuesday, December 12, 2000 / Rules and Regulations 77503

the last day of a 29-day month counts

as 2 days.

(c) For counting unused sick leave. (1)

For annuity computation purposes—

(i) The service of a participant under

the Police and Firefighters Plan who

retires on an immediate annuity is

increased by the number of days of

unused sick leave to the participant’s

credit under a formal leave system; and

(ii) The service of a participant under

the Teachers Plan who retires on an

immediate annuity or dies leaving a

survivor entitled to an annuity is

increased by the number of days of

unused sick leave to the participant’s

credit under a formal leave system.

(2) In general, 8 hours of unused sick

leave increases total service by 1 day. In

cases where more or less than 8 hours

of sick leave would be charged for a

day’s absence, total service is increased

by the number of days in the period

between the date of separation and the

date that the unused sick leave would

have expired had the employee used it

(except that holidays falling within the

period are treated as work days, and no

additional leave credit is earned for that

period).

(3) If an employee’s tour of duty

changes from part time to full time or

full time to part time within 180 days

before retirement, the credit for unused

sick leave is computed as though no

change had occurred.

(d) For counting leave without pay

(LWOP) that is creditable service. (1)

Under the Police and Firefighters Plan,

credit is allowed for no more than 6

months of LWOP in each calendar year.

(2)(i) Under the Teachers Plan, credit

is allowed for no more than 6 months

of LWOP in each fiscal year.

(ii)(A) For years prior to fiscal year

1976, each fiscal year started on July 1

and ended on the following June 30.

(B) Fiscal year 1976 started on July 1,

1975, and ended on September 30, 1976.

(C) For years starting in fiscal year

1977, each fiscal year starts on October

1 and ends on the following September

30.

§ 29.106 Representative payees.

For Federal Benefit Payments,

representative payees will be authorized

to the same extent and under the same

circumstances as each plan permits for

non-Federal Benefit Payments under the

plan. (See e.g., section 4–629(b) of the

D.C. Code (1997) (applicable to the

Police and Firefighters Plan).)

Subpart B—Coordination With the

District Government

§ 29.201 Purpose and scope.

This subpart contains information

concerning the relationship between the

Department and the District government

in the administration of Title XI of the

Balanced Budget Act of 1997, as

amended, and the functions of each in

the administration of that Act.

§ 29.202 Definitions. [Reserved]

§ 29.203 Service of Process.

To affect Federal Benefit Payments—

(a) Service must be made upon the

Department at the address provided in

appendix A to this subpart for—

(1) Legal process under section 659 of

title 42, United States Code, and part

581 of Title 5, Code of Federal

Regulations, or

(2) Any request for or notice of

appointment of a custodian, guardian,

or other fiduciary to receive Federal

Benefit Payments as representative

payees under § 29.106;

(b)(1) Service must be made upon the

District government in accordance with

any rules issued under section 1–3005

of the D.C. Code for any qualifying court

order under chapter 30 of title 1 of the

D.C. Code (1997), and

(2) The District government must

notify the Department and forward a

copy of such an order to the address

provided in appendix A to this subpart

within 3 days of receipt of the order;

and

(c) All other process regarding Federal

Benefit Payments must be served upon

the United States in accordance with

applicable law.

Appendix A to Subpart B of Part 29—

Addresses for Service Under § 29.203

1. The mailing address for delivery of

documents described in § 29.203(a) by the

United States Postal Service is: Office of DC

Pensions, Department of the Treasury,

Metropolitan Square Building, Room 6250,

1500 Pennsylvania Avenue, NW.,

Washington, DC 20220.

2. The address for delivery of documents

described in § 29.203(a) by process servers,

express carriers, or other forms of

handcarried delivery is: Office of DC

Pensions, Department of the Treasury,

Metropolitan Square Building, Room 6250,

655 15th Street (F Street side), NW.,

Washington, DC.

Subpart C—Split Benefits

§ 29.301 Purpose and scope.

(a) The purpose of this subpart is to

addresses the legal and policy issues

that affect the calculation of the Federal

and District of Columbia portions of

benefits under subtitle A of Title XI of

the Balanced Budget Act of 1977, Public

Law 105–33, 111 Stat. 251, 712–731,

enacted August 5, 1997, as amended.

(1) This subpart states general

principles for the calculation of Federal

Benefit Payments in cases in which the

Department and the District government

are both responsible for paying a portion

of an employee’s total retirement

benefits under the Police and

Firefighters Plan or the Teachers Plan.

(2) This subpart provides illustrative

examples of sample computations to

show the application of the general

principles to specific problems.

(b)(1) This subpart applies only to

benefits under the Police and

Firefighters Plan or the Teachers Plan

for individuals who have performed

service creditable under these programs

on or before June 30, 1997.

(2) This subpart addresses only those

issues that affect the split of fiscal

responsibility for retirement benefits

(that is, the calculation of Federal

Benefit Payments).

(3) Issues relating to determination

and review of eligibility and payments,

and financial management, are beyond

the scope of this subpart.

(c) This subpart does not apply to

benefit calculations under the Judges

Plan.

§ 29.302 Definitions.

In this subpart (including appendix A

of this subpart)—

Deferred retirement means retirement

under section 4–623 of the D.C. Code

(1997) (under the Police and Firefighters

Plan) or section 31–1231(a) of the D.C.

Code (1997) (under the Teachers Plan).

Deferred retirement age means the age

at which a deferred annuity begins to

accrue, that is, age 55 under the Police

and Firefighters Plan and age 62 under

the Teachers Plan.

Department service or departmental

service means any period of

employment in a position covered by

the Police and Firefighters Plan or

Teachers Plan. Department service or

departmental service may include

certain periods of military service that

interrupt a period of employment under

the Police and Firefighters Plan or the

Teachers Plan.

Disability retirement means

retirement under section 4–615 or

section 4–616 of the D.C. Code (1997)

(under the Police and Firefighters Plan)

or section 31–1225 of the D.C. Code

(1997) (under the Teachers Plan),

regardless of whether the disability was

incurred in the line of duty.

Enter on duty means commencement

of employment in a position covered by

the Police and Firefighters Plan or the

Teachers Plan.

Excess leave without pay or excess

LWOP means a period of time in a nonpay status that in any year is greater

than the amount creditable as service

under § 29.105(d).

Hire date means the date the

employee entered on duty.

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Military service means—

(1) For the Police and Firefighters

Plan, military service as defined in

section 4–607 of the D.C. Code (1997)

that is creditable as other service under

section 4–602 or section 4–610 of the

D.C. Code (1997); and

(2) For the Teachers Plan, military

service as described in section 31–

1230(a)(4) of the D.C. Code (1997).

Optional retirement means regular

longevity retirement under section 4–

618 of the D.C. Code (1997) (under the

Police and Firefighters Plan) or section

31–1224(a) of the D.C. Code (1997)

(under the Teachers Plan).

Other service means any period of

creditable service other than

departmental service or unused sick

leave. Other service includes service

that becomes creditable upon payment

of a deposit, such as service in another

school system under the Teachers Plan

(under section 31–1208 of the D.C. Code

(1997)); and service that is creditable

without payment of a deposit, such as

military service occurring prior to

employment under the Police and

Firefighters Plan.

Pre-80 hire means an individual

whose annuity is computed using the

formula under the Police and

Firefighters Plan applicable to

individuals hired before February 15,

1980.

Pre-96 hire means an individual

whose annuity is computed using the

formula under the Teachers Plan

applicable to individuals hired before

November 10, 1996.

Sick leave means unused sick leave,

which is creditable in a retirement

computation, as calculated under

§ 29.105(c).

General Principles for Determining

Service Credit to Calculate Federal

Benefit Payments

§ 29.311 Credit only for service performed

on or before June 30, 1997.

Only service performed on or before

June 30, 1997, is credited toward

Federal Benefit Payments.

§ 29.312 All requirements for credit must

be satisfied by June 30, 1997.

Service is counted toward Federal

Benefit Payments only if all

requirements for the service to be

creditable are satisfied as of June 30,

1997.

§ 29.313 Federal Benefit Payments are

computed based on retirement eligibility as

of the separation date and service

creditable as of June 30, 1997.

Except as otherwise provided in this

subpart, the amount of Federal Benefit

Payments is computed based on

retirement eligibility as of the separation

date and service creditable as of June 30,

1997.

Service Performed After June 30, 1997

§ 29.321 General principle.

Any service performed after June 30,

1997, may never be credited toward

Federal Benefit Payments.

§ 29.322 Disability benefits.

If an employee separates for disability

retirement after June 30, 1997, and, on

the date of separation, the employee—

(a) Satisfies the age and service

requirements for optional retirement,

the Federal Benefit Payment commences

immediately, that is, the Federal Benefit

Payment is calculated as though the

employee retired under optional

retirement rules using only service

through June 30, 1997 (See examples 7A

and 7B of appendix A of this subpart);

or

(b) Does not satisfy the age and

service requirements for optional

retirement, the Federal Benefit Payment

begins when the disability retiree

reaches deferred retirement age. (See

§ 29.343.)

All Requirements for Credit Must Be

Satisfied by June 30, 1997

§ 29.331 General principle.

To determine whether service is

creditable for the computation of

Federal Benefit Payments under this

subpart, the controlling factor is

whether all requirements for the service

to be creditable under the Police and

Firefighters Plan or the Teachers Plan

were satisfied as of June 30, 1997.

§ 29.332 Unused sick leave.

(a) For employees separated for

retirement as of June 30, 1997, Federal

Benefit Payments include credit for any

unused sick leave that is creditable

under the applicable plan.

(b) For employees separated for

retirement after June 30, 1997, no

unused sick leave is creditable toward

Federal Benefit Payments.

§ 29.333 Military service.

(a) For employees who entered on

duty on or before June 30, 1997, and

whose military service was performed

prior to that date, credit for military

service is included in Federal Benefit

Payments under the terms and

conditions applicable to each plan.

(b) For employees who enter on duty

after June 30, 1997, military service is

not creditable toward Federal Benefit

Payments, even if performed as of June

30, 1997.

(c) For employees who entered on

duty on or before June 30, 1997, but

who perform military service after that

date, the credit for military service is

not included in Federal Benefit

Payments.

§ 29.334 Deposit service.

(a) Teachers Plan. (1) Periods of

civilian service that were not subject to

retirement deductions at the time they

were performed are creditable for

Federal Benefit Payments under the

Teachers Plan if the deposit for the

service was paid in full to the Teachers

Plan as of June 30, 1997.

(2) No credit is allowed for Federal

Benefit Payments under the Teachers

Plan for any period of civilian service

that was not subject to retirement

deductions at the time it was performed

if the deposit for the service was not

paid in full as of June 30, 1997.

(b) Police and Firefighters Plan. No

credit is allowed for Federal Benefit

Payments under the Police and

Firefighters Plan for any period of

civilian service that was not subject to

retirement deductions at the time that

the service was performed. (See

definition of ‘‘governmental service’’ at

D.C. Code section 4–607(15) (1997).)

§ 29.335 Refunded service.

(a) Periods of civilian service that

were subject to retirement deductions

but for which the deductions were

refunded to the employee are creditable

for Federal Benefit Payments if the

redeposit for the service was paid in full

to the District government as of June 30,

1997.

(b) No credit is allowed for Federal

Benefit Payments for any period of

civilian service that was subject to

retirement deductions but for which the

deductions were refunded to the

employee if the redeposit for the service

was not paid in full to the District

government as of June 30, 1997.

Calculation of the Amount of Federal

Benefit Payments

§ 29.341 General principle.

Except for disability retirements after

June 30, 1997, and certain death benefits

based on deaths after June 30, 1997, in

which the calculation is not based upon

length of service (see § 29.344); for cases

in which some service is creditable on

or before June 30, 1997, and some

service is creditable after June 30, 1997,

Federal Benefit Payments are computed

under the rules of the applicable plan as

though—

(a) The employee were eligible to

retire effective July 1, 1997, under the

same conditions as the actual retirement

(that is, using the annuity computation

Federal Register / Vol. 65, No. 239 / Tuesday, December 12, 2000 / Rules and Regulations 77505

formula that applies under the plan in

effect on June 29, 1997, and the actual

retirement age, including any applicable

age reduction, based on the age at actual

retirement);

(b) The service that became creditable

after June 30, 1997, did not exist; and

(c) The average salary is the average

salary at separation.

Note to § 29.341: See examples 7B, 9, and

13 of appendix A of this subpart.

§ 29.342 Computed annuity exceeds the

statutory maximum.

(a) In cases in which the total

computed annuity exceeds the statutory

maximum:

(1) Federal Benefit Payments may

equal total benefits even if the employee

had service after June 30, 1997.

(2) If the employee had sufficient

service as of June 30, 1997, to qualify for

the maximum annuity under the plan,

the Federal Benefit Payment is the

maximum annuity under the plan. This

will be the entire benefit except for any

amount in excess of the normal

maximum due to unused sick leave,

which is the responsibility of the

District. (See example 3, of appendix A

of this subpart.)

(b) If the employee did not perform

sufficient service as of June 30, 1997, to

reach the statutory maximum benefit,

but has sufficient service at actual

retirement to exceed the statutory

maximum, the Federal Benefit Payment

is the amount earned through June 30,

1997. The non-Federal-Benefit-Payment

portion of the total benefit consists of

only the amount by which the total

benefit payable exceeds the Federal

Benefit Payment.

§ 29.343 Disability benefits.

(a) The general rule that Federal

Benefit Payments are calculated under

the applicable retirement plan as though

the employee were eligible for optional

retirement and separated on June 30,

1997, does not apply to disability

benefits prior to optional retirement age.

(b) In cases involving disability

benefits prior to optional retirement age,

no Federal Benefit Payment is payable

until the retiree reaches the age of

eligibility to receive a deferred annuity

(age 55 under the Police and Firefighters

Plan and age 62 under the Teachers

Plan). When the age for deferred annuity

is reached, the Federal Benefit Payment

is paid using creditable service accrued

as of June 30, 1997, and average salary

(computed under the rules for the

applicable plan) as of the date of

separation. (See examples 6 and 7 of

appendix A of this subpart.)

§ 29.344 Survivor benefits.

(a) The general rule that Federal

Benefit Payments are calculated under

the applicable retirement plan as though

the employee were eligible for optional

retirement and separated on June 30,

1997, does not apply to death benefits

that are not determined by length of

service.

(b) In cases in which the amount of

death benefits is not determined by

length of service, the amount of Federal

Benefit Payments is calculated by

multiplying the amount of the total

benefit payable by the number of full

months of service through June 30,

1997, and then dividing by the number

of months of total service at retirement

(for elected survivor benefits) or death

(for guaranteed-minimum death-inservice survivor benefits). (See example

13 of appendix A of this subpart.)

§ 29.345 Cost-of-living adjustments.

Cost-of-living increases are applied

directly to Federal Benefit Payments,

rather than computed on the total

benefit and then prorated. (See example

14 of appendix A of this subpart.)

§ 29.346 Reduction for survivor benefits.

(a) If a retiree designates a base for a

survivor annuity that is greater than or

equal to the unreduced Federal Benefit

Payment, the applicable plan’s annuity

reduction formula is applied to the

unreduced Federal Benefit Payment to

determine the reduced Federal Benefit

Payment. (See example 10 of appendix

A of this subpart.)

(b) If a retiree designates a base for a

survivor annuity that is less than the

amount of the Federal Benefit Payment,

the entire survivor reduction applies to

the Federal Benefit Payment to

determine the reduced Federal Benefit

Payment.

Appendix A to Subpart C of Part 29—

Examples

This appendix contains sample

calculations of Federal Benefit Payments in

a variety of situations.

Optional Retirement Examples

Example 1: No Unused Sick Leave

A. In this example, an individual covered

by the Police and Firefighters Plan hired

before 1980 retires in October 1997. At

retirement, he is age 51 with 20 years and 3

days of departmental service plus 3 years, 4

months, and 21 days of military service that

preceded the departmental service. The

Federal Benefit Payment begins at retirement.

It is based on the 19 years, 8 months, and 22

days of departmental service and 3 years, 4

months, and 21 days of military service

performed as of June 30, 1997. Thus, the

Federal Benefit Payment is based on 23 years

and 1 month of service, all at the 2.5 percent

accrual rate. The total annuity is based on 23

years and 4 months of service, all at the 2.5

percent accrual rate.

EXAMPLE 1A.—POLICE OPTIONAL

[Pre-80 hire]

Total Annuity Computation

Birth date: 09/10/46

Hire date: 10/09/77

Separation date: 10/11/97

Department service: 20/00/03

Other service: 03/04/21

Sick leave:

.025 service: 23.333333

.03 service:

Average salary: $45,680.80

Total: $26,647.12

Total/month: $2,221.00

Federal Benefit Payment Computation

Birth date: 9/10/46

Hire date: 10/09/77

Freeze date: 06/30/97

Department service: 19/08/22

Other service: 03/04/21

Sick leave:

.025 service: 23.083333

.03 service:

Average salary: $45,680.80

Total: $26,361.61

Total/month: $2,197.00

B. In this example, the individual covered

by the Police and Firefighters Plan was hired

earlier than in example 1A and thus

performed more service as of both June 30,

1997, and retirement in October 1997. At

retirement, he is age 51 with 21 years, 11

months and 29 days of departmental service

plus 3 years, 4 months, and 21 days of

military service that preceded the

departmental service. The Federal Benefit

Payment begins at retirement. It is based on

the 21 years, 8 months, and 18 days of

departmental service and 3 years, 4 months,

and 21 days of military service performed as

of June 30, 1997. Thus, the Federal Benefit

Payment is based on 25 years and 1 month

of service, 1 year and 8 months at the 3.0

percent accrual rate and 23 years and 5

months at the 2.5 percent accrual rate

(including 1 month consisting of 18 days of

departmental service and 21 days of other

service). The total annuity is based on 25

years and 4 months of service, 1 year and 11

months at the 3.0 percent accrual rate and 23

years and 5 months at the 2.5 percent accrual

rate (including 1 month consisting of 29 days

of departmental service and 21 days of other

service).

EXAMPLE 1B.—POLICE OPTIONAL

[Pre-80 hire]

Total Annuity Computation

Birth date: 09/10/46

Hire date: 10/13/75

Separation date: 10/11/97

Department service: 21/11/29

Other service: 03/04/21

Sick leave:

.025 service: 23.416667

77506 Federal Register / Vol. 65, No. 239 / Tuesday, December 12, 2000 / Rules and Regulations

EXAMPLE 1B.—POLICE OPTIONAL—

Continued

[Pre-80 hire]

.03 service: 1.916667

Average salary: $45,680.80

Total: $29,368.96

Total/month $2,447.00

Federal Benefit Payment Computation

Birth date: 09/10/46

Hire date: 10/13/75

Freeze date: 06/30/97

Department service: 21/08/18

Other service: 03/04/21

Sick leave:

.025 service: 23.416667

.03 service: 1.666667

Average salary: $45,680.80

Total: $29,026.36

Total/month: $2,419.00

Example 2: Unused Sick Leave Credit

In this example, an individual covered by

the Police and Firefighters Plan and hired

before 1980 retires in March 1998. At

retirement, she is age 48 with 24 years, 8

months, and 6 days of departmental service

plus 6 months and 4 days of other service

(deposit paid before June 30, 1997) and 11

months and 11 days of unused sick leave. For

a police officer (or a non-firefighting division

firefighter) such an amount of sick leave

would be 1968 hours (246 days, based on a

260-day year, times 8 hours per day). For a

firefighting division firefighter, such an

amount would be 2069 hours (341 days

divided by 360 days per year times 2184

hours per year). The Federal Benefit Payment

begins at retirement. It is based on the 23

years, 11 months, and 23 days of

departmental service performed as of June

30, 1997, and 6 months and 4 days of other

service. Thus, the Federal Benefit Payment is

based on 20 years departmental and 6

months of other service at the 2.5 percent

accrual rate and 3 years and 11 months of

service at the 3.0 percent accrual rate. The

total annuity is based on 20 years and 6

months of service at the 2.5 percent accrual

rate and 5 years and 7 months of service at

the 3 percent accrual rate.

EXAMPLE 2.—POLICE OPTIONAL

[Pre-80 hire]

Total Annuity Computation

Birth date: 05/01/49

Hire date: 07/08/73

Separation date: 03/13/98

Department service: 24/08/06

Other service: 00/06/04

Sick leave: 00/11/11

.025 service: 20.5

.03 service: 5.583333

Average salary: $61,264.24

Total: $41,659.68

Total/month: $3,472.00

Federal Benefit Payment Computation

Birth date: 05/01/49

Hire date: 07/08/73

EXAMPLE 2.—POLICE OPTIONAL—

Continued

[Pre-80 hire]

Freeze date: 06/30/97

Department service: 23/11/23

Other service: 00/06/04

Sick leave:

.025 service: 20.5

.03 service: 3.916667

Average salary: $61,264.24

Total: $38,596.47

Total/month: $3,216.00

Example 3: Calculated Benefit Exceeds

Statutory Maximum

A. In this example, an individual covered

by the Police and Firefighters Plan hired

before 1980 retires in March 1998. At

retirement, he is age 55 with 32 years and 17

days of departmental service. The Federal

Benefit Payment begins at retirement. It is

based on the 31 years, 3 months, and 17 days

of departmental service performed as of June

30, 1997. Thus, the Federal Benefit Payment

is based on 20 years of service at the 2.5

percent accrual rate and 11 years and 3

months of service at the 3.0 percent accrual

rate. However, the annuity is limited to 80

percent of the basic salary at time of

retirement. (This limitation does not apply to

the unused sick leave credit.) The annuity

computed as of June 30, 1997, equals the full

benefit payable; therefore, the Federal Benefit

Payment is the total benefit.

EXAMPLE 3A.—POLICE OPTIONAL

[Pre-80 hire]

Total Annuity Computation

Birth date: 06/12/42

Hire date: 03/14/66

Separation date: 03/30/98

Department service: 32/00/17

Other service:

Sick leave:

.025 service: 20

.03 service: 12

Average salary: $75,328.30

Final salary: $77,180.00

Total: $64,782.34

Total/month: $5,399.00

Maximum: $61,744.00

$5,145.00

Federal Benefit Payment Computation

Birth date: 06/12/42

Hire date: 03/14/66

Freeze date: 03/30/97

Department service: 31/03/17

Other service:

Sick leave:

.025 service: 20

.03 service: 11.25

Average salary: $75,328.30

Final salary: $77,180.00

Total: $63,087.45

Total/month: $5,257.00

Maximum: $61,744.00

$5,145.00

B. In this example, the individual in

example 3A also has 6 months of unused sick

leave at retirement. The sick leave credit is

not subject to the 80% limitation and does

not become creditable service until the date

of separation. For a police officer (or a nonfirefighting division firefighter) such an

amount of sick leave would be 1040 hours

(130 days, based on a 260-day year, times 8

hours per day). For a firefighting division

firefighter, such an amount would be 1092

hours (180 days divided by 360 days per year

times 2184 hours per year). Six months of

unused sick leave increases the annual total

benefit by 1.5 percent of the average salary,

or in the example by $94 per month. The

District is responsible for the portion of the

annuity attributable to the unused sick leave

because it became creditable at retirement,

that is, after June 30, 1997.

EXAMPLE 3B.—POLICE OPTIONAL

[Pre-80 hire]

Total Annuity Computation

Birth date: 06/12/42

Hire date: 03/14/66

Separation date: 03/30/98

Department service: 32/00/17

Other service:

Sick leave:

.025 service: 20

.03 service: 12

Average salary: $75,328.30

Final salary: $77,180.00

Total wo/sl credit: $64,782.34

Total/month: $5,399.00

Max wo/sl credit: $61,744.00

Max w/sl credit: $62,873.92

Monthly benefit: $5,239.00

Federal Benefit Payment Computation

Birth date: 06/12/42

Hire date: 03/14/66

Freeze date: 06/30/97

Department service: 31/03/17

Other service:

Sick leave: none

.025 service: 20

.03 service: 11.25

Average salary: $75,328.30

Final salary: $77,180.00

Total: $63,087.45

Total/month: $5,257.00

Maximum: $61,744.00

Monthly benefit: $5,145.00

Example 4: Excess Leave Without Pay

In this example, an individual covered by

the Teachers Plan hired before 1996 retires in

February 1998. At retirement, she is age 64

with 27 years of departmental service and 6

years, 7 months, and 28 days of other service

(creditable before June 30, 1997). However,

only 6 months of leave in a fiscal year

without pay may be credited toward

retirement under the Teachers Plan. She had

3 months and 18 days of excess leave without

pay as of June 30, 1997. Since the excess

leave without pay occurred before June 30,

1997, the time attributable to the excess leave

without pay is subtracted from the service

used in both the Federal Benefit Payment and

the total benefit computations. The Federal

Benefit Payment begins at retirement. It is

Federal Register / Vol. 65, No. 239 / Tuesday, December 12, 2000 / Rules and Regulations 77507

based on the 32 years and 8 months of

service (32 years, 11 months, and 28 days

minus 3 months and 18 days and the partial

month dropped); 5 years of service at the 1.5

percent accrual rate, 5 years of service at the

1.75 percent accrual rate, and 22 years and

8 months of service at the 2 percent accrual

rate. The total annuity is based on 33 years

and 4 months of service (33 years, 7 months

and 28 days minus 3 months and 18 days and

the partial month dropped) 5 years of service

at the 1.5 percent accrual rate, 5 years of

service at the 1.75 percent accrual rate and

23 years and 4 months of service at the 2

percent accrual rate.

Note: For the Teachers Plan, section

1230(a) of title 31 of the DC Code (1997)

allows for 6 months leave without pay in any

fiscal year. For the Police and Firefighters

Plan, section 610(d) of title 4 of the DC Code

(1997) allows for 6 months leave without pay

in any calendar year.

EXAMPLE 4.—TEACHERS OPTIONAL

[Pre-96 hire]

Total Annuity Computation

Birth date: 11/04/33

Hire date: 03/01/71

Separation date: 02/28/98

Department service: 27/00/00

Other service: 06/07/28

Excess LWOP: 00/03/18

.015 service: 5

.0175 service: 5

.02 service: 23.333333

Average salary: $53,121.00

Total: $33,421.98

Total/month: $2,785.00

Federal Benefit Payment Computation

Birth date: 11/04/33

Hire date: 03/01/71

Freeze date: 06/30/97

Department service: 26/04/00

Other service: 06/07/28

Excess LWOP: 00/03/18

.015 service: 5

.0175 service: 5

.02 service: 22.666667

Average salary: $53,121.00

Total: $32,713.66

Total/month: $2,726.00

Example 5: Service Credit Deposits

A. An individual covered by the Teachers

Plan hired before 1996 retires in October

1997. At retirement, he is age 61 with 30

years and 3 days of departmental service plus

3 years, 4 months, and 21 days of other

service that preceded the departmental

service for which the deposit was fully paid

on or before June 30, 1997. The Federal

Benefit Payment begins at retirement. It is

based on the 29 years, 8 months, and 22 days

of departmental service and 3 years, 4

months, and 21 days of service performed as

of June 30, 1997. Thus, the Federal Benefit

Payment is based on 33 years and 1 month

of service; 5 years of service at the 1.5

percent accrual rate, 5 years of service at the

1.75 percent accrual rate, and 23 years and

1 month of service at the 2 percent accrual

rate. The total annuity is based on 33 years

and 4 months of service; 5 years of service

at the 1.5 percent accrual rate, 5 years of

service at the 1.75 percent accrual rate and

23 years and 4 months of service at the 2

percent accrual rate.

EXAMPLE 5A.—TEACHERS OPTIONAL

[Pre-96 hire]

Total Annuity Computation

Birth date: 09/10/36

Hire date: 10/09/67

Separation date: 10/11/97

Department Service: 30/00/03

Other service: 03/04/21

Deposit paid before freeze date:

Other service credit allowed:

Sick leave:

.015 service: 5

.0175 service: 5

.02 service: 23.333333

Average salary: $45,680.80

Total: $28,740.85

Total/month: $2,395.00

Federal Benefit Payment Computation

Birth date: 09/10/36

Hire date: 10/09/67

Freeze date: 06/30/97

Department service: 29/08/22

Other service: 03/04/21

Deposit paid before freeze date:

Other service credit allowed:

Sick Leave:

.015 service: 5

.0175 service: 5

.02 service: 23.08333; 13 days dropped

Average salary: $45,680.80

Total: $28,512.45

Total/month: $2,376.00

B. In this example, the employee in

example 5A did not pay any of the deposit

to obtain credit for the 3 years, 4 months, and

21 days of other service as of June 30, 1997.

Thus, none of the other service is used in the

computation of the Federal Benefit Payment.

An individual covered by the Teachers Plan

hired before 1996 retires in October 1997. At

retirement, he is age 61 with 30 years and 3

days of departmental service plus 3 years, 4

months, and 21 days of other service that

preceded the departmental service for which

the deposit was paid in full in October 1997

(at retirement). The Federal Benefit Payment

begins at retirement. It is based on only the

29 years, 8 months, and 22 days of

departmental service performed as of June

30, 1997; 5 years of service at the 1.5 percent

accrual rate, 5 years of service at the 1.75

percent accrual rate, and 19 years and 8

months of service at the 2 percent accrual

rate. The total annuity is based on 33 years

and 4 months of service; 5 years of service

at the 1.5 percent accrual rate, 5 years of

service at the 1.75 percent accrual rate and

23 years and 4 months of service at the 2

percent accrual rate.

EXAMPLE 5B.—TEACHERS OPTIONAL

[Pre-96 hire]

Total Annuity Computation

Birth date: 09/10/36

Hire date: 10/09/67

Separation date: 10/11/97

$0.00

Department service: 30/00/03

Other service: 03/04/21

Total deposit paid after 6/30/97

Sick leave:

.015 service: 5

.0175 service: 5

.02 service: 23.333333

Average salary: $45,680.80

Total: $28,740.85

Total/month: $2,395.00

Federal Benefit Payment Computation

Birth date: 09/10/36

Hire date: 10/09/67

Freeze date: 06/30/97

Department service: 29/08/22

Other service: none

Total deposit paid after 6/30/97:

Sick leave:

.015 service: 5

.0175 service: 5

.02 service: 19.666667; 22 days dropped

Average salary: $45,680.80

Total: $25,390.90

Total/month: $2,116.00

C. In this example, the employee in

examples 5A and B began installment

payments on the deposit to obtain credit for

the 3 years, 4 months, and 21 days of other

service as of June 30, 1997, but did not

complete the deposit until October 1997 (at

retirement). The other service is not used in

the computation of the Federal Benefit

Payment because the payment was not

completed as of June 30, 1997. Thus, the

result is the same as in example 5B.

EXAMPLE 5C.—TEACHERS OPTIONAL

[Pre-96 hire]

Total Annuity Computation

Birth date: 09/10/36

Hire date: 10/09/67

Separation date: 10/11/97

Department service: 30/00/03

Other service: 03/04/21

Partial deposit paid as of 6/30/97:

Deposit completed after 6/30/97:

Sick leave:

.015 service: 5

.0175 service: 5

.02 service: 23.333333

Average salary: $45,680.80

Total: $28,740.85

Total/month: $2,395.00

Federal Benefit Payment Computation

Birth date: 09/10/36

Hire date: 10/09/67

Freeze date: 06/30/97

Department service: 29/08/22

Other service: none

77508 Federal Register / Vol. 65, No. 239 / Tuesday, December 12, 2000 / Rules and Regulations

EXAMPLE 5C.—TEACHERS

OPTIONAL—Continued

[Pre-96 hire]

Partial deposit paid as of 6/30/97:

Deposit completed after 6/30/97:

Sick leave:

.015 service: 5

.0175 service: 5

.02 service: 19.666667; 22 days dropped

Average salary: $45,680.80

Total: $25,390.90

Total/month: $2,116.00

Disability Retirement Examples

Example 6: Disability Occurs Before

Eligibility for Optional Retirement

A. In this example, an individual covered

by the Police and Firefighters Plan hired

before 1980 retires based on a disability in

the line of duty in October 1997. At

retirement, he is age 45 with 18 years, 5

months, and 11 days of departmental service.

Since he had performed less than 20 years of

service and had not reached the age of

eligibility for an optional retirement, the

Federal Benefit Payment does not begin at

retirement. When the disability annuitant

reaches age 55, he satisfies the age and

service requirements for deferred retirement.

At that time (August 20, 2007), the Federal

Benefit Payment begins. It is based on the 18

years, 1 month, and 17 days of departmental

service performed as of June 30, 1997, all at

the 2.5 percent accrual rate.

EXAMPLE 6A.—POLICE DISABILITY IN

LINE OF DUTY, AGE 45

[Pre-80 hire]

Total Annuity Computation

Birth date: 08/20/52

Hire date: 05/14/79

Separation date: 10/24/97

Department service: 18/05/11

Other service:

Sick leave:

.025 service: 18.416667

.03 service:

Average salary: $47,788.64

Final salary: $50,938.00

Total: $22,002.70

Total/month: $1,834.00

2⁄3 of average pay: $31,859.11

Monthly: $2,655.00

Federal Benefit Payment Computation

Birth date: 08/20/52

Hire date: 05/14/79

Freeze date: 06/30/97

Department service: 18/01/17

Other service:

Sick leave:

.025 service: 18.083333

.03 service:

Average salary: $47,788.64

Final salary: $50,938.00

Total: $21,604.43

Total/month: $1,800.00; deferred

B. In this example, an individual covered

by the Teachers Plan hired before 1996

retires based on a disability in December

1997. At retirement, she is age 49 with 27

years and 4 months of departmental service

which includes 3 years, 3 months and 14

days of excess leave without pay (prior to

June 30, 1997). Since she does not qualify for

optional retirement at separation, the Federal

Benefit Payment does not begin at separation.

When the disability annuitant reaches age 62,

she will satisfy the age and service

requirements for deferred retirement. At that

time (March 9, 2010), the Federal Benefit

Payment begins. The time attributable to the

excess leave without pay is subtracted from

the service used to compute the Federal

Benefit Payment. Since the excess leave

without pay occurred before June 30, 1997,

the deferred Federal Benefit Payment is

based on the 23 years and 6 months of

service; 5 years of service at the 1.5 percent

accrual rate, 5 years of service at the 1.75

percent accrual rate, and 13 and 6 months of

service at the 2 percent accrual rate.

EXAMPLE 6B—TEACHERS DISABILITY

AGE 49

[Pre-96 hire]

Total Annuity Computation

Birth date: 03/09/48

Hire date: 09/01/70

Separation date: 12/31/97

Department service: 27/04/00

Other service:

Excess LWOP: 03/03/14

.015 service: 5

.0175 service: 5

.02 service: 14

Average salary: $53,121.00

Total: $23,506.04

Total/month: $1,959.00

Federal Benefit Payment Computation

Birth date: 03/09/48

Hire date: 09/01/70

Freeze date: 06/30/97

Department service: 26/10/00

Other service:

Excess LWOP: 03/03/14

.015 service: 5

.0175 service: 5

.02 service: 13.5

Average salary: $53,121.00

Total: $22,974.83

Total/month: $1,915.00; deferred

Example 7: Disability Occurs After Eligibility

for Optional Retirement

A. In this example, an individual covered

by the Police and Firefighters Plan hired

before 1980 retires based on a disability in

the line of duty in October 1997. At

retirement, she is age 55 with 24 years, 5

months, and 11 days of departmental service.

Since she was also eligible for optional

retirement at the time of separation, the

Federal Benefit Payment commences at

retirement. It is based on the 24 years, 1

month, and 17 days of departmental service

performed as of June 30, 1997. Thus, the

Federal Benefit Payment is based on 20 years

of service at the 2.5 percent accrual rate and

4 years and 1 month of service at the 3

percent accrual rate. The total annuity is

based on the disability formula and is equal

to two-thirds of average pay because that

amount is higher than the 63.25 percent

payable based on total service.

EXAMPLE 7A.—POLICE DISABILITY IN

LINE OF DUTY AGE 55

[Pre-80 hire]

Total Annuity Computation

Birth date: 10.01/42

Hire date: 05/14/73

Separation date: 10/24/97

Department service: 24/05/11

Other service:

Sick leave:

.025 service: 20

.03 service: 4.416667

Average salary: $47,788.64

Final salary: $50,938.00

Total: $30,226.31

Total/month: $2,519.00

2/3 of average pay: $31,859.11

Monthly: $2,655.00

Federal Benefit Payment Computation

Birth date: 10/01/42

Hire date: 05/14/73

Freeze date: 06/30/97

Department service: 24/01/17

Other service:

Sick leave:

.025 service: 20

.03 service: 4.083333

Average salary: $47,788.64

Final salary: $50,938.00

Total: $29,748.43

Total/month: $2,479.00

B. In this example, an individual covered

by the Teachers Plan hired before 1996

retires based on a disability in December

1997. At retirement, he is age 60 with 27

years and 4 months of departmental service

which includes 3 years, 3 months and 14

days of excess leave without pay (prior to

June 30, 1997). Since he qualifies for optional

retirement at separation, the Federal Benefit

Payment begins at retirement. Since the

excess leave without pay occurred before

June 30, 1997, and the total annuity is based

on actual service (that is, exceeds the

guaranteed disability minimum), the time

attributable to the excess leave without pay

is subtracted from the service used to

compute the Federal Benefit Payment and

total benefit. The Federal Benefit Payment is

based on 23 years and 6 months of service;

5 years of service at the 1.5 percent accrual

rate, 5 years of service at the 1.75 percent

accrual rate, and 13 years and 6 months of

service at the 2 percent accrual rate. The total

annuity payable is based on 24 years of

service; 5 years of service at the 1.5 percent

accrual rate, 5 years of service at the 1.75

percent accrual rate, and 14 years of service

at the 2 percent accrual rate.

Federal Register / Vol. 65, No. 239 / Tuesday, December 12, 2000 / Rules and Regulations 77509

EXAMPLE 7B.—TEACHERS DISABILITY

AGE 60

[Pre-96 hire]

TotaL Annuity Computation

Birth date: 03/09/37

Hire date: 09/01/70

Separation date: 12/31/97

Department service: 27/04/00

Other service:

Excess LWOP: 03/03/14

.015 service: 5

.0175 service: 5

.02 service: 14

Average salary: $53,121.00

Total: $23,506.04

Total/month: $1,959.00

Federal Benefit Payment Computation

Birth date: 03/09/37

Hire date: 09/01/70

Freeze date: 06/30/97

Department service: 26/10/00

Other service:

Excess LWOP: 03/03/14

.015 service: 5

.0175 service: 5

.02 service: 13.5

Average salary: $53,121.00

Total: $22,974.83

Total/month: $1,915.00

Deferred Retirement Examples

Example 8: All Service Before June 30, 1997

In this example, an individual covered by

the Police and Firefighters Plan hired before

1980 separated in March 1986 with title to

a deferred annuity. In November 1997, he

reaches age 55 and becomes eligible for the

deferred annuity based on his 15 years, 9

months, and 8 days of departmental service,

all at the 2.5 percent accrual rate. The total

annuity is based on the same 15 years, 9

months, and 8 days of service all at the 2.5

percent accrual rate. Since all the service is

creditable as of June 30, 1997, the Federal

Benefit Payment equals the total annuity.

EXAMPLE 8.—POLICE DEFERRED

[Pre-80 hire]

Total Annuity Computation

Birth date: 11/20/42

Hire date: 06/01/70

Separation date: 03/08/86

Department service: 15/09/08

Other service:

Sick leave:

.025 service: 15.75

.03 service: 0

Average salary: $30,427.14

Final salary: $45,415.00

Total: $11,980.69

Total/month: $998.00

Federal Benefit Payment Computation

Birth date: 11/20/42

Hire date: 06/01/70

Freeze date: 03/08/86

Department service: 15/09/08

EXAMPLE 8.—POLICE DEFERRED—

Continued

[Pre-80 hire]

Other service:

Sick leave:

.025 service: 15.75

.03 service: 0

Average salary: $30,427.14

Final salary: $45,415.00

Total: $11,980.69

Total/month: $998.00

Example 9: Service Straddles June 30, 1997

In this example, an individual covered by

the Police and Firefighters Plan hired before

1980 separated in December 1997 with title

to a deferred annuity. In November 2007, he

will reach age 55 and becomes eligible to

receive a deferred annuity. At that time, the

Federal Benefit Payment begins. It is based

on the 18 years and 1 month of departmental

service performed as of June 30, 1997, all at

the 2.5 percent accrual rate. The total annuity

begins at the same time, based on his 18

years, 6 months, and 8 days of departmental

service, all at the 2.5 percent accrual rate.

EXAMPLE 9.—POLICE DEFERRED

[Pre-80 hire]

Total Annuity Computation

Birth date: 11/20/52

Hire date: 06/01/79

Separation date: 12/08/97

Department service: 18/06/08

Other service:

Sick leave:

.025 service: 18.5

.03 service: 0

Average salary: $30,427.14

Final salary: $45,415.00

Total: $14,072.55

Total/month: $1,173.00

Federal Benefit Payment Computation

Birth date: 11/20/52

Hire date: 06/01/79

Freeze date: 06/30/97

Department service: 18/01/00

Other service:

Sick leave:

.025 service: 18.083333

.03 service: 0

Average salary: $30,427.14

Final salary: $45,415.00

Total: $13,755.60

Total/month: $1,146.00; deferred

Reduction To Provide a Survivor Annuity

Examples

Example 10: Survivor Reduction

Calculations

Both of the following examples involve a

former teacher who elected a reduced

annuity to provide a survivor benefit:

A. In this example, the employee elected

full survivor benefits. The Federal Benefit

Payment is reduced by 21⁄2 percent of the first

$3600 and 10 percent of the balance. The

total annuity is also reduced by 21⁄2 percent

of the first $3600 and 10 percent of the

balance.

EXAMPLE 10A.—TEACHERS OPTIONAL

W/SURVIVOR REDUCTION

[Pre-96 hire]

Total Annuity Computation

Birth date: 11/01/42

Hire date: 11/01/68

Separation date: 12/31/97

Department service: 29/02/00

Other service: 03/09/18

Military: 00/09/11

.015 service: 5

.0175 service: 5

.02 service: 23.666667

Average salary: $66,785.00

Total unreduced: $42,464.13

Reduction: $3,976.41

Total reduced: $38,487.72

Total/month: $3,207.00

Federal Benefit Payment Computation

Birth date: 11/01/42

Hire date: 11/01/68

Freeze date: 06/30/97

Department service: 28/08/00

Other service: 03/09/18

Military: 00/09/11

.015 service: 5

.0175 service: 5

.02 service: 23.166667

Average salary: $66,785.00

Total unreducted: $41,796.28

Reduction: $3,909.63

Total reduced: $37,886.65

Total/month: $3,157.00

B. In this example, the employee elects to

provide a partial survivor annuity based on

$3600 per year. The Federal Benefit Payment

is reduced by $90 per year. The total benefit

is reduced by $90 per year.

EXAMPLE 10B.—TEACHERS OPTIONAL

W/SURVIVOR REDUCTION

[Pre-96 hire]

Total Annuity Computation

Birth date: 11/01/42

Hire date: 11/01/68

Separation date: 12/31/97

Department service: 29/02/00

Other service: 03/09/18

Military: 00/09/11

.015 service: 5

.0175 service: 5

.02 service: 23.666667

Average salary: $66,785.00

Total unreduced: $42,464.13

Reduction: $90.00

Total reduced: $42,374.13

Total/month: $3,531.00

Federal Benefit Payment Computation

Birth date: 11/01/42

Hire Date: 11/01/68

Freeze date: 06/30/97

Department service: 28/08/00

Other service: 03/09/18

77510 Federal Register / Vol. 65, No. 239 / Tuesday, December 12, 2000 / Rules and Regulations

EXAMPLE 10B.—TEACHERS OPTIONAL

W/SURVIVOR REDUCTION—Continued

[Pre-96 hire]

Military: 00/09/11

.015 service: 5

.0175 service: 5

.02 service: 23.166667

Average salary: $66,785.00

Total unreduced: $41,796.28

Reduction: $90.00

Total reduced: $41,706.28

Total/month: $3,476.00

Early Optional or Involuntary Retirement

Examples

Example 11: Early Optional With Age

Reduction

In this example, an individual covered by

the Teachers Plan hired before 1996 retires

voluntarily in February 1998, under a special

program that allows early retirement with at

least 20 years of service at age 50 older, or

at least 25 years of service at any age. At

retirement, she is 6 full months short of age

55. She has 25 years and 5 months of

departmental service; 6 years, 2 months, and

19 days of other service (creditable before

June 30, 1997); and 2 months and 9 days of

unused sick leave. Since she is not eligible

for optional retirement and she is eligible to

retire voluntarily only because of the Districtapproved special program, the Federal

Benefit Payment is calculated similar to a

disability retirement. It does not begin until

she becomes eligible for a deferred annuity

at age 62. When it commences the Federal

Benefit Payment will be based on the service

creditable as of June 30, 1997: 30 years and

11 months of service; 5 years of service at the

1.5 percent accrual rate, 5 years of service at

the 1.75 percent accrual rate, and 20 years

and 11 months of service at the 2 percent

accrual rate. The total annuity is based on 5

years of service at the 1.5 percent accrual

rate, 5 years of service at the 1.75 percent

accrual rate and 21 years and 9 months of

service at the 2 percent accrual rate

(including the unused sick leave). Because

the Federal Benefit Payment is based on the

deferred annuity, rather than the early

voluntary retirement, it is not reduced by the

age reduction factor used to compute the

total benefit.

EXAMPLE 11.—TEACHERS EARLY OUT

W/AGE REDUCTION

[Pre-96 hire]

Total Annuity Computation

Birth date: 09/20/43

Hire date: 10/01/72

Separation date: 02/28/98

Department service: 25/05/00

Other service: 06/02/19

Sick leave: 00/02/09

.015 service: 5

.0175 service: 5

.02 service: 21.75

Average salary: $69,281.14

Total unreduced: $41,395.48

Age reduction factor: 0.990000

Total reduced: $40,981.53

EXAMPLE 11.—TEACHERS EARLY OUT

W/AGE REDUCTION—Continued

[Pre-96 hire]

Total/month: $3,415.00

Federal Benefit Payment Computation

Birth date: 09/20/43

Hire date: 10/01/72

Freeze date: 06/30/97

Department service: 24/09/00

Other service: 06/02/19

.015 service: 5

.0175 service: 5

.02 service: 20.916667

Average salary: $69,281.14

Total unreduced: $40,240.80

Reduction factor: 1.000000 no reduction

Total reduced: $40,240.80

Total/month: $3,353.00 deferred

Example 12: Involuntary With Age

Reduction

In this example, an individual covered by

the Teachers Plan hired before 1996 retires

involuntarily in February 1998. At

retirement, she is 6 full months short of age

55. She has 25 years and 5 months of

departmental service; 6 years, 2 months, and

19 days of other service (creditable before

June 30, 1997); and 2 months and 9 days of

unused sick leave. The Federal Benefit

Payment begins at retirement. It is based on

the 30 years and 11 months of service; 5

years of service at the 1.5 percent accrual

rate, 5 years of service at the 1.75 percent

accrual rate, and 20 years and 11 months of

service at the 2 percent accrual rate. The total

annuity is based on 5 years of service at the

1.5 percent accrual rate, 5 years of service at

the 1.75 percent accrual rate and 21 years

and 9 months of service at the 2 percent

accrual rate (including the unused sick

leave). Both the Federal Benefit Payment and

the total benefit are reduced by the age

reduction factor.

EXAMPLE 12.—TEACHERS

INVOLUNTARY W/AGE REDUCTION

[Pre-96 hire]

Total Annuity Computation

Birth date: 09/20/43

Hire date: 10/01/72

Separation date: 02/28/98

Department service: 25/05/00

Other service: 06/02/19

Sick leave: 00/02/09

.015 service: 5

.0175 service: 5

.02 service: 21.75

Average salary: $69,281.14

Total unreduced: $41,395.48

Age reduction factor: 0.990000

Total reduced: $40,981.53

Total/month: $3,415.00

Federal Benefit Payment Computation

Birth date: 09/20/43

Hire date: 10/01/72

Freeze date: 06/30/97

EXAMPLE 12.—TEACHERS INVOLUNTARY W/AGE REDUCTION—Continued

[Pre-96 hire]

Department service: 24/09/00

Other service: 06/02/19

.015 service: 5

.0175 service: 5

.02 service: 20.916667

Average salary: $69,281.14

Total unreduced: $40,240.80

Age reduction factor: 0.990000

Total reduced: $39,838.39

Total/month: $3,320.00

Death Benefits Example

Example 13: Death Benefits Calculation

Regardless of whether death occurs in

service or after retirement, if the death

benefit is not based on the length of service,

the portion of a death benefit that is a Federal

Benefit Payment is based on the ratio of the

number of months of the deceased

employee’s service as of June 30, 1997, to the

number of months of the deceased

employee’s total service. This proration will

always apply to cases of death after

retirement in which the survivor annuity is

based on the reduction in the employee’s

annuity to provide the benefit. It also applies

to lump-sum benefits and benefits computed

under a guaranteed-minimum or a

percentage-of-disability-at-retirement

formula.

A. In this example, an individual covered

by the Teachers Plan retires in April 1998

with 30 years of service and elects to provide

a full survivor annuity. He dies in June 1998.

The Federal Benefit Payment is 971⁄2 percent

(351 months/360 months) of the total

survivor benefit.

EXAMPLE 13A.—TEACHERS DEATH

BENEFITS

[Pre-96 hire]

Total Annuity Computation

Birth date: 04/01/46

Hire date: 04/01/68

Separation date: 04/01/98

Death date: 06/24/98

Department service: 30/00/00

Other service:

Sick leave:

Months: 360

Annual Benefit: $12,000.00

Monthly Benefit: $1,000.00

Federal Benefit Payment Computation

Birth date: 04/01/46

Hire date: 04/01/68

Freeze date: 06/30/97

Death date: 06/24/98

Department service: 29/03/00

Other service:

Months: 351

$11,700.00

$975.00

B. In this example, a teacher dies in service

on June 30, 1998 after 31 years of

Federal Register / Vol. 65, No. 239 / Tuesday, December 12, 2000 / Rules and Regulations 77511

departmental service. Since the survivor

annuity is based on actual service, the

Federal Benefit Payment is based on the 30

years of service as of June 30, 1997. The total

benefit is based on the 31 years of total

service. No proration is appropriate.

EXAMPLE 13B.—TEACHERS DEATH

BENEFITS

[Pre-96 hire]

Total Annuity Computation

Birth date: 07/01/39

Hire date: 07/01/67

Separation date: 06/30/98

Death date: 06/30/98

Department service: 31/00/00

Other service:

Sick leave:

Average salary: $38,787.88

Annual Benefit: $12,426.67

Monthly Benefit: $1,036.00

Federal Benefit Payment Computation

Birth date: 07/01/39

Hire date: 07/01/67

Freeze date: 06/30/97

Death date: 06/30/98

Department service: 30/00/00

Other service:

Average salary: $38,787.88

$12,000.00

$1,000.00

C. In this example, a teacher dies in service

on April 1, 1998 after 15 years of

departmental service. Since the survivor

annuity is based on the guaranteed

minimum, the Federal Benefit Payment is a

prorated portion of the total benefit. Since

the teacher had 171 months of service as of

the freeze date and 180 months of service at

death, the Federal Benefit Payment equals

171/180ths of the total benefit.

EXAMPLE 13C.—TEACHERS DEATH

BENEFITS

[pre-96 hire]

Total Annuity Computation

Birth date: 04/01/61

Hire date: 04/01/83

Separation date: 04/01/98

Death date: 04/01/98

Department service: 15/00/01

Average salary: $36,000.00

Months: 180

Annual Benefit: $7,920.00

Monthly Benefit: $660.00

Federal Benefit Payment Computation

Birth date: 04/01/61

Hire date: 04/01/83

Freeze date: 06/30/97

Death date: 04/01/98

Department Service: 14/03/00

Average salary: $36,000.00

Months: 171

Ratio (171/180): 0.950000

EXAMPLE 13C.—TEACHERS DEATH

BENEFITS—Continued

[pre-96 hire]

$7,524.00

$627.00

D. In this example, as in the prior example,

a teacher dies in service on April 1, 1998

after 15 years of departmental service.

However, in this example, the teacher was

age 40 on the hire date. The amount of

service used in the survivor annuity

calculation equals the amount of service that

the teacher would have had if the teacher

continued covered employment until age 60.

Since the survivor annuity is based on

projected service, a form of the guaranteed

minimum, the Federal Benefit Payment is a

prorated portion of the total benefit. Since

the teacher had 171 months of service as of

the freeze date and 180 months of service at

death, the Federal Benefit Payment equals

171/180ths of the total benefit.

EXAMPLE 13D.—TEACHERS DEATH

BENEFITS

[Pre-96 hire]

Total Annuity Computation

Birth date: 04/01/43

Hire date: 04/01/83

Separation date: 04/01/98

Death date: 04/01/98

Department service: 15/00/01

Departmental Service projected to age 60:

20/00/01

.015 service: 5

.0175 service: 5

.02 service: 10

Average salary: $36,000.00

Months: 180

Annual Benefit: $7,177.50

Monthly Benefit: $598.00

Federal Benefit Payment Computation

Birth date: 04/01/43

Hire date: 04/01/83

Freeze date: 06/30/97

Death date: 04/01/98

Department service: 14/03/00

Average salary: $36,000.00

Months: 171

Ratio (171/180): 0.950000

$6,818.63

$568.00

Cost of Living Adjustment Examples

Example 14: Application of Cost of Living

Adjustments

Cost of living adjustments are applied

directly to the Federal Benefit Payment to

determine the new rate of the Federal Benefit

Payment after a cost of living adjustment.

A. In this example, the cost of living

adjustment is the same for the Federal

Benefit Payment and the non-Federal Benefit

Payment portion of the total benefit.

Effectively, the total cost of living adjustment

is proportionally split between the Federal

Benefit Payment and the non-Federal Benefit

Payment.

EXAMPLE 14A.—TEACHERS COST OF

LIVING ADJUSTMENT

[Pre-96 hire]

Benefit Computation (at retirement)

Total Annuity Computation

Birth date: 11/04/48

Hire date: 03/01/86

Separation date: 02/28/2013

Department service: 27/00/00

Other service paid in 1995: 06/07/28

Excess LWOP in 1990: 00/03/18

.015 service: 5

.0175 service: 5

.02 service: 23.333333

Average salary: $53,121.00

Total: $33,421.98

Total/month: $2,785.00

Benefit Computation (at retirement)

Federal Benefit Payment Computation

Birth date: 11/04/48

Hire date: 03/01/86

Freeze date: 06/30/1997

Department service: 11/04/00

Other service paid in 1995: 06/07/28

Excess LWOP in 1990: 00/03/18

.015 service: 5

.0175 service: 5

.02 service: 7.666667

Average salary: $53,121.00

Total: $16,777.38

Total/month: $1,398.00

COLA Computation

DC COLA rate 4%

Total COLA: 111

New rate: 2896

Federal COLA rate 4%

Federal COLA: 56

New rate: 1454

B. In this example, a new District plan

applies a different cost of living adjustment

than is provided for the Federal Benefit

Payment. The Federal Benefit Payment will

be unaffected by the new District plan. In

such a case, the total cost of living

adjustment is no longer proportionally split

between the Federal Benefit Payment and the

non-Federal Benefit Payment.

EXAMPLE 14B.—TEACHERS COST OF

LIVING ADJUSTMENT

[Pre-96 hire]

Benefit Computation (at retirement)

Total Annuity Computation

Birth date: 11/04/48

Hire date: 03/01/86

Separation date: 02/28/2013

Department service: 27/00/00

Other service paid in 1995: 06/07/28

Excess LWOP in 1990: 00/03/18

.015 service: 5

.0175 service: 5

.02 service: 23.333333

Average salary: $53,121.00

77512 Federal Register / Vol. 65, No. 239 / Tuesday, December 12, 2000 / Rules and Regulations

EXAMPLE 14B.—TEACHERS COST OF

LIVING ADJUSTMENT—Continued

[Pre-96 hire]

Total: $33,421.96

Total/month: $2,785.00

Benefit Computation (at retirement)

Federal Benefit Payment Computation

Birth date: 11/04/48

Hire date: 03/01/86

Freeze date: 06/30/1997

Department service: 11/04/00

Other service paid in 1995: 06/07/28

Excess LWOP in 1990: 00/03/18

.015 service: 5

.0175 service: 5

.02 service: 7.666667

Average salary: $53,121.00

Total: $16,777.38

Total/month: $1,398.00

COLA Computation Variations

Variation 1

DC COLA rate 5% of total benefit:

Total COLA: $139.00

New rate: $2,924.00

Federal COLA rate 4% of Federal

Benefit Payment:

Federal COLA: $56.00

New rate: $1,454.00

Variation 2

DC COLA rate 5% of DC Payment:

Total COLA: $125.00

New rate: $2,910.00

Federal COLA rate 4% of Federal

Benefit Payment:

Federal COLA: $56.00

New rate: $1,454.00

Retroactive Payment of Accrued Annuity

Example

Example 15: Accrual of Federal Benefit

Payment

The Federal Benefit Payment begins to

accrue on the annuity commencing date,

regardless of whether the employee is added

to the annuity roll in time for the regular

payment cycle. If the employee is due a

retroactive payment of accrued annuity, the

portion of the retroactive payment that would

have been Federal Benefit Payment (if it were

made in the regular payment cycle) is still

Federal Benefit Payment. In this example, a

teacher retired effective September 11, 1998.

She was added to the retirement rolls on the

pay date November 1, 1998 (October 1 to

October 31 accrual cycle). Her Federal

Benefit Payment is $3000 per month and her

total benefit payment is $3120 per month.

Her initial check is $5200 because it includes

a prorated payment for 20 days (September

11 to September 30). The Federal Benefit

Payment is $5000 of the initial check ($3000

for the October cycle and $2000 for the

September cycle).

EXAMPLE 15.—TEACHERS ACCRUED

BENEFIT

[Pre-96 hire]

Total Annuity Computation

Birth date: 11/01/42

Hire date: 09/01/66

Separation date: 09/10/98

Department service: 32/00/10

.015 service: 5

.0175 service: 5

.02 service: 22

Average salary: $62,150.00

Total: $37,445.38

Total/month: $3,120.00

Sept 11–30: $2,080.00

Oct 1–31: $3,120.00

Nov 1–30: $3,120.00

Federal Benefit Payment Computation

Birth date: 11/01/42

Hire date: 09/01/66

Freeze date: 06/30/97

Department service: 30/10/00

.15 service: 5

.0175 service: 5

.02 service: 20.833333

Average salary: $62,150.00

Total: $35,995.21

Total/month: $3,000.00

Sept 11–30: $2,000.00

Oct 1–31: $3,000.00

Nov 1–30: $3,000.00

[FR Doc. 00–31249 Filed 12–11–00; 8:45 am]

BILLING CODE 4810–25–P

DEPARTMENT OF TRANSPORTATION

Coast Guard

33 CFR Part 100

[CGD07–00–131]

RIN 2115–AE46

Special Local Regulations: Fireworks

Display, Smith Bay, Saint Thomas,

USVI

AGENCY: Coast Guard, DOT.

ACTION: Temporary final rule.

SUMMARY: Temporary Special Local

Regulations are being established for the

Wyndham New Years Fireworks display

in Smith Bay, St. Thomas, USVI. These

regulations are needed to provide for the

safety of life on navigable waters by

excluding vessels from the fireworks

launching area.

DATES: This rule is effective from 11

a.m. AST on December 31, 2000, to 1

a.m. AST on January 1, 2001.

ADDRESSES: Comments and material

received from the public, as well as

documents indicated in this preamble as

being available in the docket are part of

the docket CGD07–00–114 and are

available for inspection or copying at

Coast Guard Greater Antilles Section, La

Puntilla, Old San Juan, PR 00902

between 9 a.m. and 4 p.m., Monday

through Friday, except Federal holidays.

FOR FURTHER INFORMATION CONTACT: Mr.

John Reyes, Greater Antilles Section at

(787) 729–5381.

SUPPLEMENTARY INFORMATION:

Regulatory Information

We did not publish a notice of

proposed rulemaking (NPRM) for these

regulations. Under 5 U.S.C. 553(b)(B),

the Coast Guard finds that good cause

exists for not publishing an NPRM.

Publishing an NPRM would be contrary

to national safety interests since

immediate action is needed to minimize

potential danger to the public and the

marine event request was recently

received. Further, we anticipate

numerous spectator craft in the area

where the fireworks will be launched.

For the same reasons, under 5 U.S.C.

553(d)(3), the Coast Guard finds that

good cause exists for making this rule

effective in less than 30 days after

publication in the Federal Register.

Background and Purpose

These regulations are required to

provide for the safety of life on

navigable waters because of the inherent

danger associated with storing and

launching fireworks near spectator craft

during the fireworks display. This rule

creates a regulated area that will

prohibit non-participating vessels from

entering the regulated area during the

event.

Regulatory Evaluation

This rule is not a ‘‘significant

regulatory action’’ under section 3(f) of

Executive Order 12866 and does not

require an assessment of potential costs

and benefits under section 6(a)(3) of that

order. The Office of Management and

Budget has not reviewed it under that

order. It is not ‘‘significant’’ under the

regulatory policies and procedures of

the Department of Transportation (DOT)

(44 FR 11040, February 26, 1979). The

regulated area will only be in effect for

approximately 2 hours.

Small Entities

Under the Regulatory Flexibility Act

(5 U.S.C. 601–612), we considered

whether this rule would have a

significant economic effect upon a

substantial number of small entities.

‘‘Small entities’’ include small business,

not-for-profit organizations that are

independently owned and operated and

are not dominant in their fields, and

governmental jurisdictions with

populations of less than 50,000.