[Federal Register Volume 70, Number 198 (Friday, October 14, 2005)]
[Rules and Regulations]
[Pages 60003-60005]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-20610]


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DEPARTMENT OF THE TREASURY

31 CFR Part 29

RIN 1505-AB55


Federal Benefit Payments Under Certain District of Columbia 
Retirement Plans

AGENCY: Departmental Offices, Treasury.

ACTION: Final rule.

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SUMMARY: The Department of the Treasury is issuing final regulations to 
amend its DC Pensions rules promulgated pursuant to Title XI of the 
Balanced Budget Act of 1997, as amended, which was effective on October 
1, 1997. The Act assigns to the Secretary of the Treasury 
responsibility for payment of benefits based on service accrued as of 
June 30, 1997, under the retirement plans for District of Columbia 
teachers and police officers and firefighters, and payment of past and 
future benefits under the retirement plan for District of Columbia 
judges. The amended regulations implement the provisions of the Act 
that provide the Secretary with the responsibility to ensure the 
accuracy of payments made to annuitants before the effective date of 
the Act.

DATES: This final rule is effective October 14, 2005.

FOR FURTHER INFORMATION CONTACT: Elizabeth Cuffe, Office of the General 
Counsel, MT Room 2209A, Department of the Treasury, 1500 Pennsylvania 
Avenue, NW., Washington, DC 20220, (202-622-1682, not a toll-free 
call).

SUPPLEMENTARY INFORMATION: On April 13, 2005, the Department of the 
Treasury published (at 70 FR 19366) proposed regulations to amend the 
regulations in Part 29 that implement Title XI of the Balanced Budget 
Act of 1997, Public Law 105-33, 111 Stat. 251, 712-731, 756-759, as 
amended (the Act). The Act transferred certain pension liabilities from 
the District of Columbia Government to the Federal Government. The Act 
requires that the Secretary of the Treasury (the Secretary) pay certain 
benefits under the retirement plans for District of Columbia teachers 
(Teachers Plan) and police officers and firefighters (Police and 
Firefighters Plan) based on service accrued on or before June 30, 1997, 
and benefits under the retirement plan for District of Columbia judges 
(Judges Plan) regardless of when service accrued. On December 23, 2004, 
the District of Columbia Retirement Protection Improvement Act of 2004, 
Public Law 108-489, 118 Stat. 3966 (the 2004 Act) was enacted. The 2004 
Act amended the Act, in part, to create a new fund from the two funds 
that had financed the Teachers Plan and the Police and Firefighters 
Plan and to provide the Judges Plan with procedures for resolving 
denied benefit claims.
    The Act provides the Secretary with authority to ensure the 
accuracy of Federal Benefit Payments made before October 1, 1997, under 
the Police and Firefighters Plan and the Teachers Plan. Section 11012 
of the Act requires the

[[Page 60004]]

Secretary to make benefit payments under the Police and Firefighters 
Plan and Teachers Plan based on service accrued on or before June 30, 
1997. An annuitant's entitlement to the correct payment amount based on 
that service, but not more than that amount, does not expire. Thus, the 
Secretary's authority to review and ensure the accuracy of all payments 
based on service accrued on or before June 30, 1997, extends to all 
such payments whether made before or after the October 1, 1997, 
effective date of the Act.
    In the case of the Judges Plan, section 11251(a) of the Act 
(codified at DC Official Code section 11-1570(c)(2)(A)) vests in the 
Secretary authority over Federal Benefit Payments made under the Judges 
Plan before the October 1, 1997, effective date of the Act. 
Accordingly, the Secretary has authority to ensure the accuracy of 
payments made before October 1, 1997, under the Judges Plan, the Police 
and Firefighters Plan, and the Teachers Plan.
    The amendments to Part 29 reflect the authority of the Secretary as 
provided in the sections of the Act discussed above and the manner in 
which that authority is being administered by the Treasury Department.
    The 2004 Act amended the Act to create the District of Columbia 
Teachers, Police Officers, and Firefighters Federal Pension Fund with 
the assets transferred from the District of Columbia Federal Pension 
Liability Trust Fund and the Federal Supplemental District of Columbia 
Pension Fund, which funds were terminated. The 2004 Act also amended 
the Act to provide the Judges Plan with procedures for resolving denied 
benefit claims.
    The Secretary has the authority under section 11083 and paragraph 
11251(b) (codified as DC Official Code section 11-1572(a)) of the Act 
``to issue regulations to implement, interpret, administer and carry 
out the purposes of this [Act], and, in the Secretary's discretion, 
those regulations may have retroactive effect.'' The original 
regulations by their terms apply only to Federal Benefit Payments made 
on or after October 1, 1997, the effective date of the Act. See 31 CFR 
29.101(c). Therefore, the Department of the Treasury amends the 
original regulations to implement the Secretary's authority under the 
Act to ensure the accuracy of payments made to annuitants prior to the 
October 1, 1997, effective date of the Act. The Department also amends 
the original regulations to reflect the changes made in the 2004 Act 
and to make several technical changes as specified below.
    Comments on the proposed rule were requested by June 13, 2005. The 
Department received two comments in support of the proposed 
regulations. Therefore, the proposed regulations are being adopted 
without change as final regulations.

Administrative Procedure Act

    Because the amendments contained in this final rule are mandated by 
the 2004 Act, have retroactive effect pursuant to section 11083 or 
11251(b) of the Act, or are technical changes, it has been determined, 
pursuant to 5 U.S.C. 553(d)(3) that a delayed effective date is 
unnecessary.

Regulatory Flexibility Act

    It is hereby certified that this final rule will not have a 
significant economic impact on a substantial number of small entities. 
The rule only affects 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. chapter 6).

Executive Order 12866

    This rule is not a significant regulatory action as defined by 
Executive Order 12866, 58 FR 51735. Therefore, a regulatory assessment 
is not required.

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.


0
Accordingly, the Department of the Treasury is amending title 31, part 
29, Code of Federal Regulations, to read as follows:

PART 29--FEDERAL BENEFIT PAYMENTS UNDER CERTAIN DISTRICT OF 
COLUMBIA RETIREMENT PROGRAMS

0
1. The authority citation for Part 29 is revised to read as follows:

    Authority: Subtitle A, Subchapter B of Chapter 4 of Subtitle C, 
and Chapter 3 of Subtitle H, of Pub. L. 105-33, 111 Stat. 712-731, 
756-759, and 786-787; as amended.


0
2. In Sec.  29.101, paragraphs (a) and (c) are revised, and paragraph 
(e) is added, to read as follows:


Sec.  29.101  Purpose and scope.

    (a) This part contains the Department's regulations implementing 
Subtitle A, Subchapter B of Chapter 4 of Subtitle C, and Chapter 3 of 
Subtitle H, of 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.
* * * * *
    (c) This part applies to Federal Benefit Payments.
* * * * *
    (e) This part does not apply to the District of Columbia 
replacement plan, which covers payments based on service accrued after 
June 30, 1997, pursuant to section 11042 of the Act.

0
3. In Sec.  29.103, definitions for Act, Benefits Administrator, 
Federal Benefit Payment, and Retirement Funds in paragraph (a) are 
revised to read as follows:


Sec.  29.103  Definitions.

    (a) In this part--
    Act means Subtitle A, Subchapter B of Chapter 4 of Subtitle C, and 
Chapter 3 of Subtitle H, of Title XI of the Balanced Budget Act of 
1997, Public Law 105-33, 111 Stat. 251, 712-731, 756-759, as amended.
    Benefits Administrator means:
    (1) For the Teachers Plan and the Police and Firefighters Plan 
under section 11041(a) of the Act:
    (i) During the interim benefits administration period, the District 
of Columbia government; or
    (ii) After the end of the interim benefits administration period:
    (A) The Trustee selected by the Department under sections 11035(a) 
or 11085(a) of the Act;
    (B) The Department, if a determination is made under sections 
11035(d) or 11085(d) of the Act that, in the interest of economy and 
efficiency, the function of the Trustee shall be performed by the 
Department rather than the Trustee; or
    (C) Any other agent of the Department designated to make initial 
benefit determinations and/or to recover or recoup or waive recovery or 
recoupment of overpayments of Federal Benefit Payments, or to recover 
or recoup debts owed to the Federal Government by annuitants; or
    (2) For the Judges Plan under section 11252(b) of the Act:
    (i) During the interim benefits administration period, the District 
of Columbia government; or
    (ii) After the end of the interim benefits administration period 
for the Judges Plan:
    (A) The Trustee selected by the Department under section 11251(a) 
of the Act;
    (B) The Department, if a determination is made under section

[[Page 60005]]

11251(a) of the Act that, in the interest of economy and efficiency, 
the function of the Trustee shall be performed by the Department rather 
than the Trustee; or
    (C) Any other agent of the Department designated to make initial 
benefit determinations and/or to recover or recoup or waive recovery or 
recoupment of overpayments of Federal Benefit Payments, or to recover 
or recoup debts owed to the Federal Government by annuitants.
* * * * *
    Federal Benefit Payment means a payment for which the Department is 
responsible under the Act, 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, including payments made under these plans before, on, or after 
the October 1, 1997, effective date of the Act. Service after June 30, 
1997, shall not be credited for purposes of determining the amount of 
any Federal Benefit Payment under the Teachers Plan and the Police and 
Firefighters Plan.
* * * * *
    Retirement Funds means the District of Columbia Teachers, Police 
Officers, and Firefighters Federal Pension Fund established under 
section 11081 of the Act, the District of Columbia Judicial Retirement 
and Survivors Annuity Fund established under section 11252 of the Act, 
and their predecessor funds.
* * * * *

0
4. Section 29.201 is revised to read as follows:


Sec.  29.201  Purpose and scope.

    This subpart contains information concerning the relationship 
between the Department and the District government in the 
administration of the Act and the functions of each in the 
administration of that Act.

0
5. In Sec.  29.401, paragraphs (a)(2) and (3) are revised, and 
paragraph (c) is added, to read as follows:


Sec.  29.401  Purpose.

    (a) * * *
    (2) The procedures for determining an individual's eligibility for 
a Federal Benefit Payment and the amount and form of an individual's 
Federal Benefit Payment as required by sections 11021 and 11251(a) 
(codified at DC Official Code section 11-1570(c)(2)(a)) of the Act;
    (3) The appeal rights available under section 11022(a) of the Act 
and section 3 of the 2004 Act (codified at DC Official Code section 11-
1570(c)(3)) to claimants whose claim for Federal Benefit Payments is 
denied in whole or in part; and
* * * * *
    (c) This part does not apply to claims and appeals filed before 
October 1, 1997. Such claims must be pursued with the District of 
Columbia.


Sec.  29.402  [Amended]

0
6. In Sec.  29.402, the definitions for Act and Benefits Administrator 
are removed.

0
7. In Sec.  29.501, paragraph (e) is added to read as follows:


Sec.  29.501  Purpose; incorporation by reference; scope.

* * * * *
    (e) This part does not apply to debt collection claims asserted and 
requests for waivers of collection initiated before October 1, 1997. 
Such debt collection claims must be pursued by the District of Columbia 
and such requests for waivers of collection must be pursued with the 
District of Columbia.

    Dated: October 6, 2005.
Rochelle F. Granat,
Director, Office of DC Pensions.
[FR Doc. 05-20610 Filed 10-13-05; 8:45 am]
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