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[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4657 Engrossed in House (EH)]

  2d Session

                               H. R. 4657

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                                 AN ACT

To amend the Balanced Budget Act of 1997 to improve the administration 
of Federal pension benefit payments for District of Columbia teachers, 
      police officers, and fire fighters, and for other purposes.
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
108th CONGRESS
  2d Session
                                H. R. 4657

_______________________________________________________________________

                                 AN ACT

 
To amend the Balanced Budget Act of 1997 to improve the administration 
of Federal pension benefit payments for District of Columbia teachers, 
      police officers, and fire fighters, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``District of Columbia Retirement 
Protection Improvement Act of 2004''.

SEC. 2. ESTABLISHMENT OF DISTRICT OF COLUMBIA FEDERAL PENSION FUND FOR 
              PAYMENT OF FEDERAL BENEFIT PAYMENTS TO DISTRICT OF 
              COLUMBIA TEACHERS, POLICE OFFICERS, AND FIRE FIGHTERS.

    (a) In General.--Subtitle A of title XI of the Balanced Budget Act 
of 1997 (sec. 1--801.01 et seq., D.C. Official Code) is amended--
            (1) by redesignating chapter 9 as chapter 10;
            (2) by redesignating sections 11081 through 11087 as 
        sections 11091 through 11097; and
            (3) by inserting after chapter 8 the following new chapter:

         ``CHAPTER 9--DISTRICT OF COLUMBIA FEDERAL PENSION FUND

``SEC. 11081. CREATION OF FUND.

    ``(a) Establishment.--There is established on the books of the 
Treasury the District of Columbia Teachers, Police Officers, and 
Firefighters Federal Pension Fund (hereafter referred to as the `D.C. 
Federal Pension Fund'), consisting of the following:
            ``(1) The assets transferred pursuant to section 11083.
            ``(2) The annual Federal payments deposited pursuant to 
        section 11084.
            ``(3) Any amounts otherwise appropriated to such Fund.
            ``(4) Any income earned on the investment of the assets of 
        such Fund pursuant to subsection (b).
    ``(b) Investment of Assets.--The Secretary shall invest such 
portion of the assets of the D.C. Federal Pension Fund as is not in the 
judgment of the Secretary required to meet current withdrawals. Such 
investments shall be in public debt securities with maturities suitable 
to the needs of the D.C. Federal Pension Fund, as determined by the 
Secretary, and bearing interest at rates determined by the Secretary, 
taking into consideration current market yields on outstanding 
marketable obligations of the United States of comparable maturities.
    ``(c) Recordkeeping for Actuarial Status.--The Secretary shall 
provide for the keeping of such records as are necessary for 
determining the actuarial status of the D.C. Federal Pension Fund.

``SEC. 11082. USES OF AMOUNTS IN FUND.

    ``(a) In General.--Amounts in the D.C. Federal Pension Fund shall 
be used--
            ``(1) to make Federal benefit payments under this subtitle;
            ``(2) subject to subsection (b), to cover the reasonable 
        and necessary administrative expenses incurred by any person in 
        administering the D.C. Federal Pension Fund and carrying out 
        this chapter;
            ``(3) for the accumulation of funds in order to finance 
        obligations of the Federal Government for future benefits; and
            ``(4) for such other purposes as are specified in this 
        subtitle.
    ``(b) Budgeting, Certification, and Approval of Administrative 
Expenses.--The administrative expenses of the D.C. Federal Pension Fund 
shall be paid in accordance with an annual budget set forth by the 
Pension Fund Trustee which shall be subject to certification and 
approval by the Secretary.

``SEC. 11083. TRANSFER OF ASSETS AND OBLIGATIONS OF TRUST FUND AND 
              FEDERAL SUPPLEMENTAL FUND.

    ``(a) Transfer of Obligations.--Effective October 1, 2004, all 
obligations to make Federal benefit payments shall be transferred from 
the Trust Fund to the D.C. Federal Pension Fund.
    ``(b) Transfer of Assets.--Effective October 1, 2004, all assets of 
the Trust Fund and all assets of the Federal Supplemental Fund as of 
such date shall be transferred to the D.C. Federal Pension Fund.

``SEC. 11084. DETERMINATION OF ANNUAL FEDERAL PAYMENTS INTO D.C. 
              FEDERAL PENSION FUND.

    ``(a) Annual Amortization Amount.--
            ``(1) In general.--At the end of each fiscal year 
        (beginning with fiscal year 2005), the Secretary shall promptly 
        pay into the D.C. Federal Pension Fund from the general fund of 
        the Treasury an amount equal to the annual amortization amount 
        for the year (which may not be less than zero).
            ``(2) Determination of amount.--For purposes of paragraph 
        (1)--
                    ``(A) the `original unfunded liability' is the 
                present value as of the effective date of this Act of 
                expected future benefits payable from the Federal 
                Supplemental Fund; and
                    ``(B) the `annual amortization amount' means the 
                amount determined by the enrolled actuary to be 
                necessary to amortize in equal annual installments 
                (until fully amortized)--
                            ``(i) the original unfunded liability over 
                        a 30-year period,
                            ``(ii) a net experience gain or loss over a 
                        10-year period, and
                            ``(iii) any other changes in actuarial 
                        liability over a 20-year period.
            ``(3) Schedule for amortization.--In determining the annual 
        amortization amount under paragraph (2)(B), the enrolled 
        actuary shall include amounts necessary to complete the 
        amortization schedules used for determining the annual 
        amortization amount for payments into the Federal Supplemental 
        Fund under section 11053 (as in effect prior to the enactment 
        of this chapter).
    ``(b) Administrative Expenses.--During each fiscal year (beginning 
with fiscal year 2009), the Secretary shall pay into the D.C. Federal 
Pension Fund from the general fund of the Treasury the amounts 
necessary to pay the reasonable and necessary administrative expenses 
described in section 11082(a)(2) for the year.

``SEC. 11085. ADMINISTRATION THROUGH PENSION FUND TRUSTEE.

    ``(a) In General.--The Secretary shall select a Pension Fund 
Trustee to carry out the responsibilities and duties specified in this 
subtitle in accordance with the contract described in subsection (b).
    ``(b) Contract.--The Secretary shall enter into a contract with the 
Pension Fund Trustee to provide for the auditing of D.C. Federal 
Pension Fund assets, the making of Federal benefit payments under this 
subtitle from the D.C. Federal Pension Fund, and such other matters as 
the Secretary deems appropriate. The Secretary shall enforce the 
provisions of the contract and otherwise monitor the administration of 
the D.C. Federal Pension Fund.
    ``(c) Subcontracts.--Notwithstanding any provision of a District 
Retirement Program or any other law, rule, or regulation, the Pension 
Fund Trustee may, with the approval of the Secretary, enter into one or 
more subcontracts with the District Government or any person to provide 
services to the Pension Fund Trustee in connection with its performance 
of the contract. The Pension Fund Trustee shall monitor the performance 
of any such subcontract and enforce its provisions.
    ``(d) Determination by the Secretary.--Notwithstanding subsection 
(b) or any other provision of this subtitle, the Secretary may 
determine, with respect to any function otherwise to be performed by 
the Pension Fund Trustee, that in the interest of economy and 
efficiency such function shall be performed by the Secretary rather 
than the Pension Fund Trustee.
    ``(e) Reports.--The Pension Fund Trustee shall report to the 
Secretary, in a form and manner and at such intervals as the Secretary 
may prescribe, on any matters under the responsibility of the Pension 
Fund Trustee as the Secretary may prescribe.

``SEC. 11086. APPLICABILITY OF OTHER PROVISIONS TO D.C. FEDERAL PENSION 
              FUND.

    ``The following provisions of this subtitle shall apply with 
respect to the D.C. Federal Pension Fund in the same manner as such 
provisions applied with respect to the Trust Fund prior to October 1, 
2004:
            ``(1) Section 11023(b) (relating to the repayment by the 
        District Government of costs attributable to errors or 
        omissions in transferred records).
            ``(2) Section 11034 (relating to the treatment of the Trust 
        Fund under certain laws).
            ``(3) Section 11061 (relating to annual valuations and 
        reports by the enrolled actuary), except that in applying 
        section 11061(b) to the D.C. Federal Pension Fund, the annual 
        report required under such section shall include a 
        determination of the annual payment to the D.C. Federal Pension 
        Fund under section 11084.
            ``(4) Section 11062 (relating to reports by the Comptroller 
        General).
            ``(5) Section 11071 (relating to judicial review).
            ``(6) Section 11074 (relating to the treatment of 
        misappropriation of Trust Fund amounts as a Federal crime).''.
    (b) Termination of Current Funds.--
            (1) District of columbia federal pension liability trust 
        fund.--Chapter 4 of subtitle A of title XI of such Act (sec. 
        1--807.01 et seq., D.C. Official Code) is amended by adding at 
        the end the following new section:

``SEC. 11036. TERMINATION OF TRUST FUND.

    ``Effective upon the transfer of the obligations and assets of the 
Trust Fund to the D.C. Federal Pension Fund under section 11083--
            ``(1) the Trust Fund shall terminate; and
            ``(2) the obligation to make Federal benefit payments from 
        the Trust Fund, and any duty imposed on any person with respect 
        to the Trust Fund, shall terminate.''.
            (2) Federal supplemental district of columbia pension 
        fund.--Chapter 6 of subtitle A of title XI of such Act (sec. 
        1--811.01 et seq., D.C. Official Code) is amended by adding at 
        the end the following new section:

``SEC. 11056. TERMINATION OF FEDERAL SUPPLEMENTAL FUND.

    ``Effective upon the transfer of the assets of the Federal 
Supplemental Fund to the D.C. Federal Pension Fund under section 
11083--
            ``(1) the Federal Supplemental Fund shall terminate; and
            ``(2) any duty imposed on any person with respect to the 
        Federal Supplemental fund shall terminate.''.
    (c) Conforming Definitions.--
            (1) Trustee.--Section 11003(16) of such Act (sec. 1--
        801.02(16), D.C. Official Code) is amended by striking the 
        period at the end and inserting the following: ``, or, 
        beginning October 1, 2004, the Pension Fund Trustee selected by 
        the Secretary under section 11085.''.
            (2) D.C. federal pension fund.--Section 11003 of such Act 
        (sec. 1--801.02, D.C. Official Code) is amended--
                    (A) by redesignating paragraphs (3) through (16) as 
                paragraphs (4) through (17); and
                    (B) by inserting after paragraph (2) the following 
                new paragraph:
            ``(3) The term `D.C. Federal Pension Fund' means the 
        District of Columbia Teachers, Police Officers, and 
        Firefighters Federal Pension Fund established under section 
        11081.''.
    (d) Other Conforming Amendment.--Section 11041(b) of such Act (sec. 
1--809.01(b), D.C. Official Code) is amended in the heading by striking 
``From Trust Fund''.
    (e) Clerical Amendments.--The table of contents of subtitle A of 
title XI of such Act is amended--
            (1) by adding at the end of the items relating to chapter 4 
        the following:

``Sec. 11036. Termination of Trust Fund.'';
            (2) by adding at the end of the items relating to chapter 6 
        the following:

``Sec. 11056. Termination of Federal Supplemental Fund.'';
            (3) by redesignating the item relating to chapter 9 as 
        relating to chapter 10;
            (4) by redesignating the items relating to sections 11081 
        through 11087 as relating to sections 11091 through 11097; and
            (5) by inserting after the items relating to chapter 8 the 
        following:

         ``Chapter 9--District of Columbia Federal Pension Fund

``Sec. 11081. Creation of Fund.
``Sec. 11082. Uses of Amounts in Fund.
``Sec. 11083. Transfer of Assets and Obligations of Trust Fund and 
                            Federal Supplemental Fund.
``Sec. 11084. Determination of Annual Federal Payment Into D.C. Federal 
                            Pension Fund.
``Sec. 11085. Administration Through Pension Fund Trustee.
``Sec. 11086. Applicability of Other Provisions to D.C. Federal Pension 
                            Fund.''.

SEC. 3. ADMINISTRATION OF DISTRICT OF COLUMBIA JUDICIAL RETIREMENT AND 
              SURVIVORS ANNUITY FUND.

    (a) Procedures for Resolving Denied Benefit Claims.--
            (1) In general.--Section 11--1570(c), D.C. Official Code, 
        is amended by adding at the end the following new paragraph:
            ``(3)(A) In accordance with procedures approved by the 
        Secretary, the Secretary shall provide to any individual whose 
        claim for a benefit under this subchapter has been denied in 
        whole or in part--
                    ``(i) adequate written notice of such denial, 
                setting forth the specific reasons for the denial in a 
                manner calculated to be understood by the average 
                participant in the program of benefits under this 
                subchapter; and
                    ``(ii) a reasonable opportunity for a full and fair 
                review of the decision denying such claim.
            ``(B) Any factual determination made by the Secretary 
        pursuant to this paragraph shall be presumed correct unless 
        rebutted by clear and convincing evidence. The Secretary's 
        interpretation and construction of the benefit provisions of 
        this subchapter shall be entitled to great deference.''.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall apply with respect to claims for benefits which are made 
        after the date of the enactment of this Act.
    (b) Treatment of Misappropriation of Fund Amounts as Federal 
Crime.--
            (1) In general.--Section 11--1570, D.C. Official Code, is 
        amended by adding at the end the following new subsection:
    ``(l) The provisions of section 664 of title 18, United States Code 
(relating to theft or embezzlement from employee benefit plans), shall 
apply to the Fund.''.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall take effect on the date of the enactment of this Act.

SEC. 4. ADMINISTRATION OF RETIREMENT PROGRAM FOR POLICE OFFICERS, FIRE 
              FIGHTERS, AND TEACHERS BY OTHER THAN CHIEF FINANCIAL 
              OFFICER.

    (a) In General.--Section 424(c)(21) of the District of Columbia 
Home Rule Act (sec. 1--204.24c(21), D.C. Official Code) is amended by 
striking ``systems'' and inserting the following: ``systems (other than 
the retirement system for police officers, fire fighters, and 
teachers)''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply with respect to fiscal year 2005 and each succeeding fiscal year.

            Passed the House of Representatives September 28, 2004.

            Attest:

                                                                 Clerk.
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