proving the economy of the District of Columbia, to
improve the ability of the District of Columbia govern-
ment to match its resources with its responsibilities, to
further improve the efficiency of the District of Columbia
government, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the
‘‘National Capital Revitalization and Self-Government Im-
provement Act of 1997’’.
(b) TABLE OF CONTENTS.—The table of contents of
this Act is as follows:
Sec. 1. Short title; table of contents.
TITLE I—DISTRICT OF COLUMBIA RETIREMENT FUNDS
Sec. 101. Short title.
Subtitle A—General Provisions
Sec. 111. Obligation of Federal government to make payments for pension li-
abilities.
Sec. 112. Findings and declaration of policy.
Sec. 113. Definitions.
Subtitle B—Freezing of Existing Program
Sec. 121. Freeze of service under the retirement program.
Sec. 122. Disability benefits after the service freeze.
Sec. 123. Death benefits after the service freeze.
Subtitle C—Retirement Trust
Sec. 131. Creation of Retirement Trust.
Sec. 132. Transfer of assets and obligations.
Sec. 133. Allocation of assets.
Sec. 134. Treatment of Retirement Trust.
Sec. 135. Selection of Trustee.
Sec. 136. Powers and duties of the Secretary.
Sec. 137. Payments after depletion of Retirement Trust assets.
Sec. 138. Federal information sharing.
Sec. 139. Responsibilities and powers of the Trustee.
Subtitle D—District Government
Sec. 141. Interim administration.
Sec. 142. Records transfer.
Sec. 143. Final reconciliation.
Sec. 144. Replacement plan.
Subtitle E—The Actuarial Board
Sec. 151. Establishment of the actuarial board.
Sec. 152. General duties of the actuarial board.
Subtitle F—Federal Supplemental Fund
Sec. 161. Establishment of the Federal Supplemental Fund.
Sec. 162. Assets of the Federal Supplemental Fund.
Sec. 163. Payments from the Federal Supplemental Fund.
Sec. 164. Determination of costs under the Federal Supplemental Fund.
Sec. 165. Payments into the Federal Supplemental Fund.
Sec. 166. Investment of assets of Federal Supplemental Fund.
Subtitle G—Judges Retirement Program
Sec. 171. Reference to new Federal program.
Subtitle H—Enforcement
Sec. 181. Judicial review.
Sec. 182. Jurisdiction and venue.
Sec. 183. Limitations of actions.
Sec. 184. Misappropriation.
Subtitle I—Miscellaneous
Sec. 191. Severability of provisions.
Sec. 192. Full faith and credit.
Sec. 193. Other laws.
Sec. 194. Comptroller general.
TITLE II—ASSISTANCE UNDER MEDICAID PROGRAM
Sec. 201. Findings.
Sec. 202. Increase in Federal Medical Assistance Percentage under medicaid.
TITLE III—CRIMINAL JUSTICE
Subtitle A—Corrections
Sec. 301. Bureau of prisons.
Sec. 302. Corrections trustee.
Sec. 303. Authority of trustee and bureau of prisons.
Sec. 304. Priority placement for employees of the District of Columbia.
Sec. 305. Amendments related to persons with a mental disease or defect.
Sec. 306. Litigation authority of corrections trustee.
Sec. 307. Permitting expenditure of funds to carry out certain sewer agree-
ment.
Subtitle B—Compliance With Truth-in-Sentencing
Sec. 311. Requiring compliance with truth-in-sentencing guidelines.
Sec. 312. Requiring enactment of legislation maximizing effectiveness of Drug
Court.
Sec. 313. Truth in Sentencing Compliance Commission.
Sec. 314. Truth in Sentencing Monitoring Agency.
Sec. 315. Certain claims not litigable.
Sec. 316. Evaluation.
Sec. 317. Continuing responsibility to ensure compliance with this act.
Subtitle C—Offender Supervision and Parole
Sec. 331. Parole.
Sec. 332. Pretrial Services, Defense Services, Parole, Adult Probation and Of-
fender Supervision Trustee.
Sec. 333. Offender Supervision, Defender and Courts Services Agency.
Sec. 334. Authorization of appropriations.
Subtitle D—District of Columbia Courts
PART 1—TRANSFER OF ADMINISTRATION AND FINANCING OF COURTS TO
FEDERAL GOVERNMENT
Sec. 341. Authorization of appropriations.
Sec. 342. Administration of courts under District of Columbia Code.
Sec. 343. Budgeting and financing requirements for courts under Home Rule
Act.
Sec. 344. Auditing of accounts of court system.
Sec. 345. Miscellaneous budgeting and financing requirements for courts under
District law.
Sec. 346. Other provisions relating to administration of District of Columbia
courts.
PART 2—JUDICIAL RETIREMENT PROGRAM
Sec. 351. Judicial Retirement and Survivors Annuity Fund.
Sec. 352. Termination of current fund and program.
Sec. 353. Conforming amendments.
PART 3—MISCELLANEOUS CONFORMING AND ADMINISTRATIVE PROVISIONS
Sec. 361. Treatment of courts under miscellaneous District laws.
Sec. 362. Representation of indigents in criminal cases.
Subtitle E—Pretrial Services Agency and Public Defender Service
Sec. 371. Amendments affecting Pretrial Services Agency.
Sec. 372. Amendments affecting Public Defender Service.
Subtitle F—Miscellaneous Provisions
Sec. 381. Technical assistance and research.
Sec. 382. Exemption from personnel and budget ceilings for trustees and relat-
ed agencies.
TITLE IV—PRIVATIZATION OF TAX COLLECTION AND
ADMINISTRATION
Sec. 401. Findings.
Sec. 402. Authorizing Chief Financial Officer to privatize tax administration
and collection.
TITLE V—FINANCING OF DISTRICT OF COLUMBIA DEBT
Sec. 501. Findings.
Sec. 502. Authorization for intermediate-term advances of funds by the Sec-
retary of the Treasury to liquidate the accumulated general
fund deficit of the District of Columbia.
Sec. 503. Conforming amendments.
Sec. 504. Technical corrections.
Sec. 505. Authorization for issuance of general obligation bonds by the District
of Columbia to finance or refund its accumulated general fund
deficit.
TITLE VI—REVENUE BONDS
Sec. 601. Short title; findings.
Sec. 602. Amendments to Home Rule Charter provision governing revenue
bonds.
Sec. 603. Clarification of treatment of revenue bonds under Financial Respon-
sibility and Management Assistance Act.
TITLE VII—DISTRICT OF COLUMBIA ECONOMIC DEVELOPMENT
CORPORATION
Subtitle A—General Provisions
Sec. 701. Short title.
Sec. 702. Findings.
Sec. 703. Purposes.
Sec. 704. Definitions.
Subtitle B—District of Columbia Economic Development Corporation Charter
Sec. 711. Establishment.
Sec. 712. Status of Corporation.
Sec. 713. Board of directors.
Sec. 714. Officers and employees.
Sec. 715. Political activity.
Sec. 716. Reports, plans, and evaluations.
Sec. 717. Gifts; procurement of goods and services; and disposition of property.
Subtitle C—Operations of the Corporation
Sec. 721. General powers.
Sec. 722. Economic development plans.
Sec. 723. Financial assistance.
Sec. 724. Eminent domain.
Sec. 725. Regulatory relief powers.
Subtitle D—Capitalization and Finance
Sec. 731. Authorization of appropriations.
Sec. 732. Project revenue obligations issued by Corporation.
Sec. 733. Deposit and investment of funds.
Sec. 734. No taxing power.
Subtitle E—Miscellaneous Provisions
Sec. 741. Legal actions involving Corporation.
Sec. 742. Judicial review of financial assistance determinations and rules.
Sec. 743. Relationship to other laws.
Sec. 744. Relationship to rest of District government.
Subtitle F—Sunset Provisions
Sec. 751. Suspension of new financial assistance.
Sec. 752. Termination of affairs.
Sec. 753. Dissolution of Corporation.
TITLE VIII—DISTRICT OF COLUMBIA GOVERNMENT BUDGET;
EFFECTIVE DATE
Sec. 801. Elimination of the annual Federal payment to the District of Colum-
bia.
Sec. 802. Requirement that the District of Columbia balance its budget in FY
1998.
Sec. 803. Permitting expedited submission and approval of consensus budget
and financial plan.
Sec. 804. Increase in maximum amount of permitted District borrowing.
TITLE IX—MISCELLANEOUS PROVISIONS
Subtitle A—Regulatory Reform in the District of Columbia
Sec. 901. Review and revision of regulations and permit and application proc-
esses.
Sec. 902. Repeal of Clean Air Compliance Fee Act of 1994.
Sec. 903. Repeal of Federal charter of Group Hospitalization and Medical Serv-
ices, Inc.
Sec. 904. Exemption of certain contracts from Council review.
Subtitle B—Other Miscellaneous Provisions
Sec. 911. Revisions to Financial Responsibility and Management Assistance
Act.
Sec. 912. Cooperative agreements between Federal agencies and Metropolitan
Police Department.
Sec. 913. Permitting garnishment of wages of officers and employees of District
of Columbia government.
Sec. 914. Permitting excess appropriations by Water and Sewer Authority for
capital projects.
Sec. 915. Requiring certain Federal officials to provide notice before carrying
out activities affecting real property located in District of Co-
lumbia.
Sec. 916. Short title of Home Rule Act.
Subtitle C—Effective Date; General Provisions
Sec. 921. Effective date.
Sec. 922. Technical assistance.
Sec. 923. Liability.
TITLE I—DISTRICT OF
COLUMBIA RETIREMENT FUNDS
SEC. 101. SHORT TITLE.
This title may be cited as the ‘‘District of Columbia
Retirement Protection Act of 1997’’.
Subtitle A—General Provisions
SEC. 111. OBLIGATION OF FEDERAL GOVERNMENT TO
MAKE PAYMENTS FOR PENSION LIABILITIES.
(a) IN GENERAL.—The Federal Government shall
make payments in accordance with the provisions of this
title to finance all liabilities associated with the pension
plans for police officers, firefighters, and teachers of the
District of Columbia, including the unfunded liability
which was transferred by Congress to the District of Co-
lumbia government under the District of Columbia Retire-
ment Reform Act of 1979.
(b) NO REVERSION OF LIABILITY TO DISTRICT.—At
no point after the effective date of this title may the re-
sponsibility or any part thereof assigned to the Federal
Government under subsection (a) revert to the District of
Columbia.
SEC. 112. FINDINGS AND DECLARATION OF POLICY.
(a) The Congress finds that—
(1) the retirement programs for the police offi-
cers and firefighters, teachers and judges of the Dis-
trict of Columbia had significant unfunded liabilities
totaling approximately $1,900,000,000 when the
Federal government transferred those programs to
the District of Columbia, and those liabilities have
since increased to nearly $4,800,000,000, an in-
crease which is almost entirely attributable to the
accumulation of interest on the value which existed
at the time of transfer;
(2) the District of Columbia has fully met its
financial obligations under the District of Columbia
Retirement Reform Act of 1979 (Public Law 96–
122);
(3) the District of Columbia Retirement Board
has fulfilled all of its obligations and fiduciary re-
sponsibilities and its members and staff are thanked
and congratulated for their service;
(4) the growth of the unfunded liabilities of the
four pension funds listed above did not occur be-
cause of any action taken or any failure to act that
lay within the power of the District of Columbia gov-
ernment or the Retirement Board;
(5) an unfunded pension liability of nearly
$5,000,000,000 would be beyond the resources of
any municipal government to fully fund;
(6) the presence of the unfunded pension liabil-
ity is having and will continue to have a negative im-
pact on the District of Columbia’s credit rating as
it is a legal obligation and the total unfunded liabil-
ity exceeds the total General Obligation debt of the
District, and the costs associated with this liability
are a contributing cause of the District’s ongoing fi-
nancial crisis;
(7) the obligations of the District associated
with these pension programs in fiscal year 1997 rep-
resents nearly 10 percent of the District’s revenue;
(8) the annual Federal contribution toward
these costs under the District of Columbia Retire-
ment Reform Act has remained $52,000,000;
(9) if the unfunded pension liability situation is
not resolved, in 2004 the District of Columbia would
be 
responsible 
for 
annual 
costs 
exceeding
$800,000,000, a figure which would be impossible to
meet without catastrophic impact on the District
government’s resources and programs;
(10) the financial resources of the District of
Columbia are not adequate to discharge the un-
funded liabilities of the retirement programs; and
(11) the level of benefits and funding of the
current retirement programs were authorized by var-
ious Acts of Congress.
(b) It is the policy of this title—
(1) to relieve the District of Columbia govern-
ment of the responsibility for the unfunded liabilities
transferred to it by the Federal government;
(2) to assume the moral and legal responsibility
for paying the benefits (including all unfunded liabil-
ities which existed as of the day prior to introduc-
tion of this legislation) for the retirement plans of
teachers, police, and firefighters;
(3) to provide for a responsible Federal system
for payment of benefits accrued prior to the date of
introduction of this legislation; and
(4) to require the establishment of replacement
plans by the District of Columbia government for
the current retirement plans for teachers, and police
and firefighters.
SEC. 113. DEFINITIONS.
For purposes of this title, the following definitions
shall apply:
(1) The term ‘‘Actuarial Board’’ means the De-
partment of the Treasury Retirement Board of Ac-
tuaries established under subtitle E.
(2) The term ‘‘Code’’ means the Internal Reve-
nue Code of 1986.
(3) The term ‘‘contract’’ means the contract
under section 135 between the Secretary and the
Trustee.
(4) The term ‘‘District Government’’ means, as
appropriate, the District government as defined by
section 305(5) of the District of Columbia Financial
Responsibility and Management Assistance Act of
1995 or the District of Columbia Retirement Board
as defined in section 102(5) of the Reform Act.
(5) The term ‘‘employee’’ means a teacher, or
a member of the Metropolitan Police Force or the
Fire Department of the District of Columbia as de-
fined in the retirement program.
(6) The term ‘‘employee contributions’’ means
amounts deducted and withheld from the salaries of
teachers and members of the Metropolitan Police
Force and Fire Department of the District of Co-
lumbia and paid to the Retirement Fund (and, in
the case of teachers, amounts of additional deposits
paid to the Retirement Fund), pursuant to the re-
tirement program.
(7) The term ‘‘ERISA’’ means the Employee
Retirement Income Security Act of 1974.
(8) The term ‘‘Federal Supplemental Fund’’
means the Federal Supplemental District of Colum-
bia Pension Fund created under section 161.
(9) The term ‘‘freeze date’’ means the date on
which legislation to enact this title is introduced in
the House of Representatives.
(10) The term ‘‘person’’ means an individual,
partnership, joint venture, corporation, mutual com-
pany, joint-stock company, trust, estate, unincor-
porated organization, association, or employee orga-
nization.
(11) The term ‘‘Reform Act’’ means the Dis-
trict of Columbia Retirement Reform Act (Public
Law 96–122).
(12) The term ‘‘replacement plan’’ means the
plan described in section 144.
(13) The term ‘‘replacement plan adoption
date’’ means the date upon which upon which the
legislation establishing the replacement plan becomes
effective, or the first day after the expiration of the
1-year period which begins on the date of the enact-
ment of this Act, whichever occurs first.
(14) The term ‘‘Retirement Fund’’ means the
District of Columbia Police Officers and Fire Fight-
ers Retirement Fund and the District of Columbia
Teachers Retirement Fund, as defined in the Re-
form Act.
(15) The term ‘‘Retirement Program’’ means
any of the retirement programs for teachers and
members of the Metropolitan Police Force and Fire
Department, as described in section 102(7) of the
Reform Act as in effect on the day before the freeze
date.
(16) The term ‘‘Retirement Trust’’ means the
District of Columbia Retirement Trust Fund created
under section 131.
(17) The term ‘‘Secretary’’ means the Secretary
of the Treasury or the Secretary’s designee.
(19) The term ‘‘Trustee’’ means the person or
persons designated by the Secretary under section
135.
Subtitle B—Freezing of Existing
Program
SEC. 121. FREEZE OF SERVICE UNDER THE RETIREMENT
PROGRAM.
Service after the freeze date shall not be credited
under the retirement program for purposes of determining
the amount of benefits an employee has accrued. Such
service shall continue to be credited for all other purposes.
SEC. 122. DISABILITY BENEFITS AFTER THE SERVICE
FREEZE.
In the case of a disability retirement in which disabil-
ity retirement benefits commence after the freeze date, the
only benefit payable from the Retirement Trust or the
Federal Supplemental Fund with respect to disability is
the deferred retirement benefit or normal retirement bene-
fit the employee would receive if the employee left service
on the day before disability retirement benefits commence.
SEC. 123. DEATH BENEFITS AFTER THE SERVICE FREEZE.
In the case of a benefit under the retirement program
that is payable on the death of an employee or former em-
ployee, and that is not determined by the length of service
of the employee or former employee, the benefit payable
from the Retirement Trust or the Federal Supplemental
Fund shall be limited to the percentage of the entire bene-
fit represented by a fraction, the numerator of which is
the number of months of the employee’s service prior to
the freeze date, and the denominator of which is the total
number of months of the employee’s service.
Subtitle C—Retirement Trust
SEC. 131. CREATION OF RETIREMENT TRUST.
There is established on the books of the Treasury the
District of Columbia Retirement Trust Fund, which shall
be administered by the Trustee. The assets of the Retire-
ment Trust shall be used for the purpose of paying bene-
SEC. 135. SELECTION OF TRUSTEE.
(a) As soon as practicable after enactment of this
title, the Secretary shall select a Trustee to carry out the
responsibilities and duties specified in this title and de-
fined by the contract.
(b) The Secretary shall enter into a contract with the
Trustee to carry out the purposes of this title. The con-
tract shall provide for the management, investment, con-
trol and auditing of Retirement Trust assets, the payment
of benefits under this title from the Retirement Trust and
such other matters as the Secretary deems appropriate.
SEC. 136. POWERS AND DUTIES OF THE SECRETARY.
(a) The Secretary is authorized to issue regulations
to implement, interpret, administer and carry out the pur-
poses of this title, and, in the Secretary s discretion, those
regulations may have retroactive effect.
(b) The Secretary shall enforce the provisions of this
title and the contract, and shall monitor the administra-
tion of the Retirement Trust.
(c) The Secretary is authorized to requisition from
the Retirement Fund such sums as are necessary to ad-
minister the Retirement Trust and Actuarial Board until
assets are transferred to the Retirement Trust. After as-
sets are transferred to the Retirement Trust, such admin-
istrative payments shall be made from the Retirement
Trust pursuant to subsection (d).
(d) All payments for necessary administrative ex-
penses of the Retirement Trust shall be set forth in an
annual budget, which is subject to the certification and
approval of the Secretary.
SEC. 137. PAYMENTS AFTER DEPLETION OF RETIREMENT
TRUST ASSETS.
(a) Not later than 18 months before the time that
assets remaining in the Retirement Trust are projected
to be insufficient to pay benefits and necessary adminis-
trative expenses when due, the Secretary shall so advise
the President and the Congress.
(b) Before all available assets of the Retirement
Trust have been depleted, the Secretary shall determine
whether payment of benefits and necessary administrative
expenses under this title shall be made by—
(1) continuation of the Retirement Trust using
payments from the Federal Supplemental Fund; or
(2) discontinuance of the Retirement Trust,
and
(A) direct payment by the Secretary from
the Federal Supplemental Fund; or
(B) payment from the Federal Supple-
mental Fund through another department or
agency of the United States.
(c) If the Secretary determines that the Retirement
Trust shall be discontinued after it has been depleted of
assets, the Secretary shall appoint a successor to the
Trustee to administer the payment of benefits under this
title, and said appointee shall have the powers given to
the Trustee in this subtitle and subtitle D.
(d) The Secretary shall make appropriate arrange-
ments to implement the determinations made in this sub-
section.
(e) The arrangements for payments of benefits after
the Retirement Trust has been depleted of assets shall be
subject to the same treatment as similar arrangements
under section 134.
SEC. 138. FEDERAL INFORMATION SHARING.
(a) Except with respect to taxpayer returns and re-
turn information subject to section 6103 of the Internal
Revenue Code of 1986, the Secretary may—
(1) secure directly from any department or
agency of the United States information necessary
to enable the Secretary to verify or confirm benefit
determinations under this title; and
(2) by regulation authorize the Trustee to re-
view such information for purposes of administering
this title and the contract.
(b) The Internal Revenue Code of 1986 is amended
as follows:
(1) In section 6103(l), as amended by section
1206(a) of the Taxpayer Bill of Rights 2, by adding
at the end the following new paragraph:
‘‘(16) DISCLOSURE OF RETURN INFORMATION
FOR PURPOSES OF ADMINISTERING THE DISTRICT
OF
COLUMBIA
RETIREMENT
PROTECTION
ACT
OF
1997.—
‘‘(A) IN GENERAL.—Upon written request
available return information (including such in-
formation disclosed to the Social Security Ad-
ministration under paragraph (1) or (5) of this
subsection), relating to the amount of wage in-
come (as defined in section 3121(a) or
3401(a)), the name, address, and identifying
number assigned under section 6109, of payors
of wage income, taxpayer identity (as defined in
subsection 6103(b)(6)), and the occupational
status reflected on any return filed by, or with
respect to, any individual with respect to whom
eligibility for, or the correct amount of, benefits
under the District of Columbia Retirement Pro-
tection Act of 1997, is sought to be determined,
shall be disclosed by the Commissioner of Social
Security, or to the extent not available from the
Social Security Administration, by the Sec-
retary, to any duly authorized officer or em-
ployee of the Department of the Treasury, or a
Trustee or any designated officer or employee
of a Trustee (as defined in the District of Co-
lumbia Retirement Protection Act of 1997), or
any actuary engaged by a Trustee under the
terms of the District of Columbia Retirement
Protection Act of 1997, whose official duties re-
quire such disclosure, solely for the purpose of,
and to the extent necessary in, determining an
individual s eligibility for, or the correct amount
of, benefits under the District of Columbia Re-
tirement Protection Act of 1997.
‘‘(B) DISCLOSURE FOR USE IN JUDICIAL
OR ADMINISTRATIVE PROCEEDINGS RETURN.—
Information disclosed to any person under this
paragraph may be disclosed in a judicial or ad-
ministrative proceeding relating to the deter-
mination of an individual s eligibility for, or the
correct amount of, benefits under the District
of Columbia Retirement Protection Act of
1997.’’.
(2) In section 6103(a)(3), by striking ‘‘(6) or
(12)’’ and inserting ‘‘(6), (12), or (16)’’;
(3) In section 6103(i)(7)(B)(i), by inserting
after ‘‘(other than an agency referred to in subpara-
graph (A))’’ and before the word ‘‘for’’ the words
‘‘or by a Trustee as defined in the District of Co-
lumbia Retirement Protection Act of 1997,’’.
(4) In section 6103(p)(3)(A), by striking ‘‘or
(15)’’ and inserting ‘‘(15), or (16)’’.
(5) In section 6103(p)(4) in the matter preced-
ing subparagraph (A), by striking ‘‘or (12)’’ and in-
serting ‘‘(12), or (16), or any other person described
in subsection (l)(16)’’.
(6) In section 6103(p)(4)(F)(i), by striking ‘‘or
(9),’’ and inserting ‘‘(9), or (16), or any other per-
son described in subsection (1)(16)’’.
(7) In section 6103(p)(4)(F) in the matter fol-
lowing clause (iii)—
(A) by inserting after ‘‘any such agency,
body or commission’’ and before the words ‘‘for
the General Accounting Office’’ the words ‘‘, in-
cluding an agency or any other person described
in subsection (l)(16),’’;
(B) by striking ‘‘such agency, body, or
commission’’ and inserting ‘‘such agency, body,
or commission, including an agency or any
other person described in subsection (l)(16),’’;
(C) by striking ‘‘or (12)(B)’’ and inserting
‘‘, (12)(B), or (16)’’;
(D) by inserting after the words ‘‘any
agent,’’ and before the words ‘‘this paragraph
shall’’ the words ‘‘or any person including an
agent described in subsection (l)(16),’’;
(E) by inserting after the words ‘‘such
agent’’ and before ‘‘(except that’’ the words ‘‘or
other person’’; and
(F) by inserting after the words ‘‘an
agent,’’ and before the words ‘‘any report’’ the
words ‘‘or any person including an agent de-
scribed in subsection (l)(16),’’.
(8) In section 7213(a)(2), by striking ‘‘or
(15),’’ and inserting ‘‘(15), or (16)’’.
(c) The Secretary may issue regulations governing
the confidentiality of the information obtained pursuant
to subsections (a) and (b).
SEC. 139. RESPONSIBILITIES AND POWERS OF THE TRUST-
EE.
(a) The Trustee shall perform its obligations under
this title and the contract.
(b)(1) In accordance with procedures approved by the
Secretary, the Trustee shall provide to any participant or
beneficiary whose claim for benefits under this title has
been denied in whole or in part—
(A) written notice of such denial, setting
forth the specific reasons for the denial in a
manner calculated to be understood by the av-
erage plan participant; and
(B) reasonable opportunity for review of
the benefit determination.
(2) Any factual determination made by the
Trustee shall be presumed correct unless rebutted by
clear and convincing evidence. The Trustee’s inter-
pretation and construction of the benefit provisions
of the retirement program and this title shall be en-
titled to great deference.
(c) The Trustee may monitor and review the benefit
eligibility of persons receiving benefits under this title.
Notwithstanding any other provision of law, the Trustee
is authorized to correct any errors in benefit determina-
tions, and is further authorized to recoup or recover any
benefit overpayments.
(d) The Trustee shall engage an enrolled actuary (as
defined in section 7701(a)(35) of the Code) who is a mem-
ber of the American Academy of Actuaries who shall per-
form an annual actuarial valuation (in a manner and form
determined by the Secretary) of the Retirement Trust and
the Federal Supplemental Fund for obligations assumed
by the Federal Government under this title for benefits
and necessary administrative expenses under the retire-
ment program. The valuation shall use methods and as-
sumptions approved by the Actuarial Board under section
164. An annual report by the enrolled actuary shall be
provided to the Secretary, the Trustee and the Actuarial
Board. Each report shall project when assets in the Re-
tirement Trust will be insufficient to pay benefits and nec-
essary administrative expenses when due.
(e) The Trustee shall report to the Secretary, in a
form and manner and at such intervals as the Secretary
may prescribe, on any matters or transactions relating to
the Retirement Trust, including financial matters, as the
Secretary may require.
Subtitle D—District Government
SEC. 141. INTERIM ADMINISTRATION.
(a) After the enactment of this title the District Gov-
ernment shall continue to discharge its duties and respon-
sibilities under the retirement program and Retirement
Fund, as modified by subtitle B, until such time as the
District Government is notified by the Secretary that the
Secretary has directed the Trustee to commence such du-
ties and responsibilities.
(b) The District Government’s reasonable and nec-
essary expenses incurred pursuant to its responsibilities
under subsection (a) shall be reimbursed from the Retire-
ment Trust.
(c) The District Government shall reimburse the Re-
tirement Fund for any benefits paid inconsistent with sub-
title B from the Retirement Fund between the freeze date
and the replacement plan adoption date.
SEC. 142. RECORDS TRANSFER.
Within 30 days after the Secretary or the Trustee
requests, the District Government shall furnish copies of
all records, documents, information, or data the Secretary
or the Trustee deems necessary to carry out their respon-
sibilities under this title and the contract. Upon request,
the Secretary or the Trustee shall be granted direct access
to such information systems, records, documents, informa-
tion or data as will enable them to carry out their respon-
sibilities under this title or the contract. The District Gov-
ernment shall reimburse the Retirement Trust for all
costs, including benefit costs, that are attributable to er-
rors or omissions in the transferred records that are iden-
tified within 3 years after such records are transferred.
SEC. 143. FINAL RECONCILIATION.
As soon as practicable after the replacement plan
adoption date, the District Government shall furnish the
Trustee a final reconciliation of accounts in connection
with the transfer of assets and obligations to the Retire-
ment Trust. The allocation of assets under section 133
shall be adjusted in accordance with this reconciliation.
SEC. 144. REPLACEMENT PLAN.
(a) No later than one year from the date of enact-
ment of this title, or such later time as the Secretary may
prescribe, the District Government shall adopt a replace-
ment plan to be effective as of the freeze date.
(b) If the District Government fails to adopt a re-
placement plan within the period prescribed in subsection
(a), the retirement program applicable to police, fire-
fighters, and teachers hired on or after October 1, 1996
(as provided under the laws of the District of Columbia
in effect as of June 1, 1997), including all requirements
of the program regarding benefits, contributions, and cost-
of-living adjustments, shall apply with respect to all police,
firefighters, and teachers employed by the District as of
the expiration of the period prescribed in subsection (a).
Subtitle E—The Actuarial Board
SEC. 151. ESTABLISHMENT OF THE ACTUARIAL BOARD.
(a) There is established in the Department of the
Treasury a Department of the Treasury Retirement Board
of Actuaries. The Actuarial Board shall consist of three
members, who shall be appointed by the Secretary from
among enrolled actuaries who are members of the Amer-
ican Academy of Actuaries.
(b)(1) Except as provided in paragraph (2), the mem-
bers of the Actuarial Board shall serve for a term of six
(6) years, except that a member of the Actuarial Board
appointed to fill a vacancy occurring before the end of the
term for which a predecessor was appointed shall only
serve until the end of such term. A member may serve
after the end of the term until a successor has taken of-
fice. A member of the Actuarial Board may be removed
by the Secretary for misconduct or failure to perform the
functions of the Actuarial Board, and for no other reason.
(2) Of the members of the Actuarial Board who are
first appointed under this subsection, one each shall be
appointed for terms ending 2, 4, and 6 years, respectively,
after the date of appointment, as designated by the Sec-
retary at the time of appointment.
(c) A member of the Actuarial Board who is not oth-
erwise an employee of the United States is entitled to re-
ceive pay at the daily equivalent of the annual rate of basic
pay of the highest rate of basic pay then currently being
paid under the General Schedule of subchapter III of
chapter 53 of title 5, United States Code, for each day
the member is engaged in the performance of the duties
of the Actuarial Board and is entitled to travel expenses,
including a per diem allowance, in accordance with section
5703 of title 5, United States Code.
SEC. 152. GENERAL DUTIES OF THE ACTUARIAL BOARD.
The Actuarial Board shall review the actuarial valu-
ation reports produced by the enrolled actuary engaged
by the Trustee, and report to the Secretary and Congress
annually on the actuarial status of the Retirement Trust
and the Federal Supplemental Fund and shall furnish its
advice and opinion on matters referred to it by the Sec-
retary.
Subtitle F—Federal Supplemental
Fund
SEC. 161. ESTABLISHMENT OF THE FEDERAL SUPPLE-
MENTAL FUND.
There is established on the books of the Treasury the
Federal Supplemental District of Columbia Pension Fund,
which shall be administered by the Secretary. The Federal
Supplemental Fund shall be used for the accumulation of
funds in order to finance obligations of the Federal Gov-
ernment for benefits and necessary administrative ex-
penses under the provisions of this title.
(d) The Secretary shall provide for the keeping of
such records as are necessary for determining the actuar-
ial status of the Federal Supplemental Fund.
SEC. 165. PAYMENTS INTO THE FEDERAL SUPPLEMENTAL
FUND.
(a) The Actuarial Board annually shall determine
and certify to the Secretary the sum of the amount in sec-
tion 164(a), the normal cost under section 164(b)(1), and
the amount of amortization payments under section
164(b)(2). The sum of such amounts may not be less than
zero. To this sum shall be added the amount of necessary
administrative expenses in section 164(b)(3).
(b) At the end of each applicable fiscal year the Sec-
retary shall promptly pay into the Federal Supplemental
Fund from the General Fund of the Treasury the amount
certified under subsection (a).
(c) The first applicable fiscal year under subsection
(b) is the first fiscal year that ends more than six months
after the replacement plan adoption date.
SEC. 166. INVESTMENT OF ASSETS OF FEDERAL SUPPLE-
MENTAL FUND.
The Secretary shall invest such portion of the Federal
Supplemental Fund as is not in the judgment of the Sec-
retary required to meet current withdrawals. Such invest-
ments shall be in public debt securities with maturities
suitable to the needs of the Federal Supplemental Fund,
as determined by the Secretary, and bearing interest at
rates determined by the Secretary, taking into consider-
ation current market yields on outstanding marketable ob-
ligations of the United States of comparable maturities.
The income on such investments shall be credited to and
form a part of the Federal Supplemental Fund.
Subtitle G—Judges Retirement
Program
SEC. 171. REFERENCE TO NEW FEDERAL PROGRAM.
For provisions describing the retirement program for
judges and judicial personnel of the District of Columbia,
see part 2 of subtitle D of title III.
Subtitle H—Enforcement
SEC. 181. JUDICIAL REVIEW.
(a) A civil action may be brought—
(1) by a participant or beneficiary to enforce or
clarify rights to benefits from the Retirement Trust
or Federal Supplemental Fund under this title;
(2) by the Trustee—
(A) to enforce any claim arising (in whole
or in part) under this title or the contract; or
(B) to recover benefits improperly paid
from the Retirement Trust or Federal Supple-
mental Fund or to clarify a participant’s or
beneficiary’s rights to benefits from the Retire-
ment Trust or Federal Supplemental Fund; and
(3) by the Secretary to enforce any provision of
this title or the contract.
(b) The Retirement Trust may sue and be sued as
an entity.
(c) This subtitle shall be the exclusive means for
bringing actions against the Retirement Trust, the Trust-
ee or the Secretary under this title.
SEC. 182. JURISDICTION AND VENUE.
(a) The United States District Court for the District
of Columbia shall have exclusive jurisdiction and venue,
regardless of the amount in controversy, of—
(1) civil actions brought by participants or
beneficiaries pursuant to this title, and
(2) any other action otherwise arising (in whole
or part) under this title or the contract.
(b) Notwithstanding any other provision of law, any
order of the United States District Court for the District
of Columbia issued pursuant to an action described in sub-
section (a) that concerns the validity or enforceability of
any provision of this title or seeks injunctive relief against
the Secretary or Trustee under this title shall be
reviewable only pursuant to a notice of appeal to the Unit-
ed States Court of Appeals for the District of Columbia
Circuit.
(c) Notwithstanding any other provision of law, re-
view by the Supreme Court of the United States of a deci-
sion of the Court of Appeals that is issued pursuant to
subsection (b) may be had only if the petition for relief
is filed within 20 calendar days after the entry of such
decision.
(d) No order of any court granting declaratory or in-
junctive relief against the Secretary or the Trustee shall
take effect during the pendency of the action before such
court, during the time an appeal may be taken, or (if an
appeal is taken or petition for certiorari filed) during the
period before the court has entered its final order dispos-
ing of the action.
SEC. 183. LIMITATIONS OF ACTIONS.
(a) Any civil action by a participant or beneficiary
for benefits under this title shall be commenced within 180
days of a final benefit determination.
(b) Any civil action for breach of the contract or vio-
lation of this title shall be commenced within the later of—
(1) six years after the last action that con-
stituted a breach of the contract or violation of this
title or, in the case of an omission, six years after