I 
108TH CONGRESS 
2D SESSION 
H. R. 4657 
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. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 23, 2004 
Mr. TOM DAVIS of Virginia (for himself and Mr. HOYER) introduced the 
following bill; which was referred to the Committee on Government Reform 
A BILL 
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 Representa-
tives 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 FED-
ERAL PENSION FUND FOR PAYMENT OF FED-
ERAL BENEFIT PAYMENTS TO DISTRICT OF 
COLUMBIA TEACHERS, POLICE OFFICERS, 
AND FIRE FIGHTERS. 
(a) IN GENERAL.—Subtitle A of title XI of the Bal-
anced 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 Pen-
sion Fund as is not in the judgment of the Secretary re-
quired 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 deter-
mined by the Secretary, and bearing interest at rates de-
termined by the Secretary, taking into consideration cur-
rent 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 sta-
tus 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 rea-
sonable and necessary administrative expenses in-
curred by any person in administering the D.C. Fed-
eral 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 ex-
penses of the D.C. Federal Pension Fund shall be paid 
in accordance with an annual budget set forth by the Pen-
sion 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 Octo-
ber 1, 2004, all obligations to make Federal benefit pay-
ments 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 trans-
ferred to the D.C. Federal Pension Fund.
‘‘SEC. 11084. DETERMINATION OF ANNUAL FEDERAL PAY-
MENTS 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 pur-
poses 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 an-
nual 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 deter-
mining the annual amortization amount under para-
graph (2)(B), the enrolled actuary shall include 
amounts necessary to complete the amortization 
schedules used for determining the annual amortiza-
tion amount for payments into the Federal Supple-
mental Fund under section 11053 (as in effect prior 
to the enactment of this chapter). 
‘‘(b) ADMINISTRATIVE EXPENSES.—During each fis-
cal 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 Pen-
sion Fund Trustee to carry out the responsibilities and 
duties specified in this subtitle in accordance with the con-
tract 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 en-
force the provisions of the contract and otherwise monitor 
the administration of the D.C. Federal Pension Fund. 
‘‘(c) SUBCONTRACTS.—Notwithstanding any provi-
sion 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 sub-
contracts with the District Government or any person to 
provide services to the Pension Fund Trustee in connec-
tion 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.—Not-
withstanding 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 re-
port 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 repay-
ment by the District Government of costs attrib-
utable 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 valu-
ations and reports by the enrolled actuary), except 
that in applying section 11061(b) to the D.C. Fed-
eral Pension Fund, the annual report required under 
such section shall include a determination of the an-
nual 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. Of-
ficial Code) is amended by adding at the end the fol-
lowing 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 im-
posed on any person with respect to the Trust Fund, 
shall terminate.’’. 
(2) FEDERAL SUPPLEMENTAL DISTRICT OF CO-
LUMBIA PENSION FUND.—Chapter 6 of subtitle A of 
title XI of such Act (sec. 1–811.01 et seq., D.C. Of-
ficial Code) is amended by adding at the end the fol-
lowing new section: 
‘‘SEC. 11056. TERMINATION OF FEDERAL SUPPLEMENTAL 
FUND. 
‘‘Effective upon the transfer of the assets of the Fed-
eral Supplemental Fund to the D.C. Federal Pension 
Fund under section 11083—
‘‘(1) the Federal Supplemental Fund shall ter-
minate; and 
‘‘(2) any duty imposed on any person with re-
spect to the Federal Supplemental fund shall termi-
nate.’’. 
(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 Pen-
sion 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 Of-
ficers, and Firefighters Federal Pension Fund estab-
lished 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 chap-
ter 9 as relating to chapter 10; 
(4) by redesignating the items relating to sec-
tions 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 JUDI-
CIAL 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 ap-
proved 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 pre-
sumed correct unless rebutted by clear and con-
vincing evidence. The Secretary’s interpretation and
construction of the benefit provisions of this sub-
chapter 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 en-
actment of this Act. 
(b) TREATMENT OF MISAPPROPRIATION OF FUND 
AMOUNTS AS FEDERAL CRIME.— 
(1) IN GENERAL.—Section 11–1570, D.C. Offi-
cial Code, is amended by adding at the end the fol-
lowing new subsection: 
‘‘(l) The provisions of section 664 of title 18, United 
States Code (relating to theft or embezzlement from em-
ployee 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. 
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