(1) by redesignating subsection (c) as sub-
section (e); and
(2) by inserting after subsection (b) the follow-
ing new subsections:
‘‘(c) SUBCONTRACTS.—Notwithstanding any provi-
sion of a District Retirement Program or any other law,
rule, or regulation, the 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 Trustee in connection with its performance of the
contract. The 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 Trustee, that
in the interest of economy and efficiency such function
shall be performed by the Secretary rather than the Trust-
ee.’’.
(e) PROCESS
FOR REIMBURSEMENT
OF DISTRICT
GOVERNMENT FOR EXPENSES OF INTERIM ADMINISTRA-
TION.—Section 11041 of such Act (DC Code, sec. 1–
765.1) is amended—
(1) in subsection (b), by striking ‘‘The Trustee
shall’’ and inserting ‘‘The Secretary or the Trustee
shall, at such times during or after the period of in-
terim administration described in subsection (a) as
are deemed appropriate by the Secretary or the
Trustee’’;
(2) in subsection (b)(1), by inserting ‘‘the Sec-
retary or’’ after ‘‘if’’; and
(3) in subsection (c), by striking ‘‘the replace-
ment plan adoption date’’ and inserting ‘‘such time
as the Secretary notifies the District Government
that the Secretary has directed the Trustee to carry
out the duties and responsibilities required under the
contract’’.
(f) ANNUAL FEDERAL PAYMENT INTO FEDERAL
SUPPLEMENTAL FUND.—Section 11053 of such Act (DC
Code, sec. 1–766.3) is amended—
(1) by amending subsection (a) to read as fol-
lows:
‘‘(a) ANNUAL AMORTIZATION AMOUNT.—At the end
of each applicable fiscal year the Secretary shall promptly
pay into the Federal Supplemental Fund from the General
Fund of the Treasury an amount equal to the annual am-
ortization amount for the year (which may not be less than
zero).’’;
(2) in subsection (b), by striking ‘‘freeze date’’
and inserting ‘‘effective date of this Act’’;
(3) by redesignating subsections (b) and (c) as
subsections (c) and (d); and
(4) by inserting after subsection (a) the follow-
ing new subsection:
‘‘(b) ADMINISTRATIVE EXPENSES.—During each ap-
plicable fiscal year, the Secretary shall pay into the Fed-
eral Supplemental Fund from the General Fund of the
Treasury amounts not to exceed the covered administra-
tive expenses for the year.’’.
(g) 
TECHNICAL
CORRECTIONS.—(1) 
Section
11012(c) of such Act (DC Code, sec. 1–752.2(c)) is
amended by striking ‘‘District of Columbia Retirement
Board’’ and inserting ‘‘District Government’’.
(2) Section 11033(c)(1) of such Act (DC Code, sec.
1–764.3(c)(1)) is amended by striking ‘‘consisting’’ in the
first place that it appears.
(3) Section 11052 of such Act (DC Code, sec. 1–
766.2) is amended by inserting ‘‘to’’ after ‘‘may be made
only’’.
SEC. 3. CLARIFYING TREATMENT OF DISTRICT OF COLUM-
BIA EMPLOYEES TRANSFERRED TO FEDERAL
RETIREMENT SYSTEMS.
(a) ELIGIBILITY OF NONJUDICIAL EMPLOYEES OF
DISTRICT OF COLUMBIA COURTS FOR MEDICARE AND SO-
CIAL SECURITY BENEFITS.—Section 11246(b) of the Bal-
anced Budget Act of 1997 (Public Law 105–33; 111 Stat.
755) is amended—
(1) by redesignating paragraphs (2) and (3) as
paragraphs (3) and (4); and
(2) by inserting after paragraph (1) the follow-
ing new paragraph:
‘‘(2) CONFORMING AMENDMENTS TO INTERNAL
REVENUE CODE AND SOCIAL SECURITY.—(A) Sec-
tion 3121(b)(7)(C) of the Internal Revenue Code of
1986 (relating to the definition of employment for
service performed in the employ of the District of
Columbia) is amended by inserting ‘(other than the
Federal Employees Retirement System provided in
chapter 84 of title 5, United States Code)’ after ‘law
of the United States’.
‘‘(B) Section 210(a)(7)(D) of the Social Secu-
rity Act (42 U.S.C. 410(a)(7)(D)) (relating to the
definition of employment for service performed in
the employ of the District of Columbia), is amended
by inserting ‘(other than the Federal Employees Re-
tirement System provided in chapter 84 of title 5,
United States Code)’ after ‘law of the United
States’.’’.
(b) VESTING UNDER PREVIOUS DISTRICT OF CO-
LUMBIA RETIREMENT PROGRAM.—For purposes of vest-
ing pursuant to section 2610(b) of the District of Colum-
bia Government Comprehensive Merit Personnel Act of
1978 (DC Code, sec. 1–627.10(b)), creditable service with
the District for employees whose participation in the Dis-
trict Defined Contribution Plan ceases as a result of the
implementation of the Balanced Budget Act of 1997 shall
include—
(1) continuous service performed by nonjudicial
employees of the District of Columbia courts after
September 30, 1997; and
(2) service performed for a successor employer,
including the Department of Justice or the District
of Columbia Offender Supervision, Defender, and
Courts Services Agency established under section
11233 of the Balanced Budget Act of 1997, that
provides services previously performed by the Dis-
trict government.
SEC. 4. METHODOLOGY FOR DESIGNATING ASSETS OF RE-
TIREMENT FUND.
Section 11033 of the Balanced Budget Act of 1997
(DC Code, sec. 1–764.3) is amended by adding at the end
the following new subsection:
‘‘(e) METHODOLOGY FOR DESIGNATING ASSETS.—
‘‘(1) IN GENERAL.—In carrying out subsection
(b), the Secretary may develop and implement a
methodology for designating assets after the replace-
ment plan adoption date that takes into account the
value of the District Retirement Fund as of the re-
placement plan adoption date and the proportion of
such value represented by $1.275 billion, together
with the income (including returns on investments)
earned on the assets of and withdrawals from and
deposits to the Fund during the period between such
date and the date on which the Secretary designates
assets under subsection (b). In implementing a
methodology under the previous sentence, the Sec-
retary shall not be required to determine the value
of designated assets as of the replacement plan
adoption date. Nothing in this paragraph may be
deemed to effect the entitlement of the District Re-
tirement Fund to income (including returns on in-
vestments) earned after the replacement plan adop-
tion date on assets designated for retention by the
Fund.
‘‘(2) EMPLOYEE CONTRIBUTIONS; JUDICIAL RE-
TIREMENT
AND
SURVIVORS
ANNUITY
FUND.—The
Secretary may develop and implement a methodology
comparable to the methodology described in para-
graph (1) in carrying out the requirements of sub-
section (c) and in designating assets to be trans-
ferred to the District of Columbia Judicial Retire-
ment and Survivors Annuity Fund pursuant to sec-
tion 124(c)(1) of the District of Columbia Retire-
ment Reform Act (as amended by section 11252).
‘‘(3) DISCRETION
OF
THE
SECRETARY.—The
Secretary’s development and implementation of
methodologies for designating assets under this sub-
section shall be final and binding.’’.
SEC. 5. EFFECTIVE DATE.
This Act and the amendments made by this Act shall
take effect as if included in the enactment of title XI of
the Balanced Budget Act of 1997.
Æ