H. R. 4657
One Hundred Eighth Congress
of the
United States of America
AT THE SECOND SESSION
Begun and held at the City of Washington on Tuesday,
the twentieth day of January, two thousand and four
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 PEN-
SION FUND FOR PAYMENT OF FEDERAL BENEFIT PAY-
MENTS 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 sec-
tions 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 with-
drawals. 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 deter-
mined by the Secretary, taking into consideration current market
yields on outstanding marketable obligations of the United States
of comparable maturities.
H. R. 4657—2
‘‘(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 obliga-
tions 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 ADMINISTRA-
TIVE 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 para-
graph (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 amor-
tized)—
‘‘(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
H. R. 4657—3
the amortization schedules used for determining the annual
amortization 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 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 nec-
essary 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 Dis-
trict 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 sub-
section (b) or any other provision of this subtitle, the Secretary
may determine, with respect to any function otherwise to be per-
formed 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
H. R. 4657—4
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 misappro-
priation 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 Supple-
mental 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 Dis-
trict 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.’’;
H. R. 4657—5
(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 Supple-
mental 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 Sec-
retary, 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
H. R. 4657—6
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.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.