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 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
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 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
‘‘(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 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.
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 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. Of-
ficial 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.
SEC. 4. ADMINISTRATION OF RETIREMENT PROGRAM FOR
POLICE 
OFFICERS, 
FIRE 
FIGHTERS, 
AND
TEACHERS BY OTHER THAN CHIEF FINAN-
CIAL 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 in-
serting 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.