Chapter 7. District of Columbia Employees Retirement Program Management.

Subchapter I. Findings; Purpose; Definitions.

§ 1–701. Findings; purpose.

(a) The Congress finds that the retirement benefits authorized by various acts of Congress for the police officers, fire fighters, teachers, and judges of the District of Columbia have not been financed on an actuarially sound basis. Neither federal payments to the District nor District of Columbia appropriations have taken into account the long-term financial requirements of the District’s retirement programs. As a result, the annual budget cost to the District of Columbia for annuities and refunds of deductions is growing at a rapid rate, and, in the case of the retirement program for police officers and fire fighters, is predicted to exceed the cost of salaries for active police officers and fire fighters by the year 2000.

(b) It is the purpose of this chapter:

(1) To establish separate retirement Funds for police officers and fire fighters, for teachers, and for judges of the District of Columbia;

(2) To establish a Retirement Board with responsibility for managing these Funds;

(3) To require that these Funds be managed on an actuarially sound basis in order to provide proper financing for the benefits to which the District’s retired police officers, fire fighters, teachers, and judges are entitled;

(4) To require that the Retirement Board comply with reporting and disclosure requirements similar to those imposed under the Employee Retirement Income Security Act of 1974; and

(5) To provide for federal payments to these Funds to help finance, in part, the liabilities for retirement benefits incurred by the District of Columbia prior to the establishment of self-government under the District of Columbia Home Rule Act.

§ 1–702. Definitions.

As used in this chapter:

(1) The term “Mayor” means the Mayor of the District of Columbia.

(2) The term “Council” means the Council of the District of Columbia.

(3) The term “Speaker” means the Speaker of the House of Representatives.

(4) The term “President pro tempore” means the President pro tempore of the Senate.

(5) The term “Board” means the District of Columbia Retirement Board established by § 1-711.

(6) The term “Custodian of Retirement Funds” means the Board, except that until such time as the members of the Board are first elected and the Board certifies pursuant to § 1-711(h) that it is assuming responsibility for the Funds established by this chapter, the term “Custodian of Retirement Funds” means the Director of the Office of Budget and Financial Management of the District of Columbia (established by Organization Order No. 30, Commissioner’s Order No. 72-80, April 5, 1972).

(6A) The term “good cause” means board members not attending more than half of the scheduled board meetings in a 12 month period.

(7) The term “retirement program” means:

(A) The program of annuities and other retirement and disability benefits for members and officers of the Metropolitan Police force and the Fire Department of the District of Columbia, but does not include the program of annuities and other retirement and disability benefits for members and officers of the United States Park Police force, the United States Secret Service Uniformed Division, or the United States Secret Service Division under the Policemen and Firemen’s Retirement and Disability Act (D.C. Official Code § 5-701 et seq.);

(B) The program of annuities and other retirement and disability benefits for judges of the courts of the District of Columbia under subchapter III of Chapter 15 of Title 11 of the District of Columbia Code; or

(C) The program of annuities and other retirement and disability benefits for teachers in the public day schools of the District of Columbia.

(8) The term “state” means any state of the United States, the District of Columbia, Puerto Rico, the Virgin Islands, American Samoa, Guam, Wake Island, and the Canal Zone.

(9) The term “party in interest” means:

(A) Any person (including a member of the Board) having fiduciary responsibilities under this chapter;

(B) Any person providing services to a Fund;

(D) An employee organization; and

(E) A spouse or domestic partner, ancestor, lineal descendant, or spouse or domestic partner of a lineal descendant of any individual described in subparagraph (A) or (B) of this paragraph.

(10) The term “Fund” means the District of Columbia Police Officers and Fire Fighters’ Retirement Fund established by § 1-712, the District of Columbia Teachers’ Retirement Fund established by § 1-713, or the District of Columbia Judges’ Retirement Fund established by § 1-714.

(11) The term “current value” means fair market value where available (as determined in good faith by a fiduciary in accordance with regulations promulgated by the Board), or otherwise the fair value (as determined in good faith by a fiduciary in accordance with regulations promulgated by the Board), assuming an orderly liquidation at the time of such determination.

(12) The term “future value” means a liability for a given prior fiscal year expressed in terms of the price level expected to prevail in a given future fiscal year, adjusted at the rate of inflation used with regard to determinations made under § 1-722(a)(1).

(13) The term “qualified public accountant” means a person who is a certified public accountant, certified by a regulatory authority of a state.

(14) The term “enrolled actuary” means an actuary enrolled under subtitle C of Title III of the Employee Retirement Income Security Act of 1974.

(15) The term “security” means a security as defined in § 2(1) of the Securities Act of 1933 [15 U.S.C. § 77b].

(16) The term “employee organization” means any labor union or any organization of any kind, or any agency or employee representation committee, association, group, or plan, in which individuals covered by a retirement program participate and which exists for the purpose, in whole or in part, of dealing with the government of the District of Columbia concerning such retirement program.

(17) The term “teacher” means a teacher as defined in § 38-2021.13.

(18) The term “judge” means a judge as defined in § 11-1561(1).

(19) The term “participant” does not include an officer or member of the United States Park Police force, the United States Secret Service Uniformed Division, or the United States Secret Service Division, to whom the Policemen and Firemen’s Retirement and Disability Act (D.C. Official Code, § 5-701 et seq.) applies; and, unless the context requires otherwise, the term “beneficiary” does not include a beneficiary under such Act of any such officer or member.

(20)(A) The term “fiduciary” means, except as otherwise provided in subparagraph (B) of this paragraph, any individual who, with respect to a Fund:

(i) Exercises any discretionary authority or discretionary control respecting management of such Fund or exercises any discretionary authority or discretionary control respecting management or disposition of its assets;

(ii) Renders investment advice for a fee or other compensation, direct or indirect, with respect to any monies or other property of such Fund, or has any authority or responsibility to do so; or

(iii) Has any discretionary authority or discretionary responsibility in the administration of such Fund.

(B) If any money or other property of a Fund is invested in securities issued by an investment company registered under title I of An Act To provide for the registration and regulation of investment companies and investment advisers, and for other purposes (15 U.S.C. § 80a-1 et seq.) (“Investment Company Act of 1940”), that investment shall not by itself cause the investment company or the investment company’s adviser or principal underwriter to be deemed to be a fiduciary or a party in interest as those terms are defined in this chapter. Nothing contained in this subparagraph shall limit the duties imposed on that investment company, investment adviser, or principal underwriter by any other law.

(21) The term “governing authority” means, without limitation, any statutes, laws, amendments, resolutions, rules, regulations, policies, and procedures that govern the management and administration of the retirement program and management and control of the Funds.

(22) The term “post employment benefit programs” means health insurance benefit plans applicable under § 1-621.01, health benefits plans authorized under § 1-621.05, life insurance benefits applicable under § 1-622.01, and life insurance benefits authorized under § 1-622.03.

(23) The term “Trust Document” means the document that contains all the current statutes, laws, resolutions, rules, regulations, policies, and procedures by which authority the Board shall administer the retirement program and manage and control the Funds.

(24) The term “pooled or commingled real estate investment vehicle means any real estate investment structure or conveyance formed for the purpose of combining assets of multiple investors in order to achieve greater diversification than could be achieved by any single investor on a stand-alone basis.

(25) The term “domestic partner” shall have the same meaning as provided in § 32-701(3).

(Nov. 17, 1979, 93 Stat. 866, Pub. L. 96-122, § 102; Mar. 24, 1990, D.C. Law 8-97, § 2(a), 37 DCR 1046; Apr. 3, 2001, D.C. Law 13-248, § 2(a), 48 DCR 655; Dec. 7, 2004, D.C. Law 15-205, § 1012(a), 51 DCR 8441; Apr. 8, 2005, D.C. Law 15-300, § 2(a), 52 DCR 1504; Apr. 7, 2006, D.C. Law 16-91, § 124, 52 DCR 10637; Sept. 12, 2008, D.C. Law 17-231, § 4, 55 DCR 6758.)

Prior Codifications

1981 Ed., § 1-702.

1973 Ed., § 1-1802.

Section References

This section is referenced in § 1-529.01, § 1-741, § 1-801.02, § 1-901.02, § 5-704, § 5-706, § 5-741, § 38-2021.01, § 38-2021.05, § 38-2021.09, and § 38-2061.02.

Effect of Amendments

D.C. Law 13-248 added par. (6A).

D.C. Law 15-205 added pars. (21), (22), and (23).

D.C. Law 15-300 added par. (24).

D.C. Law 16-91, in par. (24), validated previously made technical corrections.

D.C. Law 17-231, in par. (9)(E), substituted “spouse or domestic partner” for “spouse”; and added par. (25).

Cross References

Police Officers and Fire Fighters’ Retirement Fund, allowable creditable service, deposits required by fund members to the Custodian of Retirement Funds, see § 5-704.

Police Officers and Fire Fighters’ Retirement Fund, reallocation of funds from the Policemen and Firemen’s Relief Fund, payment to the Custodian of Retirement Funds, see § 5-741.

Police Officers and Fire Fighters’ Retirement Fund, salary deductions and withholdings from fund members, redeposit by the District of Columbia Retirement Board, see § 5-706.

Retirement funds, “district government” and “district retirement program” defined, see § 1-801.02.

Spouse equity, retirement programs, see § 1-529.01 et seq.

Teachers’ Retirement Fund, allowable creditable service, deposits required by fund members to the Custodian of Retirement Funds, see §§ 38-2021.09 and 38-2061.02.

Teachers’ Retirement Fund, restoration of terminated survivor benefits, repayment of liquidated annuity to the Custodian of Retirement Funds for redeposit, see §§ 38-2021.05 and 38-2021.09.

Teachers’ Retirement Fund, salary deductions and withholdings from fund members, redeposit by the Custodian of Retirement Funds, see § 38-2021.01.

Emergency Legislation

For temporary (90 day) Office of Financial Operations and Systems reorganization, applicable upon enactment by Congress of section 139 of the fiscal year 2005 budget Request Act or enactment of other Congressional legislation authorizing the transfer of administration of the retirement plans, see §§ 1011 to 1015 of Fiscal Year 2005 Budget Support Emergency Act of 2004 (D.C. Act 15-486, August 2, 2004, 51 DCR 8236).

For temporary (90 day) Office of Financial Operations and Systems reorganization, applicable upon enactment by Congress of section 139 of the fiscal year 2005 budget Request Act or enactment of other Congressional legislation authorizing the transfer of administration of the retirement plans, see §§ 1011 to 1015 of Fiscal Year 2005 Budget Support Congressional Review Emergency Act of 2004 (D.C. Act 15-594, October 26, 2004, 51 DCR 11725).

Short Title

Short title of subtitle B of title I of Law 15-205: Section 1011 of D.C. Law 15-205 provided that subtitle B of title I of the act may be cited as the Office of Financial Operations and Systems Reorganization Act of 2004.

References in Text

The “Executive Protective Service” was changed to “United States Secret Service Uniformed Division” in paragraphs (7)(A) and (19) by the Act of November 15, 1977, 91 Stat. 1371, Pub. L. 95-179.

“Subtitle C of Title III of the Employee Retirement Income Security Act of 1974,” referred to in (14) is codified at 29 U.S.C. § 1341 et seq.

“Section 2(1) of the Securities Act of 1933,” referred to in (15) is codified at 15 U.S.C. § 77b.

Editor's Notes

For conditional applicability of subtitle B of Title I of D.C. Law 15-205, see notes under § 1-911.04a.

Subchapter II. Establishment of Retirement Board and Retirement Funds.

§ 1–711. District of Columbia Retirement Board.

(a) There is established, as an independent agency of the government of the District of Columbia, a board of trustees to be known as the District of Columbia Retirement Board which shall have exclusive authority and discretion (subject to the requirements of this chapter) to manage and control the Funds established by this chapter, and for implementation and administration of the retirement program and post employment benefit programs.

(b)(1)(A) The Board shall consist of 12 members selected as follows:

(i) One member or officer of the Metropolitan Police force of the District of Columbia, to be elected by the members and officers of the Metropolitan Police force;

(ii) One retired member or officer of the Metropolitan Police force to be elected by the retired members and officers of the Metropolitan Police force;

(iii) One member or officer of the Fire Department of the District of Columbia, to be elected by the members and officers of the Fire Department;

(iv) One retired member or officer of the Fire Department of the District of Columbia, to be elected by the retired members and officers of the Fire Department;

(v) One teacher in the public day schools of the District of Columbia, to be elected by the teachers of the public day schools of the District of Columbia;

(vi) One teacher in the public day schools of the District of Columbia who is retired, to be elected by the retired teachers of the public day schools of the District of Columbia;

(vii) One senior judge and an alternate senior judge appointed by the Joint Committee on Judicial Administration of the District of Columbia. For purposes of calculating the total number of members of the Board, the senior judge and the alternate senior judge combined shall constitute one member of the Board.

(viii) Three individuals appointed by the Council of the District of Columbia; and

(ix) Three individuals appointed by the Mayor.

(B) A vacancy on the Board shall be filled in the manner in which the original selection was made.

(C) Upon transfer of the assets of the Judges’ Retirement Fund to the U.S. Secretary of the Treasury pursuant to Subtitle A of Title XI of the Balanced Budget Act of 1997, approved August 5, 1997 (P.L. 105-33; 111 Stat. 963), the senior judge and the alternative senior judge shall no longer serve on the Board. Thereafter, the Board shall consist of 12 members.

(2) The 1st election of the Board members described in sub-subparagraphs (i) through (vi) of subparagraph (A) of paragraph (1) of this subsection shall be conducted within 6 months after the date of the enactment of this chapter in accordance with regulations which the Mayor shall promulgate. Thereafter, elections shall be conducted by the Board. In any such election, voting shall be by secret ballot, and each individual to be represented on the Board by the winner of such election shall be eligible to vote in such election.

(3)(A) Members of the Board shall each serve a term of 4 years, except that a member selected to fill a vacancy occurring prior to the end of the term for which his predecessor was selected shall only serve until the end of such term. If the portion of the remaining term to be filled is one year or less, the member selected to fill the vacancy shall serve until the end of such term and shall serve a subsequent 4-year term. A member may serve after the expiration of his term until his successor has taken office.

(B) A vote of two-thirds of the members of the Board shall remove any Board member from office for good cause, after notice to the Board member.

(4) Repealed.

(5) Any individual who was selected as a member of the Board under sub-subparagraph (A)(i), (iii), or (v) of paragraph (1) of this subsection and who ceases to be a member or officer of the Metropolitan Police force, member or officer of the Fire Department, or a teacher, as the case may be, may not continue as a member of the Board.

(6) No member of the Board may hold or be a candidate for any elective office in the District of Columbia.

(7) A member of the Board shall not have any personal interest, direct or indirect, except as a participant in a retirement program, in any transaction involving assets of the Funds established by this chapter and shall otherwise comply with the standards of conduct established by subchapter V of this chapter.

(8) Not less than 2 members of the Board appointed by the Mayor and 1 member of the Board appointed by the Council under paragraph (1) of this subsection shall be individuals who have professional experience in the banking, insurance, or investment industry.

(9) Any member of the Board may be removed from the Board by a vote of two thirds of the members of the Board for a breach of fiduciary responsibility with respect to a Fund or for a violation of § 1-744.

(10) The Board shall elect 1 member of the Board to be Chairman of the Board. The Chairman shall be elected for a term of 1 year, but may be removed from such position by a vote of two thirds of the members of the Board.

(11) The Chief Financial Officer of the District of Columbia, his or her successor, or his or her designee, shall be an ex officio member of the Board, but shall not vote, shall not be eligible to be elected Chairman of the Board, and shall not be counted for purposes of a quorum. For purposes of continuity on the board of trustees, the Mayor shall notify the Board in writing if the designated ex officio member of the Board is replaced.

(c)(1) Subject to the availability of appropriations for that purpose, each member of the Board shall be entitled to receive the hourly equivalent of the annual rate of pay in effect for the highest step of grade DS-15 under Chapter 6 of this title for each hour that the member is engaged in the actual performance of duties vested in the Board, except that a member of the Board who is a full-time officer or employee of the District of Columbia or the United States shall not be entitled to receive pay under this subsection for performance of duties vested in the Board during the employee’s regularly scheduled working hours, and the total amount to which a member may be entitled under this subsection during a year may not exceed:

(A) Beginning in Fiscal Year 2021, $25,000 for the Chairperson of the Board; and

(B) Beginning in Fiscal Year 2021, $15,000 for each member entitled to compensation under this paragraph other than the Chairperson.

(2) Members of the Board who are employees of the District of Columbia shall be entitled to leave, without loss of pay, leave, or credit for time of service, while engaged in the actual performance of duties vested in the Board. To the extent that Board duties are performed by a District employee during other than the regularly scheduled working hours of the employee, the employee shall be entitled to receive pay in accordance with paragraph (1) of this subsection.

(3) Members of the Board who are eligible to receive compensation under this subsection are exempt from §§ 5-723(e), 38-2061.01, and 1-611.03(b) and (c) [subsection (c) repealed].

(4) The Board may participate in seminars, conventions, dinners, or similar activities at the expense of a bank, investment manager, brokerage firm, or other entity only if the principal purpose of the activity is to discuss financial matters for the benefit of the participants and beneficiaries of the Fund and the activity is of a nature normally provided free of charge to other institutional investors. Participation in the activities in accordance with this paragraph shall not constitute a violation of subchapter XVIII of Chapter 6 of this title. The Board shall provide a list of these activities, indicating the sponsor and date of each activity, as part of the annual report provided for in § 1-732.

(d)(1) The Board shall meet at least once each calendar quarter at a regular and specified time. It shall meet at such other times as the Chairman or any 3 members of the Board may prescribe.

(2) A majority of members shall constitute a quorum for the transaction of the business of the Board.

(3) Except as otherwise provided in this chapter, actions of the Board shall be determined by a majority vote of the members present and voting.

(e) The Board shall from time to time, or when necessary, promulgate and adopt rules, regulations, and resolutions, and issue directives for the management and administration of the retirement program and for management and control of the Funds. To efficiently administer and implement the retirement program and manage the Funds, the Board may make reasonable interpretations of and implement all governing authorities. All governing authorities shall comply with necessary qualification requirements set forth by the Internal Revenue Code as amended for governmental retirement plans. Governing authorities may constitute the Trust Document for the retirement program and the Funds. Prior to the enactment or adoption of any governing authority, the Retirement Board shall submit a written analysis of the proposed governing authority to the appropriate person including the Mayor, the Council of the District of Columbia, the Chief Financial Officer, the Chairman of the District of Columbia Public Charter School Board, the President of the Board of Education, or their successors, for purposes of fulfilling its fiduciary duties and for continued compliance with Internal Revenue Code qualification requirements.

(f)(1) All administrative expenses incurred by the Board in carrying out this chapter, including compensation for the members of the Board, shall be paid out of funds appropriated for such purpose.

(2) The budget prepared and submitted by the Mayor pursuant to § 1-204.42 shall include recommended expenditures at a reasonable level for the forthcoming fiscal year for the administrative expenses of the Board.

(3) The Mayor and the Council may establish the amount of funds which will be allocated to the Board for administrative expenses, but may not specify the purposes for which such funds may be expended or the amounts which may be expended for the various activities of the Board.

(g)(1) The Board shall engage the services of competent investment counsel or counsels each of whom shall be either:

(A) Registered under title II of An Act To provide for the registration and regulation of investment companies and investment advisers (15 U.S.C. § 80b-1 et seq.) (“Investment Advisers Act of 1940”);

(B) A bank, as defined in the Investment Advisers Act of 1940; or

(C) An insurance company qualified to perform investment advisory services under the laws of more than 1 state. The investment counsel or counsels shall be fiduciaries with respect to services rendered to the Board. This fiduciary relationship shall be specified in a written agreement between the investment counsel or counsels and the Board.

(2)(A) As an independent agency of the District government pursuant to this chapter and § 1-603.01(13), the Board may appoint any staff it considers necessary to carry out the responsibilities under this chapter. Except as provided under subsection (k) of this section, staff appointed by the Board shall be subject to Chapter 6 of Title 1.

(B)(i)(I) Notwithstanding the provisions of Unit A of Chapter 14 of Title 2, the Board shall use a ranking system based on a scale of 100 points for all employment decisions for positions within the Board.

(II) An individual who is a District resident at the time of application shall be awarded a 10-point hiring preference over a nonresident applicant; provided, that the individual claims the preference. This 10-point preference shall be in addition to any points awarded on the 100-point scale.

(III) At the time of appointment, an individual who claimed the 10-point residency preference shall agree, in writing, to maintain District residency for a period of 7 consecutive years from the effective date of appointment into the position for which the individual claimed the residency preference.

(IV) An individual who claimed the residency preference and who fails to maintain District residency for 7 consecutive years from the individual's effective date of appointment shall forfeit the individual's District government employment.

(V) Each applicant for a position covered by this sub-subparagraph shall be informed in writing of the provisions of this sub-subparagraph at the time of application.

(ii) The Board shall verify and enforce District residency requirements pursuant to § 1-515.04.

(iii) By November 1 of each year and pursuant to § 1-515.06, the Board shall submit to the Mayor an annual report detailing, for the previous fiscal year, compliance with residency requirements.

(C) The Executive Director, who shall be appointed to manage the day-to-day operations of the Board, shall be a District resident throughout his or her term and failure to maintain District residency shall result in a forfeiture of the position.

(D) Notwithstanding any other provision of law, the annual salary of the Executive Director shall be fixed by the Board as it considers necessary at a rate not to exceed 135% of the highest step of Grade E5 of the Executive Service.

(h) Not more than 90 days after all initial members of the Board have been selected in accordance with subsection (b) of this section, the Board shall certify in writing to the Director of the Office of Budget and Financial Management of the District of Columbia that the Board is assuming responsibility for the Funds established by this chapter.

(i)(1) The Board shall have the authority to enter into contracts with the governments of the District of Columbia and the United States and other public and private entities to the extent necessary to carry out its responsibilities under this chapter.

(2) The Board shall issue proposed rules governing the procurement of goods and services pursuant to the authority granted in paragraph (1) of this subsection. The proposed rules shall be submitted to the Council for a 45-day period of review, excluding Saturdays, Sundays, legal holidays, and days of Council recess. If the Council does not approve or disapprove the proposed rules, in whole or in part, by resolution within this 45-day review period, the proposed rules shall be deemed approved.

(j) In accordance with § 1-809.01, after enactment of Chapter 8 of this title, the Board shall continue to discharge its duties and responsibilities under the retirement program and to the Funds (as the duties and responsibilities are modified by the Retirement Protection Act), including the responsibility for federal benefit payments provided in § 1-903.05, until the Secretary of the U.S. Treasury provides notification to the District government as required under the Retirement Protection Act.

(k) Staff appointed by the Board pursuant to subsection (g)(2) of this section shall not be subject to the provisions of subchapter XI of Chapter 6 of this title. The Board shall have exclusive authority to establish classification and compensation policy for staff appointed by the Board, provided that staff shall not be paid at a rate greater than the highest level authorized for nonunion workers in the District Service schedule. The Board shall establish by regulation a new compensation system for staff appointed by the Board within one year of October 20, 1999. Until a new compensation system is established by regulation, staff appointed by the Board shall be subject to the compensation policy applicable prior to October 20, 1999. The Board shall have exclusive authority to establish by regulation alternative benefits requirements for its employees to insure an efficient system of personnel administration and to recruit and retain highly qualified personnel.

(l) Within 30 days after December 7, 2004, the Board, in consultation with the Chief Financial Officer, shall determine the time and methodology for transferring the necessary functional responsibilities, as defined by rules and regulations issued by the Board from the Office of Payroll and Retirement Services of the Office of Financial Operations and Systems to the Board.

(m) The Board may reasonably rely upon records, statements, and representations from the Mayor, the Chief Financial Officer, the District of Columbia Public Charter School Board, the Secretary of the Board of Education, or its successor, a participant or beneficiary sworn in or acknowledged before an individual authorized to administer oaths, or presenting an affidavit, certification, or other reasonably reliable proof regarding any matter affecting the rights and privileges of a participant or beneficiary under the retirement program and post employment benefit programs.

(Nov. 17, 1979, 93 Stat. 866, Pub. L. 96-122, § 121; Mar. 24, 1990, D.C. Law 8-97, § 2(b), 37 DCR 1046; Sept. 10, 1992, D.C. Law 9-145, § 401(a), 39 DCR 4895; Mar. 16, 1993, D.C. Law 9-201, § 2, 39 DCR 9219; Oct. 29, 1993, 107 Stat. 1349, Pub. L. 103-127, § 139(a); Mar. 16, 1995, D.C. Law 10-214, § 2, 41 DCR 8034; Apr. 18, 1996, D.C. Law 11-110, § 4, 43 DCR 530; Aug. 5, 1997, 111 Stat. 758, Pub. L. 105-033, § 11252(c); Nov. 19, 1997, 111 Stat. 2184, Pub. L. 105-100, § 152(a); Sept. 18, 1998, D.C. Law 12-152,§§ 205, 206, 45 DCR 4045; Oct. 21, 1998, 112 Stat. 2421, Pub. L. 105-274, § 2(d)(1), (e)(3); Oct. 21, 1998, 112 Stat. 2681-536, Pub. L. 105-277, § 804(d)(1), (e)(3); Oct. 20, 1999, D.C. Law 13-38, § 902, 46 DCR 6373; Nov. 29, 1999, 113 Stat. 1512, Pub. L. 106-113, par. 35; Apr. 3, 2001, D.C. Law 13-248, § 2(b), 48 DCR 655; Dec. 7, 2004, D.C. Law 15-205, § 1012(b), 51 DCR 8441; Apr. 8, 2005, D.C. Law 15-300, § 2(b), 52 DCR 1504; Apr. 7, 2006, D.C. Law 16-91, § 125(a), 52 DCR 10637; Mar. 2, 2007, D.C. Law 16-191,§ 96, 53 DCR 6794; Feb. 6, 2008, D.C. Law 17-108, § 204, 54 DCR 10993; May 23, 2019, D.C. Law 22-315, § 4, 66 DCR 1983; Nov. 13, 2021, D.C. Law 24-45, § 7122, 68 DCR 010163.)

Prior Codifications

1981 Ed., § 1-711.

1973 Ed., § 1-1811.

Section References

This section is referenced in § 1-612.03, § 1-702, § 1-715, § 1-721, § 1-901.02, and § 1-911.04a.

Effect of Amendments

Public Law 106-113, in par. (1) of subsec. (c), added “except that in the case of the Chairman of the Board and the Chairman of the Investment Committee of the Board, such amount may not exceed $7,500 (beginning with 2000)”.

D.C. Law 13-38 rewrote par. (11) of subsec. (b), which previously read:

“The Director of the Office of Budget and Financial Management of the District of Columbia shall be an ex officio member of the Board, but shall not vote, shall not be eligible to be elected Chairman of the Board, and shall not be counted for purposes of a quorum.”;

in par. (2) of subsec. (d), substituted “A majority of members” for “Any 8 members”; added subsec. (k).

D.C. Law 13-248, in subsec. (b), rewrote par. (3) and repealed par. (4) which had read:

“(3)(A) Except as provided in subparagraph (B) of this paragraph, the members of the Board shall each serve a term of 4 years, except that a member selected to fill a vacancy occurring prior to the end of the term for which his predecessor was selected shall only serve until the end of such term. A member may serve after the expiration of his term until his successor has taken office.

“(B) Of the members of the Board who are first selected: (i) Two shall serve for a term of 1 year; (ii) three shall serve for a term of 2 years; (iii) three shall serve for a term of 3 years; and (iv) three shall serve for a term of 4 years; as determined by lot at the 1st meeting of the Board.

“(4) No individual shall serve more than 2 terms as a member of the Board, except that an individual serving less than 2 years of a term to which some other individual was originally selected shall be eligible for 2 full terms as a member of the Board and an individual serving 2 years or more of a term to which some other individual was originally selected shall be eligible for only 1 full term as a member of the Board.”

D.C. Law 15-205, in subsec. (a), substituted “by this chapter, and for implementation and administration of the retirement program and post employment benefit programs.” for “by this chapter.”; rewrote subsec. (e); and added subsecs. (l) and (m). Prior to amendment, subsec. (e) had read as follows: “(e) The Board shall from time to time promulgate rules and regulations, adopt resolutions, issue directives for the administration and transaction of its business and for the control of the Funds established by this chapter, and perform such other functions as may be necessary to carry out its responsibilities under this chapter.”

D.C. Law 15-300, in subsec. (c)(1), substituted “may not exceed $10,000” for “(beginning with 1998) may not exceed $5,000”; in subsec. (g)(2), rewrote the last sentence which had read: “Staff appointed by the Board shall be subject to Chapter 6 of this title.”; in subsec. (k), inserted: “The Board shall have exclusive authority to establish by regulation alternative benefits requirements for its employees to insure an efficient system of personnel administration and to recruit and retain highly qualified personnel.”

D.C. Law 16-91, in subsec. (a), validated previously made technical corrections.

D.C. Law 16-191, in subsec. (c)(1), deleted “, except that in the case of the Chairman of the Board and the Chairman of the Investment Committee of the Board, such amount may not exceed $7,500 (beginning with 2000)” following “$10,000”.

D.C. Law 17-108, in subsec. (g)(2), designated the existing text as subpar. (A) and added subpars. (B) and (C).

Cross References

District of Columbia Retirement Board, administrative leave, see § 1-612.03.

Police and Firemen’s Retirement and Relief Board, compensation of members, see § 1-611.08.

Police Officers, Fire Fighters, and Teachers Retirement Benefit Replacement Plan, “retirement board” defined, see § 1-901.02.

Emergency Legislation

For temporary (90 days) amendment of this section, see § 7122 of Fiscal Year 2022 Budget Support Emergency Act of 2021 (D.C. Act 24-159, Aug. 23, 2021, 68 DCR 008602).

For temporary (90 days) amendment of this section, see § 2 of District of Columbia Retirement Board Leadership Emergency Amendment Act of 2021 (D.C. Act 24-64, May 5, 2021, 68 DCR 004901).

For temporary amendment of section, see § 205 of the Police Officers, Fire Fighters, and Teachers Retirement Benefit Replacement Plan Emergency Act of 1997 (D.C. Act 12-155, October 1, 1997, 44 DCR 5896), § 205 of the Police Officers, Fire Fighters, and Teachers Retirement Benefit Replacement Plan Congressional Review Emergency Act of 1997 (D.C. Act 12-240, January 13, 1998, 45 DCR 531), § 205 of the Police Officers, Fire Fighters, and Teachers Retirement Benefit Replacement Plan and Fiscal Year 1998 Revised Budget Support Act of 1997 Technical Amendments Emergency Act of 1998 (D.C. Act 12-351, May 20, 1998, 45 DCR 3673), and § 205 of the Police Officers, Fire Fighters, and Teachers Retirement Benefit Replacement Plan and Fiscal Year 1998 Revised Budget Support Act of 1997 Technical Amendments Congressional Review Emergency Amendment Act of 1998 (D.C. Act 12-432, August 6, 1998, 45 DCR 5920).

For temporary (90-day) amendment of section, see § 902 of the Service Improvement and Fiscal Year 2000 Budget Support Emergency Act of 1999 (D.C. Act 13-110, July 28, 1999, 46 DCR 6320).

For temporary (90 day) amendment of section, see § 2 of the Retirement Reform Emergency Amendment Act of 2000 (D.C. Act 13-439, October 20, 2000, 47 DCR 8990).

For temporary (90 day) amendment of section, see § 2 of the Retirement Reform Congressional Review Emergency Amendment Act of 2000 (D.C. Act 13-526, January 11, 2001, 48 DCR 636).

Temporary Legislation

For temporary (225 days) amendment of this section, see § 2 of District of Columbia Retirement Board Leadership Temporary Amendment Act of 2021 (D.C. Law 24-14, July 28, 2021, 68 DCR 005856).

For temporary (225 day) amendment of section, see § 2 of the Retirement Reform Temporary Amendment Act of 1996 (D.C. Law 11-131, May 24, 1996, law notification 43 DCR 2965).

For temporary (225 day) amendment of section, see § 205 of the Police Officers, Fire Fighters, and Teachers Retirement Benefit Replacement Plan Temporary Act of 1997 (D.C. Law 12-58, March 20, 1998, law notification 45 DCR 2093).

For temporary (225 day) amendment of section, see § 2 of the Retirement Reform Temporary Amendment Act of 2000 (D.C. Law 13-205, March 31, 2001, law notification 48 DCR 3236).

Effective Dates

Section 2(d)(3) of Pub. L. 105-274 and § 804(d)(3) of Pub. L. 105-277 provided that § 11252(c) of Pub. L. 105-33, as renumbered by § 2(d)(1) of Pub. L. 105-274 and § 804(d)(1) of Pub. L. 105-277, shall take effect on the Dates on which the assets of the District of Columbia Judges Retirement Fund are transferred to the District of Columbia Judicial Retirement and Survivors Annuity Fund.

Editor's Notes

Application of Law 12-152: Section 209 of D.C. Law 12-152 provided that the act shall apply as of October 1, 1997.

Repeal of Title IV of D.C. Law 9-145: Section 139(a) of Pub. L. 103-127, 107 Stat. 1349, provided that Title IV of the District of Columbia Omnibus Budget Support Act of 1992 (D.C. Law 9-145) is hereby repealed, and any provision of the District of Columbia Retirement Reform Act amended by such title is restored as if such title had not been enacted into law.

Section 139(b) of Pub. L. 103-127 provided that subsection (a) of that section shall apply beginning September 10, 1992.

For conditional applicability of subtitle B of Title I of D.C. Law 15-205, see notes under § 1-911.04a.

Resolutions

Resolution 16-335, the “District of Columbia Retirement Board Procurement Rules Amendment Approval Resolution of 2005”, was approved effective October 14, 2005.

§ 1–712. District of Columbia Police Officers and Fire Fighters’ Retirement Fund.

(a) There is established a fund to be known as the District of Columbia Police Officers and Fire Fighters’ Retirement Fund into which shall be deposited the following, which shall constitute the assets of the Fund:

(1) Any amount paid to the Custodian of Retirement Funds pursuant to the last sentence of § 5-706(a) or to § 5-704(e)(1) or to § 5-741;

(2) Any amount appropriated for such Fund under subchapter III of this chapter; and

(3) Any return on investment of the assets of such Fund.

(b) After September 30, 1979, or after the end of the 30-day period beginning on the date on which funds are first appropriated to the District of Columbia Police Officers and Fire Fighters’ Retirement Fund, whichever is later, all payments of annuities and other retirement and disability benefits (including refunds and lump-sum payments) under the Policemen and Firemen’s Retirement and Disability Act (§ 5-701 et seq.) shall be made from the Fund (except for any such payment which is made to an officer or member of the United States Park Police force, the United States Secret Service Uniformed Division, or the United States Secret Service Division, or to a beneficiary of any such officer or member).

(Nov. 17, 1979, 93 Stat. 866, Pub. L. 96-122, § 122(a).)

Prior Codifications

1981 Ed., § 1-712.

1973 Ed., § 1-1812.

Section References

This section is referenced in § 1-702, § 1-752, § 1-901.02, § 5-544.01, § 5-704, § 5-706, § 5-717, § 5-723.04, § 5-741, and § 5-742.

Cross References

Police and firefighters retirement and disability, reestablishment of annuity, redeposit of previously refunded deductions, computation of interest, see § 5-717.

Police Officers and Fire Fighters’ Retirement Fund, allowable creditable service, deposits required by fund members to the Custodian of Retirement Funds, see § 5-704.

Police Officers and Fire Fighters’ Retirement Fund, creditable service, service in military or naval forces, see § 5-742.

Police Officers and Fire Fighters’ Retirement Fund, reallocation of funds from the Policemen and Firemen’s Relief Fund, see § 5-741.

Police Officers and Fire Fighters’ Retirement Fund, salary deductions and withholdings from fund members, see § 5-706.

Police Officers, Fire Fighters, and Teachers Retirement Benefit Replacement Plan, “Police Officers and Fire Fighters’ Retirement Fund” defined, see § 1-901.02.

Emergency Legislation

Section 5 of D.C. Law 11-218 repealed D.C. Act 11-369.

For temporary repeal of the Police Officers’, Fire Fighters’, and Teachers’ Defined Benefit Pension Program Emergency Establishment Act of 1996 (D.C. Act 11-369, August 21, 1996, 41 DCR 4637), see § 5 of the New Hires Police Officers, Fire Fighters, and Teachers Pension Modification Congressional Adjournment Emergency Amendment Act of 1997 (D.C. Act 12-10, March 3, 1997, 44 DCR 1633).

References in Text

The “Executive Protection Service” was changed to “United States Secret Service Uniformed Division,” referred to in subsection (b), by the Act of November 15, 1977, 91 Stat. 1371, Pub. L. 95-179.

Editor's Notes

Lump-sum payments to certain retired employees: H.R. 3067, amended by H.R. 99-419, incorporated in Pub. L. 99-190 by § 101(c), the D.C. Appropriation Act, 1986, provided that notwithstanding any other provisions of law, in the case of each employee who retired from the Fire Department of the District of Columbia before February 15, 1980, and who is receiving from the date of enactment of this act an annuity based on service in the Fire Department, the District of Columbia Retirement Board shall cause to be paid not later than September 30, 1985, to each such employee a lump-sum payment equal to 3 percent of his or her annuity.

Section 101(d) of Pub. L. 99-591, the D.C. Appropriations Act, 1987, provided, that, notwithstanding any other provision of law, in the case of each employee who retired from the Fire Department of the District of Columbia between November 24, 1984, and April 13, 1985 (both dates inclusive), and who on the date of the enactment of this Act are receiving annuities based on service in the Fire Department, the District of Columbia Retirement Board shall cause to be paid not later than October 15, 1986, to each such employee a lump-sum payment equal to 3 percent of his or her annuity.

Federal contribution to retirement funds: Public Law 104-194, 110 Stat. 2356, the District of Columbia Appropriations Act, 1997, provided for the federal contribution to the Police Officers’ and Fire Fighters’, Teachers’, and Judges’ Retirement Funds, as authorized by the District of Columbia Retirement Reform Act, approved November 17, 1979 (93 Stat. 866; Public Law 96-122), $52,070,000.

§ 1–713. District of Columbia Teachers’ Retirement Fund.

(a)(1) There is established a fund to be known as the District of Columbia Teachers’ Retirement Fund into which shall be deposited the following, which shall constitute the assets of the Fund:

(A) Any amount paid to the Custodian of Retirement Funds pursuant to § 38-2021.01 et seq., or under § 38-2061.02;

(B) Any asset transferred to such Fund under subsection (b) of this section;

(D) Any return on investment of assets of such Fund.

(2) Annuities and other retirement and disability benefits (including refunds and lump-sum payments) payable from the District of Columbia Teachers’ Retirement and Annuity Fund established by § 38-2021.02 shall continue to be paid from such Fund until all amounts in such Fund have been expended or transferred under subsection (b) of this section to the District of Columbia Teachers’ Retirement Fund, and thereafter such benefits shall be paid from the District of Columbia Teachers’ Retirement Fund.

(b) Notwithstanding any other provision of law, any asset held in the District of Columbia Teachers’ Retirement and Annuity Fund established by § 38-2021.02 may be transferred to the District of Columbia Teachers’ Retirement Fund established by subsection (a) of this section.

(Nov. 17, 1979, 93 Stat. 866, Pub. L. 96-122, § 123(a), (c).)

Prior Codifications

1981 Ed., § 1-713.

1973 Ed., § 1-1813.

Section References

This section is referenced in § 1-702, § 1-752, § 1-901.02, § 38-2021.01, § 38-2021.05, § 38-2021.09, § 38-2021.17, § 38-2023.04, § 38-2023.13, § 38-2023.14, and § 38-2061.02.

Cross References

Police Officers, Fire Fighters, and Teachers Retirement Benefit Replacement Plan, “teachers’ retirement fund” defined, see § 1-901.02.

Retirement of public school teachers, purchase or reestablishment of annuity, computation of interest, see § 38-2023.14.

Teachers’ Retirement Fund, allowable creditable service, deposits required by fund members, see § 38-2061.02.

Teachers’ Retirement Fund, application of annuity increases, see § 38-2023.13.

Teachers’ Retirement Fund, assignment, garnishment or attachment of funds, see § 38-2021.17.

Teachers’ Retirement Fund, payment of annuities, see § 38-2023.04.

Teachers’ Retirement Fund, records, accounts and reporting, see § 38-2021.14.

Teachers’ Retirement Fund, restoration of terminated survivor benefits, repayment of liquidated annuity, see §§ 38-2021.05 and 38-2021.09.

Emergency Legislation

Section 5 of D.C. Law 11-218 repealed D.C. Act 11-369.

§ 1–714. District of Columbia Judges’ Retirement Fund.

(a) There is established a fund to be known as the District of Columbia Judges’ Retirement Fund into which shall be deposited the following (except as provided in § 11-1570), which shall constitute the assets of the Fund:

(1) Any amount deposited pursuant to subchapter III of Chapter 15 of Title 11;

(2) Any asset transferred to such Fund under subsection (b) of this section;

(3) Any amount appropriated for such Fund under subchapter III of this chapter; and

(4) Any return on investment of the assets of such Fund.

(b) Notwithstanding any other provision of law, any asset held in the District of Columbia Judicial Retirement and Survivors Annuity Fund may be transferred to the District of Columbia Judges’ Retirement Fund established by subsection (a) of this section.

(c)(1) Notwithstanding any other provision of this chapter or the amendments made by this chapter, upon the date the assets of the Retirement Fund described in subtitle A of title XI of the Balanced Budget Act of 1997 [Pub. L. 105-33] are transferred, the assets of the District of Columbia Judges’ Retirement Fund established under subsection (a) shall be transferred to the District of Columbia Judicial Retirement and Survivors Annuity Fund under § 11-1570, and no amounts shall be deposited into the District of Columbia Judges’ Retirement Fund after the date on which the assets are so transferred.

(2) In accordance with the direction of the Secretary, the District of Columbia Judges’ Retirement Fund established under subsection (a) shall be continued at the Board and used for the purposes provided in this chapter until such time as all amounts in such Fund have been expended or transferred to the District of Columbia Judicial Retirement and Survivors Annuity Fund pursuant to paragraph (1) of this subsection. Thereafter any payments of retirement pay, annuities, refunds, and allowances for judicial personnel of the District of Columbia shall be paid from the District of Columbia Judicial Retirement and Survivors Annuity Fund in accordance with subchapter III of Chapter 15 of Title 11.

(Nov. 17, 1979, 93 Stat. 866, Pub. L. 96-122, § 124(a), (c); Aug. 5, 1997, 111 Stat. 758, Pub. L. 105-33, § 11252(a); Oct. 21, 1998, 112 Stat. 2419, Pub. L. 105-274, § 2(c); Oct. 21, 1998, 112 Stat. 2681-536, Pub. L. 105-277,§ 804(c).)

Prior Codifications

1981 Ed., § 1-714.

1973 Ed., § 1-1814.

Section References

This section is referenced in § 1-611.03, § 1-702, § 1-752, § 1-807.03, § 1-821.01, § 1-901.02, and § 11-1564.

Cross References

District of Columbia judges, retirement, computation of retirement salary, see § 11-1564.

Judges’ Retirement Fund, allocation of retirement benefits, see § 1-611.03.

Judges’ Retirement Fund, transition from District of Columbia administration, see § 1-821.01.

Judicial Retirement and Survivors Annuity Fund, transfer of assets, see § 1-807.03.

Police Officers, Fire Fighters, and Teachers Retirement Benefit Replacement Plan, “judges’ retirement fund” and “retirement program” defined, see § 1-901.02.

Emergency Legislation

For temporary amendment of section, see § 2 of the Comprehensive Merit Personnel Act Annuity Offset Emergency Amendment Act of 1997 (D.C. Act 12-123, August 1, 1997, 44 DCR 4652), and see § 2 of the Comprehensive Merit Personnel Act Annuity Offset Legislative Review Emergency Amendment Act of 1997 (D.C. Act 12-183, October 30, 1997, 44 DCR 6958).

References in Text

Subtitle A of title XI of the Balanced Budget Act of 1997, referred to in (c)(1), is subtitle A of title XI of Pub. L. 105-33, codified at Chapter 8 of Title 1.

Editor's Notes

§ 1–715. Management of Retirement Funds.

(a)(1) The District of Columbia Retirement Board shall be the custodian of the assets of each Fund established by this chapter and shall manage and invest such assets in accordance with this chapter. Except as provided in paragraph (2) of this subsection, all assets in the possession or control of the Board shall be held in trust pursuant to a written trust instrument by 1 or more trustees appointed by the Board in its fiduciary capacity. Upon acceptance of the appointment, the trustee or trustees shall have authority and discretion to manage and control the assets assigned to it by the Board except to the extent that authority to manage, acquire, or dispose of assets of the Fund is retained by the Board or is delegated by the Board to 1 or more investment counsels pursuant to § 1-711(g)(1).

(2) The requirements of paragraph (1) of this subsection shall not apply to any assets of a Fund which consist of insurance contracts of policies issued by an insurance company qualified to do business in a state.

(b) The assets of each Fund shall be kept separate from other moneys which may be under the control of the District of Columbia Retirement Board, but need not be kept separate from the assets of the other Funds if the Board determines that commingling of such assets is advisable for investment purposes.

(c) The Board shall maintain, in an appropriate depository, a cash reserve for the Funds in an amount determined by the Board to be sufficient to meet current outlays for annuities and other retirement and disability benefits authorized to be paid from such Funds.

(Nov. 17, 1979, 93 Stat. 866, Pub. L. 96-122, § 125; Mar. 24, 1990, D.C. Law 8-97, § 2(c), 37 DCR 1046; Apr. 13, 2005, D.C. Law 15-354, § 3(a), 52 DCR 2638.)

Prior Codifications

1981 Ed., § 1-715.

1973 Ed., § 1-1815.

Effect of Amendments

D.C. Law 15-354 substituted “District of Columbia Retirement Board” for “Custodian of Retirement Funds”.

Editor's Notes

Independent audit of Retirement Board: Section 135 of Public Law 103-334, 108 Stat. 2588, the District of Columbia Appropriations Act, 1995, provided that the District of Columbia Retirement Board shall enter into an agreement with an independent firm meeting certain qualifications to prepare and submit to the Retirement Board a written set of findings and recommendations not later than 6 months after the date of the enactment of this Act regarding the appropriateness and adequacy of the Retirement Board’s fiduciary, management, and investment practices and procedures, and provided for expenditure of funds.

§ 1–716. Payments from Retirement Funds.

The District of Columbia Retirement Board shall determine the amount of any payments to be made from the funds established by this act for annuities or any other retirement or disability benefits, including refunds and lump-sum payments, and the Board shall make such payments from the appropriated fund.

Subchapter III. Financing of Retirement Benefits.

§ 1–721. Limitation on investment of Retirement Funds.

(a) Except as provided in subsection (d) of this section, the assets of the Funds may not be invested in the following:

(1) Interest-bearing bonds, notes, bills, or certificates of indebtedness of the government of the District of Columbia, the government of the Commonwealth of Virginia, or the government of the State of Maryland, or the government of any political subdivision thereof, or of any entity subject to control by any such government or any combination of any such governments;

(2) Obligations fully guaranteed as to the payment of both principal and interest by the government of the District of Columbia, the government of the Commonwealth of Virginia, or the government of the State of Maryland, or the government of any political subdivision thereof, or of any entity subject to control by any such government or any combination of any such governments;

(3) Real property in the District of Columbia, Virginia, or Maryland;

(4) Loans, mortgages, bonds, notes, bills, or certificates of indebtedness secured, in whole or in part, by real property in the District of Columbia, Virginia, or Maryland;

(5) Repealed.

(b) Until such time as the members of the Board are first selected and the Board certifies pursuant to § 1-711(h) that it is assuming responsibility for the Funds established by this chapter, the assets of such Funds may only be invested in the following:

(1) Interest-bearing bonds, notes, bills, or certificates of indebtedness of the United States government, or obligations fully guaranteed as the payment of both principal and interest by the United States government; and

(2) Interest-bearing certificates of deposit issued by national, state, or District of Columbia savings and loan institutions.

(c)(1) Any assets of the Funds invested after March 16, 1993, in stocks, securities, or other obligations of any institution or company doing business in or with Northern Ireland or with agencies or instrumentalities of Northern Ireland shall be invested to reflect advances to eliminate discrimination made by these institutions and companies pursuant to paragraph (2) of this subsection.

(2) The Mayor shall consider the following criteria, referred to as the MacBride Principles, to determine the advances to eliminate discrimination made by companies and institutions doing business in or with Northern Ireland or with agencies or instrumentalities of Northern Ireland:

(A) Increasing the representation of individuals from under represented religious groups in the work force, including managerial, supervisory, administrative, clerical, and technical jobs;

(B) Providing adequate security for the protection of minority employees both at the workplace and while traveling to and from work;

(D) Publicly advertising all job openings and making special recruitment efforts to attract applicants from underrepresented religious groups;

(E) Providing that layoff, recall, and termination procedures should not in practice favor particular religious groups;

(F) Abolishing job reservations, apprenticeship restrictions, and differential employment criteria that discriminate on the basis of religion or ethnic origin;

(G) Developing training programs that will prepare substantial numbers of current minority employees for skilled jobs, including the expansion of existing programs and the creation of new programs to train, upgrade, and improve the skills of minority employees;

(H) Establishing procedures to assess, identify, and actively recruit minority employees with potential for further advancement; and

(I) Appointing senior management staff members to oversee affirmative action efforts and the setting up of timetables to carry out affirmative action principles.

(3)(A) On or before the 1st day of October of each year, the Mayor shall determine the existence of affirmative action taken by all institutions and companies doing business in or with Northern Ireland, in which Funds are or will be invested, in adhering to the MacBride Principles as enumerated in paragraph (2) of this subsection and provide an annual report of his or her findings for presentation to the Council, which report shall be made available for public inspection.

(B) In making the determination pursuant to subparagraph (A) of this paragraph, the Mayor may rely on reference sources, such as the Investor Responsibility Research Center (IRRC), in making a determination with respect to the affirmation action taken by the institutions and companies.

(d) The limitations on investments under subsection (a) of this section shall not apply to any of the following investments; provided, that the Board has no discretionary authority for investment decisions in specific geographical regions or political subdivisions, and further provided, that not more than 25% of the interests in pooled or commingled real estate investment vehicles is held by the Fund in:

(1) Pooled or commingled real estate investment vehicles;

(2) Publicly-traded real estate investment trusts and real estate operating companies; or

(3) Pooled or commingled real estate investment vehicles holding pass-through securities that contain mortgages, loans, bonds, notes and other similar instruments issued by private institutions, and that are guaranteed by the federal government or any of its agencies or government-sponsored enterprises.

(Nov. 17, 1979, 93 Stat. 866, Pub. L. 96-122, § 141; Mar. 8, 1984, D.C. Law 5-50, § 4, 30 DCR 5916; July 22, 1992, D.C. Law 9-127, § 4, 39 DCR 3828; Mar. 16, 1993, D.C. Law 9-185, § 4, 39 DCR 8221; June 28, 1994, D.C. Law 10-134, § 3, 41 DCR 2597; Apr. 8, 2005, D.C. Law 15-300, § 2(c), 52 DCR 1504.)

Prior Codifications

1981 Ed., § 1-721.

1973 Ed., § 1-1821.

Effect of Amendments

D.C. Law 15-300, in subsec. (a), rewrote the lead-in sentence which had read: “The assets of the Funds established by this chapter may not be invested in the following:”; and added subsec. (d).

Temporary Legislation

For temporary (225 day) amendment of section, see § 3 of South Africa Sanctions Repeal Act 1993 (D.C. Law 10-75, March 8, 1994, law notification 41 DCR 1518).

Editor's Notes

Independent audit of Retirement Board: Section 135 of Public Law 103-334, 108 Stat. 2588, the District of Columbia Appropriations Act, 1995, provided that the District of Columbia Retirement Board shall enter into an agreement with an independent firm meeting certain qualifications to prepare and submit to the Retirement Board a written set of findings and recommendations not later than 6 months after the date of enactment of this Act regarding the appropriateness and adequacy of the Retirement Board’s fiduciary, management, and investment practices and procedures, and provided for expenditure of funds.

Board to conduct study: Section 6 of D.C. Law 8-97 provided that the Board shall conduct a study to determine the feasibility and advisability of direct investment in real estate in the District of Columbia, Maryland, and Virginia, including providing mortgage loans to participants and beneficiaries of the Funds for the purpose of financing residential home ownership for participants and beneficiaries of the Funds. The Board shall transmit the results of the study to the Council no later than 180 days from the effective date of this act.

Delegation of Authority

Delegation of authority under D.C. Law 9-185, “Public Funds Investment Policy in Financial Institutions and Companies Making Loans to or Doing Business with Northern Ireland Amendment Act of 1992”, see Mayor’s Order 93-76, June 16, 1993.

§ 1–722. Determination of federal and District of Columbia payments to the Funds.

(a)(1) The Board shall engage an enrolled actuary, who may be the enrolled actuary engaged pursuant to § 1-732(a)(4)(A), who shall, on the basis of the entry age normal cost funding method and in accordance with generally accepted actuarial principles and practices, make the following determinations with respect to each Fund:

(A) At the times specified in paragraph (2) of this subsection, the actuary shall determine the level percentage of payroll, expressed as a percentage (hereinafter in this chapter referred to as the “net normal cost percentage”), which shall be the percentage such that the amount equal to the product of such percentage and the present value of future compensation for participants in the retirement program, if paid annually into the Fund from the date of hire of each participant in the retirement program until the date of such participant’s death, retirement, or other withdrawal from employment covered by the retirement program, is equal to the amount of the difference between (i) the present value of the future benefits payable from the Fund to such group, and (ii) the present value of all future employee contributions to the Fund;

(B) At the times specified in paragraph (2) of this subsection, the actuary shall determine the amount (hereinafter in this chapter referred to as the “accrued actuarial liability”) that is the difference between (i) the present value (as of the date of the determination) of the future benefits payable from the Fund, and (ii) the sum of the present value of all future employee contributions to the Fund, and the product of the net normal cost percentage and the present value of future compensation for participants in the retirement program;

(C) At the times specified in paragraph (2) of this subsection, the enrolled actuary shall determine the current value of the assets in the Fund;

(D) Each year, not later than 60 days prior to the date on which the Mayor is required to submit the annual budget for the government of the District of Columbia to the Council under § 1-204.42(a), the enrolled actuary shall determine:

(i) An estimate of the current annual active duty payroll;

(ii) The amount (hereinafter in this chapter referred to as the “future federal obligation”) that is the amount of the present value of the sum of the amounts authorized by § 1-724(a) to be appropriated to the Fund for fiscal years beginning on or after the date of the determination; and

(iii) The amount (hereinafter in this chapter referred to as the “net pay-as-you-go cost”) that is the difference between the amount of the obligation of the Fund during the next fiscal year for the payment of benefits payable from the Fund during such year, and the amount of employee contributions to the Fund for such year;

(E) The actuary shall also determine such additional information as the Board may require in order to make the determinations specified in paragraph (4) of this subsection and in subsection (b) of this section.

(2) The actuary engaged by the Board pursuant to paragraph (1) of this subsection shall make the determinations described in subparagraphs (A), (B), and (C) of such paragraph at the following times:

(A) Not later than 60 days after the date of the enactment of this chapter;

(B) Upon a request by the Board or by the Director of the Office of Management and Budget;

(C) Not later than the end of the 90-day period beginning on the 1st day of the 3rd fiscal year occurring after the fiscal year in which the last such determination was made pursuant to any subparagraph of this paragraph.

(3)(A) On the basis of the most recent determinations made under paragraph (1) of this subsection, the enrolled actuary shall certify to the Board each year, at a time specified by the Board, the following information with respect to each Fund for the next fiscal year:

(i) The net normal cost, which shall be computed as the product of the net normal cost percentage and the estimate by the actuary of the current annual active duty payroll;

(ii) The accrued actuarial liability;

(iii) The current value of assets in the Fund;

(iv) The future federal obligation;

(v) The net pay-as-you-go cost;

(vi) The unfunded actuarial liability, which shall be computed as the difference between the accrued actuarial liability and the sum of the current value of the assets in the Fund, and the future federal obligation; and

(vii) The amount equal to the difference between the accrued actuarial liability as of January 2, 1975 (in future value as of the end of the fiscal year for which the determination is made), and the sum of the future federal obligation, the current value of previous federal contributions, and (in the case of the District of Columbia Teachers’ Retirement Fund and the District of Columbia Judges’ Retirement Fund) the current value of any assets in the predecessor to such Fund as of January 2, 1975, which amount is the difference between the amount that the federal government would pay to the Fund if the federal government had assumed the funding responsibility for all accrued unfunded liabilities as of January 2, 1975, and the amount actually to be paid by the federal government.

(B) For the purposes of sub-subparagraph (vi) of subparagraph (A) of this paragraph, the term “current value of the assets in the Fund” shall be deemed to include (i) the present value of any payments to be made to the Fund by the District in accordance with subsection (b)(1)(C)(i) of this section, and (ii) the present value of the amount of any reduction in the amount of future District payments to the Fund determined in accordance with subsection (b)(1)(D) of this section.

(4) The Board shall determine:

(A) The amount of the federal payment for the next fiscal year for each Fund authorized to be appropriated under § 1-724(a); and

(B) On the basis of the most recent certification submitted by the enrolled actuary under paragraph (3) of this subsection, the amount of the District payment for the next fiscal year for each Fund, as described under subsection (b) of this section.

(b)(1)(A) For the District payment for each Fund for each fiscal year through fiscal year 2004, the Board shall determine:

(i) The unfunded actuarial liability for such Fund as of the end of fiscal year 2004;

(ii) The unfunded actuarial liability as of October 1, 1979, in future value as of the end of fiscal year 2004 for such Fund; and

(iii) The amount equal to the lesser of the net pay-as-you-go cost, and the sum of the net normal cost and the amount of annual interest (computed at the valuation rate used in the determination under subsection (a)(3)(A)(vi) of this section.

(B) If the amount determined under subparagraph (A)(i) of this paragraph is equal to the amount determined under subparagraph (A)(ii) of this paragraph, the amount of the District payment for the fiscal year for such Fund shall be the amount determined under subparagraph (A)(iii) of this paragraph.

(C)(i) If the amount determined under subparagraph (A)(i) of this paragraph is greater than the amount of the District payment for the fiscal year for such Fund shall be the amount equal to the sum of the amount determine under subparagraph (A)(iii) of this paragraph, and the amount of the level amortization payment that, if paid annually into the Fund through the next 10 fiscal years (and accrued at the rate of interest used in determinations under subsection (a)(1) of this section), would reduce the amount determined under subparagraph (A)(i) of this paragraph to the amount determined under subparagraph (A)(ii) of this paragraph by the end of such 10 fiscal years.

(ii) A level amortization payment shall not be required under this subparagraph for any fiscal year to the extent that the difference between the amount determined under subparagraph (A)(i) of this paragraph and the amount determined under subparagraph (A)(ii) of this paragraph for such fiscal year is attributable to the failure of the federal government (other than a failure because of § 1-724(d) or § 1-725) to make all or any part of the federal payment to such Fund for any fiscal year.

(D) If the amount determined under subparagraph (A)(ii) of this paragraph is greater than the amount of the District payment for such Fund shall be the amount determined under subparagraph (A)(iii) of this paragraph reduced by the amount of level amortization payment that, if paid annually for the next 10 fiscal years, would have a future value of the end of fiscal year 2004 equal to the difference between the amount determined under subparagraph (A)(ii) of this paragraph and the amount determined under subparagraph (A)(i) of this paragraph.

(E) The amount of a District payment determined under subparagraph (C) of this paragraph may not exceed the amount determined under subparagraph (A)(iii) of this paragraph by more than 10 percent of the net pay-as-you-go cost, in the case of a payment to the District of Columbia Police Officers and Fire Fighters’ Retirement Fund, or by more than 30 percent of the net pay-as-you-go cost, in the case of a payment to the District of Columbia Teacher’s Retirement Fund or to the District of Columbia Judges’ Retirement Fund.

(F) Determinations under subparagraph (A) of this paragraph shall be made in accordance with generally accepted actuarial principles and practices.

(2) The amount of the District payment to each Fund for fiscal year 2005 and for each fiscal year thereafter shall be the sum of (A) the net normal cost, and (B) the amount of annual interest (computed at the valuation rate used in the determination pursuant to subsection (a)(1) of this section) on the unfunded actuarial liability.

(c)(1) On the basis of the most recent determinations made under subsection (a)(4) of this section, the Board shall:

(A) Not later than March 15th of each year through calendar year 2003, submit to the President and to the Congress a request for appropriation of the federal payment for the next fiscal year for each Fund; and

(B) Not less than 30 days prior to the date on which the Mayor is required to submit the annual budget for the government of the District of Columbia to the Council under § 1-204.42(a), certify to the Mayor and the Council the amount of the District payment for each Fund.

(2) The Mayor, in preparing each annual budget for the District of Columbia pursuant to § 1-204.42(a), and the Council of the District of Columbia, in adopting each annual budget in accordance with § 1-204.46, shall include in such budget not less than the full amount certified by the Board under paragraph (1)(B) of this subsection as being the amount of the District payment for the next fiscal year for each Fund. The Mayor and the Council may comment and make recommendations concerning any such amount certified by the Board.

(d)(1) Whenever any change in benefits under a retirement program is made, the Mayor shall engage an enrolled actuary, who may be the enrolled actuary engaged pursuant to § 1-732(a)(4)(A), to estimate the effect of such change in benefits over the next 5 fiscal years on: (A) The net normal cost percentage with respect to the retirement program; (B) the accrued actuarial liability with respect to the retirement program; (C) the net pay-as-you-go cost with respect to the retirement program; and (D) the level of the District payments to the Fund. The Mayor shall transmit the estimates of the actuary under the preceding sentence to the Board and to the Speaker and the President pro tempore, and such change in benefits may not go into effect until the end of the 30-day period beginning on the date such transmittals are completed. Whenever any change in benefits under a retirement program is made to either, but not both, the Metropolitan Police Department or the Fire and Emergency Medical Services Department, the Mayor shall engage an enrolled actuary to perform the same study contemporaneously for the other employee group for which the change was not made.

(2) In the event a change in benefits under a retirement program is made that increases the present value of benefits payable from the Fund, a level amortization payment for a period not to exceed 25 years shall be paid by the District to the Fund such that the present value of the sum of such level amortization payments equals the increase in the present value of such benefits. Such payments shall be made in addition to any other payment to the Fund required to be made by the District, and such increase in present value of benefits payable from the Fund and such payments shall be disregarded in calculating the unfunded actuarial liability under subsection (b)(1)(A) of this section.

(e) Whenever the amount authorized to be appropriated to the District of Columbia Police Officers and Fire Fighters’ Retirement Fund for any fiscal year under § 1-724(a)(1) is reduced under § 1-725(c), the District shall, beginning with the next fiscal year, pay a level amortization payment to such Fund for a period not to exceed 10 years such that the present value (determined as of the beginning of the fiscal year for which such authorization is reduced) of the sum of such level amortization payments equals the amount of such reduction. Such payments shall be made in addition to any other payment to such Fund required to be made by the District and shall be disregarded in calculating the unfunded actuarial liability under subsection (b)(1)(A) of this section.

(f) The Comptroller General of the United States shall have access to all books, accounts, records, reports, files, and other papers necessary to carry out the responsibility of the Comptroller General under § 47-118 and under § 1-724(e).

(Nov. 17, 1979, 93 Stat. 866, Pub. L. 96-122, § 142; Sept. 10, 1992, D.C. Law 9-145, § 401(b), 39 DCR 4895; Oct. 29, 1993, 107 Stat. 1349, Pub. L. 103-127, § 139(a); Oct. 1, 2002, D.C. Law 14-190, § 3732, 49 DCR 6968.)

Prior Codifications

1981 Ed., § 1-722.

1973 Ed., § 1-1822.

Section References

This section is referenced in § 1-702, § 1-723, § 1-724, § 1-725, § 1-732, and § 5-704.

Effect of Amendments

D.C. Law 14-190 added the last sentence to subsec. (d)(1).

Cross References

Police Officers and Fire Fighters’ Retirement Fund, deposits by fund members to receive creditable service for approved leave, computation according to normal cost for new entrants in the Fund, see § 5-704.

Emergency Legislation

For temporary (90 day) amendment of section, see § 3632 of Fiscal Year 2003 Budget Support Emergency Act of 2002 (D.C. Act 14-453, July 23, 2002, 49 DCR 8026).

Short Title

Short title of subtitle C of title XXXVII of Law 14-190: Section 3731 of D.C. Law 14-190 provided that subtitle C of title XXXVII of the act may be cited as the Retirement Reform Consolidated Actuarial Engagement Amendment Act of 2002.

References in Text

“The date of enactment of this chapter,” referred to in (a)(2)(A), is November 17, 1979.

Section 47-118 1981 Ed., referred to in subsection (f) of this section, was repealed by § 5(b) of the Act of September 13, 1982, Pub. L. 97-258. Present provisions similar to repealed § 47-118 1981 Ed. are codified as § 1-207.36 and 31 U.S.C. § 715.

Editor's Notes

Section 139(b) of Pub. L. 103-127 provided that subsection (a) of that section shall apply beginning September 10, 1992.

Mayor authorized to issue actuarial study: Section 3 of D.C. Law 8-145 provided that to carry out the purposes of this act, the Mayor shall, pursuant to § 1-722(d)(1), appoint an enrolled actuary to perform the required actuarial study. The cost of the actuarial study shall be borne by the District of Columbia Police Officers’ and Fire Fighters’ Retirement Fund. The actuarial study shall be completed by June 10, 1990.

Accrual of benefits under D.C. Law 8-145: Section 4 of D.C. Law 8-145 provided that the increased benefits provided for in this act shall begin to accrue on April 10, 1990, but shall not be paid until the change in benefits becomes effective pursuant to § 1-722(d)(1).

Mayor authorized to hire actuary: Section 143(b) of Pub. L. 104-194, 110 Stat. 2376, the District of Columbia Appropriations Act, 1997, provided that the Mayor, within 30 days after the enactment of this act, shall engage an enrolled actuary, to be paid by the District of Columbia Retirement Board, and shall comply with the requirements of §§ 1-722(d) and 1-724(d).

Full Funding of Pension Liability Retirement Reform Amendment Act of 1994: Section 401 of D.C. Law 10-135 provided that notwithstanding any other law, title 1 §§ 101 (b)(1) and (2), and titles II and III, shall apply to any action or transaction taken or undertaken with respect to the Police Officers and Fire Fighters’ Retirement Fund, the Teachers’ Retirement Fund and the Judges’ Retirement Fund on and after October 1, 1995.

Pursuant to the effective date language in § 501 of D.C. Law 10-135, the amendments made by that act have not been given effect.

§ 1–723. Information about retirement programs.

Upon a request of the Board, the Mayor, the Chief Financial Officer, the Chairman of the District of Columbia Public Charter School Board, the President of the Board of Education, or their successors shall furnish to the Board such information with respect to retirement programs and post employment benefit programs to which this chapter applies as the Board considers necessary to enable it to carry out its responsibilities under this chapter and to enable the enrolled actuary engaged pursuant to § 1-722(a) to carry out the responsibilities of the enrolled actuary under this chapter.

(Nov. 17, 1979, 93 Stat. 866, Pub. L. 96-122, § 143; Dec. 7, 2004, D.C. Law 15-205, § 1012(c), 51 DCR 8441.)

Prior Codifications

1981 Ed., § 1-723.

1973 Ed., § 1-1823.

Effect of Amendments

D.C. Law 15-205 substituted “Mayor, the Chief Financial Officer, the Chairman of the District of Columbia Public Charter School Board, the President of the Board of Education, or their successors shall furnish to the Board such information with respect to retirement programs and post employment benefit programs” for “Mayor shall furnish to the Board such information with respect to retirement programs”.

Editor's Notes

For conditional applicability of subtitle B of Title I of D.C. Law 15-205, see notes under § 1-911.04a.

§ 1–724. Appropriations authorized as payments to the Funds.

(a) There is authorized to be appropriated from the revenues of the United States for fiscal year 1980 and for each fiscal year thereafter through fiscal year 2004:

(1) As the federal payment to the District of Columbia Police Officers and Fire Fighters’ Retirement Fund, the sum of $34,170,000, reduced by the amount of any reduction required under § 1-725(c);

(2) As the federal payment to the District of Columbia Teachers’ Retirement Fund, the sum of $17,680,000; and

(3) As the federal payment to the District of Columbia Judges’ Retirement Fund, the sum of $220,000.

(b)(1) Amounts appropriated as a federal payment to a Fund established by this chapter shall not be subject to apportionment and shall be deposited in the appropriate Fund not more than 30 days after they are appropriated or 30 days after the beginning of the fiscal year for which they are appropriated, whichever is later.

(2) Amounts appropriated as a District of Columbia payment to a Fund established by this chapter shall be deposited in the appropriate Fund in equal quarterly installments, the 1st of which shall be made not more than 30 days after amounts are appropriated or 30 days after the beginning of the fiscal year for which amounts are appropriated, whichever is later. The remaining installments shall be made on the 1st day of succeeding quarters of the fiscal year. If the District is late in making an installment, the Board shall charge the District daily interest, at a rate consonant with the Board’s fiduciary duty.

(c) If at any time the balance of any Fund established by this chapter is not sufficient to meet all obligations against such Fund, such Fund shall have a claim on the revenues of the District of Columbia to the extent necessary to meet such obligations.

(d) If, for any fiscal year, the Mayor and the Council do not carry out the requirements of subsections (c)(2), (d), and (e) of § 1-722 with respect to a Fund, no funds authorized to be appropriated for such Fund by this section shall be available for such Fund for such fiscal year.

(e)(1) In the year 2004, the Comptroller General shall determine whether the federal share with respect to each Fund has been paid in full by payments made pursuant to appropriations authorized under subsection (a) of this section and, in the case of the District of Columbia Police Officers and Fire Fighters’ Retirement Fund, by payments made or to be made under § 1-722(e).

(2) For the purposes of this subsection, the term “federal share”, with respect to a retirement program, means the sum of:

(A) Eighty percent of the accrued unfunded liability as of October 1, 1979, for participants in the retirement program who retired before January 2, 1975, under a provision of law authorizing retirement and entitlement to an annuity based upon the years of creditable service of the participant (and for the beneficiaries of such participants under the retirement program); and

(B) Thirty-three and one-third percent of the accrued unfunded liability as of October 1, 1979, for participants in the retirement program who retired before January 2, 1975, under a provision of law authorizing retirement and entitlement to an annuity based upon a disease or disability from which the participant is suffering (and for the beneficiaries of such participants under the retirement program).

(f) Notwithstanding any other provision of this Act, no Federal payments may be made to any Fund established by this chapter for any fiscal year after fiscal year 1997.

(Nov. 17, 1979, 93 Stat. 866, Pub. L. 96-122, § 144; Mar. 24, 1990, D.C. Law 8-97, § 2(d), 37 DCR 1046; Aug. 5, 1997, 111 Stat. 730, Pub. L. 105-33,§ 11084(a)(2).)

Prior Codifications

1981 Ed., § 1-724.

1973 Ed., § 1-1824.

Section References

This section is referenced in § 1-722 and § 1-725.

References in Text

“This Act,” referred to in (f), is the Act of November 17, 1979, 93 Stat. 866, Pub. L. 96-122.

Editor's Notes

Pursuant to the effective date language in § 501 of D.C. Law 10-135, the amendments made by that act have not been given effect.

§ 1–725. Reduction in federal payment to Police Officers and Fire Fighters’ Retirement Fund resulting from disability retirements.

(a)(1) After January 1st, and before March 1st, of each year beginning with calendar year 1984 and ending with calendar year 2004, the enrolled actuary engaged pursuant to § 1-722 shall, with respect to the District of Columbia Police Officers and Fire Fighters’ Retirement Fund:

(A) Determine, in accordance with paragraph (2) of this subsection, the disability retirement rate for the preceding calendar year; and

(B) Determine if such disability retirement rate for such preceding calendar year is greater than eight tenths of a percentage point.

(2) For the purposes of subparagraph (A) of paragraph (1) of this subsection, the disability retirement rate for the applicable calendar year shall be an amount equal to a fraction, the numerator of which is the number of officers and members of the Metropolitan Police force and the Fire Department of the District of Columbia who first became officers or members on or before February 14, 1980, and who retired on disability during such applicable year under § 5-709(a) or § 5-710(a) (but such numerator shall not include any such officer or member whose retirement is ordered by a court of competent jurisdiction), and the denominator of which is the total number of such officers and members who were on active duty on January 1st of such applicable calendar year.

(3) The enrolled actuary shall report the determinations (including related documents and information) made under paragraph (1) of this subsection to the Board and to the Comptroller General of the United States not later than March 1st of each year.

(b) The Board shall transmit a copy of each such report by the enrolled actuary under subsection (a) of this section to the Speaker of the House of Representatives, the President pro tempore of the Senate, the chairman of the Committee on Governmental Affairs of the Senate, the chairman of the Committee on the District of Columbia of the House of Representatives, the chairman of the Committee on Appropriations of the Senate, the chairman of the Committee on Appropriations of the House of Representatives, the Mayor of the District of Columbia, and the Council of the District of Columbia, not later than March 31st of the calendar year in which the report is made, and shall submit comments on such report.

(c)(1) Notwithstanding any other provision of this chapter, with respect to the fiscal year commencing October 1, 1984, and each fiscal year thereafter through the fiscal year commencing October 1, 2004, the authorization under § 1-724(a)(1) for each such fiscal year shall be deemed, for purposes of such section, to be reduced in the amount hereafter provided, if the report, submitted by the enrolled actuary pursuant to subsection (a) of this section in the calendar year in which such fiscal year commences, states that the disability retirement rate under subsection (a) of this section for the preceding calendar year is greater than eight tenths of a percentage point. The amount of such reduction shall be 1 /12 per centum for each whole tenth of a percentage point by which the disability retirement rate is greater than eight tenths of a percentage point.

(2) There shall be no reduction pursuant to § 1-724(a)(1) and paragraph (1) of this subsection for any such fiscal year, if, in computing the disability retirement rate under subsection (a) of this section for the calendar year preceding the calendar year in which such fiscal year commences, the numerator is less than 8.

(3)(A) If the Board determines, on the basis of substantial facts, that unordinary circumstances or events of catastrophic magnitude, such as a fire or civil disorder, caused or significantly contributed to the number of disability retirements under § 5-710(a) during a calendar year covered by the report submitted by the enroll ed actuary pursuant to subsection (a) of this section, it shall submit a detailed statement on such circumstances and events to the Federal Emergency Management Agency. Such statement shall be submitted on or before July 1st of the calendar year next following the calendar year covered by such report. The statement shall contain, among other matters, data on the total number of disability retirements under §§ 5-709(a) and 5-710(a) for the applicable calendar year, the number of such retirements under § 5-710(a) which, in the opinion of the Board, were caused or significantly contributed to by such circumstances or events, and an explanation as to why the Board considers such events or circumstances to be unordinary and of a catastrophic magnitude.

(B) The Federal Emergency Management Agency shall review the Board’s report and provide the Board its assessment within 60 days of receipt of the Board’s report, of the scope, nature, involvement, and impact on District of Columbia police officers and firefighters of the events determined by the Board to be of unordinary and of a catastrophic nature. The Agency shall submit copies of its assessment to the Board and the offices and officers set forth in subsection (b) of this section.

(C)(1) The Board, on the basis of such reports from the Federal Emergency Management Agency, shall determine the extent to which such disability retirements which such Agency determined were caused or contributed to by such events and circumstances caused a reduction in the amount appropriated to the Fund as provided under this subsection. The Board shall report the amount of such reduction so caused to the offices and officers set forth in subsection (b)(1) of this section. Such reports shall be submitted on or before December 31st of the calendar year in which the Board receives such report of the Federal Emergency Management Agency.

(2) In addition to the amount authorized to be appropriated to the Fund for any fiscal year under § 1-724(a)(1), there is authorized to be appropriated for the fiscal year commencing October 1, 1984, and each fiscal year thereafter, such sum as may be necessary to pay to the Fund an amount equal to the amount of any reduction, plus interest lost to the Fund because of the reduction, for a fiscal year as reported to the offices and officers of the Congress pursuant to paragraph (1) of this subsection, but in no case shall any moneys be appropriated on the basis of the authorization pursuant to this paragraph except to the extent that any such reduction was actually made.

(Nov. 17, 1979, 93 Stat. 866, Pub. L. 96-122, § 145; Sept. 30, 1983, 97 Stat. 727, Pub. L. 98-104; June 30, 1994, D.C. Law 10-135, § 201(b)(2), 41 DCR 2618; Oct. 29, 1997, 110 Stat. 3841, Pub. L. 104-316, § 129.)

Prior Codifications

1981 Ed., § 1-725.

1973 Ed., § 1-1825.

Section References

This section is referenced in § 1-722 and § 1-724.

Editor's Notes

Exclusion for certain retirees: Section 133(a) of Pub. L. 102-111, the District of Columbia Appropriations Act, 1992, provided that up to 75 officers or members of the Metropolitan Police Department who were hired before February 14, 1980, and who retire on disability retirement under subsection (a) of this section, for purposes of reducing the authorized Federal payment to the District of Columbia Police Officers’ and Fire Fighters’ Retirement Fund pursuant to subsection (c) of this section. Mayor authorized to hire actuary: Section 143(b) of Pub. L. 104-194, 110 Stat. 2376, the District of Columbia Appropriations Act, 1997, provided that the Mayor, within 30 days after the enactment of this act, shall engage an enrolled actuary, to be paid by the District of Columbia Retirement Board, and shall comply with the requirements of §§ 1-722(d) and 1-724(d).

Subchapter IV. Reporting and Disclosure Requirements.

§ 1–731. Personal financial disclosure by Board members.

(a)(1) Each member of the Board shall, within 90 days of his selection as a member of the Board and not later than April 30th of each year thereafter, submit to the Mayor, the Council, the Speaker, and the President pro tempore a personal financial disclosure statement with respect to the preceding calendar year. Such statement shall be in such form as the Council may by regulation require and shall contain such information with respect to the member’s financial condition as the Council may by regulation require, including the following information:

(A) The amount and source of all income (as defined in § 61 of the Internal Revenue Code of 1954) received during the year;

(B) The identity and category of value of each liability owned, directly or indirectly, that exceeds $2,500 as of the last day of the year (excluding any mortgage that secures real property that is the principal residence of such member);

(C) The identity and category of value of any property held, directly or indirectly, in a trade or business or for investment or the production of income that has a fair market value of not less than $1,000 as of the last day of the year;

(D) The identity and category of value of any transaction, whether direct or indirect, in securities or commodities futures during the year in excess of $1,000 (excluding any gift to any tax-exempt organization described in § 501(c)(3) of the Internal Revenue Code of 1954), and the identity, date, and category of value of any purchase or sale, whether direct or indirect, of any interest in real or tangible personal property during the year the value of which exceeds $1,000 at the time of such purchase or sale (excluding any purchase or sale of any property that is the principal residence of such member or that is used as furnishings for such principal residence);

(E) The nature and extent of any interest during the year in any bank, insurance company, or other financial institution, or in any brokerage or other securities or investment company; and

(F) The nature and extent of any employment during the year by any bank, insurance company, or other financial institution, or by any brokerage or other securities or investment company.

(2) A member shall not be required to submit a personal financial disclosure statement to the Speaker and the President pro tempore for calendar years after calendar year 2004.

(b) For purposes of subparagraphs (B), (C), and (D) of paragraph (1) of subsection (a) of this section, the member reporting need not specify the actual amount of value of each item required to be reported under such subparagraphs, but shall indicate which of the following categories such amount or value is within:

(1) Not more than $5,000;

(2) Greater than $5,000 but not more than $15,000;

(3) Greater than $15,000 but not more than $50,000;

(4) Greater than $50,000 but not more than $100,000; or

(5) Greater than $100,000.

§ 1–732. Annual report.

(a)(1)(A) The Board shall publish an annual report for each fiscal year (beginning with fiscal year 1980) with respect to each retirement program to which this chapter applies and with respect to the Fund for such retirement program. Such report shall be filed with the Mayor, the Council, the Speaker, and the President pro tempore in accordance with § 1-734(a) and shall be made available and furnished to participants and beneficiaries in accordance with § 1-734(b).

(B) The annual report shall include the information described in subsections (b), (c), (d), and (e) of this section and, when applicable, subsection (f) of this section, and shall also include:

(i) The financial statement and opinion required by paragraph (3) of this subsection; and

(ii) The actuarial statement and opinion required by paragraph (4) of this subsection.

(2) If some or all of the information needed to enable the Board to comply with the requirements of this chapter is maintained by: (A) An insurance carrier or other organization which provides some or all of the benefits under the retirement program, or holds assets of the Fund for such retirement program in a separate account; (B) a bank or similar institution which holds some or all of the assets of the Fund in a common or collective trust or a separate trust, or custodial account; or (C) the Mayor (or the Police and Firefighters Retirement and Relief Board, established pursuant to § 5-722, in carrying out the Mayor’s responsibilities under the Policemen and Firefighter’s Retirement and Disability Act [§ 5-701 et seq.]; such carrier, organization, bank, or institution, or the Mayor, shall transmit and certify the accuracy of such information to the Board within 120 days after the end of the fiscal year (or such other date as may be prescribed under regulations of the Board).

(3)(A) Except as provided in subparagraph (C) of this paragraph, the Board shall engage an independent qualified public accountant who shall conduct such examination of any financial statements of the Fund, and of other books and records of the Fund or the retirement program as the accountant may deem necessary to enable the accountant to form an opinion as to whether the financial statements and schedules required to be included in the annual report by subsection (b) of this section are presented fairly in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding year. Such examination shall be conducted in accordance with generally accepted auditing standards and shall involve such tests of the books and records of the Fund and the retirement program as are considered necessary by the independent qualified public accountant. The independent qualified public accountant shall also offer his opinion as to whether the separate schedules specified in subsection (b)(2) of this section and the summary material required under § 1-734(b)(2) present fairly, and in all material respects, the information contained therein when considered in conjunction with the financial statements taken as a whole. The opinion by the independent qualified public accountants shall be made a part of the annual report.

(B) In offering his opinion under this section, the accountant may rely on the correctness of any actuarial matter certified to by an enrolled actuary if he so states his reliance.

(C) The opinion required by subparagraph (A) of this paragraph need not be expressed as to any statements required by subsection (b)(2)(G) of this section prepared by a bank or similar institution or insurance carrier regulated and supervised and subject to periodic examination by a state or federal agency if such statements are certified by the bank, similar institution, or insurance carrier as accurate and are made a part of the annual report.

(4)(A) The Board shall engage an enrolled actuary who shall be responsible for the preparation of the materials comprising the actuarial statement required under subsection (d) of this section.

(B) The enrolled actuary shall utilize such assumptions and techniques as are necessary to enable him to form an opinion as to whether the contents of the matters reported under subsection (d) of this section: (i) Are in the aggregate reasonably related to the experience of the Fund and the retirement program and to reasonable expectations; and (ii) represent his best estimate of anticipated experience under the Fund and the retirement program. The opinion by the enrolled actuary shall be made with respect to, and shall be made a part of, each annual report.

(C) In making a certification under this section, the enrolled actuary may rely on the correctness of any accounting matter under subsection (b) of this section as to which any qualified public accountant has expressed an opinion if he so states his reliance.

(b)(1) An annual report under this section shall include a financial statement containing a statement of assets and liabilities, and a statement of changes in net assets available for benefits under the retirement program, which shall include details of revenues and expenses and other changes aggregated by general source and application. In the notes to financial statements, disclosures concerning the following items shall be considered by the accountant: A description of the retirement program, including any significant changes in the retirement program made during the period and the impact of such changes on benefits; the funding policy (including the policy with respect to prior service cost), and any changes in such policy during the year; a description of any significant changes in benefits made during the period; a description of material lease commitments, other commitments, and contingent liabilities; a description of agreements and transactions with persons known to be parties in interest; and any other matters necessary to fully and fairly present the financial statements of the Fund.

(2) The statement required under paragraph (1) of this subsection shall have attached the following information in separate schedules;

(A) A statement of the assets and liabilities of the Fund, aggregated by categories and valued at their current value, and the same data displayed in comparative form for the end of the previous fiscal year;

(B) A statement of receipts in and disbursements from the Fund during the preceding 12-month period, aggregated by general source and application;

(C) A schedule of all assets held for investment purposes, aggregated and identified by issuer, borrower, or lessor, or similar party to the transaction (including a notation as to whether such party is known to be a party in interest), maturity date, rate of interest, collateral, par or maturity value, cost, and current value;

(D) A schedule of each transaction involving a person known to be a party in interest, the identity of such party in interest and his relationship or that of any other party in interest to the Fund, a description of each asset to which the transaction relates; the purchase or selling price in case of a sale or purchase, the rental in case of a lease, or the interest rate and maturity date in case of a loan; expenses incurred in connection with the transaction; the cost of the asset, the current value of the asset, and the net gain or loss on each transaction;

(E) A schedule of all loans or fixed income obligations which were in default as of the close of the fiscal year or were classified during the year as uncollectable and the following information with respect to each loan on such schedule (including a notation as to whether parties involved are known to be parties in interest): The original principal amount of the loan; the amount of principal and interest received during the reporting year; the unpaid balance; the identity and address of the obligor; a detailed description of the loan (including date of making and maturity, interest rate, the type and value of collateral, and other material terms); the amount of principal and interest overdue (if any) and an explanation thereof;

(F) A list of all leases which were in default or were classified during the year as uncollectable and the following information with respect to each lease on such list (including a notation as to whether parties involved are known to be parties in interest): The type of property leased (and, in the case of fixed assets such as land, buildings, and leaseholds, the location of the property); the identity of the lessor or lessee from or to whom the Fund is leasing; the relationship of such lessors and lessees, if any, to the Fund, the government of the District of Columbia, any employee organization, or any other party in interest; the terms of the lease regarding rent, taxes, insurance, repairs, expenses, and renewal options; the date the leased property was purchased and its cost; the date the property was leased and its approximate value at such date; the gross rental receipts during the reporting period; expenses paid for the leased property during the reporting period; the net receipts from the lease; the amounts in arrears; and a statement as to what steps have been taken to collect amounts due or otherwise remedy the default;

(G) The most recent annual statement of assets and liabilities of any common or collective trust maintained by a bank or similar institution in which some or all the assets of the Fund are held, of any separate account maintained by an insurance carrier in which some or all of the assets of the Fund are held, and of any separate trust maintained by a bank as trustee in which some or all of the assets of the Fund are held, and in the case of a separate account or a separate trust, such other information as may be required by the Board in order to comply with this subsection; and

(H) A schedule of each reportable transaction, the name of each party to the transaction (except that, in the case of an acquisition or sale of a security on the market, the report need not identify the person from whom the security was acquired or to whom it was sold) and a description of each asset to which the transaction applies; the purchase or selling price in case of a sale or purchase, the rental in case of a lease, or the interest rate and maturity date in case of a loan; expenses incurred in connection with the transaction; the cost of the asset, the current value of the asset, and the net gain or loss on each transaction.

(3) For purposes of subparagraph (H) of paragraph (2) of this subsection, the term “reportable transaction” means a transaction to which the Fund is a party and which is:

(A) A transaction involving an amount in excess of 3 percent of the current value of the assets of the Fund;

(B) Any transaction (other than a transaction respecting a security) which is part of a series of transactions with or in conjunction with a person in a fiscal year, if the aggregate amount of such transactions exceeds 3 percent of the current value of the assets of the Fund;

(C) A transaction which is part of a series of transactions respecting 1 or more securities of the same issuer, if the aggregate amount of such transactions in the fiscal year exceeds 3 percent of the current value of the assets of the Fund; or

(D) A transaction with or in conjunction with a person respecting a security, if any other transaction with or in conjunction with such person in the fiscal year respecting a security is required to be reported by reason of subparagraph (A) of this paragraph.

(1) The number of individuals covered by the retirement program;

(2) The name and address of each member of the Board;

(3) Except in the case of a person whose compensation is minimal (as determined under regulations of the Council, which regulations the Council shall initially promulgate within 90 days after the date of the enactment of this chapter and who performs solely ministerial duties as determined under such regulations), the name of each person (including any consultant, broker, trustee, accountant, insurance carrier, actuary, administrator, investment counsel, or custodian who rendered services to the Board or who had transactions with the Board) who directly or indirectly received compensation from the Board during the preceding year for services rendered to the Board or the participants or beneficiaries of the retirement program for which a Fund was established, the amount of such compensation, the nature of his services, his relationship, if any, to the District of Columbia government or any employee organization, and any other officer, position or employment he holds with any party in interest;

(4) An explanation of the reason for any change in appointment of any accountant, insurance carrier, enrolled actuary, or investment counsel appointed by the Board; and

(5) Such other financial and actuarial information as the Council may by regulation prescribe.

(d)(1) An annual report under this section for a fiscal year shall include a complete actuarial statement applicable to the fiscal year which shall include the following information:

(A) The date of the actuarial valuation applicable to the fiscal year for which the report is filed;

(B) The date and amount of the payments to the Fund for the fiscal year for which the report is filed and contributions for prior fiscal years not previously reported, including payments by the participants, the United States, and the District of Columbia;

(i) The amounts determined under § 1-722(a)(1);

(ii) The accrued liabilities;

(iii) An identification of benefits not included in the calculation;

(iv) A statement of the other facts and actuarial assumptions and methods used to determine costs; and

(v) A justification for any change in actuarial assumptions or cost methods;

(D) The number of participants and beneficiaries covered by the retirement program;

(E) A certification of the amount of the payments to the Fund necessary to reduce the accumulated funding deficiency to zero;

(F) A statement by the enrolled actuary of any change in actuarial assumptions made with respect to the Fund during the year;

(G) A statement by the enrolled actuary of the estimated current value of vested benefits under the retirement program;

(H) A statement by the enrolled actuary that to the best of his knowledge the report is complete and accurate;

(I) A copy of the opinion required by subsection (a)(4) of this section;

(J) Such other information regarding the retirement program as the Council may by regulation require; and

(K) Such other information as the enrolled actuary may determine is necessary to fully and fairly disclose the actuarial position of the Fund.

(2) The actuary shall make an actuarial valuation of the Fund for every 3rd fiscal year, unless he determines that a more frequent valuation is necessary to support his opinion under subsection (a)(4) of this section.

(e) A report under this section for a fiscal year shall include a statement prepared by the Board of:

(1) The relative riskiness of the investments during the fiscal year of the assets of the Fund;

(2) A comparison of the average return on the investments of the Fund during the year with the average return on the investments of other public pension funds during the year that have comparable asset valuation; and

(3) The average daily balance of, and the average rate earned by, assets of the Fund in each of any time or demand deposits during the year.

(f)(1) If some or all of the benefits under the retirement program are purchased from and guaranteed by an insurance company, insurance service, or other similar organization, a report under this section shall include a statement from such insurance company, service, or other similar organization covering the fiscal year and enumerating:

(A) The premium rate or subscription charge and the total premium or subscription charges paid to each such carrier, insurance service, or other similar organization and the approximate number of persons covered by each class of such benefits; and

(B) The total amount of premiums received, the approximate number of persons covered by each class of benefits, and the total claims paid by such company, service, or other organization; dividends or retroactive rate adjustments, commissions, and administrative service or other fees or other specific acquisition costs paid by such company, service, or other organization; any amounts held to provide benefits after retirement; the remainder of such premiums; and the names and addresses of the brokers, agents, or other persons to whom commissions or fees were paid, the amount paid to each, and for what purpose.

(2) If any such company, service, or other organization does not maintain separate experience records covering the specific groups it serves, the report shall include, in lieu of the information required by subparagraph (B) of paragraph (1) of this subsection, a statement as the basis of its premium rate or subscription charge, the total amount of premiums or subscription charges received from the Fund, and a copy of the financial report of the company, service, or other organization and, if such company, service, or organization incurs specific costs in connection with the acquisition or retention of any particular Fund or Funds, a detailed statement of such costs.

(Nov. 17, 1979, 93 Stat. 885, Pub. L. 96-122, § 162; June 30, 1994, D.C. Law 10-135, § 201(b)(3), 41 DCR 2618; Mar. 10, 2015, D.C. Law 20-198, § 6(a), 61 DCR 12450.)

Prior Codifications

1981 Ed., § 1-732.

1973 Ed., § 1-1832.

Section References

This section is referenced in § 1-711, § 1-722, § 1-734, § 1-903.06, and § 1-907.03.

Effect of Amendments

The 2015 amendment by D.C. Law 20-198 substituted “Police and Firefighters Retirement and Relief Board” for “Police and Firemen's Retirement and Relief Board” in (a)(2).

Cross References

Police Officers, Fire Fighters, and Teachers Retirement Benefit Replacement Plan, annual audit, see § 1-903.06.

Police Officers, Fire Fighters, and Teachers Retirement Benefit Replacement Plan, calculation of payments to the Police Officers and Fire Fighters’ Retirement Fund, the Teachers’ Retirement Fund, and the Judges’ Retirement Fund, see § 1-907.03.

Editor's Notes

Transmittal required by Board: Public Law 104-194, 110 Stat. 2363, the District of Columbia Appropriations Act, 1997, provided that the District of Columbia Retirement Board shall provide to the Congress and to the Council of the District of Columbia a quarterly report of the allocations of charges by fund and of expenditures of all funds: Provided further, That the District of Columbia Retirement Board shall provide the Mayor, for transmittal to the Council of the District of Columbia, an item accounting of the planned use of appropriated funds in time for each annual budget submission and the actual use of such funds in time for each annual audited financial report.

§ 1–733. Retirement program summary description.

(a)(1) A summary description of each retirement program to which this chapter applies shall be furnished to participants and beneficiaries as provided in § 1-734(b). The summary description shall include the information specified in subsection (b) of this section, shall be written in a manner calculated to be understood by the average participant or beneficiary, and shall be sufficiently accurate and comprehensive to reasonably apprise such participants and beneficiaries of their rights and obligations under the retirement program.

(2) A summary of any material modification in the terms of the retirement program and any change in the information required under subsection (b) of this section, written in a manner calculated to be understood by the average participant or beneficiary, shall be furnished in accordance with § 1-734(b)(1).

(b) Each summary description of a retirement program shall contain the following information:

(1) The name and type of administration of the retirement program;

(2) The name and address of the Chairman of the Board, who shall be the agent of the Board for the service of legal process;

(3) The name, title, and address of each member of the Board;

(4) A description of the relevant provisions of applicable collective-bargaining agreements;

(5) The retirement program’s requirements respecting eligibility for participation and benefits;

(6) A description of the provisions providing for nonforfeitable pension benefits;

(7) Circumstances which may result in disqualification, ineligibility, or denial or loss of benefits;

(8) The identity of any organization through which benefits are provided;

(9) The procedures to be followed in presenting claims for benefits under the retirement program; and

(10) The remedies available under the retirement program for the redress of claims that are denied in whole or in part.

§ 1–734. Filing reports and furnishing information to participants.

(a)(1) The Board shall file with the Mayor, the Council, the Speaker, and the President pro tempore: (A) the annual reports for a fiscal year within 210 days after the end of such year; (B) a copy of each summary description of a retirement program within 1 year after the date of the enactment of this chapter; and (C) a revised summary description of a retirement program, incorporating any material modification in the terms of the retirement program, within 60 days after such modification is adopted or occurs. The Mayor shall make copies of such retirement program descriptions and annual reports available for public inspection in an appropriate location. The Board shall also furnish to the Mayor, the Council, the Speaker, and the President pro tempore, upon request, any documents relating to the retirement program or the Fund, including any bargaining agreement, trust agreement, contract, or other instrument under which the retirement program or Fund is operated.

(2)(A) The Mayor or the Council may reject any filing under this section within 30 days of such filing:

(i) Upon determining that such filing is incomplete for purposes of this chapter; or

(ii) Upon determining that there is any material qualification by an accountant or actuary contained in an opinion submitted pursuant to § 1-732(a)(3)(A) or § 1-732(a)(4)(B).

(B) If the Mayor or the Council rejects a filing of a report under subparagraph (A) of this paragraph, and if a revised filing satisfactory to the Mayor or the Council is not submitted within 45 days after the determination under subparagraph (A) of this paragraph to reject the filing is made, and if the Mayor or the Council considers it in the best interest of the participants, then the Mayor or the Council may take any 1 or more of the following actions: (i) Retain an independent qualified public accountant on behalf of the participants to perform an audit; (ii) retain an enrolled actuary on behalf of the participants to prepare an actuarial statement; or (iii) bring a civil action for such legal or equitable relief as may be appropriate to enforce the provisions of this chapter. The Board shall permit any accountant or actuary so retained to inspect whatever books and records of the Fund are necessary for such audit.

(3)(A) The Congress may reject any filing under this section within 30 days of such filing by enacting into law a joint resolution stating that the Congress has determined:

(i) That such filing is incomplete for purposes of this subchapter; or

(ii) That there is any material qualification by an accountant or actuary contained in an opinion submitted pursuant to § 1-732(a)(3)(A) or § 1-732(a)(4)(B).

(B) If the Congress rejects a filing under subparagraph (A) of this paragraph and if either a revised filing is not submitted within 45 days after the enactment under subparagraph (A) of this paragraph rejecting the initial filing or such revised filing is rejected by the Congress by enactment into law of a joint resolution within 30 days after submission of the revised filing, then the Congress may, if it deems it is in the best interests of the participants, take any 1 or more of the following actions:

(i) Retain an independent qualified public accountant on behalf of the participants to perform an audit; or

(ii) Retain an enrolled actuary on behalf of the participants to prepare an actuarial statement.

The Board and the Mayor shall permit any accountant or actuary so retained to inspect whatever books and records of the Fund and the retirement program are necessary for performing such audit or preparing such statement.

(C) If a revised filing is rejected under subparagraph (B) of this paragraph or if a filing required under this chapter is not made by the date specified, no funds appropriated for the Fund with respect to which such filing was required as part of the federal payment may be paid to the Fund until such time as an acceptable filing is made. For purposes of this subparagraph, a filing is unacceptable if, within 30 days of its submission, the Congress enacts into law a joint resolution disapproving such filing.

(b) Publication of the summary retirement program descriptions and annual reports shall be made to participants and beneficiaries as follows:

(1) The Board shall furnish to each participant, and to each beneficiary receiving benefits under the retirement program, a copy of the summary retirement program description and all modifications and changes referred to in § 1-733(a) within 90 days after he becomes a participant or in the case of a beneficiary, within 90 days after he first receives benefits. The Board shall furnish to each participant, and to each beneficiary receiving benefits under the retirement program, every 5th year an updated summary retirement program description described in § 1-733 which integrates all retirement program amendments made within such 5-year period, except that in a case where no amendments have been made to a retirement program during such 5-year period this sentence shall not apply. Notwithstanding the foregoing sentence, the Board shall furnish to each participant, and to each beneficiary receiving benefits under the retirement program, the summary retirement program description described in § 1-733 every 10th year. If there is a modification or change described in § 1-733(a) a summary description of such modification or change shall be furnished to each participant and to each beneficiary who is receiving benefits under the retirement program not later than 210 days after the end of the fiscal year in which the change is adopted.

(2) The Board shall make copies of the latest annual report and of any bargaining agreement, trust agreement, contract, or other instruments under which the retirement program or the Fund is operated available for examination by any participant or beneficiary in the principal office of the Board and in such other places as may be necessary to make available all pertinent information to all participants (including such places as the Council may by regulation prescribe).

(3) Within 210 days after the close of the fiscal year, the Board shall furnish to each participant, and to each beneficiary receiving benefits under the retirement program, a copy of the statements and schedules described in subparagraphs (A) and (B) of § 1-732(b)(2) for such fiscal year and such other material as is necessary to fairly summarize the latest annual report.

(4) The Board shall, upon written request of any participant or beneficiary, furnish a copy of the latest updated summary retirement program description, the latest annual report, and any bargaining agreement, trust agreement, contract, or other instruments under which the retirement program or Fund is operated. The Board may make a reasonable charge to cover the cost of furnishing such copies. The Council may by regulation prescribe the maximum amount that will constitute a reasonable charge under the preceding sentence.

(c) The Council may by regulation require that the Board furnish to each participant and to each beneficiary receiving benefits under a retirement program a statement of the rights of participants and beneficiaries under this chapter.

§ 1–735. Reporting of participants’ benefit rights.

(a) The Board shall furnish to any participant or beneficiary who so requests in writing a statement indicating, on the basis of the latest available information:

(1) The total benefits accrued; and

(2) The nonforfeitable retirement benefits, if any, which have accrued, or the earliest date on which benefits will become nonforfeitable.

(b) A participant or beneficiary is not entitled to receive more than 1 report under subsection (a) of this section during any 12-month period.

§ 1–736. Public information.

(a) Except as provided in subsection (b) of this section, the contents of the descriptions, annual reports, statements, and other documents filed with the Mayor, the Council, the Speaker, and the President pro tempore pursuant to this subchapter shall be public information, and the Mayor, the Council, the Speaker, and the President pro tempore shall each make such documents available for inspection in an appropriate location. The Mayor, the Council, the Speaker, and the President pro tempore may use the information and data in such documents for statistical and research purposes and may compile and publish such studies, analyses, reports, and surveys based thereon as may be considered appropriate.

(b) Information described in § 1-735(a) with respect to a participant or beneficiary of a retirement program may be disclosed only to the extent that information respecting that participant’s or beneficiary’s benefits under Title II of the Social Security Act may be disclosed under such Act.

(c) Except to the extent that information which is protected from public disclosure under subsection (b) of this section, or which relates to personnel matters the disclosure of which would constitute a clearly unwarranted invasion of personal privacy, is involved, all meetings of the Board shall be open to the public.

§ 1–737. Retention of records.

The Board shall maintain records on the matters required to be disclosed by this chapter which will provide in sufficient detail the necessary basic information and data from which the required documents may be verified, explained, or clarified, and checked for accuracy and completeness, shall include vouchers, worksheets, receipts, and applicable resolutions in such records, and shall keep such records available for examination for a period of not less than 6 years after the filing date of the documents based on the information which they contain. Except to the extent that information is involved which is protected from public disclosure under § 1-736(b), all such records shall be available for inspection by the public.

§ 1–738. Additional information.

(a) In addition to the information specifically required to be furnished by this subchapter, the Board shall furnish promptly such additional information as the Mayor, the Council, the Speaker, or the President pro tempore may request.

(b) The Board shall, at regular intervals to be determined by the Board, compile and publish all regulations then in effect which were issued by the Board or the Council under this chapter.

§ 1–739. Criminal penalties.

Whoever willfully violates any provision of this subchapter (other than §§ 1-735 and 1-738), or any regulation or order issued under any such provision, shall be fined not more than $5,000, or imprisoned not more than 1 year, or both, except that in the case of such a violation by a person not an individual, such person shall be fined not more than $100,000.

Subchapter V. Fiduciary Responsibility; Civil Sanctions.

§ 1–741. Fiduciary responsibilities.

(a)(1) The Board, each member of the Board, and each person defined in § 1-702(20) shall discharge responsibilities with respect to a Fund as a fiduciary with respect to the Fund. The Board may designate one or more other persons who exercise responsibilities with respect to a Fund to exercise such responsibilities as a fiduciary with respect to such Fund. The Board shall retain such fiduciary responsibility for the exercise of careful, skillful, prudent, and diligent oversight of any person so designated as would be exercised by a prudent individual acting in a like capacity and familiar with such matters under like circumstances.

(2) A fiduciary shall discharge his duties with respect to a Fund solely in the interest of the participants and beneficiaries and:

(A) For the exclusive purpose of providing benefits to participants and their beneficiaries;

(B) With the care, skill, prudence, and diligence under the circumstances then prevailing that a prudent individual acting in a like capacity and familiar with such matters would use in the conduct of an enterprise of a like character and with like aims;

(C) By diversifying the investments of the Fund so as to minimize the risk of large losses, unless under the circumstances it is clearly prudent not to do so; and

(D) In accordance with the provisions of law, documents, and instruments governing the retirement program to the extent that such documents and instruments are consistent with the provisions of this chapter.

(b) In addition to any liability which he may have under any other provision of this subchapter, a fiduciary with respect to a Fund shall be liable for a breach of fiduciary responsibility of another fiduciary with respect to the same Fund:

(1) If he knowingly participates in, or knowingly undertakes to conceal, an act or omission of such other fiduciary, knowing such act or omission is a breach of fiduciary responsibility;

(2) If, by his failure to comply with subsection (a)(2) of this section in the administration of his specific responsibilities which give rise to his status as a fiduciary, he has enabled such other fiduciary to commit a breach of fiduciary responsibility; or

(3) If he has knowledge of a breach of fiduciary responsibility by such other fiduciary, unless he makes reasonable efforts under the circumstances to remedy the breach.

(c) Except as provided in subsections (f), (g), and (h) of this section, a fiduciary with respect to a Fund shall not cause the Fund to engage in a transaction, if he knows or should know that such transaction constitutes a direct or indirect:

(1) Sale or exchange, or leasing, of any property between the Fund and a party in interest;

(2) Lending of money or other extension of credit between the Fund and a party in interest;

(3) Furnishing of goods, services, or facilities between the Fund and a party in interest; or

(4) Transfer to, or use by or for the benefit of, a party in interest, of any assets of the Fund.

(d) Except as provided in subsection (h) of this section, a fiduciary with respect to a Fund shall not:

(1) Deal with the assets of the Fund in his own interest or for his own account;

(2) In his individual or in any other capacity act in any transaction involving the Fund on behalf of a party (or represent a party) whose interests are adverse to the interests of the Fund or the interests of its participants or beneficiaries; or

(3) Receive any consideration for his own personal account from any party dealing with such Fund in connection with a transaction involving the assets of the Fund.

(e) A transfer of real or personal property by a party in interest to a Fund shall be treated as a sale or exchange if the property is subject to a mortgage or similar lien which the Fund assumes or if it is subject to a mortgage or similar lien which a party in interest placed on the property within the 10-year period ending on the date of the transfer.

(f) The prohibitions provided in subsection (c) of this section shall not apply to any of the following transactions:

(1) Contracting or making reasonable arrangements with a party in interest for office space, or legal, accounting, or other services necessary for the establishment or operation of the Fund, if no more than reasonable compensation is paid therefor;

(2) The investment of all or part of a Fund’s assets in deposits which bear a reasonable interest rate in a bank or similar financial institution supervised by the United States or a state, if such bank or other institution is a fiduciary of such Fund and if such investment is expressly authorized by regulations of the Board or by a fiduciary (other than such bank or institution or affiliate thereof) who is expressly empowered by the Board to make such investment;

(3) The providing of any ancillary service by a bank or similar financial institution supervised by the United States or a state if such bank or other institution is a fiduciary of such Fund and if:

(A) Such bank or similar financial institution has adopted adequate internal safeguards which assure that the providing of such ancillary service is consistent with sound banking and financial practice, as determined by federal or state supervisory authority; and

(B) The extent to which such ancillary service is provided is subject to specific guidelines issued by such bank or similar financial institution (as determined by the Mayor after consultation with federal and state supervisory authority), and adherence to such guidelines would reasonably preclude such bank or similar financial institution from providing such ancillary service (i) in an excessive or unreasonable manner, and (ii) in a manner that would be inconsistent with the best interests of participants and beneficiaries of the retirement program. Such ancillary services shall not be provided at more than reasonable compensation;

(4) The exercise of a privilege to convert securities, to the extent provided in regulations of the Council, but only if the Fund receives no less than adequate consideration pursuant to such conversion; or

(5) Any transaction between a Fund and a common or collective trust fund or pooled investment fund maintained by a party in interest which is a bank or trust company supervised by a state or federal agency, or a pooled investment fund of an insurance company qualified to do business in a state, if:

(A) The transaction is a sale or purchase of an interest in the fund;

(B) The bank, trust company, or insurance company receives not more than reasonable compensation; and

(C) Such transaction is expressly permitted by the Board, or by a fiduciary (other than the bank, trust company, insurance company, or an affiliate thereof) who has authority to manage and control the assets of the Fund.

(g) Nothing in subsection (c) of this section shall be construed to prohibit any fiduciary from:

(1) Receiving any benefit to which he may be entitled as a participant or beneficiary in the retirement program, so long as the benefit is computed and paid on a basis which is consistent with the terms of the retirement program as applied to all other participants and beneficiaries;

(2) Receiving any reasonable compensation for services rendered, or for the reimbursement of expenses properly and actually incurred, in the performance of his duties with respect to the Fund; or

(3) Serving as a fiduciary in addition to being an officer, employee, agent, or other representative of a party in interest.

(h) The Board may from time to time avail itself to exemptive relief from all or part of the restrictions imposed by subsections (c) and (d) of this section for administrative exemptions which have been previously granted by the United States Department of Labor. Prior to utilizing exempted transactions, the Board shall hold a public hearing on the proposed exemption. Notice of the time, place, and subject matter of the public hearing shall be published in the D.C. Register at least 15 days in advance of its scheduled date in order to afford interested persons an opportunity to present their views. The proposed exemption shall be published in the D.C. Register and submitted to the Council along with a synopsis of the results of the public hearing, and written findings by the Board that the exemptions are:

(1) Administratively feasible;

(2) In the best interests of the funds and of their participants and beneficiaries; and

(3) Protective of the rights of participants and beneficiaries of these funds.

(h-1) Unless the Council disapproves the proposed exemption submitted under subsection (h) of this section by resolution within 30 days of receipt by the Council, the exemption shall be deemed approved. If a resolution of disapproval has been introduced by at least one member of the Council within the 5-day period (excluding Saturdays, Sundays, and holidays) following its receipt, the period of Council review shall be extended by an additional 15 days (excluding Saturdays, Sundays, and holidays) from the date of its receipt. If the resolution of disapproval has not been approved within the 15-day extended period, the proposed exemption shall be deemed approved.

(i) For purposes of subsections (c) and (d) of this section, the assets of a Fund shall not include assets in a pooled separate account of an insurance company qualified to do business in a state or assets in a collective investment fund of a bank or similar financial institution supervised by the United States or any state, provided that:

(1) The interest of all Funds in the separate account or collective investment fund does not exceed 5% of the total of all assets in the account or fund; and

(2) At the time a transaction that would otherwise be prohibited by subsection (c) or (d) of this section is entered into, and at the time of any subsequent renewal which requires the approval of the bank or insurance company, the terms of the transaction are not less favorable to the pooled separate account or collective investment fund than the terms generally available in an arm’s length transaction between unrelated parties.

(Nov. 17, 1979, 93 Stat. 866, Pub. L. 96-122, § 181; Feb. 24, 1987, D.C. Law 6-163, § 2, 33 DCR 6698; Mar. 24, 1990, D.C. Law 8-97, § 2(e), 37 DCR 1046; Sept. 10, 1992, D.C. Law 9-145, § 401(c), 39 DCR 4895; Oct. 29, 1993, 107 Stat. 1349, Pub. L. 103-127, § 139(a); Apr. 8, 2005, D.C. Law 15-300, § 2(d), 52 DCR 1504.)

Prior Codifications

1981 Ed., § 1-741.

1973 Ed., § 1-1841.

Effect of Amendments

D.C. Law 15-300 rewrote subsec. (h) and added subsec. (h-1).

Editor's Notes

Section 139(b) of Pub. L. 103-127 provided that subsection (a) of that section shall apply beginning September 10, 1992.

Approval of rules to establish administrative class exemptions: Pursuant to Resolution 8-293, the “District of Columbia Retirement Board Administrative Class Exemptions Approval Resolution of 1990”, effective November 30, 1990, the Council approved the proposed rules to establish administrative class exemptions from prohibited transactions in order to permit the District of Columbia Retirement Board to participate in certain commercially reasonable and noncontroversial financial transactions.

Independent audit of Retirement Board: Section 135 of Public Law 103-334, 108 Stat. 2586, the District of Columbia Appropriations Act, 1995, provided that the District of Columbia Retirement Board shall enter into an agreement with an independent firm meeting certain qualifications to prepare and submit to the Retirement Board a written set of findings and recommendations not later than 6 months after the date of enactment of this Act regarding the appropriateness and adequacy of the Retirement Board’s fiduciary, management, and investment practices and procedures, and provided for expenditure of funds.

Resolutions

Resolution 15-288, the “District of Columbia Retirement Board Restricted Transaction Exemption Approval Resolution of 2003”, was approved effective November 4, 2003.

§ 1–742. Liability for breach of fiduciary duty.

(a) Any person who is a fiduciary with respect to a Fund who breaches any of the responsibilities, obligations, or duties imposed upon fiduciaries by this chapter shall be personally liable to make good to such Fund any losses to the Fund resulting from each such breach and to restore to such Fund any profits of such fiduciary which have been made through the use of assets of the Fund by the fiduciary and shall be subject to such other equitable or remedial relief as the court may deem appropriate, including removal of such fiduciary.

(b) No fiduciary shall be liable with respect to a breach of fiduciary duty under this chapter if such breach was committed before he became a fiduciary or after he ceased to be a fiduciary.

§ 1–743. Exculpatory provisions; insurance.

(a) Any provision in an agreement or instrument which purports to relieve a fiduciary from responsibility or liability for any responsibility, obligation, or duty under this subchapter shall be void as against public policy.

(b) Nothing in this section shall preclude:

(1) The Board from purchasing insurance for its fiduciaries or for itself to cover liability or losses occurring by reason of the act or omission of a fiduciary, if such insurance permits recourse by the insurer against the fiduciary in the case of a breach of a fiduciary obligation by such fiduciary;

(2) A fiduciary from purchasing insurance to cover liability under this subchapter from and for his own account; or

(3) An employee organization from purchasing insurance to cover potential liability of one or more persons who serve in a fiduciary capacity with regard to the Fund from which the annuities and other retirement and disability benefits of the members of such employee organization are paid.

§ 1–744. Prohibition against certain persons holding certain positions.

(a) No person who has been convicted of, or has been imprisoned as a result of his conviction of, robbery, bribery, extortion, embezzlement, fraud, grand larceny, burglary, arson, a felony violation of federal or state law involving substances defined in § 102(6) of the Comprehensive Drug Abuse Prevention and Control Act of 1970 (21 U.S.C. § 802(6)), murder, rape, kidnapping, perjury, assault with intent to kill, any crime described in § 9(a)(1) of the Investment Company Act of 1940 (15 U.S.C. § 80a-9(a)(1)), a violation of any provision of this chapter, a violation of § 302 of the Labor-Management Relations Act, 1947 (29 U.S.C. § 186), a violation of Chapter 63 of Title 18, United States Code, a violation of § 874, 1027, 1503, 1505, 1506, 1510, 1951, or 1954 of Title 18, United States Code, a violation of the Labor-Management Reporting and Disclosure Act of 1959 (29 U.S.C. § 401), or conspiracy to commit any such crime or attempt to commit any such crime, or a crime in which any of the foregoing crimes is an element, shall serve or be permitted to serve: (1) As a fiduciary, investment counsel, agent, or employee of any Fund established by this chapter; or (2) as a consultant to any Fund established by this chapter; during or for 5 years after such conviction or after the end of such imprisonment, whichever is the later, unless prior to the end of such 5-year period, in the case of a person so convicted or imprisoned, his citizenship rights, having been revoked as a result of such conviction, have been fully restored, or the Board of Parole of the United States Department of Justice determines that such person’s service in any capacity referred to in clause (1) or (2) of this subsection would not be contrary to the purposes of this chapter. Prior to making any such determination the Board of Parole shall hold an administrative hearing and shall give notice of such proceeding by certified mail to the state, county, and federal prosecuting officials in the jurisdiction or jurisdictions in which such person was convicted. The Board of Parole’s determination in any such proceeding shall be final. No person shall knowingly permit any other person to serve in any capacity referred to in clause (1) or (2) of this subsection in violation of this subsection. Notwithstanding the preceding provisions of this subsection, no corporation or partnership will be precluded from acting as an administrator, fiduciary, officer, trustee, custodian, counsel, agent, or employee, of any Fund established by this chapter, or as a consultant to any Fund established by this chapter, without a notice, hearing, and determination by such Board of Parole that such service would be inconsistent with the intention of this section.

(b) Whoever willfully violates this section shall be fined not more than $10,000, or imprisoned for not more than 1 year, or both.

(1) A person shall be deemed to have been “convicted” and to be under the disability of “conviction” from the date of entry of the judgment of the trial court or the date of the final sustaining of such judgment on appeal, whichever is the later event.

(2) The term “consultant” means any person who, for compensation, advises or represents a Fund or who provides other assistance to such Fund concerning the operation of such Fund.

(3) A period of parole shall not be considered as part of a period of imprisonment.

§ 1–745. Bonding.

(a)(1)(A) Each fiduciary of a Fund established by this chapter and each person who handles funds or other property of such a Fund (hereinafter in this section referred to as “Fund official”) shall be bonded as provided in this section, except that no bond shall be required of a fiduciary (or of any director, officer, or employee of such fiduciary) if such fiduciary:

(i) Is a corporation organized and doing business under the laws of the United States or of any state;

(ii) Is authorized under such laws to exercise trust powers or to conduct an insurance business;

(iii) Is subject to supervision or examination by federal or state authority; and

(iv) Has at all times a combined capital and surplus in excess of such a minimum amount as may be established by regulations issued by the Council, which amount shall be at least $1,000,000.

(B) Sub-subparagraph (iv) of subparagraph (A) of this paragraph shall apply to a bank or other financial institution which is authorized to exercise trust powers and the deposits of which are not insured by the Federal Deposit Insurance Corporation only if such bank or institution meets bonding or similar requirements under state law which the Council determines are at least equivalent to those imposed on banks by federal law.

(2)(A) The amount of such bond shall be the lesser of 10 percent of the amount of the funds handled by such fiduciary and $500,000, except that the amount of such bond shall be at least $1,000.

(B) The Mayor, after notice and opportunity for hearing to such fiduciary and all other parties in interest to such Fund, may waive the $500,000 limit.

(3) For purposes of fixing the amount of such bond, the amount of funds handled shall be determined by the funds handled by the person, group, or class to be covered by such bond and by the predecessor or predecessors, if any, during the preceding reporting year, or if the Fund has no preceding reporting year under this chapter, the amount of funds to be handled during the current reporting year by such person, group, or class, estimated as provided in regulations to be prescribed by the Council.

(4) Such bond shall provide protection to the Fund against loss by reason of acts of fraud or dishonesty on the part of the Fund official, directly or through connivance with others.

(5) Any bond shall have as surety thereon a corporate surety company which is an acceptable surety on federal bonds under authority granted by the Secretary of the Treasury pursuant to §§ 6 through 13 of Title 6, United States Code [repealed]. Any bond shall be in a form or of a type approved by the Council, including individual bonds or schedule or blanket forms of bonds which cover a group or class.

(b) It shall be unlawful for any Fund official to receive, handle, disburse, or otherwise exercise custody or control of any of the funds or other property of any Fund without being bonded as required by subsection (a) of this section, and it shall be unlawful for any Fund official or any other person having authority to direct the performance of such functions to permit such functions, or any of them, to be performed by any Fund official with respect to whom the requirements of subsection (a) of this section have not been met.

(c) It shall be unlawful for any person to procure any bond required by subsection (a) of this section from any surety or other company or through any agent or broker in whose business operations the Fund or any party in interest in the Fund has any control or significant financial interest, direct or indirect.

(d) Nothing in any other provision of law shall require any person required to be bonded as provided in subsection (a) of this section because he handles funds or other property of a Fund to be bonded insofar as the handling by such person of the funds or other property of such Fund is concerned.

(e) The Council shall prescribe such regulations as may be necessary to carry out the provisions of this section.

§ 1–746. Limitation on actions.

No action may be commenced under this chapter with respect to a fiduciary’s breach of any responsibility, duty, or obligation under this subchapter, or with respect to a violation of this subchapter, after the earlier of: (1) Six years after: (A) The date of the last action which constituted a part of the breach or violation; or (B) in the case of an omission, the latest date on which the fiduciary could have cured the breach or violation; or (2) three years after the earliest date: (A) On which the plaintiff had actual knowledge of the breach or violation; or (B) on which a report from which he could reasonably be expected to have obtained knowledge of such breach or violation was filed with the Mayor or the Council under this chapter; except that in the case of fraud or concealment, such an action may be commenced not later than 6 years after the date of discovery of such breach or violation.

§ 1–747. Civil enforcement.

(a) A civil action may be brought:

(1) By a participant or beneficiary:

(A) For the relief provided for in subsection (b) of this section; or

(B) To recover benefits due to him under the terms of his retirement program, to enforce his rights under the terms of the retirement program, or to clarify his rights to future benefits under the terms of the retirement program;

(2) By a participant or beneficiary, the District of Columbia, or the Board for appropriate relief under § 1-742; or

(3) By a participant or beneficiary, the District of Columbia, and the Board:

(A) To enjoin any act or practice which violates any provision of this chapter or the terms of a retirement program; or

(B) To obtain other appropriate equitable relief:

(i) To redress any such violation; or

(ii) To enforce any provision of this chapter or the terms of a retirement program.

(b) If the Board fails or refuses to comply with a request for any information which the Board is required by this chapter to furnish to a participant or beneficiary (unless such failure or refusal results from matters reasonably beyond the control of the Board) by mailing the information requested to the last known address of the requesting participant or beneficiary within 30 days after such request, then the Board may, in the court’s discretion, be liable to such participant or beneficiary in an amount of up to $100 a day from the date of such failure or refusal, and the court may order the Board to provide the required information and may in its discretion order such other relief as it considers proper.

(c) The Board may sue and be sued under this chapter as an entity. Service of summons, subpoena, or other legal process of a court upon the Chairman of the Board in his capacity as such shall constitute service upon the Board.

(d) In any action under this chapter by a participant, beneficiary, fiduciary, or the Board, the court in its discretion may allow a reasonable attorney’s fee and costs of action to either party.

§ 1–748. Claims procedure.

In accordance with regulations issued by the Board, the Board shall provide to any participant or beneficiary who has a claim for benefits under a retirement program denied:

(1) Adequate written notice of such denial, setting forth the specific reasons for such denial in a manner calculated to be understood by such participant or beneficiary; and

(2) A reasonable opportunity for a full and fair review of the decision denying such claim.

Subchapter VI. Denial of Claim for Retirement Benefits.

§ 1–751. Procedure enumerated.

(a) Purpose. — This section sets forth the procedures for the denial of a claim for retirement benefits under the chapter.

(b) Filing of claim for benefits. — For the purposes of this section, a claim is a request for a benefit by a participant or beneficiary of any of the Funds. A claim is filed when the procedure established by the Board for the initiation of claims has been met. Until such procedure has been established, a claim shall be deemed filed when a written communication is made by a claimant (or the claimant’s authorized representative) which is reasonably calculated to bring the claim to the attention of the Board and the written communication is received by the Board.

(1) The Board shall provide to every claimant whose claim for benefits is wholly or partially denied a written notice setting forth in a manner calculated to be understood by the claimant:

(A) The specific reason or reasons for the denial;

(B) Specific reference to pertinent provisions of applicable law, regulations, or Fund procedures on which the denial is based;

(C) A description of any material or information necessary for the claimant to perfect the claim and an explanation of why such material or information is necessary; and

(D) Appropriate information as to the steps to be taken if the participant or beneficiary wishes to submit his or her claim for review.

(2) If the claim is wholly or partially denied, written notice of the decision, meeting the requirements of paragraph (1) of this subsection, shall be furnished to the claimant within a reasonable time after receipt of the claim by the Board.

(3) If written notice of the denial of a claim is not furnished in accordance with paragraph (2) of this subsection within a reasonable time, the claimant shall be deemed to have exhausted his or her administrative remedies for the purpose of instituting proceedings for relief in the Superior Court for the District of Columbia, unless the claimant chooses to avail himself or herself of the procedures set forth in subsection (d) of this section.

(4) For the purposes of paragraphs (2) and (3) of this subsection, a reasonable period of time shall be no more than 90 calendar days after receipt of the claim by the Board, unless special circumstances require an extension of time for processing the claim. If such an extension of time for processing is required, written notice of the extension shall be furnished to the claimant prior to the termination of the initial 90-calendar-day period. In no event shall such extension exceed a period of 90 calendar days from the end of such initial period. The written notice of extension shall indicate the special circumstances requiring an extension of time and the date by which the Board expects to render the final decision.

(d) Review. —

(1) The Board shall establish and maintain a procedure for each Fund, by which a claimant or his or her duly authorized representative has reasonable opportunity to appeal a denied claim to the Board, and under which full and fair review of the claim and its denial may be obtained. Every such procedure shall include, but not be limited to, provisions that permit a claimant or his or her duly authorized representative to:

(A) Request a review upon written application to the Board;

(B) Review pertinent documents; and

(2) Such procedures may establish a limited period within which a claimant must file any request for review of a denial claim. Such time limits must be reasonable and related to the nature of the benefit which is the subject of the claim and to other attendant circumstances. In no event may such a period expire less than 60 calendar days after receipt by the claimant or written notification of the denial of a claim.

(3) A decision by the Board or his or her designees shall be made no later than 90 calendar days after the Board’s receipt of a request for review, unless special circumstances require an extension of time for processing, in which case a decision shall be rendered as soon as possible, but not later than 120 calendar days after receipt of a request for review. If such an extension of time for review is required because of special circumstances, written notice of the extension shall be furnished to the claimant prior to the commencement of the extension.

(4) The decision on review shall be in writing and shall be written in a manner calculated to be understood by the claimant. The written decision shall include specific reasons for the decision and shall cite specific references to the pertinent provisions of applicable law, regulation, or Fund procedures on which the decision is based.

(5) The decision on review shall be furnished to the claimant within the appropriate time prescribed in paragraph (3) of this subsection. If the decision on review is not furnished within such time, the claim shall be deemed denied on review.

(e) Reasonableness. — For purposes of this subchapter, a procedure will be deemed to be reasonable only if it does not contain any provision, and is not administered in a way, which unduly inhibits or hampers the initiation or processing of a claim for benefits.

(Nov. 17, 1979, 93 Stat. 866, Pub. L. 96-122, § 191; as added July 2, 1982, D.C. Law 4-123, § 2(b), 29 DCR 2084; Mar. 13, 2004, D.C. Law 15-105,§ 33(c), 51 DCR 881; Apr. 13, 2005, D.C. Law 15-354, § 3(e), 52 DCR 2638.)

Prior Codifications

1981 Ed., § 1-751.

Effect of Amendments

D.C. Law 15-105 validated a previously made technical correction.

D.C. Law 15-354, in subsec. (b), substituted “Board” for “Mayor” and “Director of Personnel”; in subsec. (c), substituted “Board” for “Mayor” and, in subsec. (d), substituted “Board” for “Mayor” and “Mayor or his or her designee”.

Delegation of Authority

Delegation of authority under Law 4-123, see Mayor’s Order 83-245, October 14, 1983.

§ 1–752. Application of procedure.

(a) The procedure established by this subchapter shall apply to any participant or beneficiary who has a claim for benefits denied under the District of Columbia Police Officers and Fire Fighters’ Retirement Fund, established by § 1-712; the District of Columbia Teachers’ Retirement Fund, established by § 1-713; and the District of Columbia Judges’ Retirement Fund, established by § 1-714.

(b) The procedure established by this subchapter shall apply to claims for benefits denied after March 1, 1982.

§ 1–753. Compliance by Mayor.

The Mayor of the District of Columbia shall comply with the requirements of these regulations and shall give written notice of compliance therewith to the Council of the District of Columbia within 60 calendar days after July 2, 1982.

(Nov. 17, 1979, 93 Stat. 866, Pub. L. 96-122, § 193; as added July 2, 1982, D.C. Law 4-23, § 4, 29 DCR 2084; Mar. 13, 2004, D.C. Law 15-105, § 33(e), 51 DCR 881.)

Prior Codifications

1981 Ed., § 1-753.

Effect of Amendments

D.C. Law 15-105 validated a previously made technical correction.

Emergency Legislation

For temporary establishment of an actuarially sound retirement replacement plan for pension benefits accrued after June 30, 1997, for police officers, fire fighters, and teachers, see §§ 101-204 of the Police Officers, Fire Fighters, and Teachers Retirement Benefit Replacement Plan Emergency Act of 1997 (D.C. Act 12-155, October 1, 1997, 44 DCR 5896), see §§ 101-204 of the Police Officers, Fire Fighters, and Teachers Retirement Benefit Replacement Plan Congressional Review Emergency Act of 1997 (D.C. Act 12-240, January 13, 1998, 45 DCR 531), see §§ 101-204 of the Police Officers, Fire Fighters, and Teachers Retirement Benefit Replacement Plan and Fiscal Year 1998 Revised Budget Support Act of 1997 Technical Amendments Emergency Act of 1998 (D.C. Act 12-351, May 20, 1998, 45 DCR 3673), and see §§ 101-204 of the Police Officers, Fire Fighters, and Teachers Retirement Benefit Replacement Plan and Fiscal Year 1998 Revised Budget Support Act of 1997 Technical Amendments Congressional Review Emergency Amendment Act of 1998 (D.C. Act 12-432, August 6, 1998, 45 DCR 5920).

Editor's Notes

Retirement replacement plan: Sections 101 through 204 of D.C. Law 12-58 provide for the temporary establishment of replacement retirement plans for pension benefits accrued after June 30, 1997, for police officers, fire fighters, and teachers, and provide for the full funding and management on an actuarially sound basis of all retirement funds entrusted to the District government for the benefit of teachers, members and officers of the Metropolitan Police Department, and employees of the D.C. Fire and Emergency Medical Services Department.

Section 209(b) of D.C. Law 12-58 provided that the act shall expire after 225 days of its having taken effect.