(a) The Council of the District of Columbia finds the following:
(1) When the federal government established separate retirement funds for police officers, fire fighters, and teachers, and established a retirement board with responsibility for managing these retirement funds, it significantly unfunded the liabilities of the retirement funds in an amount totaling approximately $2,600,000,000.
(2) The approximate $2,600,000,000 unfunded liability has increased to nearly $4,800,000,000 due primarily to the accumulation of interest on the initial balance, not because of any action taken or any failure to act on the part of the District government or the District of Columbia Retirement Board.
(3) Because the unfunded liability is a legal obligation of the District government and exceeds the total General Obligation debt of the District, the presence of the unfunded pension liability has had a significant negative impact on the District's credit rating.
(4) The costs associated with the liability have been a contributing cause to the District's ongoing financial crisis.
(5) Pursuant to the Retirement Protection Act, the federal government will relieve the District government of the responsibility for the unfunded pension liabilities transferred to the District in 1979, and will assume the legal responsibility for payment of retirement benefits accrued by police officers, fire fighters, and teachers prior to July 1, 1997.
(6) The Retirement Protection Act requires the establishment by the District government of a replacement plan for the current pension benefits for police officers, fire fighters, and teachers.
(b) It is the purpose of this chapter to accomplish the following:
(1) Establishment of replacement retirement plans for pension benefits accrued after June 30, 1997, for police officers, fire fighters, and teachers; and
(2) Provision for 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 Fire and Emergency Medical Services Department.
(Sept. 18, 1998, D.C. Law 12-152, § 101, 45 DCR 4045.)
HISTORICAL AND STATUTORY NOTES
Prior Codifications
1981 Ed., § 1-781.1.
Legislative History of Laws
Law 12-152, the "Police Officers, Fire Fighters, and Teachers Retirement Benefit Replacement Plan Act of 1998," was introduced in Council and assigned Bill No. 12-386, which was referred to the Committee of the Whole. The Bill was adopted on first and second readings on April 7, 1998, and May 5, 1998, respectively. Signed by the Mayor on May 22, 1998, it was assigned Act No. 12- 369 and transmitted to both Houses of Congress for its review. D.C. Law 12-152 became effective on September 18, 1998.
References in Text
The "Retirement Protection Act," referred to in (a)(5) and (6), is subtitle A of Title XI of Pub. L. 105-33, 111 Stat. 715.
Miscellaneous 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.
Management and Financing of Retirement Benefits: Title I of D.C. Law 12-152, pertaining to the management and financing of police officers, fire fighters, and teachers retirement benefits, is codified in this chapter as §§ 1-901.01 through 1-909.09.
For the purposes of this chapter, the term:
(1) "Covered District employee" or "participant" means a teacher of the District of Columbia public schools, a member of the Metropolitan Police Department, or a member of the Fire and Emergency Medical Services Department. It 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, to whom the Police and Firemen's Retirement Act applies.
(2) "Current value" means the fair market value, where available (as determined in good faith by a fiduciary in accordance with regulations promulgated by the Retirement Board), or otherwise the fair value (as determined in good faith by a fiduciary in accordance with regulations promulgated by the Retirement Board), assuming an orderly liquidation when so determined.
(2A) "Domestic partner" shall have the same meaning as provided in § 32- 701(3).
(3) "Employee contribution" means amounts deducted and withheld from the salaries of covered District employees and paid to the Funds (and in the case of teachers, amounts of additional deposits paid to the Funds), pursuant to this chapter.
(4) "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 the Retirement Program participate and which exists for the purpose, in whole or in part, of dealing with the District government concerning the Retirement Program.
(5) "Enrolled actuary" means an actuary enrolled under subtitle C of Title III of the Employee Retirement Income Security Act of 1974, approved September 2, 1974 (88 Stat. 1002; 29 U.S.C. § 3041 et seq.).
(6) "Federal Benefit Payment" means any benefit payment to which an individual is entitled under the Retirement Program, in an amount and under terms and conditions as may apply under the Retirement Program.
(7)(A) "Fiduciary" means, except as otherwise provided in subparagraph (B) of this paragraph, any individual who, with respect to the Funds:
(i) Exercises any discretionary authority or discretionary control respecting management of the Funds 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 the Funds, or has any authority or responsibility to do so; or
(iii) Has any discretionary authority or discretionary responsibility in the administration of the Funds.
(B) If any money or other property of the Funds 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, approved August 22, 1940 (54 Stat. 789; 15 U.S.C. § 80a-1 et seq.), 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 section. Nothing contained in this subparagraph shall limit the duties imposed on that investment company, investment adviser, or principal underwriter by any other law.
(8) "Funds" means collectively the Police Officers and Fire Fighters' Retirement Fund, the Teachers' Retirement Fund, or the Judges' Retirement Fund, but only until the Judges' Retirement Fund is transferred pursuant to § 11252 of the Retirement Protection Act, approved August 5, 1997 (P.L. 105-33; 111 Stat. 758).
(9) "Judge" means a judge as defined in § 11-1561(1).
(10) "Judges' Retirement Fund" means the District of Columbia Judges' Retirement Fund, established under § 1-714(a).
(11) "Party in interest" means:
(A) Any person (including a member of the Retirement Board) having fiduciary responsibilities for the administration of assets in the Funds;
(B) Any person providing services to the Funds;
(C) The government of the District of Columbia;
(D) An employee organization; or
(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.
(12) "Police and Firemen's Retirement Act" means the Policemen and Firemen's Retirement and Disability Act amendments of 1957, § 5-701 et seq.
(13) "Police Officers and Fire Fighters' Retirement Fund" means the District of Columbia Police Officers and Fire Fighters' Retirement Fund established under § 1-712(a).
(13A) "Post employment benefit programs" has the same meaning as that term is defined in § 1-702(22).
(14) "Qualified public accountant" means a person who is a certified public accountant, certified by a regulatory authority of a state.
(15) "Retirement Board" means the District of Columbia Retirement Board established by § 1-711(a).
(16) "Retirement Program" means:
(A) The program of annuities and other retirement and disability benefits for members and officers of the Metropolitan Police Department and the Fire and Emergency Medical Services Department;
(B) The program of annuities and other retirement and disability benefits for judges of the courts of the District of Columbia under § 11-1561 et seq., but only until § 1-714 is terminated and transferred pursuant to § 11252 of the Retirement Protection Act, approved August 5, 1997 (P.L. 105-33; 111 Stat. 758); and
(C) The program of annuities and other retirement and disability benefits for teachers in the public day schools of the District of Columbia.
(17) "Retirement Protection Act" means the District of Columbia Retirement Protection Act of 1997, Subtitle A of Title XI of the Balanced Budget Act of 1997, approved August 5, 1997 (P.L. 105-33; 111 Stat. 715) ("Retirement Protection Act").
(18) "Retirement Reform Act" means the District of Columbia Retirement Reform Act, § 1-701 et seq. ("Retirement Reform Act").
(19) "Security" means a security as defined in § 2(1) of the Securities Act of 1933, approved May 27, 1933 (48 Stat. 74; 15 U.S.C. § 77b(1)).
(20) "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.
(21) "Teacher" means a teacher as defined in § 38-2021.13.
(22) "Teachers' Retirement Fund" means the District of Columbia Teachers' Retirement Fund established under § 1-713.
(23) "Trust" means the $1.275 billion in assets in the possession or control of the Retirement Board for post June 30, 1997, benefits and any contributions made to the Funds after June 30, 1997, for benefits accrued after June 30, 1997.
(Sept. 18, 1998, D.C. Law 12-152, § 102, 45 DCR 4045; Dec. 7, 2004, D.C. Law 15-205, § 1013(a), 51 DCR 8441; Apr. 7, 2006, D.C. Law 16-91, § 125(b)(1), 52 DCR 10637; Sept. 12, 2008, D.C. Law 17-231, § 5, 55 DCR 6758.)
HISTORICAL AND STATUTORY NOTES
Prior Codifications
1981 Ed., § 1-781.2.
Effect of Amendments
D.C. Law 15-205 added par. (13A)
D.C. Law 16-91, in par. (13A), validated a previously made technical correction.
D.C. Law 17-231 added par. (2A); and, in par. (11)(A), substituted "spouse or domestic partner" for "spouse".
Legislative History of Laws
For legislative history of D.C. Law 12-152, see Historical and Statutory Notes following § 1-901.01.
For Law 15-205, see notes following § 1-702.
For Law 16-91, see notes following § 1-301.45.
For Law 17-231, see notes following § 1-301.45.
References in Text
Section 11252 of the Retirement Protection Act, referred to in (8) and (16)(B), is codified at §§ 1-711, 1-714, and 1-819.01.
Miscellaneous Notes
Application of Law 12-152: See Historical and Statutory Notes following § 1- 901.01.
For conditional applicability of subtitle B of Title I of D.C. Law 15-205, see notes under § 1-911.04a.
