(a) Establishment. -- There is established on the books of the Treasury the District of Columbia Federal Pension Liability Trust Fund, consisting of the assets transferred pursuant to § 1-807.03 and any income earned on the investment of such assets pursuant to subsection (b) of this section.
(b) Investment of assets. -- The Trustee may invest the assets of the Trust Fund in private securities and any other form of investment deemed appropriate by the Secretary.
(Aug. 5, 1997, 111 Stat. 723, Pub. L. 105-33, § 11031.)
HISTORICAL AND STATUTORY NOTES
Prior Codifications
1981 Ed., § 1-764.1.
Miscellaneous Notes
Payment of attorney fees: Section 130 of Pub. L. 105-277, 112 Stat. 2681-138, provides that "none of the funds contained in this Act may be made available to pay the fees of an attorney who represents a party who prevails in an action, including an administrative proceeding, brought against the District of Columbia Public Schools under the Individuals with Disabilities Education Act (20 U.S.C. 1400 et seq.) if: (1) the hourly rate of compensation of the attorney exceeds the hourly rate of compensation under § 11-2604(a), or (2) the maximum amount of compensation of the attorney exceeds the maximum amount of compensation under § 11-2604(b)(1), except that compensation and reimbursement in excess of such maximum may be approved for extended or complex representation in accordance with § 11-2604(c)."
(a) In general. -- Amounts in the Trust Fund shall be used:
(1) To make Federal benefit payments under this chapter;
(2) subject to subsection (b)(1)of this section, to cover the reasonable and necessary expenses of administering the Trust Fund under the contract entered into pursuant to § 1-807.05(b);
(3) To cover the reasonable and necessary administrative expenses incurred by the Secretary in carrying out the Secretary's responsibilities under this chapter; and
(4) For such other purposes as are specified in this chapter.
(b) Special rules regarding administrative expenses. --
(1) Budgeting; certification and approval. -- The administrative expenses of the Trust Fund shall be paid in accordance with an annual budget set forth by the Trustee which shall be subject to certification and approval by the Secretary.
(2) Use of District Retirement Fund for interim administration. -- The Secretary is authorized to requisition from the District Retirement Fund such sums as are necessary to administer the Trust Fund (including expenses described in § 1-809.01(b)) until assets are transferred to the Trust Fund pursuant to § 1-807.03.
(Aug. 5, 1997, 111 Stat. 723, Pub. L. 105-33, § 11032; Oct. 21, 1998, 112 Stat. 2681-531, Pub. L. 105-277, § 801(c).)
HISTORICAL AND STATUTORY NOTES
Prior Codifications
1981 Ed., § 1-764.2.
(a) In general. -- As of the replacement plan adoption date, all obligations to make Federal benefit payments and all assets of the District Retirement Fund as of the replacement plan adoption date (except as provided in subsections (b) and (c) of this section) shall be transferred to the Trust Fund.
(b) Designation of assets to be retained by District Retirement Fund. -- The Secretary shall designate assets with a value of $1.275 billion that shall not be transferred from the District Retirement Fund under subsection (a) of this section. The Secretary's designation and valuation of the assets shall be final and binding.
(c) Exception for certain employee contributions. --
(1) In general. -- Subsection (a) of this section shall not apply to assets of the District Retirement Fund consisting of any employee contributions deducted and withheld after the freeze date or any interest thereon (computed at a rate and in a manner determined by the Secretary).
(2) Employee contributions defined. -- In paragraph (1) of this subsection, the term "employee contributions" means amounts deducted and withheld from the salaries of covered District employees and paid to the District Retirement Fund (and, in the case of teachers, amounts of additional deposits paid to the District Retirement Fund), pursuant to the District Retirement Program.
(d) Responsibilities of District Government. --
(1) In general. -- The transfer of assets from the District Retirement Fund under this section shall be made in accordance with the direction of the Secretary. The District Government shall promptly take all steps, and execute all documents, that the Secretary deems necessary to effect the transfer.
(2) Final reconciliation of accounts. -- As soon as practicable after the replacement plan adoption date, the District Government shall furnish the Trustee a final reconciliation of accounts in connection with the transfer of assets and obligations to the Trust Fund. The allocation of assets under this section shall be adjusted in accordance with this reconciliation.
(e) Methodology for designating assets. --
(1) In general. -- In carrying out subsection (b), the Secretary may develop and implement a methodology for designating assets after the replacement plan adoption date that takes into account the value of the District Retirement Fund as of the replacement plan adoption date and the proportion of such value represented by $1.275 billion, together with the income (including returns on investments) earned on the assets of and withdrawals from and deposits to the Fund during the period between such date and the date on which the Secretary designates assets under subsection (b). In implementing a methodology under the previous sentence, the Secretary shall not be required to determine the value of designated assets as of the replacement plan adoption date. Nothing in this paragraph may be deemed to effect the entitlement of the District Retirement Fund to income (including returns on investments) earned after the replacement plan adoption date on assets designated for retention by the Fund.
(2) Employee contributions; Judicial Retirement and Survivors Annuity Fund. -- The Secretary may develop and implement a methodology comparable to the methodology described in paragraph (1) in carrying out the requirements of subsection (c) and in designating assets to be transferred to the District of Columbia Judicial Retirement and Survivors Annuity Fund pursuant to § 1- 714(c)(1).
(3) Discretion of the Secretary. -- The Secretary's development and implementation of methodologies for designating assets under this subsection shall be final and binding.
(Aug. 5, 1997, 111 Stat. 723, Pub. L. 105-33, § 11033; Oct. 21, 1998, 112 Stat. 2681-532, Pub. L. 105-277, §§ 801(g)(2), 803.)
HISTORICAL AND STATUTORY NOTES
Prior Codifications
1981 Ed., § 1-764.3.
(a) Internal Revenue Code. -- For purposes of the Internal Revenue Code of 1986:
(1) The Trust Fund shall be treated as a trust described in § 401(a) of the Code which is exempt from taxation under § 501(a) of the Code;
(2) Any transfer to or distribution from the Trust Fund shall be treated in the same manner as a transfer to or distribution from a trust described in § 401(a) of the Code; and
(3) The benefits provided by the Trust Fund shall be treated as benefits provided under a governmental plan maintained by the District of Columbia.
(b) ERISA. -- For purposes of the Employee Retirement Income Security Act of 1974, the benefits provided by the Trust Fund shall be treated as benefits provided under a governmental plan maintained by the District of Columbia.
(c) Application of certain future amendments to Internal Revenue Code. -- To the extent that any provision of subpart A of part I of subchapter D of chapter 1 of the Internal Revenue Code of 1986 (26 U.S.C. 401 et seq.) is amended August 5, 1997, such provision as amended shall apply to the Trust Fund only to the extent the Secretary determines that application of the provision as amended is consistent with the administration of this chapter.
(Aug. 5, 1997, 111 Stat. 724, Pub. L. 105-33, § 11034.)
HISTORICAL AND STATUTORY NOTES
Prior Codifications
1981 Ed., § 1-764.4.
References in Text
Sections 401 and 501 of the Internal Revenue Code, referred to in (a), are codified as 26 U.S.C. §§ 401 and 501, respectively.
The "Employee Retirement Income Security Act of 1974," referred to in (b), is codified as 29 U.S.C. § 1001 et seq.
(a) In general. -- As soon as practicable after the enactment of this chapter, the Secretary shall select a Trustee to administer the Trust Fund and otherwise carry out the responsibilities and duties specified in this chapter in accordance with the contract described in subsection (b) of this section.
(b) Contract. -- The Secretary shall enter into a contract with the Trustee to provide for the management, investment, control and auditing of Trust Fund assets, the making of Federal benefit payments under this chapter from the Trust Fund, and such other matters as the Secretary deems appropriate. The Secretary shall enforce the provisions of the contract and otherwise monitor the administration of the Trust Fund.
(c) Subcontracts. -- Notwithstanding any provision of a District Retirement Program or any other law, rule, or regulation, the Trustee may, with the approval of the Secretary, enter into one or more subcontracts with the District Government or any person to provide services to the Trustee in connection with its performance of the contract. The Trustee shall monitor the performance of any such subcontract and enforce its provisions.
(d) Determination by the Secretary. -- Notwithstanding subsection (b) or any other provision of this chapter, the Secretary may determine, with respect to any function otherwise to be performed by the Trustee, that in the interest of economy and efficiency such function shall be performed by the Secretary rather than the Trustee.
(e) Reports. -- The Trustee shall report to the Secretary, in a form and manner and at such intervals as the Secretary may prescribe, on any matters or transactions relating to the Trust Fund, including financial matters, as the Secretary may require.
(Aug. 5, 1997, 111 Stat. 724, Pub. L. 105-33, § 11035; Oct. 21, 1998, 112 Stat. 2681-531, Pub. L. 105-277, § 801(d).)
HISTORICAL AND STATUTORY NOTES
Prior Codifications
1981 Ed., § 1-764.5.
Effective upon the transfer of the obligations and assets of the Trust Fund to the D.C. Federal Pension Fund under § 1-817.03:
(1) The Trust Fund shall terminate; and
(2) The obligation to make Federal benefit payments from the Trust Fund, and any duty imposed on any person with respect to the Trust Fund, shall terminate.
(Aug. 5, 1997, 111 Stat. 724, Pub. L. 105-33, § 11036, as added Dec. 23, 2004, 118 Stat. 3969, Pub. L. 108-489, § 2(b)(1).)
