(a) Except as provided in subsection (c) 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; or
(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.
(b)(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 work place and while traveling to and from work;
(C) Banning provocative religious or political emblems from the work place;
(D) Publicly advertising all job openings and making special recruitment efforts to attract applicants from under-represented 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 conformance with the MacBride Principles as enumerated in paragraph (2) of this subsection), and provide an annual report of his 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, in making a determination with respect to the affirmative action taken by the institutions and companies.
(c) 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.
(Sept. 18, 1998, D.C. Law 12-152, § 131, 45 DCR 4045; Apr. 8, 2005, D.C. Law 15-300, § 3, 52 DCR 1504.)
HISTORICAL AND STATUTORY NOTES
Prior Codifications
1981 Ed., § 1-784.1.
Effect of Amendments
D.C. Law 15-300, in subsec. (a), rewrote the lead-in sentence which had read: "The assets of the Funds shall not be invested in the following:"; and added subsec. (c).
Legislative History of Laws
For legislative history of D.C. Law 12-152, see Historical and Statutory Notes following § 1-901.01.
For Law 15-300, see notes following § 1-702.
Miscellaneous Notes
Application of Law 12-152: See Historical and Statutory Notes following § 1- 901.01.
(a) Each fiscal year, the District shall insure that a sufficient amount is appropriated for each separate fund comprising the Funds, as the District of Columbia payment to the appropriate separate fund comprising the Funds, which shall be equal to, or greater than, the amount calculated as provided for in § 1-907.03, as determined by the enrolled actuary, engaged pursuant to § 1-907.03(a).
(b) The amount appropriated as the District of Columbia payment shall be deposited in the appropriate separate fund comprising the Funds not more than 30 days after it is appropriated or 30 days after the beginning of the fiscal year for which it is appropriated, whichever is later.
(c) At the end of each fiscal year, the District shall provide to the enrolled actuary the actual aggregate amount of earnable compensation ("covered payroll") paid to each participant group covered by the Retirement Program. The enrolled actuary shall determine whether the amount appropriated for the applicable fiscal year resulted in an overpayment or a shortfall based upon the actual covered payroll.
(1) If a shortfall exists, the Mayor and the Council shall include within the ensuing budget cycle a line item that requests funding equal to the full amount of shortfall for the appropriate separate fund comprising the Funds.
(2) If an overpayment exists, the Mayor and the Council shall include within the ensuing budget cycle a line item that requests a reduction in the amount appropriated as the District of Columbia payment to the Funds equal to the full amount of the overpayment.
(3) Overpayments or shortfall reductions shall be made in addition to, and notwithstanding, any other payment required herein.
(d) If at any time the balance of any separate fund comprising the Funds is not sufficient to meet all obligations against the Funds, the Funds shall have claims on the revenues of the District of Columbia to the extent necessary to meet the obligation.
(Sept. 18, 1998, D.C. Law 12-152, § 132, 45 DCR 4045.)
HISTORICAL AND STATUTORY NOTES
Prior Codifications
1981 Ed., § 1-784.2.
Legislative History of Laws
For legislative history of D.C. Law 12-152, see Historical and Statutory Notes following § 1-901.01.
Miscellaneous Notes
Application of Law 12-152: See Historical and Statutory Notes following § 1- 901.01.
(a)(1) When specified in paragraph (2) of this subsection, the Retirement Board shall engage an enrolled actuary, who may be the enrolled actuary engaged pursuant to § 1-732(a)(4)(A), to make the following determinations as of a specified date on the basis of the entry age normal funding method and in accordance with generally accepted actuarial principles and practices with respect to each separate fund comprising the Funds:
(A) The normal cost, determined as a level percentage of covered annual payroll;
(B) The unfunded accrued liability payment; which, for the purposes of this section, means the level amount or the level percentage of covered annual payroll that, when contributed annually to the Funds for a period of not greater than 30 years, would be sufficient to fund the liability for benefits accrued by participants as of the valuation date ("accrued liability") in excess of the current value of assets of the Funds ("unfunded accrued liability");
(C) The current value of the assets in theFunds;
(D) The estimated covered annual payroll; and
(E) Such additional information as the Retirement Board may need to make the determinations specified in paragraph (4) of this subsection and in subsection (b) of this section.
(2) Unless the actuary engaged by the Retirement Board pursuant to paragraph (1) of this subsection determines that a more frequent valuation is necessary to support the actuary's opinion, the actuary shall make the determinations described in paragraph (1) of this subsection upon the request of the Retirement Board and at least once every 2 years.
(3) On the basis of the most recent determinations made under paragraph (1) of this subsection, the enrolled actuary shall certify to the Retirement Board each year, at a time specified by the Retirement Board, the following information for the next fiscal year with respect to each separate fund comprising the Funds:
(A) The normal cost;
(B) The present value of future benefits payable from the Funds for covered employees as of the valuation date;
(C) The unfunded accrued liability payment;
(D) The current value of assets as of the valuation date; and
(E) The value of assets used in developing the amortization of unfunded accrued liability payment.
(4) On the basis of the most recent certification submitted by the enrolled actuary under paragraph (3) of this subsection, the Retirement Board shall certify the sum of the normal cost and the unfunded accrued liability payment ("amount of the District payment") for the next fiscal year for each separate fund comprising the Funds.
(b)(1) On the basis of the most recent determinations made under subsection (a)(4) of this section, the Retirement Board shall, no fewer than 30 days before the date on which the Mayor is required to submit the annual budget for the District of Columbia government to the Council, pursuant to § 1-204.42, certify to the Mayor and the Council the amount of the District payment for each separate fund comprising the Funds.
(2) The Mayor, in preparing each annual budget for the District of Columbia pursuant to § 1-204.42, and the Council, in adopting each annual budget in accordance with § 1-204.46, shall, for each separate fund comprising the Funds, include in the budget no less than the amount of the District payment for each separate fund comprising the Funds certified by the Retirement Board under paragraph (1) of this subsection. The Mayor and the Council may comment and make recommendations concerning any such amount certified by the Retirement Board.
(c)(1) Before the enactment of any law, resolution, regulation, rule, or agreement producing any change in benefits under a retirement program, the Mayor shall engage and pay for an enrolled actuary, who may be the enrolled actuary engaged pursuant to § 1-732(a)(4)(A), to estimate the effect of that change in benefits over the next 5 fiscal years on the:
(A) Accrued liability of the retirement program;
(B) Unfunded accrued liability of the retirement program;
(C) Unfunded accrued liability payment with respect to the retirement program; and
(D) Normal cost with respect to the retirement program.
(2) Whenever any change in benefits under a retirement program pursuant to this subsection 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 employee group for which the change was not made.
(d) The Mayor shall transmit the estimates of the actuary to the Retirement Board, the Secretary of the Treasury, and the Council, and the change in benefits shall not become effective until the end of a 30-day period of review, which shall begin on the date that the 3 required transmittals have been effected.
(Sept. 18, 1998, D.C. Law 12-152, § 133, 45 DCR 4045; Oct. 1, 2002, D.C. Law 14-190, § 3742, 49 DCR 6968; Apr. 13, 2005, D.C. Law 15-354, § 4(b), 52 DCR 2638; Sept. 20, 2012, D.C. Law 19-168, § 1062, 59 DCR 8025.)
HISTORICAL AND STATUTORY NOTES
Prior Codifications
1981 Ed., § 1-784.3.
Effect of Amendments
D.C. Law 14-190 rewrote subsec. (c)(2) which had read as follows:
"(2) the estimated level of District payments."
D.C. Law 15-354, in subsec. (c), substituted "Prior to the enactment of any law, resolution, regulation, rule, or agreement" for "Prior to the enactment of any law".
D.C. Law 19-168, rewrote the section, which formerly read:
"(a)(1) The Retirement Board shall engage an enrolled actuary who may be the enrolled actuary engaged pursuant to § 1-732(a)(4)(A), who shall, in accordance with generally accepted actuarial principles and practices, make the following determinations with respect to each separate fund comprising the Funds:
"(A) When specified in paragraph (2) of this subsection, the actuary shall determine the level percentage of covered payroll, expressed as a percentage (hereinafter in this chapter referred to as the 'normal contribution rate'), which shall be the percentage which if paid annually into the Funds from the date of the actuarial determination until the date of death, retirement, or other withdrawal from employment for all participants covered by the retirement program and added to (i) all future employee contributions to the Funds, (ii) the assets in the Funds, and (iii) projected future investment earnings of the Funds, are projected to be sufficient to pay for the future benefits payable from the Funds to that group. If deemed appropriate by the Retirement Board, separate normal contribution rates may be determined for different classifications of employees.
"(B) When specified in paragraph (2) of this subsection, the enrolled actuary shall determine the current value of the assets in the Funds as of the actuarial determination date.
"(C) The actuary shall also determine such additional information as the Retirement Board may require to make the determinations specified in paragraph (4) of this subsection and in subsection (b) of this section.
"(2) Unless the actuary engaged by the Retirement Board pursuant to paragraph (1) of this subsection determines that a more frequent valuation is necessary to support the actuary's opinion, the actuary shall make the determinations described in paragraph (1)(A) and (B) of this subsection:
"(A) Not later than 60 days after September 18, 1998; and
"(B) Upon a request by the Retirement Board; or
"(C) At least once every 2 years.
"(3) On the basis of the most recent determinations made under paragraph (1) of this subsection, the enrolled actuary shall certify to the Retirement Board each year, at a time specified by the Retirement Board, the following information with respect to each separate fund comprising the Funds for the next fiscal year:
"(A) The normal contribution rate;
"(B) The present value of future benefits payable from the Funds for covered employees as of the valuation date;
"(C) The current value of assets in the Funds as of the actuarial determination date; and
"(D) The value of assets, as determined by the actuary, for use in development of the normal contribution rate.
"(4) On the basis of the most recent certification submitted by the enrolled actuary under paragraph (3) of this subsection, the Retirement Board shall certify the normal contribution rate applicable for the next fiscal year for each separate fund comprising the Funds.
"(b)(1) On the basis of the most recent determinations made under subsection (a)(4) of this section, the Retirement Board shall, 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, pursuant to § 1-204.42, certify to the Mayor and the Council the normal contribution rate for each separate fund comprising the Funds.
"(2) The Mayor, in preparing each annual budget for the District of Columbia pursuant to § 1-204.42, and the Council, in adopting each annual budget in accordance with § 1-204.46 shall, for each separate fund comprising the Funds, include in the budget not less than the product of: (A) the normal contribution rate certified by the Retirement Board under paragraph (1) of this subsection; and (B) an estimate of the applicable payroll, as determined by the Mayor, as the estimate of the District payment for the next fiscal year. The Mayor and the Council may comment and make recommendations concerning any such amount certified by the Retirement Board.
"(c) Prior to the enactment of any law, resolution, regulation, rule, or agreement producing any change in benefits under the Retirement Program, the Mayor shall engage, and pay for, an enrolled actuary, who may be the enrolled actuary engaged pursuant to § 1-732(a)(4)(A), to estimate the effect of that change in benefits over the next 5 fiscal years on:
"(1) the normal contribution rate; and
"(2) the estimated level of District payments; provided that 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.
"(d) The Mayor shall transmit the estimates of the actuary to the Retirement Board, the Secretary of the Treasury, and the Council, and during a control year, as defined in § 47-393(4) to the District of Columbia Financial Responsibility and Management Assistance Authority. In no event may such change in benefits go into effect until the end of the 30-day period beginning on the date the transmittals required herein have been completed."
Emergency Act Amendments
For temporary (90 day) amendment of section, see § 3642 of Fiscal Year 2003 Budget Support Emergency Act of 2002 (D.C. Act 14-453, July 23, 2002, 49 DCR 8026).
For temporary (90 day) amendment of section, see § 1062 of Fiscal Year 2013 Budget Support Emergency Act of 2012 (D.C. Act 19-383, June 19, 2012, 59 DCR 7764).
For temporary (90 day) addition of section, see § 1063 of Fiscal Year 2013 Budget Support Emergency Act of 2012 (D.C. Act 19-383, June 19, 2012, 59 DCR 7764).
For temporary (90 day) amendment of section, see § 1062 of Fiscal Year 2013 Budget Support Congressional Review Emergency Act of 2012 (D.C. Act 19-413, July 25, 2012, 59 DCR 9290).
For temporary (90 day) addition of section, see § 1063 of Fiscal Year 2013 Budget Support Congressional Review Emergency Act of 2012 (D.C. Act 19-413, July 25, 2012, 59 DCR 9290).
Legislative History of Laws
For legislative history of D.C. Law 12-152, see Historical and Statutory Notes following § 1-901.01.
For Law 14-190, see notes following § 1-301.131.
For Law 15-354, see notes following § 1-523.01.
For history of Law 19-168, see notes under § 1-137.01.
Miscellaneous Notes
Application of Law 12-152: See Historical and Statutory Notes following § 1- 901.01.
Short title of subtitle D of title XXXVII of Law 14-190: Section 3741 of D.C. Law 14-190 provided that subtitle D of title XXXVII of the act may be cited as the Retirement Reform Replacement Actuarial Engagement Amendment Act of 2002.
Short title: Section 1061 of D.C. Law 19-168 provided that subtitle F of title I of the act may be cited as "District of Columbia Retirement Board Actuarial Method Amendment Act of 2012".
(a) As a part of the actuarial report presented to the Retirement Board, the actuary shall prepare an actuarial statement. The statement shall contain:
(1) The dates of the fiscal year and the most recent actuarial valuation;
(2) The total amount of the contributions made by participants and the total amount of all other contributions, including the District payment, received for the fiscal year and for each preceding fiscal year for which the information was not previously reported;
(3) The number of participants, whether or not retired, and beneficiaries receiving benefits covered as of the last day of the fiscal year;
(4) The following information as of the date of the most recent actuarial valuation and, if available and sufficiently comparable so as not to be misleading, for at least the 2 preceding actuarial valuations:
(A) The aggregate annual compensation of participants;
(B) The actuarial value of assets of each separate fund comprising the Funds;
(C) The actuarial accrued liability, if applicable;
(D) The difference between the actuarial value of assets of the system and actuarial accrued liability, if applicable;
(E) The actuarial value of assets of the system expressed as a percentage of actuarial accrued liability, if applicable;
(F) The difference between the actuarial liability expressed as a percentage of the aggregate annual compensation of participants, if applicable; and
(G) The actuarial assumptions and methods used in determining the information described in this paragraph and other factors that significantly affect the information described in this paragraph; and
(5) Other information necessary to disclose fully and fairly the actuarial condition of the retirement plans.
(b)(1) The actuarial report shall also contain an opinion of the enrolled actuary on the actuarial statement attesting that:
(A) To the best of the actuary's knowledge the statement is complete and accurate;
(B) Each assumption and method used in preparing the statement is reasonable, and the assumptions and methods in the aggregate are reasonable, taking into account the experience of the retirement system; and
(C) The assumptions and methods in combination offer the actuary's best estimate of anticipated experience.
(2) In formulating an opinion, the actuary may rely on the correctness of any accounting matter as to which any qualified public accountant has expressed an opinion, if the actuary so indicates.
(c) The actuarial statement and opinion required herein shall be included as part of the annual report required pursuant to § 1-909.02.
(Sept. 18, 1998, D.C. Law 12-152, § 134, 45 DCR 4045.)
HISTORICAL AND STATUTORY NOTES
Prior Codifications
1981 Ed., § 1-784.4.
Legislative History of Laws
For legislative history of D.C. Law 12-152, see Historical and Statutory Notes following § 1-901.01.
Miscellaneous Notes
Application of Law 12-152: See Historical and Statutory Notes following § 1- 901.01.
Upon a request of the Retirement Board, he 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 Retirement Board information with respect to retirement programs and post employment benefit programs to which this chapter applies as the Retirement Board considers necessary to enable it to carry out its responsibilities under this chapter and to enable the enrolled actuary engaged pursuant to § 1- 907.03(a) to carry out the responsibilities of the enrolled actuary under this chapter.
(Sept. 18, 1998, D.C. Law 12-152, § 135, 45 DCR 4045; Dec. 7, 2004, D.C. Law 15-205, § 1013(b), 51 DCR 8441.)
HISTORICAL AND STATUTORY NOTES
Prior Codifications
1981 Ed., § 1-784.5.
Effect of Amendments
D.C. Law 15-205 substituted "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 Retirement Board information with respect to retirement programs and post employment benefit programs" for "the Mayor shall furnish to the Retirement Board information with respect to retirement programs".
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.
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.
