(a)(1) Effective October 1, 1997, each member of the Retirement Board shall, within 90 days of his election or appointment, as the case may be, and not later than April 30th of each year thereafter, submit, as a member of the Retirement Board, to the Mayor and the Council a personal financial disclosure statement with respect to the preceding calendar year.
(2) The statement shall be in such form as the Council may require and shall contain information with respect to the member's financial condition as the Council may require, including the following information:
(A) The amount and source of all income (as defined in § 61 of the Internal Revenue Code of 1954, approved August 16, 1954 (68A Stat. 17; 26 U.S.C. § 61)) 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 the 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, approved August 16, 1954 (68A Stat. 163; 26 U.S.C. § 501(c)(3)), 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 the purchase or sale (excluding any purchase or sale of any property that is the principal residence of the member or that is used as furnishings for the 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.
(b) For purposes of subsection (a)(2)(B), (C), and (D) of this section, the member reporting need not specify the actual amount or value of each item required to be reported under that subsection, but shall indicate which of the following categories the 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.
(c) Consistent with § 1-909.05, the information required by this section shall be public information.
(Sept. 18, 1998, D.C. Law 12-152, § 141, 45 DCR 4045.)
HISTORICAL AND STATUTORY NOTES
Prior Codifications
1981 Ed., § 1-785.1.
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) The Retirement Board shall publish an annual report for each fiscal year with respect to each retirement program and separate fund comprising the Funds to which this chapter applies. The report shall be filed with the Mayor and the Council in accordance with subsection (c) of this section and shall be made available and furnished to participants and beneficiaries in accordance with § 1-909.04(c).
(b) The annual report shall include the following information:
(1) The name and business address of each Retirement Board member;
(2) The name and business address of the agent for service of process;
(3) The name and business address of each fiduciary;
(4) The name of each person or entity (including any consultant, broker, trustee, accountant, insurance carrier, actuary, investment counsel, or custodial trustee), who received compensation from the Retirement Board during the preceding year for services rendered to the Retirement Board or the participants or beneficiaries of the retirement program for which a separate fund comprising the Funds was established, the amount of the compensation, the nature of the services, the relationship of the person or entity, if any, to the District of Columbia government or employee organization, and any other office, position, or employment the person or entity holds with any party in interest;
(5) The description of each of the retirement plans and the number of employees covered by the retirement plans, including any significant change in the retirement program made during the period and the impact of the change on benefits;
(6) The current statement of investment objectives and policies, which shall include:
(A) The desired rates of return on assets overall;
(B) The desired rates of return and acceptable levels of risk for each asset class;
(C) Asset allocation goals;
(D) Guidelines for the delegation of authority to investment managers; and
(E) Information on the benchmarks used to evaluate investment performance;
(7) Financial statements and notes to the financial statements in conformity with generally accepted accounting principles;
(8) An opinion on the financial statements by the qualified public accountant, engaged pursuant to § 1-907.03, in conformity with generally accepted auditing standards;
(9) The actuarial statement and opinion required by § 1-907.04;
(10) A description of any material interest, held by any trustee, or employee who is a fiduciary with respect to the investment management of assets of the Funds, or by a related person, in any material transaction with the system within the last 3 years;
(11) A schedule of the rates of return, net of total investment expense, on assets of the system overall and on assets aggregated by category over the most recent 1-year, 3-year, 5-year, and 10-year periods, to the extent available, and the rates of return on appropriate benchmarks for assets of the system overall and for each category over each period; and
(12) A schedule of the sum of total investment expenses and total general administrative expense for the fiscal year expressed as a percentage of the fair market value of assets of the Funds on the last day of the fiscal year.
(c) The annual report shall be filed with the Mayor and the Council within 210 days after the end of the fiscal year for which it is prepared.
(Sept. 18, 1998, D.C. Law 12-152, § 142, 45 DCR 4045.)
HISTORICAL AND STATUTORY NOTES
Prior Codifications
1981 Ed., § 1-785.2.
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) The Retirement Board shall furnish to participants and beneficiaries a summary plan description of the Retirement Program for service and benefits accrued after June 30, 1997, pursuant to § 1-909.04(b). The summary plan 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 the 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 benefits accrued after June 30, 1997, 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 § 1-909.04(b).
(b) Each summary plan description of an individual retirement program shall contain the following information:
(1) The name of the individual retirement program and system and type of administration of the individual retirement program;
(2) The name and address of the Chairman of the Retirement Board, who shall be the agent of the Retirement Board for the service of legal process;
(3) The name, title, and business address of each member of the Retirement Board;
(4) A description of the relevant provisions of applicable collective-bargaining agreements;
(5) Citations to the governing laws of the retirement program;
(6) The individual retirement program's requirements respecting eligibility for participation and benefits;
(7) A description of benefits provided by the program, including the manner of calculating benefits and any benefits provided for spouses and survivors;
(8) The source of financing of the program;
(9) A description of the provisions providing for nonforfeitable pension benefits;
(10) Circumstances which may result in disqualification, ineligibility, or denial or loss of benefits;
(11) The identity of any organization through which benefits are provided;
(12) The procedures to be followed in presenting claims for benefits under the retirement program;
(13) The remedies available under the retirement program for the redress of claims that are denied in whole or in part; and
(14) The location of the Retirement Board's offices and the function of the Retirement Board.
(c) The Retirement Board shall provide copies of the summary plan descriptions to the Mayor, the Council, and the employee organizations representing employees covered by the retirement plans.
(d) Summary plan descriptions for service and benefits accrued prior to July 1, 1997, are under the jurisdiction and control of the United States Secretary of the Treasury pursuant to the Retirement Protection Act.
(Sept. 18, 1998, D.C. Law 12-152, § 143, 45 DCR 4045; Apr. 13, 2005, D.C. Law 15-354, § 4(c), 52 DCR 2638.)
HISTORICAL AND STATUTORY NOTES
Prior Codifications
1981 Ed., § 1-785.3.
Effect of Amendments
D.C. Law 15-354, in par. (1) of subsec. (a), substituted "The Retirement Board shall furnish to participants and beneficiaries a summary plan description of the Retirement Program for service and benefits accrued after June 30, 1997" for "summary plan description of the Retirement Program, for service and benefits accrued after June 30, 1997, shall be furnished to participants and beneficiaries,"; and, in subsec. (c), substituted "The Retirement Board shall provide copies of the summary plan descriptions to" for "Copies of the summary plan descriptions shall be provided to".
Legislative History of Laws
For legislative history of D.C. Law 12-152, see Historical and Statutory Notes following § 1-901.01.
For Law 15-354, see notes following § 1-523.01.
Miscellaneous Notes
Application of Law 12-152: See Historical and Statutory Notes following § 1- 901.01.
(a) The Retirement Board shall furnish the Mayor and the Council, upon request, any documents relating to the retirement program or the Funds, including trust agreements, contracts, or other instruments under which the Funds are operated.
(b) A copy of the summary plan description and all modifications and changes referred to in § 1-909.03(a) shall be provided to a participant within 90 days after he becomes a participant, or to a beneficiary within 90 days after he first receives benefits. The Retirement Board shall furnish to each participant, and to each beneficiary receiving benefits under the Retirement Program, every 5th year an updated summary plan description described in § 1-909.03 that integrates all Retirement Program amendments made within the 5- year period, except where no amendments have been made to a retirement program during the 5-year period, this sentence shall not apply. Notwithstanding the foregoing sentence, the Retirement Board shall furnish to each participant, and to each beneficiary receiving benefits under the Retirement Program, the summary plan description described in § 1-909.03 every 10th year. If there is a modification or change described in § 1-909.03(a), a summary plan description of the 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.
(c) Within 210 days after the close of the fiscal year, the Retirement Board shall furnish to each participant, and to each beneficiary receiving benefits under the Retirement Program, a statement that fairly summarizes the annual report. The statement shall contain a disclosure of the financial and actuarial status of the applicable retirement plan.
(d) The Board shall permit any accountant or actuary retained by the Mayor or the Council to inspect whatever books and records of the Funds as are necessary to conduct the District's annual audit, or if the Mayor or the Council rejects the annual report or the summary plan description upon a finding that the document is incomplete for purposes of this chapter, or upon a determination that there is any material qualification by an accountant or actuary contained in an opinion submitted as part of the annual report.
(e) The Council may require that the Retirement Board furnish to each participant and to each beneficiary receiving benefits under an individual retirement program a statement of the rights of participants and beneficiaries under this chapter.
(Sept. 18, 1998, D.C. Law 12-152, § 144, 45 DCR 4045.)
HISTORICAL AND STATUTORY NOTES
Prior Codifications
1981 Ed., § 1-785.4.
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.
(a) The Retirement Board and the Mayor shall make copies of the summary plan descriptions and annual reports available for public inspection in an appropriate location.
(b) The Retirement Board shall make reasonably available to participants for public examination in the Retirement Board's Office, and in other places if necessary, the following information:
(1) The governing law of the retirement program;
(2) Summary descriptions of modifications or changes that have been provided to participants and beneficiaries but not yet integrated into the summary plan description;
(3) The most recent annual disclosure of financial and actuarial status; and
(4) The most recent annual report.
(c) Upon written request by a participant, beneficiary, or member of the public, copies of any publication described in subsection (b) of this section shall be provided. A reasonable fee to cover the cost of providing copies may be charged. Copies shall be provided within 30 days after receiving payment.
(d) Information described in § 1-909.06(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, approved August 14, 1935 (49 Stat. 622; 42 U.S.C. § 401 et seq.), may be disclosed under that act.
(e) All meetings of the Retirement Board shall be open to the public, except to the extent that information discussed in any meeting relates to personnel matters the disclosure of which would constitute a clearly unwarranted invasion of personal privacy, or the deliberations or tentative or final decisions on investments or other financial matter would jeopardize the ability of the Retirement Board to implement an investment decision or to achieve investment objectives.
(f) A record of the disclosed deliberations that may occur pursuant to subsection (e) of this section, or a tentative or final decision on investments or other financial matter, shall not be a public record pursuant to subchapter II of Chapter 5 of Title 2, to the extent its disclosure would jeopardize the ability to implement a decision or to achieve investment objectives.
(Sept. 18, 1998, D.C. Law 12-152, § 145, 45 DCR 4045.)
HISTORICAL AND STATUTORY NOTES
Prior Codifications
1981 Ed., § 1-785.5.
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) The Retirement 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, that have accrued, or the earliest date on which benefits will become nonforfeitable.
(b) A participant or beneficiary shall not be entitled to receive more than one report under subsection (a) of this section during any 12-month period.
(Sept. 18, 1998, D.C. Law 12-152, § 146, 45 DCR 4045.)
HISTORICAL AND STATUTORY NOTES
Prior Codifications
1981 Ed., § 1-785.6.
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.
The Retirement Board shall maintain records on the matters required to be disclosed under this subchapter, which shall 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. These records shall include minutes of the meetings of the Retirement Board, vouchers, worksheets, receipts, and applicable resolutions. The Retirement Board shall keep the 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 the records involve matters protected from public disclosure under § 1-909.05, all records shall be available for inspection by the public.
(Sept. 18, 1998, D.C. Law 12-152, § 147, 45 DCR 4045; Apr. 12, 2000, D.C. Law 13-91, § 113(a), 47 DCR 520.)
HISTORICAL AND STATUTORY NOTES
Prior Codifications
1981 Ed., § 1-785.7.
Effect of Amendments
D.C. Law 13-91, in the first sentence, substituted "under this subchapter" for "under subchapter IV of this chapter".
Legislative History of Laws
For legislative history of D.C. Law 12-152, see Historical and Statutory Notes following § 1-901.01.
For Law 13-91, see notes following § 1-809.01.
Miscellaneous Notes
Application of Law 12-152: See Historical and Statutory Notes following § 1- 901.01.
Whoever willfully violates any provision of any section of this subchapter (other than § 1-909.06), or any regulation or order issued under those provisions, shall be fined not more than $5,000, or imprisoned not more than one year, or both, except that for a violation by a person not an individual, the person shall be fined not more than $100,000.
(Sept. 18, 1998, D.C. Law 12-152, § 148, 45 DCR 4045; Apr. 12, 2000, D.C. Law 13-91, § 113(b), 47 DCR 520.)
HISTORICAL AND STATUTORY NOTES
Prior Codifications
1981 Ed., § 1-785.8.
Effect of Amendments
D.C. Law 13-91 substituted "this subchapter (other than § 1-785.6)" for "subchapter IV of this chapter (other than section 136)".
Legislative History of Laws
For legislative history of D.C. Law 12-152, see Historical and Statutory Notes following § 1-901.01.
For Law 13-91, see notes following § 1-809.01.
Miscellaneous Notes
Application of Law 12-152: See Historical and Statutory Notes following § 1- 901.01.
(a)(1)(A) Each fiduciary of a separate fund comprising the Funds established by this chapter and each person who handles funds or other property of the Funds ("Funds 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 the fiduciary) if the fiduciary:
(i) Is a corporation organized and doing business under the laws of the United States or of any state;
(ii) Is authorized under those 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 a minimum amount as may be established by regulations issued by the Council, which amount shall be at least $1,000,000.
(B) Subparagraph (A)(iv) of this paragraph shall apply to a bank or other financial institution that is authorized to exercise trust powers and the deposits of which are not insured by the Federal Deposit Insurance Corporation only if the bank or institution meets bonding or similar requirements under state law that the Retirement Board determines are at least equivalent to those imposed on banks by federal law.
(2)(A) The amount of the bond shall be the lesser of 10% of the amount of the funds handled by the fiduciary and $500,000, except that the amount of the bond shall be at least $1,000.
(B) The Retirement Board, after notice and opportunity for hearing to the fiduciary and all other parties in interest to the Funds, may waive the $500,000 additional requirement.
(C) The amount of the bond shall be set at the beginning of each fiscal year.
(3) For purposes of fixing the amount of the bond, the amount of funds handled shall be determined by the funds handled by the person, group, or class to be covered by the bond and by the predecessor or predecessors, if any, during the preceding reporting year, or if the Funds have no preceding reporting year under this chapter, the amount of funds to be handled during the current reporting year by person, group, or class, estimated as provided in regulations to be prescribed by the Retirement Board.
(4) The bond shall provide protection to the Funds against loss by reason of acts of fraud or dishonesty by 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. Any bond shall be in a form or of a type approved by the Retirement Board, including individual bonds or schedule or blanket forms of bonds that cover a group or class.
(b) It shall be unlawful for any Funds 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 Funds Official or any other person having authority to direct the performance of those functions or to permit the functions, or any of them, to be performed by any Funds 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 Funds or any party in interest in the Funds has any control or significant financial interest, direct or indirect.
(d) A person who is required to be bonded under subsection (a) of this subsection because he handles property of a separate fund comprising the Funds, shall not be required to obtain additional bonding with regard to the Funds.
(e) The Retirement Board may prescribe such regulations, which shall be subject to Council review, as may be necessary to carry out the provisions of this section.
(Sept. 18, 1998, D.C. Law 12-152, § 149, 45 DCR 4045.)
HISTORICAL AND STATUTORY NOTES
Prior Codifications
1981 Ed., § 1-785.9.
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.
