District of Columbia Retirement Reform Act

(Conference report filed in House, H. Rept. 95-1713)

District of Columbia Retirement Reform Act - =Title I: Financing of Retirement Benefits= - Establishes the District of Columbia Retirement Board to exercise exclusive authority to manage and control the funds established by this Title. Details provisions relating to the Board's composition, the election and terms of office of Board members, the procedures to be followed by the Board, and the financing of the Board's operations.

Establishes the District of Columbia Police Officers and Fire Fighters' Retirement Fund into which shall be deposited: (1) amounts withheld from the salaries of, and deposited by, members of the Metropolitan Police and the Fire Department of the District of Columbia, pursuant to the Policemen and Firemen's Retirement and Disability Act, (2) amounts appropriated to the Fund pursuant to this Act, and (3) amounts made as return on investment of the assets of the Fund.

Establishes the District of Columbia Teachers' Retirement Fund into which shall be deposited: (1) amounts withheld from the salaries, and amounts deposited or transferred by, each teacher in the public schools of the District of Columbia for such teachers' retirement account; (2) assets transferred and amounts appropriated to the Fund pursuant to this Act; and (3) amounts made as return on investment of the assets of the Fund.

Establishes the District of Columbia Judges Retirement Fund into which shall be deposited: (1) amounts withheld from the salaries of, and amounts deposited or transferred by, judges of the District of Columbia Court of of Appeals and the Superior Court of the District of Columbia; (2) assets transferred and amounts appropriated to the Fund pursuant to this Act; and (3) amounts made as return on investment of the assets of the Fund.

Requires that the assets of each Fund established by this Act be kept separate from other moneys, but not necessarily kept separate from one another if the Board determines that commingling of such assets is advisable for investment purposes.

Requires the Board to maintain a cash reserve for the Funds sufficient to meet current annuity and disability benefits outlays.

Prohibits the investment of assets of the funds in: (1) interest-bearing bonds, notes or certificates of indebtedness of the government of the District of Columbia, or of the Commonwealth of Virginia, or of the State of Maryland, or of any political subdivision thereof, or of any entity subject to control by any such government of combination of such governments; (2) obligations fully guaranteed as to payment of both principal and interest by the government of the District of Columbia, the government of Maryland, or the government of Virginia; (3) real property in the District of Columbia, Virginia, or Maryland; and (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.

Requires that assets of the funds be invested in Federal instruments or certificates of deposit pending the commencement of Board responsibility. Directs the Board to engage an enrolled actuary to periodically determine: (1) an estimate of the current annual active duty payroll; (2) the amount required to be deposited in each Fund annually in perpetuity in order to meet the cost of annuities and other retirement and disability benefits payable in perpetuity from the Fund less the amount of employee contributions to the Fund; (3) the amount required to meet the obligations of each Fund for the next fiscal year less employee contributions for such period; and (4) such additional information as the Board may require to make specified determinations.

Sets forth formulae to determine annual Federal amortization payments and annual District of Columbia payments to each Fund.

Authorizes the appropriation of specified sums for Federal and District of Columbia contributions to each Fund, for fiscal year 1979 and for each fiscal year thereafter through fiscal year 2003.

Directs the Board to publish annual reports with respect to each retirement program and corresponding Fund to which this Act applies. Requires that each such report include: (1) a financial statement containing a statement of Fund assets and liabilities, a statement of changes in net assets available for benefits under the retirement program, and other specified information; (2) an investment evaluation statement; (3) an actuarial statement containing specified information relating to the Fund and retirement program; (4) information relating to the number of employees covered by the retirement program, persons receiving compensation from the Fund, and specified changes to the Funds operation; and (5) a report from each insurance company or similar organization from which program benefits are purchased or which guarantees such benefits.

Directs the Board to prepare summary retirement programs descriptions to be supplied to each participant in, and beneficiary under each retirement program to which this Act applies.

Requires that annual reports and copies of summary retirement program descriptions be filed with the Mayor of the District of Columbia, the District of Columbia Council, the Speaker of the House of Representatives, and the President pro tempore of the Senate. Terminates this requirement with respect to filing with the Speaker of the House of Representatives and the President pro tempore of the Senate in 2003 (when Federal contributions cease).

Empowers the Mayor, the Council, or either House of Congress to reject any filing upon making specified findings. Suspends Federal contributions to any Fund with respect to which a filing is rejected or no timely filing has been made pending an acceptable filing.

Requires that copies of filed reports and descriptions be made available for public inspection.

Authorizes the Board to designate one or more persons to exercise fiduciary responsibilities with respect to Funds established by this Act, but places with the Board fiduciary responsibility for the oversight of any person so designated. Lists standards and guidelines to be followed by fiduciaries in the discharge of their duties. Specifies circumstances under which fiduciary shall be liable for a breach of fiduciary duty by another fiduciary. Prohibits a fiduciary from causing the Fund to engage in specified transactions with interested parties or with itself.

Makes such fiduciaries personally liable: (1) to make good to such Fund any losses to the Fund resulting from any breach of their responsibilities, obligations, or duties and (2) to restore to such Fund any profits of such fiduciaries made through use of Fund assets by such fiduciaries. Subjects such fiduciaries to such other equitable or remedial relief as the court may deem appropriate, including removal of such fiduciaries. Exempts fiduciaries from such liability if the breach of fiduciary duty was committed before they became or after they ceased to be fiduciaries.

Deems void any provision in an agreement or instrument which purports to relieve a fiduciary from responsibility or liability. Permits the Board, fiduciaries, and groups of retirement program participants to purchase insurance to cover liability or losses arising from a breach of fiduciary duty.

Prohibits any person convicted of specified crimes from serving as an administrator, fiduciary, counsel, or employee of, or as a consultant to, any Fund established by this Act within five years of any such conviction or release from imprisonment, unless the Board of Parole of the United States determines that such person's service with the Fund would not be contrary to the purposes of this Act. Requires that certain fund fiduciaries with limited assets be bonded.

Sets forth criminal penalties for violation of fiduciary obligations. Creates civil causes of action for the benefit of specified plaintiffs to enforce the provisions of this Act. Specifies time limits within which civil actions grounded on breach of fiduciary duty must be brought.

=Title II: Changes in Retirement Benefits= - Sets the salary base period for computation of annuities with respect to participants in the District of Columbia Policemen and Firemen's Retirement Fund hired at least 90 days subsequent to the enactment of this Act at the highest annual rate resulting from averaging such participant's rates of basic salary for any 36 months rather than for any 12 months of consecutive service.

Permits any member or officer of the Metropolitan Police or Fire Department who is on approved leave without pay to serve as a full-time official of an employee organization to have such service credited towards his retirement upon meeting specific requirements.

Prohibits any participant hired at least 90 days after enactment of this Act from qualifying for service retirement before having served 25 years and reached age 50.

Conditions disability retirement due to aggravation while on duty of an injury or disease which was received in the line of duty on prompt reporting of the injury or disease.

Creates a percentage disability system for computation and payment of annuities to employees hired 90 days after the enactment of this Act.

Sets forth procedures and criteria for determining the percentage of disability. Authorizes redetermination of the percentage of disability of an annuitant until he reaches age 50.

Permits cessation of disability annuities of an annuitant, first employed 90 days after the enactment of this Act, under 50 years of age who refuses to accept an offer of reemployment in the department from which he retired at the same grade or rank held at retirement.

Reduces the annuities of certain annuitants on the basis of outside earned income according to a specified formula.

Requires mandatory annual physical examinations of annuitants under age 50.

EnTitles any participant who completes five years of service and who is thereafter separated from service other than through disability retirement or voluntary optional retirement to elect to either (1) receive at the time of separation, the amount of deductions from such individual's salary deposited in the Fund, or (2) receive an annuity beginning on the first day of the month during which such participant attains age 55 or on the first day of the month after such participant's separation from service, whichever occurs later.

Revises the method for computing police and fire fighter survivors' annuities.

Sets forth guidelines for securing service credit toward law enforcement and fire fighter retirement for past service performed through redeposits of refunded retirement monies.

Authorizes cost-of-living adjustments, based uponincreases in the consumer price index for urban consumers, in (1) annuities payable from the District of Columbia Police Officers' and Fire Fighters' Retirement Fund, and (2) benefits for survivors of members of the United States Park Police, the Executive Protective Service, and the United States Secret Service Division.

Permits the Mayor to waive collection of any overpayment to an annuitant if such overpayment is less than $100.

Permits the Mayor, in the case of payments due to mental incompetents or minors, to make payment to any person who, in the Mayor's judgment, is responsibile for the care of such claimant.

Authorizes cost-of-living adjustments in annuities payable from the District of Columbia Teacher's Retirement Fund and the District of Columbia Judges' Retirement Fund.

Revises the means for determining eligibility for each such adjustment.

Revises the amount of benefits due under a teacher's annuity in the event the named beneficiary of such annuity predeceases the annuitant.