§ 1–817.01. Creation of Fund.
(a) Establishment. — There is established on the books of the Treasury the District of Columbia Teachers, Police Officers, and Firefighters Federal Pension Fund (hereafter referred to as the “D.C. Federal Pension Fund”), consisting of the following:
(1) The assets transferred pursuant to § 1-817.03.
(2) The annual Federal payments deposited pursuant to § 1-817.04.
(3) Any amounts otherwise appropriated to such Fund.
(4) Any income earned on the investment of the assets of such Fund pursuant to subsection (b) of this section.
(b) Investment of assets. — The Secretary shall invest such portion of the assets of the D.C. Federal Pension Fund as is not in the judgment of the Secretary required to meet current withdrawals. Such investments shall be in public debt securities with maturities suitable to the needs of the D.C. Federal Pension Fund, as determined by the Secretary, and bearing interest at rates determined by the Secretary, taking into consideration current market yields on outstanding marketable obligations of the United States of comparable maturities.
(c) Recordkeeping for actuarial status. — The Secretary shall provide for the keeping of such records as are necessary for determining the actuarial status of the D.C. Federal Pension Fund.
This section is referenced in § 1-801.02.
§ 1–817.02. Uses of amounts in Fund.
(a) In general. — Amounts in the D.C. Federal Pension Fund shall be used:
(1) To make Federal benefit payments under this chapter;
(2) Subject to subsection (b) of this section, to cover the reasonable and necessary administrative expenses incurred by any person in administering the D.C. Federal Pension Fund and carrying out this subchapter;
(3) For the accumulation of funds in order to finance obligations of the Federal Government for future benefits; and
(4) For such other purposes as are specified in this chapter.
(b) Budgeting, certification, and approval of administrative expenses. — The administrative expenses of the D.C. Federal Pension Fund shall be paid in accordance with an annual budget set forth by the Pension Fund Trustee which shall be subject to certification and approval by the Secretary.
This section is referenced in § 1-817.04.
§ 1–817.03. Transfer of assets and obligations of Trust Fund and Federal Supplemental Fund.
(a) Transfer of obligations. — Effective October 1, 2004, all obligations to make Federal benefit payments shall be transferred from the Trust Fund to the D.C. Federal Pension Fund.
(b) Transfer of assets. — Effective October 1, 2004, all assets of the Trust Fund and all assets of the Federal Supplemental Fund as of such date shall be transferred to the D.C. Federal Pension Fund.
§ 1–817.04. Determination of annual federal payments into D.C. Federal Pension Fund.
(a) Annual amortization amount. —
(1) In general. — At the end of each fiscal year (beginning with fiscal year 2005), the Secretary shall promptly pay into the D.C. Federal Pension Fund from the general fund of the Treasury an amount equal to the annual amortization amount for the year (which may not be less than zero).
(2) Determination of amount. — For purposes of paragraph (1) of this paragraph:
(A) The “original unfunded liability” is the present value, as of December 23, 2004, of expected future benefits payable from the Federal Supplemental Fund; and
(B) The “annual amortization amount” means the amount determined by the enrolled actuary to be necessary to amortize in equal annual installments (until fully amortized):
(i) The original unfunded liability over a 30-year period;
(ii) A net experience gain or loss over a 10-year period; and
(iii) Any other changes in actuarial liability over a 20-year period.
(3) Schedule for amortization. — In determining the annual amortization amount under paragraph (2)(B) of this subsection, the enrolled actuary shall include amounts necessary to complete the amortization schedules used for determining the annual amortization amount for payments into the Federal Supplemental Fund under § 1-811.03 (as in effect prior to the enactment of this subchapter).
(b) Administrative expense. — During each fiscal year (beginning with fiscal year 2009), the Secretary shall pay into the D.C. Federal Pension Fund from the general fund of the Treasury the amounts necessary to pay the reasonable and necessary administrative expenses described in 1-817.02(a)(2) for the year.
§ 1–817.05. Administration through Pension Fund Trustee.
(a) In general. — The Secretary shall select a Pension Fund Trustee to carry out the responsibilities and duties specified in this subchapter in accordance with the contract described in subsection (b) of this section.
(b) Contract. — The Secretary shall enter into a contract with the Pension Fund Trustee to provide for the auditing of D.C. Federal Pension Fund assets, the making of Federal benefit payments under this chapter from the D.C. Federal Pension 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 D.C. Federal Pension Fund.
(c) Subcontracts. — Notwithstanding any provision of a District Retirement Program or any other law, rule, or regulation, the Pension Fund 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 Pension Fund Trustee in connection with its performance of the contract. The Pension Fund Trustee shall monitor the performance of any such subcontract and enforce its provisions.
(d) Determination by the Secretary. — Notwithstanding subsection (b) of this section or any other provision of this chapter, the Secretary may determine, with respect to any function otherwise to be performed by the Pension Fund Trustee, that in the interest of economy and efficiency such function shall be performed by the Secretary rather than the Pension Fund Trustee.
(e) Reports. — The Pension Fund Trustee shall report to the Secretary, in a form and manner and at such intervals as the Secretary may prescribe, on any matters under the responsibility of the Pension Fund Trustee as the Secretary may prescribe.
This section is referenced in § 1-801.02.
§ 1–817.06. Applicability of other provisions to D.C. Federal Pension Fund.
The following provisions of this chapter shall apply with respect to the D.C. Federal Pension Fund in the same manner as such provisions applied with respect to the Trust Fund prior to October 1, 2004:
(1) Section 1-805.03(b) (relating to the repayment by the District Government of costs attributable to errors or omissions in transferred records).
(2) Section 1-807.04 (relating to the treatment of the Trust Fund under certain laws).
(3) Section 1-813.01 (relating to annual valuations and reports by the enrolled actuary), except that in applying § 1-813.01(b) to the D.C. Federal Pension Fund, the annual report required under such section shall include a determination of the annual payment to the D.C. Federal Pension Fund under § 1-817.04.
(4) Section 1-813.02 (relating to reports by the Comptroller General).
(5) Section 1-815.01 (relating to judicial review).
(6) Section 1-815.04 (relating to the treatment of misappropriation of Trust Fund amounts as a Federal crime).