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D.C. Municipal Regulations (Last Updated: September 13, 2017) |
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Title 7. EMPLOYMENT BENEFITS |
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Chapter 7-17. DISTRICT OF COLUMBIA RETIREMENT BOARD BENEFITS RULES |
Section 7-1701. ANNUAL INCOME REVIEW
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1701.1Annual Income Review for Teacher Disability Annuitants. Any teacher disability annuitant who retired under D.C. Official Code § 38-2021.04(a) and who is under the eligibility requirements for voluntary retirement as defined in D.C. Official Code § 38-2021.03 must file annually with DCRB by May 15th a notarized statement of employment and earnings and any additional information as requested by DCRB to verify employment income beginning for the first calendar year after retirement up to and including the last calendar year in which the annuitant is under the eligibility requirements for voluntary retirement as of December 31st.
1701.2Annual Income Review for Police Officer and Firefighter Disability Annuitants Under Age 50. Any police officer or firefighter annuitant who was hired on or after February 15, 1980, retired under D.C. Official Code § 5-709 or § 5-710, and who is under age fifty (50), must file annually with DCRB by May 15th a notarized statement of employment and earnings and any additional information as requested by DCRB to verify employment income beginning for the first calendar year after retirement up to and including the last calendar year in which the annuitant is under age fifty (50) as of December 31st.
1701.3Notarized Annual Earnings Statement. DCRB will notify annuitants in March of each calendar year if they are required to file an annual income report, what they must file, when they must file, and the forfeiture of annuity payments for failure to file. Information required to be filed may include, but is not limited to, tax returns, Forms W-2 and 1099, proof of non-filing of a tax return or extension of time to file a tax return, Form 4506-T Request for Transcript of Tax Return, or Form 1040 Schedule C or C-EZ.
1701.4Due Process Rights. DCRB will determine continued entitlement to the disability annuity on the basis of the annual income review. Prior to any annuity termination, reduction or offset, DCRB will inform the annuitant of its decision in writing and the annuitant’s due process rights in accordance with D.C. Official Code § 1-751 (2011 Repl.).
1701.5Restoration to Earning Capacity for Teacher Disability Annuitants and Annuity Termination.
(a) If a teacher disability annuitant who is subject to the annual income review in § 1701.1 has earned income from wages or self-employment or both during that calendar year equal to at least 80 percent of the current pay rate for the position occupied immediately before retirement, the annuitant’s earning capacity is restored. DCRB will terminate the disability annuity on January 1 of the following calendar year in which earning capacity was restored. The annuitant must return any overpayments to the Teachers’ Retirement Fund. DCRB may recoup overpayments by offsetting any reinstated annuity or other annuity entitlement.
(b) A terminated disability annuity will be reinstated at the same rate in effect when it was terminated on January 1 of any year following a calendar year during which an annuitant’s earning capacity falls below the 80 percent earnings limit, or sooner as DCRB determines administratively practicable, if the annuitant has not reached voluntary retirement age and has not recovered from his/her disability and has not been reappointed to a position that is equal or similar to the one occupied at retirement.
(c) An annuitant who has not reached voluntary retirement age may file a request for reinstatement of a terminated disability annuity, as instructed by DCRB, any time after one full year elapses during which his or her earning capacity falls below the 80 percent earnings limit.
(d) An annuitant whose disability annuity has been terminated and not restored prior to reaching voluntary retirement age may request a deferred retirement annuity or a refund of any remaining employee contributions. A deferred retirement annuity election or refund of employee contributions bars any restoration of a terminated disability annuity.
1701.6Restoration to Earning Capacity for Police Officer and Firefighter Disability Annuitants Under Age 50 and Annuity Termination.
(a) If, in any calendar year after the annuitant’s year of retirement, a police officer or firefighter disability annuitant who is subject to the annual income review in § 1701.2, has earned income from wages or self-employment or both equal to at least 80 percent of the current compensation rate for the position occupied immediately before retirement, the annuitant's earning capacity is restored. DCRB will stop the disability annuity payment forty-five (45) days from the date of the written determination that earning capacity has been restored. The annuitant must return any overpayments to the Police and Fire Retirement Fund. DCRB may recoup overpayments by offsetting any reinstated annuity or other annuity entitlement.
(b) A terminated disability annuity will be reinstated on January 1 of any year following a calendar year during which an annuitant’s earning capacity falls below the 80 percent earnings limit if the annuitant is under age 50 and has not recovered from his/her disability and has not been reemployed in the department from which he/she retired at the same or equivalent grade or rank held at retirement.
(c) An annuitant who is under age 50 may also file a request for reinstatement of a terminated disability annuity, as instructed by DCRB, any time after one full year elapses during which his or her earning capacity falls below the 80 percent earnings limit.
(d) [REPEALED].
1701.7Annuity Reduction for Police Officer and Firefighter Disability Annuitants Under Age 50.
(a) If DCRB determines that a police officer or firefighter disability annuitant who is subject to the annual income review in § 1701.2 has income in any calendar year after the annuitant’s year of retirement from wages or self-employment or both during that calendar year in excess of the difference between 70 percent of the earnings limit and the disability annuity, the annuitant’s disability annuity will be reduced by $.50 for each $1 of income received in excess of the difference during that calendar year.
(b) If income from wages or self-employment or both during that calendar year is in excess of the difference between 100 percent of the earnings limit and the disability annuity, the disability annuity will be further reduced by $.20 for each $1 of income received in excess of the difference during that calendar year.
(c) Reductions will begin after the end of the calendar year under review as soon as administratively practicable as determined by DCRB and will be prorated equally over twelve (12) consecutive months. The annuitant must return any overpayments to the Police and Fire Retirement Fund. DCRB may recoup overpayments by offsetting the reduced or reinstated annuity or other annuity entitlement.
(d) For purposes of this § 1701.7, the earnings limit is the greater of:
(A) the current salary of the position occupied immediately before retirement, or
(B) the current entry salary for active members divided by .70.
(e) A reduced annuity will be reinstated in whole or in part, as determined by DCRB, as soon as administratively practicable if the annuitant’s income from wages or self-employment or both is less than the earnings limit for any full calendar year and the annuitant is under age 50. A reduced annuity that is not reinstated in whole or in part prior to the annuitant reaching age 50 will continue to be paid at its reduced rate.
(f) An annuitant who is under age 50 may file a request for reinstatement of a reduced annuity, as instructed by DCRB, any time after one full year elapses during which his or her earned income falls below the earnings limit in § 1701.7(d).
(g) Any annuity reduction under this § 1701.7 may be waived by DCRB, if it determines, in its discretion, a waiver is reasonably practicable and the annuitant is without fault. Principles of equity and good conscience will be considered. An annuitant may request a waiver as instructed by DCRB.
1701.8Current Rate of Pay for the Position Occupied Immediately Before Retirement.
(a) A disability annuitant’s earned income for a calendar year is compared to the gross annual rate of basic pay in effect on December 31st of that year for the position occupied immediately before retirement. The earned income for disability annuitants is based on the rate for the grade and step which reflects the total amount of basic pay (both the grade and step and any additional basic pay such as longevity and technical pay) in effect on the date of retirement.
(b) Income. The total amount of income from all sources is used to determine earning capacity (see definition of earned income in § 32(c)(2) of the Internal Revenue Code). This includes income received as gross wages from employers, net earnings from self-employment, and deferred income that is earned in a calendar year. In determining an annuitant's income for a calendar year, the following apply:
(1) Income is from two sources: wages and self-employment. All income that is subject to Federal employment taxes (i.e., Social Security or Medicare taxes) or self-employment taxes is earned income.
(2) Only income earned from personal work efforts or services is considered in determining earning capacity. All forms of non-work-related unearned income are excluded (e.g., pensions, inheritances, investment interest/dividends not related to self-employment).
(3) For determining annual income from wages or self-employment or both, income is earned in the calendar year the annuitant actually renders the personal work effort or service and either actually or constructively receives the remuneration.
(4) Income includes any District of Columbia salary offset amount.
(5) Income earned by a spouse is not included.
(a) Wages. This term means the gross amount of all remuneration for services performed by an employee for his or her employer before any deductions or withholdings.
(d) Self-Employment Income.
(1) This term means remuneration that is received as an independent contractor, either as
(A) a sole proprietor;
(B) a professional in one's own practice; or
(C) a member of a partnership or corporation and regardless of whether the business entity is operated for profit.
(2) “Net earnings” from self-employment means gross revenue of the business from all sources before any other deductions or withholdings, minus
(A) allowable business expenses;
(B) any job-connected disability expenses; and
(C) any return from investment allowance.