4133769 Resolution 19-719, "Police Officers, Fire Fighters, and Teachers Retirement Benefit Replacement Act of 1998 Emergency Declaration Resolution of 2012"

A RESOLUTION

                                                        

19-719  

 

IN THE COUNCIL OF THE DISTRICT OF COLUMBIA

 

December 4, 2012

 

 

To declare the existence of an emergency with respect to the need to amend the Police Officers, Fire Fighters, and Teachers Retirement Benefit Replacement Act of 1998, to comply with applicable tax qualification provisions of the Internal Revenue Code of 1986 for governmental retirement plans.

 

            RESOLVED, BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this resolution may be cited as the “Police Officers, Fire Fighters, and Teachers Retirement Benefit Replacement Act of 1998 Emergency Declaration Resolution of 2012”.

 

            Sec. 2.  (a)  The District of Columbia Retirement Board is the sponsor of retirement plans for District police officers, fire fighters, and teachers ("Plans"), which are considered tax qualified, governmental retirement plans under the Internal Revenue Code of 1986, approved October 22, 1986 (100 Stat. 2085; 26 U.S.C. § 1, et seq.) ("Internal Revenue Code"). The Plans will not comply with recent non discretionary changes to the requirements unless changes are made to the Police Officers, Fire Fighters, and Teachers Retirement Benefit Replacement Act of 1998, effective September 18, 1998 (D.C. Law 12-152; D.C. Official Code § 1-1901.01, et seq.), are made.

(b)  This resolution would deem the replacement plan described in the current law a “governmental plan” as defined by the Internal Revenue Code.

(c)  This resolution would also deem that benefits provided from the replacement plan be considered governmental plan benefits maintained by the District.

(d)  Further, this resolution would require that any benefits of the retirement program that are assigned or alienated, be expressly permitted by the law, and substantially meet all the requirements of the Internal Revenue Code as determined solely by the District of Columbia Retirement Board.

(e) If the District is found to have failed to comply with these changes, which took effect December 31, 2011, it is subject to penalties and sanctions by the Internal Revenue Service.

(f) It is therefore vital to enact this law on an emergency basis to ensure that the Plans comply with recent changes to the Internal Revenue Code.

(g) This resolution has received the support of the Retired Firefighter’s Association, the Washington Teachers’ Union, the DC Police Union, and the Association of Retired Police Officers of the District of Columbia.

            Sec. 3.   The Council of the District of Columbia determines that the circumstances enumerated in section 2 constitute emergency circumstances making it necessary that the Police Officers, Fire Fighters, and Teachers Retirement Benefit Replacement Act of 1998 Emergency Amendment Act of 2012 be adopted after a single reading.

 

            Sec. 4.   This resolution shall take effect immediately.