73252 D.C Retirement Board- Amend 7 DCMR (Employment Benefits). Chapter 18 (District of Columbia Retirement Board Classification and Compensation Program Regulations), Sec. 1805 to Provide Enhanced Retirement Benefts for Staff.
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DISTRICT OF COLUMBIA RETIREMENT BOARD
NOTICE OF PROPOSED RULEMAKING
The District of Columbia Retirement Board (the “Board”), pursuant to the authority set forth in section 121(e) of the District of Columbia Retirement Reform Act (the “Reform Act”), Pub. L. 96-122, 93 Stat. 866, November 17, 1979 (codified at D.C. Code § 1-711(e) (2001)), hereby gives notice of its intent to adopt the following amendment to the Board Classification and Compensation Program Regulations at Chapter 18 of Title 7 in the “District of Columbia Municipal Regulations” (“DCMR”) in not less than thirty (30) days from the date of publication of this notice in the D.C. Register.
The Board was established by the Reform Act as an independent agency of the District of Columbia. The U.S. Congress conferred the Board with “exclusive authority and discretion to manage and control” the assets of the Police Officers and Firefighters’ Fund and the Teachers’ Fund (the “Funds”) and the Judges’ Retirement Fund (the “Judges’ Fund”). Title XI of the Balanced Budget Act of 1997 (Pub. L. 105-33, 111 Stat. 251) (the “Balanced Budget Act”) required the Board to transfer material amounts of assets and liabilities of the Funds, and all accumulated assets and liabilities of the Judges’ Fund, to the Federal government. The Balanced Budget Act required the District of Columbia to adopt a Replacement Plan to provide retirement benefits for participants of the Funds for service accrued after June 30, 1997. The District adopted a Replacement Plan in the Police Officers, Fire Fighters, and Teachers Retirement Benefit Replacement Plan Act of 1998, D.C. Law 12-152 (codified at D.C. Code §§ 1-901.01 et seq.) (2001).
The “Retirement Reform Act Amendment Act of 2004” (the “Amendment Act”), effective April 8, 2005 (D.C. Law 15-300), amended the Reform Act to expand the Board’s personnel authority to establish classification and compensation for its employees to include additional benefits and flexibility for retention and recruitment of highly qualified staff. The Amendment Act stipulates that the Board establish by regulation the alternative benefits requirements for its employees.
The proposed alternative benefits rule would allow the Board to establish an enhanced retirement benefit for its staff. The Board approved the proposed rule on November 19, 2009. Upon adoption, this rule would amend section 1805 of Chapter 18 of Title 7 DCMR, published at 47 DCR 9894 (December 15, 2000). Additionally, the Board gives notice of its intent to take final rulemaking action in not less than thirty (30) days after publication of this notice in the D.C. Register.
CHAPTER 18
DISTRICT OF COLUMBIA RETIREMENT BOARD CLASSIFICATION AND COMPENSATION PROGRAM REGULATIONS
Section 1805 of Chapter 18 of the District of Columbia Retirement Board Classification and Compensation Program Regulations is amended as follows:
A new subsection 1805.3 is added to read as follows:
1805.3 In addition to the District of Columbia Government retirement plans that employees of the Retirement Board participate in or may participate in, the Retirement Board may provide a supplemental 401(a) defined contribution retirement plan for eligible full-time employees described as follows:
(a) The Retirement Board may, at its discretion, make nonelective contributions to the plan on behalf of an eligible employee either as a percentage of the employee’s compensation or as a flat dollar amount which percentage or amount need not be uniform among all participating eligible employees;
(b) Employees may make voluntary after-tax contributions to the plan;
(c) The contributions shall be subject to the limitation on contributions as set forth in section 415 of the Internal Revenue Code (“Code”), as amended, and all applicable rules and regulations issued thereunder;
(d) Those employees eligible to participate in the plan and the date such employees are be eligible to participate in the plan shall be determined by the Retirement Board and such provisions for eligibility shall be set forth in the plan document;
(e) Participating employees shall vest in contributions in accordance with a schedule set forth in the plan document;
(f) The plan document shall contain the official summary description of the plan and shall include the terms, conditions and provisions of the plan;
(g) The plan shall be a governmental plan as defined in section 414(d) of the Code and shall be tax qualified under section 401(a) of the Code.
Comments on this proposed rulemaking should be submitted in writing to Erie F. Sampson, General Counsel, District of Columbia Retirement Board, 900 7th St., NW., 2nd Floor, Washington, DC 20001, within thirty (30) days of the publication of this notice in the D.C. Register. Additional copies of this proposed rulemaking are available from the above address.
