(1) The Board shall engage an enrolled actuary, who may be the enrolled actuary engaged pursuant to § 1-732(a)(4)(A) , who shall, on the basis of the entry age normal cost funding method and in accordance with generally accepted actuarial principles and practices, make the following determinations with respect to each Fund:
(A) At the times specified in paragraph (2) of this subsection, the actuary shall determine the level percentage of payroll, expressed as a percentage (hereinafter in this chapter referred to as the “net normal cost percentage”), which shall be the percentage such that the amount equal to the product of such percentage and the present value of future compensation for participants in the retirement program, if paid annually into the Fund from the date of hire of each participant in the retirement program until the date of such participant’s death, retirement, or other withdrawal from employment covered by the retirement program, is equal to the amount of the difference between (i) the present value of the future benefits payable from the Fund to such group, and (ii) the present value of all future employee contributions to the Fund;
(B) At the times specified in paragraph (2) of this subsection, the actuary shall determine the amount (hereinafter in this chapter referred to as the “accrued actuarial liability”) that is the difference between (i) the present value (as of the date of the determination) of the future benefits payable from the Fund, and (ii) the sum of the present value of all future employee contributions to the Fund, and the product of the net normal cost percentage and the present value of future compensation for participants in the retirement program;
(C) At the times specified in paragraph (2) of this subsection, the enrolled actuary shall determine the current value of the assets in the Fund;
(D) Each year, not later than 60 days prior to the date on which the Mayor is required to submit the annual budget for the government of the District of Columbia to the Council under § 1-204.42(a) , the enrolled actuary shall determine:
(i) An estimate of the current annual active duty payroll;
(ii) The amount (hereinafter in this chapter referred to as the “future federal obligation”) that is the amount of the present value of the sum of the amounts authorized by § 1-724(a) to be appropriated to the Fund for fiscal years beginning on or after the date of the determination; and
(iii) The amount (hereinafter in this chapter referred to as the “net pay-as-you-go cost”) that is the difference between the amount of the obligation of the Fund during the next fiscal year for the payment of benefits payable from the Fund during such year, and the amount of employee contributions to the Fund for such year;
(E) The actuary shall also determine such additional information as the Board may require in order to make the determinations specified in paragraph (4) of this subsection and in subsection (b) of this section.
(2) The actuary engaged by the Board pursuant to paragraph (1) of this subsection shall make the determinations described in subparagraphs (A), (B), and (C) of such paragraph at the following times:
(A) Not later than 60 days after the date of the enactment of this chapter;
(B) Upon a request by the Board or by the Director of the Office of Management and Budget;
(C) Not later than the end of the 90-day period beginning on the 1st day of the 3rd fiscal year occurring after the fiscal year in which the last such determination was made pursuant to any subparagraph of this paragraph.
(A) On the basis of the most recent determinations made under paragraph (1) of this subsection, the enrolled actuary shall certify to the Board each year, at a time specified by the Board, the following information with respect to each Fund for the next fiscal year:
(i) The net normal cost, which shall be computed as the product of the net normal cost percentage and the estimate by the actuary of the current annual active duty payroll;
(ii) The accrued actuarial liability;
(iii) The current value of assets in the Fund;
(iv) The future federal obligation;
(v) The net pay-as-you-go cost;
(vi) The unfunded actuarial liability, which shall be computed as the difference between the accrued actuarial liability and the sum of the current value of the assets in the Fund, and the future federal obligation; and
(vii) The amount equal to the difference between the accrued actuarial liability as of January 2, 1975 (in future value as of the end of the fiscal year for which the determination is made), and the sum of the future federal obligation, the current value of previous federal contributions, and (in the case of the District of Columbia Teachers’ Retirement Fund and the District of Columbia Judges’ Retirement Fund) the current value of any assets in the predecessor to such Fund as of January 2, 1975, which amount is the difference between the amount that the federal government would pay to the Fund if the federal government had assumed the funding responsibility for all accrued unfunded liabilities as of January 2, 1975, and the amount actually to be paid by the federal government.
(B) For the purposes of sub-subparagraph (vi) of subparagraph (A) of this paragraph, the term “current value of the assets in the Fund” shall be deemed to include (i) the present value of any payments to be made to the Fund by the District in accordance with subsection (b)(1)(C)(i) of this section, and (ii) the present value of the amount of any reduction in the amount of future District payments to the Fund determined in accordance with subsection (b)(1)(D) of this section.
(4) The Board shall determine:
(A) The amount of the federal payment for the next fiscal year for each Fund authorized to be appropriated under § 1-724(a) ; and
(B) On the basis of the most recent certification submitted by the enrolled actuary under paragraph (3) of this subsection, the amount of the District payment for the next fiscal year for each Fund, as described under subsection (b) of this section.
(A) For the District payment for each Fund for each fiscal year through fiscal year 2004, the Board shall determine:
(i) The unfunded actuarial liability for such Fund as of the end of fiscal year 2004;
(ii) The unfunded actuarial liability as of October 1, 1979, in future value as of the end of fiscal year 2004 for such Fund; and
(iii) The amount equal to the lesser of the net pay-as-you-go cost, and the sum of the net normal cost and the amount of annual interest (computed at the valuation rate used in the determination under subsection (a)(3)(A)(vi) of this section.
(B) If the amount determined under subparagraph (A)(i) of this paragraph is equal to the amount determined under subparagraph (A)(ii) of this paragraph, the amount of the District payment for the fiscal year for such Fund shall be the amount determined under subparagraph (A)(iii) of this paragraph.
(i) If the amount determined under subparagraph (A)(i) of this paragraph is greater than the amount of the District payment for the fiscal year for such Fund shall be the amount equal to the sum of the amount determine under subparagraph (A)(iii) of this paragraph, and the amount of the level amortization payment that, if paid annually into the Fund through the next 10 fiscal years (and accrued at the rate of interest used in determinations under subsection (a)(1) of this section), would reduce the amount determined under subparagraph (A)(i) of this paragraph to the amount determined under subparagraph (A)(ii) of this paragraph by the end of such 10 fiscal years.
(ii) A level amortization payment shall not be required under this subparagraph for any fiscal year to the extent that the difference between the amount determined under subparagraph (A)(i) of this paragraph and the amount determined under subparagraph (A)(ii) of this paragraph for such fiscal year is attributable to the failure of the federal government (other than a failure because of § 1-724(d) or § 1-725 ) to make all or any part of the federal payment to such Fund for any fiscal year.
(D) If the amount determined under subparagraph (A)(ii) of this paragraph is greater than the amount of the District payment for such Fund shall be the amount determined under subparagraph (A)(iii) of this paragraph reduced by the amount of level amortization payment that, if paid annually for the next 10 fiscal years, would have a future value of the end of fiscal year 2004 equal to the difference between the amount determined under subparagraph (A)(ii) of this paragraph and the amount determined under subparagraph (A)(i) of this paragraph.
(E) The amount of a District payment determined under subparagraph (C) of this paragraph may not exceed the amount determined under subparagraph (A)(iii) of this paragraph by more than 10 percent of the net pay-as-you-go cost, in the case of a payment to the District of Columbia Police Officers and Fire Fighters’ Retirement Fund, or by more than 30 percent of the net pay-as-you-go cost, in the case of a payment to the District of Columbia Teacher’s Retirement Fund or to the District of Columbia Judges’ Retirement Fund.
(F) Determinations under subparagraph (A) of this paragraph shall be made in accordance with generally accepted actuarial principles and practices.
(2) The amount of the District payment to each Fund for fiscal year 2005 and for each fiscal year thereafter shall be the sum of (A) the net normal cost, and (B) the amount of annual interest (computed at the valuation rate used in the determination pursuant to subsection (a)(1) of this section) on the unfunded actuarial liability.
(1) On the basis of the most recent determinations made under subsection (a)(4) of this section, the Board shall:
(A) Not later than March 15th of each year through calendar year 2003, submit to the President and to the Congress a request for appropriation of the federal payment for the next fiscal year for each Fund; and
(B) Not less than 30 days prior to the date on which the Mayor is required to submit the annual budget for the government of the District of Columbia to the Council under § 1-204.42(a) , certify to the Mayor and the Council the amount of the District payment for each Fund.
(2) The Mayor, in preparing each annual budget for the District of Columbia pursuant to § 1-204.42(a) , and the Council of the District of Columbia, in adopting each annual budget in accordance with § 1-204.46 , shall include in such budget not less than the full amount certified by the Board under paragraph (1)(B) of this subsection as being the amount of the District payment for the next fiscal year for each Fund. The Mayor and the Council may comment and make recommendations concerning any such amount certified by the Board.
(1) Whenever any change in benefits under a retirement program is made, the Mayor shall engage an enrolled actuary, who may be the enrolled actuary engaged pursuant to § 1-732(a)(4)(A) , to estimate the effect of such change in benefits over the next 5 fiscal years on: (A) The net normal cost percentage with respect to the retirement program; (B) the accrued actuarial liability with respect to the retirement program; (C) the net pay-as-you-go cost with respect to the retirement program; and (D) the level of the District payments to the Fund. The Mayor shall transmit the estimates of the actuary under the preceding sentence to the Board and to the Speaker and the President pro tempore, and such change in benefits may not go into effect until the end of the 30-day period beginning on the date such transmittals are completed. Whenever any change in benefits under a retirement program is made to either, but not both, the Metropolitan Police Department or the Fire and Emergency Medical Services Department, the Mayor shall engage an enrolled actuary to perform the same study contemporaneously for the other employee group for which the change was not made.
(2) In the event a change in benefits under a retirement program is made that increases the present value of benefits payable from the Fund, a level amortization payment for a period not to exceed 25 years shall be paid by the District to the Fund such that the present value of the sum of such level amortization payments equals the increase in the present value of such benefits. Such payments shall be made in addition to any other payment to the Fund required to be made by the District, and such increase in present value of benefits payable from the Fund and such payments shall be disregarded in calculating the unfunded actuarial liability under subsection (b)(1)(A) of this section.
(e) Whenever the amount authorized to be appropriated to the District of Columbia Police Officers and Fire Fighters’ Retirement Fund for any fiscal year under § 1-724(a)(1) is reduced under § 1-725(c) , the District shall, beginning with the next fiscal year, pay a level amortization payment to such Fund for a period not to exceed 10 years such that the present value (determined as of the beginning of the fiscal year for which such authorization is reduced) of the sum of such level amortization payments equals the amount of such reduction. Such payments shall be made in addition to any other payment to such Fund required to be made by the District and shall be disregarded in calculating the unfunded actuarial liability under subsection (b)(1)(A) of this section.
(f) The Comptroller General of the United States shall have access to all books, accounts, records, reports, files, and other papers necessary to carry out the responsibility of the Comptroller General under § 47-118 and under § 1-724(e) .