(A) The Board shall publish an annual report for each fiscal year (beginning with fiscal year 1980) with respect to each retirement program to which this chapter applies and with respect to the Fund for such retirement program. Such report shall be filed with the Mayor, the Council, the Speaker, and the President pro tempore in accordance with § 1-734(a) and shall be made available and furnished to participants and beneficiaries in accordance with § 1-734(b) .
(B) The annual report shall include the information described in subsections (b), (c), (d), and (e) of this section and, when applicable, subsection (f) of this section, and shall also include:
(i) The financial statement and opinion required by paragraph (3) of this subsection; and
(ii) The actuarial statement and opinion required by paragraph (4) of this subsection.
(2) If some or all of the information needed to enable the Board to comply with the requirements of this chapter is maintained by: (A) An insurance carrier or other organization which provides some or all of the benefits under the retirement program, or holds assets of the Fund for such retirement program in a separate account; (B) a bank or similar institution which holds some or all of the assets of the Fund in a common or collective trust or a separate trust, or custodial account; or (C) the Mayor (or the Police and Firefighters Retirement and Relief Board, established pursuant to § 5-722 , in carrying out the Mayor’s responsibilities under the Policemen and Firefighter’s Retirement and Disability Act [ § 5-701 et seq.]; such carrier, organization, bank, or institution, or the Mayor, shall transmit and certify the accuracy of such information to the Board within 120 days after the end of the fiscal year (or such other date as may be prescribed under regulations of the Board).
(A) Except as provided in subparagraph (C) of this paragraph, the Board shall engage an independent qualified public accountant who shall conduct such examination of any financial statements of the Fund, and of other books and records of the Fund or the retirement program as the accountant may deem necessary to enable the accountant to form an opinion as to whether the financial statements and schedules required to be included in the annual report by subsection (b) of this section are presented fairly in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding year. Such examination shall be conducted in accordance with generally accepted auditing standards and shall involve such tests of the books and records of the Fund and the retirement program as are considered necessary by the independent qualified public accountant. The independent qualified public accountant shall also offer his opinion as to whether the separate schedules specified in subsection (b)(2) of this section and the summary material required under § 1-734(b)(2) present fairly, and in all material respects, the information contained therein when considered in conjunction with the financial statements taken as a whole. The opinion by the independent qualified public accountants shall be made a part of the annual report.
(B) In offering his opinion under this section, the accountant may rely on the correctness of any actuarial matter certified to by an enrolled actuary if he so states his reliance.
(C) The opinion required by subparagraph (A) of this paragraph need not be expressed as to any statements required by subsection (b)(2)(G) of this section prepared by a bank or similar institution or insurance carrier regulated and supervised and subject to periodic examination by a state or federal agency if such statements are certified by the bank, similar institution, or insurance carrier as accurate and are made a part of the annual report.
(A) The Board shall engage an enrolled actuary who shall be responsible for the preparation of the materials comprising the actuarial statement required under subsection (d) of this section.
(B) The enrolled actuary shall utilize such assumptions and techniques as are necessary to enable him to form an opinion as to whether the contents of the matters reported under subsection (d) of this section: (i) Are in the aggregate reasonably related to the experience of the Fund and the retirement program and to reasonable expectations; and (ii) represent his best estimate of anticipated experience under the Fund and the retirement program. The opinion by the enrolled actuary shall be made with respect to, and shall be made a part of, each annual report.
(C) In making a certification under this section, the enrolled actuary may rely on the correctness of any accounting matter under subsection (b) of this section as to which any qualified public accountant has expressed an opinion if he so states his reliance.
(1) An annual report under this section shall include a financial statement containing a statement of assets and liabilities, and a statement of changes in net assets available for benefits under the retirement program, which shall include details of revenues and expenses and other changes aggregated by general source and application. In the notes to financial statements, disclosures concerning the following items shall be considered by the accountant: A description of the retirement program, including any significant changes in the retirement program made during the period and the impact of such changes on benefits; the funding policy (including the policy with respect to prior service cost), and any changes in such policy during the year; a description of any significant changes in benefits made during the period; a description of material lease commitments, other commitments, and contingent liabilities; a description of agreements and transactions with persons known to be parties in interest; and any other matters necessary to fully and fairly present the financial statements of the Fund.
(2) The statement required under paragraph (1) of this subsection shall have attached the following information in separate schedules;
(A) A statement of the assets and liabilities of the Fund, aggregated by categories and valued at their current value, and the same data displayed in comparative form for the end of the previous fiscal year;
(B) A statement of receipts in and disbursements from the Fund during the preceding 12-month period, aggregated by general source and application;
(C) A schedule of all assets held for investment purposes, aggregated and identified by issuer, borrower, or lessor, or similar party to the transaction (including a notation as to whether such party is known to be a party in interest), maturity date, rate of interest, collateral, par or maturity value, cost, and current value;
(D) A schedule of each transaction involving a person known to be a party in interest, the identity of such party in interest and his relationship or that of any other party in interest to the Fund, a description of each asset to which the transaction relates; the purchase or selling price in case of a sale or purchase, the rental in case of a lease, or the interest rate and maturity date in case of a loan; expenses incurred in connection with the transaction; the cost of the asset, the current value of the asset, and the net gain or loss on each transaction;
(E) A schedule of all loans or fixed income obligations which were in default as of the close of the fiscal year or were classified during the year as uncollectable and the following information with respect to each loan on such schedule (including a notation as to whether parties involved are known to be parties in interest): The original principal amount of the loan; the amount of principal and interest received during the reporting year; the unpaid balance; the identity and address of the obligor; a detailed description of the loan (including date of making and maturity, interest rate, the type and value of collateral, and other material terms); the amount of principal and interest overdue (if any) and an explanation thereof;
(F) A list of all leases which were in default or were classified during the year as uncollectable and the following information with respect to each lease on such list (including a notation as to whether parties involved are known to be parties in interest): The type of property leased (and, in the case of fixed assets such as land, buildings, and leaseholds, the location of the property); the identity of the lessor or lessee from or to whom the Fund is leasing; the relationship of such lessors and lessees, if any, to the Fund, the government of the District of Columbia, any employee organization, or any other party in interest; the terms of the lease regarding rent, taxes, insurance, repairs, expenses, and renewal options; the date the leased property was purchased and its cost; the date the property was leased and its approximate value at such date; the gross rental receipts during the reporting period; expenses paid for the leased property during the reporting period; the net receipts from the lease; the amounts in arrears; and a statement as to what steps have been taken to collect amounts due or otherwise remedy the default;
(G) The most recent annual statement of assets and liabilities of any common or collective trust maintained by a bank or similar institution in which some or all the assets of the Fund are held, of any separate account maintained by an insurance carrier in which some or all of the assets of the Fund are held, and of any separate trust maintained by a bank as trustee in which some or all of the assets of the Fund are held, and in the case of a separate account or a separate trust, such other information as may be required by the Board in order to comply with this subsection; and
(H) A schedule of each reportable transaction, the name of each party to the transaction (except that, in the case of an acquisition or sale of a security on the market, the report need not identify the person from whom the security was acquired or to whom it was sold) and a description of each asset to which the transaction applies; the purchase or selling price in case of a sale or purchase, the rental in case of a lease, or the interest rate and maturity date in case of a loan; expenses incurred in connection with the transaction; the cost of the asset, the current value of the asset, and the net gain or loss on each transaction.
(3) For purposes of subparagraph (H) of paragraph (2) of this subsection, the term “reportable transaction” means a transaction to which the Fund is a party and which is:
(A) A transaction involving an amount in excess of 3 percent of the current value of the assets of the Fund;
(B) Any transaction (other than a transaction respecting a security) which is part of a series of transactions with or in conjunction with a person in a fiscal year, if the aggregate amount of such transactions exceeds 3 percent of the current value of the assets of the Fund;
(C) A transaction which is part of a series of transactions respecting 1 or more securities of the same issuer, if the aggregate amount of such transactions in the fiscal year exceeds 3 percent of the current value of the assets of the Fund; or
(D) A transaction with or in conjunction with a person respecting a security, if any other transaction with or in conjunction with such person in the fiscal year respecting a security is required to be reported by reason of subparagraph (A) of this paragraph.
(c) The Board shall furnish as a part of an annual report under this section the following information:
(1) The number of individuals covered by the retirement program;
(2) The name and address of each member of the Board;
(3) Except in the case of a person whose compensation is minimal (as determined under regulations of the Council, which regulations the Council shall initially promulgate within 90 days after the date of the enactment of this chapter and who performs solely ministerial duties as determined under such regulations), the name of each person (including any consultant, broker, trustee, accountant, insurance carrier, actuary, administrator, investment counsel, or custodian who rendered services to the Board or who had transactions with the Board) who directly or indirectly received compensation from the Board during the preceding year for services rendered to the Board or the participants or beneficiaries of the retirement program for which a Fund was established, the amount of such compensation, the nature of his services, his relationship, if any, to the District of Columbia government or any employee organization, and any other officer, position or employment he holds with any party in interest;
(4) An explanation of the reason for any change in appointment of any accountant, insurance carrier, enrolled actuary, or investment counsel appointed by the Board; and
(5) Such other financial and actuarial information as the Council may by regulation prescribe.
(1) An annual report under this section for a fiscal year shall include a complete actuarial statement applicable to the fiscal year which shall include the following information:
(A) The date of the actuarial valuation applicable to the fiscal year for which the report is filed;
(B) The date and amount of the payments to the Fund for the fiscal year for which the report is filed and contributions for prior fiscal years not previously reported, including payments by the participants, the United States, and the District of Columbia;
(C) The following information applicable to the fiscal year for which the report is filed:
(i) The amounts determined under § 1-722(a)(1) ;
(ii) The accrued liabilities;
(iii) An identification of benefits not included in the calculation;
(iv) A statement of the other facts and actuarial assumptions and methods used to determine costs; and
(v) A justification for any change in actuarial assumptions or cost methods;
(D) The number of participants and beneficiaries covered by the retirement program;
(E) A certification of the amount of the payments to the Fund necessary to reduce the accumulated funding deficiency to zero;
(F) A statement by the enrolled actuary of any change in actuarial assumptions made with respect to the Fund during the year;
(G) A statement by the enrolled actuary of the estimated current value of vested benefits under the retirement program;
(H) A statement by the enrolled actuary that to the best of his knowledge the report is complete and accurate;
(I) A copy of the opinion required by subsection (a)(4) of this section;
(J) Such other information regarding the retirement program as the Council may by regulation require; and
(K) Such other information as the enrolled actuary may determine is necessary to fully and fairly disclose the actuarial position of the Fund.
(2) The actuary shall make an actuarial valuation of the Fund for every 3rd fiscal year, unless he determines that a more frequent valuation is necessary to support his opinion under subsection (a)(4) of this section.
(e) A report under this section for a fiscal year shall include a statement prepared by the Board of:
(1) The relative riskiness of the investments during the fiscal year of the assets of the Fund;
(2) A comparison of the average return on the investments of the Fund during the year with the average return on the investments of other public pension funds during the year that have comparable asset valuation; and
(3) The average daily balance of, and the average rate earned by, assets of the Fund in each of any time or demand deposits during the year.
(1) If some or all of the benefits under the retirement program are purchased from and guaranteed by an insurance company, insurance service, or other similar organization, a report under this section shall include a statement from such insurance company, service, or other similar organization covering the fiscal year and enumerating:
(A) The premium rate or subscription charge and the total premium or subscription charges paid to each such carrier, insurance service, or other similar organization and the approximate number of persons covered by each class of such benefits; and
(B) The total amount of premiums received, the approximate number of persons covered by each class of benefits, and the total claims paid by such company, service, or other organization; dividends or retroactive rate adjustments, commissions, and administrative service or other fees or other specific acquisition costs paid by such company, service, or other organization; any amounts held to provide benefits after retirement; the remainder of such premiums; and the names and addresses of the brokers, agents, or other persons to whom commissions or fees were paid, the amount paid to each, and for what purpose.
(2) If any such company, service, or other organization does not maintain separate experience records covering the specific groups it serves, the report shall include, in lieu of the information required by subparagraph (B) of paragraph (1) of this subsection, a statement as the basis of its premium rate or subscription charge, the total amount of premiums or subscription charges received from the Fund, and a copy of the financial report of the company, service, or other organization and, if such company, service, or organization incurs specific costs in connection with the acquisition or retention of any particular Fund or Funds, a detailed statement of such costs.