[Congressional Record Volume 140, Number 1 (Tuesday, January 25, 1994)]
[Extensions of Remarks]
[Page E]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: January 25, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
              PENSION LIABILITY FUNDING REFORM ACT OF 1994

                                 ______


                       HON. ELEANOR HOLMES NORTON

                      of the district of columbia

                    in the house of representatives

                       Tuesday, January 25, 1994

  Ms. NORTON. Mr. Speaker, today I introduce the District of Columbia 
Pension Liability Funding Reform Act of 1994 as my first bill for the 
second session of the 103d Congress. It is my first bill because it is 
of first importance to the solvency of the District of Columbia. And it 
is my first bill because it would at least partially correct 
indefensible economic unfairness that has been imposed by Congress on 
the District. I am pleased to be joined in sponsoring this legislation 
by Congressmen Ronald Dellums, William Jefferson, John Lewis, and Jim 
McDermott--all distinguished members of the House District Committee.
  The Congress instituted benefit pension plans for the District's 
police officers and fire fighters in 1916, for teachers in 1920, and 
for judges in 1970. In 1979, Congress passed the District of Columbia 
Retirement Reform Act and transferred $2.0 billion in unfunded pension 
liability from the Federal Government to the residents of the District 
of Columbia. The pension benefits required by the Federal Government 
were provided on a pay-as-you-go basis, with payments each year 
covering only that year's benefit payments. Since fiscal year 1980, the 
$2.0 billion unfunded liability has increased to $5.0 billion. Only $79 
million of this increase went to benefits paid directly to pensioners. 
Of the $5.0 billion in unfunded liability, $3.7 billion or 75 percent 
has been for interest on the unfunded federally imposed amount. This 
amazing case study in fiscal irresponsibility is one of those rare 
instances in United States history when the rich Federal Government has 
off-loaded indebtedness to an American city.
  The unfunded indebtedness has now moved from an unfair burden to a 
crippling threat to the economic viability of the District of Columbia. 
The District, still struggling for air from a recession that has 
smothered its economy, is opposed by unfunded pension liability created 
and passed on by the Congress. Whoever is responsible, however, all 
must now take responsibility. The legislation I am introducing today 
will accomplish this urgent purpose.
  This bill would enact a plan that is the result of many months of 
intensive work by all--representatives from the affected employee 
groups, retirees, the Council, the Mayor's office, the General 
Accounting Office, the District of Columbia Retirement Board and the 
District Committee of the Congress. All labored together, month after 
month, hashed out the tough issues, and all have accepted financial 
responsibility.
  My bill essentially tracks the landmark 1990 report prepared by the 
Rivlin Commission (Alice Rivlin, a distinguished economist is now 
Deputy Director of the Office of Management and Budget, and was the 
first Director of the Congressional Budget Office), an objective 
outside blue ribbon commission. Under the bill, retirees would receive 
one cost of living adjustment per year rather than two, and the rate of 
contributions from employees would increase from 7 percent to 8 
percent. The District would increase its contribution as a constant 
percent of payroll at a 5 percent annual rate as currently estimated by 
the actuary. Finally, the Congress would extend its contribution period 
for 31 years, from fiscal year 2005 to fiscal year 2035, and would 
increase its current flat contribution of $52.1 million per year at 5 
percent for 30 years starting in fiscal year 1996. These are painful 
prescriptions, especially for the retirees and employees.
  It is impossible to overemphasize the importance of this legislation 
to the fiscal health and stability of the District. By the year 2004, 
pension and interest payments will almost double to 15 percent of the 
District's operating budget. The closer we get to the year 2004, when 
the formula for computing the District's portion of the payment changes 
and the small Congressional contribution both expire, the greater the 
danger of irreparable harm to the city, to pensioners, and to city 
employees.
  The current District of Columbia Retirement Act provides for Federal 
and District contributions to the retirement funds through 2004. These 
are pay-as-you-go contributions that do not keep the unfunded liability 
from increasing. Moreover, the Act's funding provisions do not even 
attempt to eliminate unfunded liability, but allow interest to accrue 
at an exponential rate.
  Under the act, the formula for determining District contributions 
requires the Federal Government to contribute $52.1 million and the 
District to fund the rest. Today the District is paying more than $300 
million out of its annual operating budget to meet this obligation, 
more than five times the Federal contribution, consisting almost 
entirely interest on the original Federal unfunded liability.
  However, in 2005, the current legislation expires and the District's 
contribution will then rise to about 15 percent of the revenue 
collected by the District compared to 8 percent in 1991. By 2005, the 
     unfunded liability will reach $7.7 billion and without new 
     legislation all of the liability would fall to the 
     District.
  What is at stake in the bill I submit today is essentially 
everything--the stability of the city's operating budget for years to 
come and the pensions of the affected retirees and current employees. 
Considering the risk, what is astonishing is that this dangerous 
situation has prevailed for so long.
  My bill has the strong support of Mayor Sharon Pratt Kelly and 
District of Columbia chair David Clark. In fact, Chairman Clarke has 
already introduced the Full Funding of Pension Liability Retirement 
Reform Amendment Act of 1994, in the city council. I am attaching a 
copy of the Clarke bill to this statement. His bill, submitted on 
December 21, 1993, would obligate the District and its employees and 
retirees to assume responsibility for by far the largest portion of the 
unfunded pension liability. Chairman Clarke is acting to expedite 
council consideration. He has placed his bill at the top of his agenda 
as I have placed this bill at the top of mine. Indeed, the council's 
hearings begin today.
  Because of the extraordinary importance of this bill, I am taking the 
unusual step of introducing the legislation before the council has 
passed the Clarke legislation. Although the two bills are directed at 
different legislatures, there are home rule implications, and 
ordinarily I would await council passage. However, the council 
legislation is sponsored by 12 of the 13 members, and mark up in 
council is expected on February 15. Therefore, I can introduce my bill 
today without fear of transgressing home rule and thereby also expedite 
congressional action.
  I ask my colleagues to take the responsible action contingent only on 
the willingness of the District government and the effected residents 
and employees to assume the sacrifices required of them in my bill and 
in the council legislation. This is not a problem of their making. It 
originated here. It must end with corrective action here.

                                H.R. --

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``District of Columbia Pension 
     Liability Funding Reform Act of 1994''.

  TITLE I--FEDERAL CONTRIBUTION TO DISTRICT OF COLUMBIA PENSION FUNDS

     SEC. 101. INCREASE IN AND EXTENSION OF FEDERAL CONTRIBUTION.

       (a) In General.--Section 144(a) of the District of Columbia 
     Retirement Reform Act (sec. 1-724(a), D.C. Code) is amended--
       (1) in the matter preceding paragraph (1), by striking 
     ``2004--'' and inserting ``2035 the following amounts:'';
       (2) in paragraph (1)--
       (A) by striking ``as'' and inserting ``As'', and
       (B) by striking ``Fund, the sum'' and all that follows and 
     inserting the following: ``Fund--
       ``(A) for each fiscal year through fiscal year 1995, the 
     sum of $34,170,000, reduced by the amount of any reduction 
     required under section 145(c),
       ``(B) for fiscal year 1996, the sum of $35,879,000, reduced 
     by the amount of any such reduction, and
       ``(C) for fiscal year 1997 and each subsequent fiscal year, 
     the amount calculated in accordance with this paragraph for 
     the previous fiscal year increased by 5 percent, reduced by 
     the amount of any such reduction;''; (3) in paragraph (2)--
       (A) by striking ``as'' and inserting ``As'', and
       (B) by striking ``Fund, the sum'' and all that follows and 
     inserting the following: ``Fund--
       ``(A) for each fiscal year through fiscal year 1995, the 
     sum of $17,680,000,
       ``(B) for fiscal year 1996, the sum of $18,564,000, and
       ``(C) for fiscal year 1997 and each subsequent fiscal year, 
     the amount calculated in accordance with this paragraph for 
     the previous fiscal year increased by 5 percent; and''; and 
     (4) in paragraph (3)--
       (A) by striking ``as'' and inserting ``As'', and
       (B) by striking ``Fund, the sum'' and all that follows and 
     inserting the following: ``Fund--
       ``(A) for each fiscal year through fiscal year 1995, the 
     sum of $220,000,
       ``(B) for fiscal year 1996 the sum of $231,000, and
       ``(C) for fiscal year 1997 and each subsequent fiscal year, 
     the amount calculated in accordance with this paragraph for 
     the previous fiscal year increased by 5 percent.''.
       (b) Conforming Amendments.--The District of Columbia 
     Retirement Reform Act is amended--
       (1) in section 144(e) (sec. 1-724, D.C. Code)--
       (A) by striking ``2004'' in paragraph (1) and inserting 
     ``2035'', and
       (B) by striking paragraph (2);
       (2) in section 145 (sec. 1-725, D.C. Code), by striking 
     ``2004'' each place it appears in subsections (a)(1) and 
     (c)(1) and inserting ``2035''; and
       (3) in section 162(d) (sec. 1-732(d)(1), D.C. Code), by 
     striking paragraph (5).

                TITLE II--CHANGES IN RETIREMENT BENEFITS

      Subtitle A--Police Officers' and Fire Fighters' Contribution

     SEC. 201. INCREASE IN CONTRIBUTION.

       The first sentence of subsection (d)(1) of the Policemen 
     and Firemen's Retirement and Disability Act (sec. 4--612(a), 
     D.C. Code) is amended by inserting after ``per centum'' the 
     following: ``(or, with respect to a member who is an officer 
     or member of the Metropolitan Police force or the Fire 
     Department of the District of Columbia, 8 per centum for each 
     pay period which begins on or after October 1, 1995)''.

     SEC. 202. ESTABLISHMENT OF SINGLE ANNUAL COST-OF-LIVING 
                   ADJUSTMENT.

       Subsection (m) of the Policemen and Firemen's Retirement 
     and Disability Act (sec. 4-624, D.C. Code) is amended
       (1) in paragraph (2), by striking ``the Mayor shall'' and 
     all that follows and inserting the following: ``on January 1 
     of each year (or within a reasonable time thereafter), the 
     Mayor shall determine the per centum change in the price 
     index for the preceding year by determining the difference 
     between the index published December of the preceding year 
     and the index published for December of the second 
     preceding year.''; and
       (2) by amending paragraph (3) to read as follows:
       ``(3)(A) If (in accordance with paragraph (2)) the Mayor 
     determines in a year (beginning with 1997) that the per 
     centum change in the price index for the preceding year 
     indicates a rise in the price index, each annuity having a 
     commencing date on or before March 1 of the year shall, 
     effective March 1 of the year, be increased by an amount 
     equal to--
       ``(i) in the case of an annuity having a commencing date on 
     or before March 1 of such preceding year, the per centum 
     change computed under paragraph (2), adjusted to the nearest 
     \1/10\ of 1 per centum; or
       ``(ii) in the case of an annuity having a commencing date 
     after March 1 of such preceding year, a pro rata increase 
     equal to the product of--
       ``(I) \1/12\ of the per centum change computed under 
     paragraph (2), multiplied by
       ``(II) the number of months (not to exceed 12 months, 
     counting any portion of a month as an entire month) for which 
     the annuity was payable before the effective date of the 
     increase, adjusted to the nearest \1/10\ of 1 per centum.
       ``(B) On January 1, 1996 (or within a reasonable time 
     thereafter), the Mayor shall determine the per centum change 
     in the price index published for December 1995 over the price 
     index published for June 1995. If such per centum change 
     indicates a rise in the price index, effective March 1, 
     1996--
       ``(i) each annuity having a commencing date on or before 
     September 1, 1995, shall be increased by an amount equal to 
     such per centum change, adjusted to the nearest \1/10\ of 1 
     per centum; and
       ``(ii) each annuity having a commencing date after 
     September 1, 1995, and on or before March 1, 1996, shall be 
     increased by a pro rata increase equal to the product of--
       ``(I) \1/6\ of such per centum change, multiplied by
       ``(II) the number of months (not to exceed 6 months, 
     counting any portion of a month as an entire month) for which 
     the annuity was payable before the effective date of the 
     increase, adjusted to the nearest \1/10\ of 1 per centum.''.

     SEC. 203. EQUALIZATION OF CONTRIBUTION RULES FOR FORMER 
                   RETIREES

       (2) In General.--Section 209(a)(2)(B) of the District of 
     Columbia Retirement Reform Act (sec. 4-625(2), D.C. Code) is 
     amended by striking ``having a commencing date after the 
     effective date of such amendment.''.
       (b) Repeal of Relief Allowance or Compensation Increase.--
     Section 301 of the District of Columbia Police and Firemen's 
     Salary Act of 1953 (sec. 4-605, D.C. Code) is repealed.

                   Subtitle B--Teachers' Contribution

     SEC. 211. INCREASE IN CONTRIBUTION.

       The first sentence of section 1 of the Act entitled ``An 
     Act for the retirement of public-school teachers in the 
     District of Columbia'', approved August 7, 1946 (sec. 31-
     1221(a), D.C. Code), is amended by inserting after ``per 
     centum'' the following: ``(or, with respect to each pay 
     period which begins on or after October 1, 1995, 8 per 
     centum)''.

     SEC. 212. ESTABLISHMENT OF SINGLE ANNUAL COST-OF-LIVING 
                   ADJUSTMENT.

       Section 21(b) of the Act entitled ``An Act for the 
     retirement of public-school teachers in the District of 
     Columbia'', approved August 7, 1946 (sec. 31-1241(b), D.C. 
     Code) is amended--
       (1) in paragraph (1), by striking ``The Mayor shall--'' and 
     all that follows and inserting the following: ``On January 1 
     of each year (or within a reasonable time thereafter), the 
     Mayor shall determine the per centum change in the price 
     index for the preceding year by determining the difference 
     between the index published for December of the preceding 
     year and the index published for December of the second 
     preceding year.''; and
       (2) by amending paragraph (2) to read as follows:
       ``(2)(A) If (in accordance with paragraph (1)) the Mayor 
     determines in a year (beginning with 1997) that the per 
     centum change in the price index for the preceding year 
     indicates a rise in the price index, each annuity having a 
     commencing date on or before March 1 of the year shall, 
     effective March 1 of the year, be increased by an amount 
     equal to--
       ``(i) in the case of an annuity having a commencing date on 
     or before March 1 of such preceding year, the per centum 
     change computed under paragraph (1), adjusted to the nearest 
     \1/10\ of 1 percent centum; or
       ``(ii) in the case of an annuity having a commencing date 
     after March 1 of such preceding year, a pro rata increase 
     equal to the product of--
       ``(I) \1/12\ of the per centum change computed under 
     paragraph (1), multiplied by
       ``(II) the number of months (not to exceed 12 months, 
     counting any portion of a month as an entire month) for which 
     the annuity was payable before the effective date of the 
     increase, adjusted to the nearest \1/10\ of 1 per centum.
       ``(B) On January 1, 1996 (or within a reasonable time 
     thereafter), the Mayor shall determine the per centum change 
     in the price index published for December 1995 over the price 
     index published for June 1995. If such per centum change 
     indicates a rise in the price index, effective March 1, 
     1996--
       ``(i) each annuity having a commencing date on or before 
     September 1, 1995, shall be increased by an amount equal to 
     such per centum change, adjusted to the nearest \1/10\ of 1 
     per centum; and
       ``(ii) each annuity having a commencing date after 
     September 1, 1995, and on or before March 1, 1996, shall be 
     increased by a pro rata increase equal to the product of--
       ``(I) \1/6\ of such per centum change, multiplied by
       ``(II) the number of months (not to exceed 6 months, 
     counting any portion of a month as an entire month) for which 
     the annuity was payable before the effective date of the 
     increase, adjusted to the nearest \1/10\ of 1 per centum.''.

                    Subtitle C--Judges' Contribution

     SEC. 221. INCREASE IN CONTRIBUTION.

       (a) Amount of Withholding.--The first sentence of section 
     11-1463(a), D.C. Code, is amended by inserting after ``per 
     centum'' the following: ``(or, with respect to each pay 
     period which begins on or after October 1, 1995, 4\1/2\ per 
     centum)''.
       (b) Computation of Retirement Salary.--Section 11-
     1564(d)(1), D.C. Code, is amended by inserting after ``United 
     States Code,'' the following: ``with respect to services 
     performed before October 1, 1995, and equal to 4\1/2\ per 
     centum of such salary, pay, or compensation with respect to 
     services performed on or after October 1, 1995,''.

                       TITLE III--EFFECTIVE DATE

     SEC. 301. EFFECTIVE DATE.

       The amendments made by this Act shall take effect October 
     1, 1995.
                                  ____


           A Bill in the Council of the District of Columbia

       Be it enacted by the District of Columbia, That this act 
     may be cited as the ``Full Funding of Pension Liability 
     Retirement Reform Amendment Act of 1994.''

                     TITLE I. DISTRICT CONTRIBUTION

       Sec. 101. Section 142 of the District of Columbia 
     Retirement Reform Act, approved November 17, 1979 (93 Stat. 
     877; D.C. Code Sec. 1-722), is amended as follows:
       (a) Subsection (a) is amended as follows:
       (1) Paragraph (1)(D)(iii), (D.C. Code Sec. 1-
     722(a)(1)(D)(iii)), is repealed.
       (2) Paragraph (3) is amended as follows:
       (A) Subparagraph (E), (D.C. Code Sec. 1-722(a)(3)(A)(v)), 
     is repealed.
       (B) Subparagraph (G), (D.C. Code Sec. 1-722(a)(3)(A)(vii)), 
     and the immediately following undesignated paragraph are 
     repealed.
       (b) Subsection (b) is amended as follows:
       (1) Paragraph (1) is amended as follows:
       (A) Subparagraph (A), (D.C. Code Sec. 1-722(b)(1)(A)), is 
     amended to read as follows:
       ``(b)(1)(A) Except as provided in paragraph (b)(3) of this 
     section, the District payment for each Fund for each fiscal 
     year shall equal the sum of the net normal cost and the 
     amortization payment defined in the following paragraph 
     (b)(2).''.
       (B) Subparagraph (B), (D.C. Code Sec. 1-722(a)(1)(B)), is 
     amended to read as follows:
       ``(B) The total payment for all Funds for each fiscal year 
     shall not be less than $295,500,000.
       (C) Subparagraphs (C)-(F), (D.C. Code Sec. 1-722(b)(1)(C)-
     (F)), are repealed.
       (2) Paragraph (2), (D.C. Code Sec. 1-722(b)(2)), is amended 
     to read as follows:
       ``(2) The amortization payment shall be the sum of the 
     payments required to amortize, as a level percentage of 
     payroll, the following:
       ``(A) The unfunded actuarial liability as of October 1, 
     1995 over a 40-year period;
       ``(B) Any increases or decreases in unfunded actuarial 
     liability due to experience gains or losses, or changes in 
     actuarial assumptions, over a period of 15 years from the 
     valuation date when first calculated; and
       ``(C) Any increases or decreases in unfunded actuarial 
     liability due to changes in benefits provisions over a period 
     of 25 years from the valuation date when first calculated.''.
       (3) A new paragraph, (3), is added as follows:
       ``(3) Determinations under paragraphs (b)(1) and (b)(2) of 
     this section shall be made in accordance with generally 
     accepted actuarial principles and practices.''.
       (c) Subsection (c)(1)(A) is amended by striking the number 
     ``2003'' and inserting the number ``2035'' in its place.
       (d) Subsection (d) is amended as follows:
    
    
       (1) paragraph (1), (D.C. Code Sec. 1-722(d)(1)) is amended 
     as follows:
       (A) The lead-in language is amended to read as follows:
       ``Whenever any change in benefits under a retirement 
     program is made, the enrolled actuary engaged pursuant to 
     section 162(a)(4)(A) shall estimate the effect of the change 
     in benefits over the next five fiscal years on''.
       (B) Subparagraph (A) is amended by striking the coma after 
     the work ``program'' and inserting the work ``and'' in its 
     place.
       (C) Subparagraph (C), (D.C. code Sec. 1-722(d)(1)(C)), is 
     repealed.
       (D) Subparagraph (D), (D.C. code Sec. 1-722(d)(1)(D)), is 
     repealed.
       (2) Paragraph (2), (D.C. Code Sec. 1-722(d)(2)), is 
     repealed.

                     TITLE II. FEDERAL CONTRIBUTION

       Sec. 201. Section 144 of the District of Columbia 
     Retirement Reform Act, approved November 17, 1979 (93 Stat. 
     881; D.C. Code Sec. 1-724) is amended as follows:
       (a) Subsection (a), (D.C. Code Sec. 1-724(a)), is amended 
     as follows:
       (1) The lead-in language in subsection (a) is amended by:
       (A) striking the number ``1980'' and inserting the number 
     ``1995'' in its place, and
       (B) striking the number ``2004'' and inserting the number 
     ``2035'' in its place.
       (2) Paragraph (1), (D.C. Code Sec. 1-724(a)(1)), is amended 
     by inserting after the number ``$34,170,000'' the phrase ``in 
     fiscal year 1995, $35,879,000 in fiscal year 1996, and 
     increased by 5 percent per year through fiscal year 2035''.
       (3) Paragraph (2), (D.C. Code Sec. 1-724(a)(2)), is amended 
     by inserting after the number ``$17,680,000'' the phrase ``in 
     fiscal year 1995, $18,564,000 in fiscal year 1996, and 
     increased by 5 percent per year through fiscal year 2035''.
       (4) Paragraph (3), (D.C. Code Sec. 1-724(a)(3)), is amended 
     by inserting after the number ``$220,000'' the phrase ``in 
     fiscal year 1995, $231,000 in fiscal year 1996, and increased 
     by 5 percent per year through fiscal year 2035''.
       (b) Subsection (e), (D.C. Code Sec. 1-724(e)), is amended 
     as follows:
       (1) Paragraph (1) is amended by striking the number 
     ``2004'' and inserting the number '`2035'' in its place.
       (2) Paragraph (2) is repealed.

      TITLE III. POLICE OFFICERS' AND FIRE FIGHTERS' CONTRIBUTION

       Sec. 301. Section 12 of An Act Making appropriations to 
     provide for the expenses of the government of the District of 
     Columbia for the fiscal year ending June thirtieth, nineteen 
     hundred and seventeen, and for other purposes, approved 
     September 1, 1916 (39 Stat. 718; D.C. Code Sec. 4-601, et 
     seq.), is amended as follows:
       (a) Subsection (d)(1), (D.C. Code Sec. 4-612(a)) is amended 
     to read as follows:
       ``(d)(1) On and after the 1st day of the 1st pay period 
     which begins on or after the applicability date of this 
     section, there shall be deducted and withheld from each 
     member's basic salary an amount equal to 8 per centum of such 
     basic salary.''
       (b) Subsection (m) is amended as follows:
       (A) Paragraph (2) is amended as follows:
       (i) Subparagraph (A), (D.C. Code Sec. 4-624(b)(1)), is 
     amended by:
       (i) Striking the phrase ``(A)'',
       (ii) Capitalizing the word ``on'' in the first line,
       (iii) Striking the word ``June'' in the last line and 
     inserting the phrase ``the previous December'' in its place, 
     and
       (iv) Striking the phrase ``,and'' in the last line and 
     inserting a period in its place.
       (B) Subparagraph (B), (D.C. Code Sec. 4-624(b)(2)), is 
     repealed.
       Paragraph (3), (D.C. Code Sec. 4-624(c)) is amended to read 
     as follows:
       ``(3)(A) If in any year the per centum change determined 
     indicates a rise in the consumer price index, then each 
     annuity having a commencing date not later than March 1 of 
     such year, shall, effective March 1 of the succeeding year, 
     be increased by the per centum change computed under 
     paragraph (2) above, adjusted to the nearest one-tenth of 1 
     per centum.
       ``(B) Each annuity having a commencing date after March 1 
     of such year shall be increased by the per centum change 
     computed under paragraph (2) above on a pro rata basis, 
     adjusted to the nearest one-tenth of 1 per centum. The pro 
     rata increase shall be equal to the product of
       ``i. \1/12\ of the applicable percent change computed under 
     subparagraph (A) of this section, multiplied by
       ``ii. the number of months (not to exceed 12 months, 
     counting any portion of a month as a month) for which the 
     annuity was payable before the effective date of the 
     increase.''.
       Sec. 302. Section 301 of the District of Columbia Police 
     and Firemen's Salary Act of 1953, approved June 20, 1953 (67 
     Stat. 75; D.C. Code Sec. 4-605), is repealed.
       Sec. 303. Section 209(a)(2) of the District of Columbia 
     Retirement Reform Act, approved November 17, 1979 (93 Stat. 
     914; D.C. Code Sec. 4-625(2)), is amended by striking the 
     phrase ``having a commencing date after the effective date of 
     such amendment''.

                    TITLE IV. TEACHERS' CONTRIBUTION

       Sec. 401. An Act For the retirement of public-school 
     teachers in the District of Columbia, approved August 7, 
     1946. (60 Stat. 875; D.C. Code Sec. 31-1221 et seq.)), is 
     amended as follows:
       (a) Section 1, (D.C. Code Sec. 31-1221(a)), is amended as 
     follows:
       (1) By striking the phrase ``December 31, 1969'' and 
     inserting the phrase ``the applicability date of this 
     section'' in its place, and
       (2) By striking the number ``7'' and inserting the number 
     ``8'' in its place.
       (b) Section 21(b) is amended as follows:
       (1) Paragraph (1) is amended as follows:
       (A) Subparagraph (A), (D.C. Code Sec. 31-1241(b)(1)(A)), is 
     amended by:
       (i) Striking the phase ``(A)''
       (ii) Capitalizing the word ``on'' in the first line.
       (iii) Striking the word ``June'' in the last line and 
     inserting the phrase ``the previous December'' in its place, 
     and
       (iv) Striking the phrase ``,and'' in the last line and 
     inserting a period its place.
       (B) Subparagraph (B), (D.C. Code Sec. 31-1241(b)(1)(B), is 
     repealed.
       (2) Paragraph (2), (D.C. Code Sec. 31-1241(b)(2)), is 
     amended to read as follows:
       ``(2)(A) If in any year the per centum change determined 
     indicates a rise in the consumer price index, then each 
     annuity having a commencing date not later than March 1 of 
     such year, shall, effective March 1 of the succeeding year, 
     be increased by the per centum change computed under 
     paragraph (2) above, adjusted to the nearest one-tenth of 1 
     per centum.
       ``(B) Each annuity having a commencing date after March 1 
     of such year shall be increased by the per centum change 
     computed under paragraph (2) above on a pro rata basis, 
     adjusted to the nearest one-tenth of 1 per centum. The pro 
     rata increase shall be equal to the product of
       ``i. \1/2\ of the applicable percent change computed under 
     paragraph (2) of this section, multiplied by
       ``ii. the number of months (not to exceed 12 months, 
     counting any portion of a month as a month) for which the 
     annuity was payable before the effective date of the 
     increase.''.

                     TITLE V. CONFORMING AMENDMENTS

       (a) 501. The District of Columbia Retirement Reform Act, 
     approved November 17, 1979 (93 Stat. 866; D.C. Code Sec. 1-
     701 et seq.)), is amended as follows:
       (a) Sec. 145(d) is amended as follows:
       1. Paragraph (1) is amended by striking the number ``2001'' 
     and inserting the number ``2034'' in this place.
       2. Paragraph (2) is amended by striking the number ``2002'' 
     and inserting the number ``2034'' in its place.
       (b) Sec. 162(d)(5), (D.C. Code Sec. 1-732(d)(1)(E), is 
     repealed.

                      TITLE VI. APPLICABILITY DATE

       Sec. 601. Notwithstanding any other law, Title 1 
     Sec. 101(b)(1) and (2), and Title II, III, IV, and V shall 
     apply to any action or transaction taken or undertaken with 
     respect to the Police Officers and Fire Fighters' Retirement 
     Fund, the Teachers' Retirement Fund and the Judges' 
     Retirement Fund on and after October 1, 1995.

                       TITLE VII. EFFECTIVE DATE

       Sec. 701. This act shall take effect on the later of: (1) 
     completion of a 30-day period of Congressional review 
     following approval by the Mayor (or in the event of veto by 
     the Mayor, action by the Council of the District of Columbia 
     to override the veto) as provided in section 602(c)(1) of the 
     District of Columbia Self-Government and Governmental 
     Reorganization Act, approved December 24, 1973 (87 Stat. 813; 
     D.C. Code Sec. 1-233(c)(1)), and publication in either the 
     District of Columbia Register, the District of Columbia 
     Statutes-at-Large, or the District of Columbia Municipal 
     Regulations; or (2) enactment by Congress of Titles II, III, 
     IV, and V of this act, and of an amendment to D.C. Code 
     Sec. 11-1563 which strikes the first sentence in subsection 
     (a) and inserts a sentence to read ``From on or after the 
     first day of the first pay period which begins on or after 
     the applicability date of this section, there shall be 
     deducted and withheld from the basic salary of each judge who 
     has elected to come within the provisions of this subchapter 
     an amount equal to 4\1/2\ per centum of the judge's basic 
     salary.''.

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