Section 38-2021.21 - Adjustment of annuities on basis of price index; computation; definitions

Adjustment of annuities on basis of price index; computation; definitions

(a) Effective December 1, 1965, each annuity payable from the fund which has a commencing date not later than January 1, 1966, shall be increased by: (1) the per centum rise in the price index, adjusted to the nearest 1/10 of 1%, determined by the Mayor of the District of Columbia on the basis of the annual average price index for calendar year 1962 and the price index for the month of July 1965; plus (2) 6 1/2% if the commencing date (or in the case of a survivor of a deceased annuitant the commencing date of the annuity of the retired employee) occurred on or before October 1, 1956, or 1 1/2% if the commencing date (or in the case of the survivor of a deceased annuitant the commencing date of the annuity of the retired employee) occurred after October 1, 1956. The month used in determining the increase based on the per centum rise in the price index under this subsection shall be the base month for determining the per centum change in the price index until the next succeeding increase occurs.

(b)(1) For the payments of benefits accrued by teachers after June 30, 1997, 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.

(2)(A) If, in accordance with paragraph (1) of this subsection, the Mayor determines in a year (beginning with 1999) 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) of this subsection, 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 1/12 of the per centum change computed under paragraph (1) of this subsection, multiplied by 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, 1998, or within a reasonable time thereafter, the Mayor shall determine the per centum change in the price index published for December 1997 over the price index published for June 1997. If such per centum change indicates a rise in the price index, effective March 1, 1998:

(i) Each annuity having a commencing date on or before September 1, 1997, 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, 1997, and on or before March 1, 1998, shall be increased by a pro rata increase equal to the product of 1/6 of such per centum change, multiplied by 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.

(b-1)(1) 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 and 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.

(2)(A) If, in accordance with paragraph (1) of this subsection, 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 the preceding year, the per centum change computed under paragraph (1) of this subsection, adjusted to the nearest 1/10 of 1%; or

(ii) In the case of an annuity having a commencing date after March 1 of the preceding year, a pro rata increase equal to the product of 1/12 of the per centum change computed under paragraph (1) of this subsection, multiplied by 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%.

(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 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 the per centum change, adjusted to the nearest 1/10 of 1%; 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 1/6 of the per centum change, multiplied by 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%.

(3) This subsection shall apply only to public school teachers hired after December 31, 1979.

(c) Eligibility for an annuity increase under this section shall be as provided in subsection (b)(2) of this section, except as follows:

(1) Effective from its commencing date, an annuity payable to an annuitant's survivor (other than a child entitled under § 38-2021.09(b)(2)), which annuity commences the day after the annuitant's death and after the effective date of the 1st increase under this section, shall be increased by the total per centum increase the annuitant was receiving under this section at death;

(2) For the purpose of computing the annuity of a child under § 38-2021.09(b)(2) that commences after October 31, 1969, the items $900, $1,080, $2,700, and $3,240 appearing in § 38-2021.09(b)(2) shall be increased by the total per centum increases allowed and in force under this section on or after such day and, in case of a deceased annuitant, the items 60% and 75% appearing in § 38-2021.09(b)(2) shall be increased by the total per centum allowed and in force to the annuitant under this section on or after such day.

(3) Each annuity increase payable from the fund to an annuitant hired on or after the first day of the first pay period which begins after October 29, 1996, or to such annuitant's beneficiary or survivor, shall in no event exceed 3% per annum.

(d) No increase in annuity provided by this section shall be computed on any additional annuity purchased at retirement by voluntary contributions.

(e) The monthly installment of annuity after adjustment under this section shall be fixed at the nearest dollar, except that such installments shall after adjustment reflect an increase of at least $1.

(f) For purposes of this section, the term “price index” shall mean the Consumer Price Index (all items -- United States city average) published monthly by the Bureau of Labor Statistics. The term “base month” shall mean the month for which the price index showed a per centum rise forming the basis for a cost-of-living annuity increase.

CREDIT(S)

(Aug. 7, 1946, ch. 779, § 21, as added Oct. 24, 1962, 76 Stat. 1236, Pub. L. 87-881, title II, § 202; July 5, 1966, 80 Stat. 266, Pub. L. 89-494, § 1; Dec. 29, 1967, 81 Stat. 751, Pub. L. 90-231, § 1(9); May 22, 1970, 84 Stat. 257, Pub. L. 91-263, § 1(c); Nov. 17, 1979, 93 Stat. 866, Pub. L. 96-122, § 251(a)(1), (b); Sept. 26, 1995, D.C. Law 11-52, § 806b, 42 DCR 3684; Apr. 9, 1997, D.C. Law 11-218, § 4(d), 43 DCR 6172; Apr. 9, 1997, D.C. Law 11-255, § 33, 44 DCR 1271; Aug. 5, 1997, 111 Stat. 719, Pub. L. 105-33, § 11013(b); Sept. 18, 1998, D.C. Law 12-152, § 207(b), 45 DCR 4045.)

HISTORICAL AND STATUTORY NOTES

Prior Codifications
1981 Ed., § 31-1241.
1973 Ed., § 31-739a.
Temporary Amendments of Section
Section 206(b) of D.C. Law 12-58 rewrote (b).
Section 209(b) of D.C. Law 12-58 provided that the act shall expire after 225 days of its having taken effect.
Emergency Act Amendments
For temporary amendment of section, see § 4(d) of the New Hires Police Officers, Fire Fighters, and Teachers Pension Modification Emergency Amendment Act of 1996 (D.C. Act 11-428, October 29, 1996, 43 DCR 6147), and § 4(d) of the New Hires Police Officers, Fire Fighters, and Teachers Pension Modification Congressional Adjournment Emergency Amendment Act of 1997 (D.C. Act 12-10, March 3, 1997, 44 DCR 1633).
For temporary amendment of section, see § 206(b) of the Police Officer, Fire Fighters, and Teachers Retirement Benefit Replacement Plan Emergency Act of 1997 (D.C. Act 12-155, October 1, 1997, 44 DCR 5896), and see § 206(b) of the Police Officers, Fire Fighters, and Teachers Retirement Benefit Replacement Plan Congressional Review Emergency Act of 1997 (D.C. Act 12-240, January 13, 1998, 45 DCR 531).
Legislative History of Laws
For legislative history of D.C. Law 10-135, see Historical and Statutory Notes following § 38-2021.01.
Law 11-52, the “Omnibus Budget Support Act of 1995,” was introduced in Council and assigned Bill No. 11-218, which was referred to the Committee of the Whole. The Bill was adopted on first and second readings on April 19, 1995, and June 6, 1995, respectively. Signed by the Mayor on July 13, 1995, it was assigned Act No. 11-94 and transmitted to both Houses of Congress for its review. D.C. Law 11-52 became effective on September 26, 1995.
For legislative history of D.C. Law 11-218, see Historical and Statutory Notes following § 38-2021.01.
Law 11-255, the “Second Technical Amendments Act of 1996,” was introduced in Council and assigned Bill No. 11-905, which was referred to the Committee of the Whole. The Bill was adopted on first and second readings on November 7, 1996, and December 3, 1996, respectively. Signed by the Mayor on December 24, 1996, it was assigned Act No. 11-519 and transmitted to both Houses of Congress for its review. D.C. Law 11-255 became effective on April 9, 1997.
Law 12-58, the “Police Officers, Fire Fighters, and Teachers Retirement Benefit Replacement Plan Temporary Act of 1997,” was introduced in Council and assigned Bill No. 12-383. The Bill was adopted on first and second readings on September 24, 1997, and October 7, 1997, respectively. Signed by the Mayor on October 22, 1997, it was assigned Act No. 12-189 and transmitted to both Houses of Congress for its review. D.C. Law 12-58 became effective on March 20, 1998.
Law 12-152, the “Police Officers, Fire Fighters, and Teachers Retirement Benefit Replacement Plan Act of 1998,” was introduced in Council and assigned Bill No. 12-386, which was referred to the Committee of the Whole. The Bill was adopted on first and second readings on April 7, 1998, and May 5, 1998, respectively. Signed by the Mayor on May 22, 1998, it was assigned Act No. 12-369 and transmitted to both Houses of Congress for its review. D.C. Law 12-152 became effective on September 18, 1998.
Change in Government
This section originated at a time when local government powers were delegated to a Board of Commissioners of the District of Columbia (see Acts Relating to the Establishment of the District of Columbia and its Various Forms of Governmental Organization in Volume 1). Section 401 of Reorganization Plan No. 3 of 1967 (see Reorganization Plans in Volume 1) transferred all of the functions of the Board of Commissioners under this section to a single Commissioner. The District of Columbia Self-Government and Governmental Reorganization Act, 87 Stat. 818, § 711 (D.C. Code, § 1-207.11), abolished the District of Columbia Council and the Office of Commissioner of the District of Columbia. These branches of government were replaced by the Council of the District of Columbia and the Office of Mayor of the District of Columbia, respectively. Accordingly, and also pursuant to § 714(a) of such Act (D.C. Code, § 1-207.14(a)), appropriate changes in terminology were made in this section.
Miscellaneous Notes
Full Funding of Pension Liability Reform Amendment Act of 1994: Section 312 of D.C. Law 10-135 amends (b)(1) and (2) to read as follows:
“(b)(1) 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.
(2)(A) If (in accordance with paragraph (1) of this subsection) 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%; 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) One-twelfth 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%.
(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 before September 1, 1995, shall be increased by an amount equal to such per centum change, adjusted to the nearest 1/10 of 1%; 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) One-sixth 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%.”

Current through September 13, 2012