a publication of the dc retirement board for active and ...march of 2009, the funds that dcrb...
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ment completed itsscanning project thissummer in which 3.4million paper docu-ments were digitized.They are now reengi-neering their internalretirement processand mapping outwork flows so thatnew documents canbe scanned upon ourreceipt of them and forwarded to theappropriate staff members electronically.We expect to have that project completedby the end of this year. In addition, onSeptember 15th, a basic pension benefitcalculator was posted to DCRB’s website.This calculator (see article on page 2)allows members to estimate their retire-ment benefit by entering their own dataand selecting a retirement date that fitstheir future plans. During FY 2010, DCRB will collabo-
rate with other District agencies on aproject to review and verify historicalpension-related data for active members.We also plan to build a temporary data-base for that information. We will contin-ue work on a feasibility study that willidentify an appropriate system to imple-ment at DCRB into which pension-relateddata will be transferred. Once the newsystem is operational, we expect to signif-icantly reduce the time needed to makeinitial pension payments to newly retiringmembers. DCRB will continue to provideyou with updates on our progress infuture newsletters.
DCRB ReportDCRB ReportAgency Updates
A Publication of the DC Retirement Board for Active and Retired Police Officers, Firefighters and Teachers
The mission of the
District of Columbia
Retirement Board is
to invest, control,
and manage the
assets of the
Teachers’ Retire-
ment Fund and the
Police Officers
and Firefighters’
Retirement Fund.
F A L L 2 0 0 9
My message to you last fall focusedon the decline in the global finan-cial markets. I am pleased toinform you at this time that, due
to the strong rebound in the equity mar-ket since it reached its lowest point inMarch of 2009, the Funds that DCRBmanages have increased significantly invalue. As of September 30, 2009, theassets in the Funds totaled $3.74 billion,with the Funds returning 14.35% sinceJanuary 1, 2009. For DCRB’s fiscal year2009, which ended September 30, theFunds returned -2.25%. While the Funds’fiscal year return was slightly negative, theFunds managed to recover a substantialportion of the unrealized losses incurredduring the worst market downturn sincethe Great Depression.As indicated in previous newsletter arti-
cles, the Board takes a long-term viewtoward investing. Our objective is toassure that we have enough assets to paybenefits for all current annuitants, and westrive to grow those assets to meet theadditional amount required as activemembers retire in the future. In our mostrecent plan valuation, our actuary hasdetermined that we are squarely on targetto meet those objectives. In fact, whencompared with the funds of other govern-mental plans, the Funds that DCRB man-ages are among those that have the high-est funding levels in the country. I am also pleased to announce that we
have made great progress over the pastseveral months in upgrading our technolo-gy and in improving the services we offerto our members. DCRB’s Benefits Depart-
Chairman’s Corner
Darrick O. Ross
9/30/08
$3.74 billion
9/30/09
$3.73 billion
Total Fund Market Value
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Calendar Year 2009 Tax Information
DCRB Report • Fall 2009
As we approach the end of thetax year, here are some tips tomake your tax filing process
easier:� Address Changes: If you have
moved recently, please be sure tonotify DCRB of a change in yourmailing address by December 15,2009. If you have chosen toreceive your pension payments viadirect deposit, payments will con-tinue to be sent to your bankaccount following a change ofaddress. However, DCRB will notbe able to send your 1099-RForm or other mailings to yournew home address unless youchange your address on file withus. To notify DCRB of a changein your mailing address, pleasevisit the DCRB website atwww.dcrb.dc.gov and click onDCRB Forms at the upper left-hand side of our homepage underthe Services header. You will seethe Change of Address Form atthe top of the list of forms. Pleaseclick on the form title to open itas a pdf document, print it out,and send the completed form to:
Member Services CenterDC Retirement Board900 7th Street, NW, 2nd FloorWashington, DC 20001
If you do not have access to theinternet, you can call the DCRBMember Services Center at (202-343-3272) or toll free at 1(866)456-3272 and one of our cus-tomer service representatives willbe happy to mail a copy of theform to you.
� The Distribution of 1099-R Forms:Prior to January 31, 2010, theU.S. Treasury Department’sBureau of the Public Debt willissue 1099-R Forms for paymentsreceived by retirees and survivorsfrom the District of ColumbiaPolice Officers and Firefighters’Retirement Plan and the Districtof Columbia Teachers’ RetirementPlan during tax year 2009. Mostannuitants will receive only one1099-R Form. However, those ofyou, for example, who are both aretiree and the survivor of aretiree will receive more than one1099-R, both of which should befiled with your 2009 tax return.
� Review of Your Tax Withholding:As a reminder, you may recall thatnew, reduced federal income taxwithholding tables implementingthe stimulus law’s “Making WorkPay” tax credit were required tobe used for pension paymentsbeginning April 1, 2009, even
though pensions were not eligiblefor the credit. As a result, if your2008 federal withholding wasadequate to cover your tax obliga-tion, and you did not increaseyour withholding after April2009, you may owe federalincome taxes for 2009. Althoughthe tax year is almost at an end,there is still time to adjust yourwithholding to avoid a shortfall.If you are uncertain about theamount of taxes you may need topay or the adequacy of your taxwithholding, you should contactyour tax advisor.
DCRB Releases Retirement Benefits Calculator DCRB is pleased to introduce itsnew Retirement Benefits Calcula-tor. The calculator was an elementof DCRB’s Technology RoadMap, which was approved by theBoard of Trustees in the fall of2007. On September 15, 2009,the first of the two phases of thistool was released. The two phasesinclude:
1) an initial calculator: a basic,stand-alone tool that active mem-bers can use to estimate their ben-efits, and
2) an enhanced calculator: amore sophisticated tool, whichwill use the member’s actual pen-sion data to replicate the benefitcalculated by the system.
The initial calculator is avail-able now on the homepage of ourwebsite at www.dcrb.dc.gov. Thisbasic tool allows mem-bers to enter theirown data, identify aprojected retirementdate, and receive anestimated benefitbased on thedata theyentered.
-1.77%
9.07%3.71%
3.57%
-2.25%
Since Inception
10 Year Annualized
5 Year Annualized
FY 20093 Year Annualized
Total Fund Returns (gross of fees)
2
62761:DCRBNewsletter 11/9/09 10:20 PM Page 2
3
Fall 2009 • DCRB Report
Since the fall of 2007, DCRBhas been working with MTGManagement Consultants
(“MTG”) to map out a strategicplan for upgrading the services weprovide and identifying andimplementing the technologyneeded to deliver those services.Our multi-year plan is currentlyon track, and it has grownbeyond the original project planto include a series of projects setto occur over several years. Theseprojects will result in the estab-lishment of a full-featured
defined-benefit pension systemand the transformation of theDCRB Benefits Department into afull service entity for members ofthe District of Columbia PoliceOfficers and Firefighters’ Retire-ment Plan and the District ofColumbia Teachers’ RetirementPlan (the “Plans”). Updates tothese projects include:
� the successful completion ofthe Scanning Project in FY 2009that resulted in digitizing 3.4 mil-lion documents over the course ofthe project. We are currently shar-
ing the experience we gained fromthis project with other agencies inthe District in order to increaseefficiencies.
� the development and imple-mentation of a new tool, an inter-net-based Benefits Calculator,which was launched on September15, 2009. It allows all Plan mem-bers to compute an estimate oftheir annual and monthly annuitybenefits.
� preparing for the creation of aPension Interim Repository (PIR).This repository will allow DCRBto gather and retain the historicaldata currently maintained in paperform and in multiple legacy sys-tems. All pension-related historywill be automated and available atthe time of retirement, therebyreducing the amount of time need-ed to process a Plan member’s firstretirement payment.
� enhancing DCRB’s website toprovide more information andbetter tools for retirement plan-ning. After the launch of the cal-culator, traffic to our website hasincreased weekly. We encourageyou to watch for new featuresthat will be added in the future.
Technology and Agency Projects
Over 95% of your colleagues use Direct Deposit to receive their pen-sion payments. The reasons are simple:
� It is easier and more convenient. You simply need to fill out a form,and your payments are deposited directly into your checking, savings,or credit union account on the first business day of each month.
� It is safer and more predictable. You do not need to worry aboutyour payment being stolen or delayed.
� It is more economical. It costs the pension funds less to send yourpension payment electronically each month than to print and mailchecks. You also avoid a trip to your bank and help us cut down onthe unnecessary use of paper.
To get started, visit the DCRB website at www.dcrb.dc.gov and clickon DCRB Forms under the Services headline on the upper left handside of our home page, then click on Direct Deposit Form (secondfrom the top) to print out the form yourself. You can also call theDCRB Member Services Center at (202)343-3272 or toll free at1(866)456-3272 and ask to receive a copy by mail. Whichever methodyou choose, you should return the form to us at the following address:
Member Services CenterDC Retirement Board900 7th Street, NW, 2nd FloorWashington, DC 20001
If we receive the completed form by the 10th of the month, we willbe able to activate it in time to get your next benefit payment safelyinto your designated account on the first business day of the nextmonth. This service will give you the peace of mind of knowing thatyour payment will be deposited promptly and safely into your account.
Direct Deposit—Prompt and Automatic
Useful Numbers D.C. Public Schools Human Resources Office (202) 442-4080
Metropolitan Police Department Human Resources Office (202) 727-4261
Department of Fire and Emergency Medical Services Human Resources Office (202) 673-6443
Police and Fire Retirement and Relief Board (202) 442-9622
DCRB Member Services Center(202) 343-DCRB(toll free) (866) 456-3272 TTY (800) 877-8339Fax: (202) 566-5001Email: [email protected]
62761:DCRBNewsletter 11/13/09 11:25 AM Page 3
DC Retirement Board900 7th Street, NWSecond FloorWashington, DC 20001
Inside DCRB Report this month:
Open EnrollmentYear End Information
Pre-SortedFirst ClassUS Postage
PAID
Permit No. 349Washington, DC
During the Health Care OpenSeason, you have the oppor-tunity to review the available
health care plans and to select theone that best meets your individ-ual needs.
The Office of Personnel Man-agement (OPM) and the D.C.Department of Human Resources(DCHR) have announced thatmembers will have an opportunity
to change their health plans dur-ing an Open Enrollment Seasonthat will take place from Novem-ber 9 to December 14, 2009. Thisevent is open to members of theDistrict of Columbia Police Offi-cers and Firefighters’ RetirementPlan and the District of ColumbiaTeachers’ Retirement Plan whoare eligible to participate in thehealth plans available to District
2009 Health Care Open Season
DCRB Report • Fall 2009
Edward C. SmithElected Active Firefighter
George R. SuterSecretaryElected Retired Police Officer
Thomas N. TippettElected Retired Firefighter
Michael J. WarrenCouncil Appointee
Lasana K. MackEx Officio, Non Voting
T R U S T E E S
Lyle M. BlanchardSergeant-at-ArmsCouncil Appointee
Barbara Davis BlumMayoral Appointee
Joseph M. BressCouncil Appointee
Diana K. BulgerMayoral Appointee
Joseph W. ClarkTreasurerMayoral Appointee
Deborah HensleyElected Active Teacher
Judith C. MarcusParliamentarianElected Retired Teacher
Darrick O. RossChairmanElected Active Police Officer
D.C. Retirement Board
900 7th Street, NWSecond FloorWashington, DC 20001Voice (202) 343-3200Fax (202) 566-5000www.dcrb.dc.gov
Eric O. StanchfieldExecutive Director
Legislation Changes DCRB PlansThe DC Council recently passed two Acts, which concern the Districtof Columbia Teachers' and Police Officers and Firefighters' RetirementPlans (the “Plans”), to include domestic partners as survivors. Sum-maries of Material Modification to the Plans were distributed to par-ticipants during the summer and are posted on our website. You canview these summaries in the News Room section of our site under thetitle “Recent Legislation Changes DCRB Retirement Plans.”
and Federal employees andretirees.
In early November, eligiblemembers will be mailed packets ofinformation about the plans andthe health fairs scheduled to takeplace during the enrollment peri-od. OPM has a helpful feature on its website that allows eligibleparticipants to compare the provisions, costs, and premiumsof up to four health plans. You can access that feature atwww.opm.gov/insure.
Active members must submittheir completed change forms totheir human resources office.Retirees and survivors should for-ward their completed changeforms to the DCRB Member Serv-ices Center (see address on pagethree). The completed enrollmentform must be received by DCRBno later than December 14, 2009.
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