The District of Columbia Retirement Board would like to reassure members and retirees that in these challenging economic times, retirees’ pensions are safe and secure for these reasons:

Pensions under the District of Columbia Police Officers’ and Firefighters’ Retirement Plan and the District of Columbia Teachers’ Retirement Plan (the “Plans”) are guaranteed by District of Columbia law (sections 1-701(b), 1-9-1.01(b) of the Code) and cannot be reduced due to investment losses.

In addition, investments are diversified and investment performance does not hinge on any one investment or on any one firm’s success or failure.

Further, DCRB takes a long-term approach to investments, which will help us withstand challenging financial times.

You should be aware that the Plans are defined benefit plans, which means that the pension benefit is determined by a formula which includes your age, years of service, and salary – not investment returns. This is different than a defined contribution plan (like a 401k plan), which is based on contributions and investment earnings on those contributions. As of the last actuarial valuation date (October 1, 2007), DCRB’s actuary determined that the Plans were 100% funded.

To find out more about what public pensions are doing during the current market downturn, go to the National Association of State Retirement Administrators website to read several helpful articles. Click on the links entitled "NASRA/NCTR Press Release on Pensions and the Financial Markets" and "NASRA/NCTR Issue Brief: Market Declines and Public Pensions," which pull up PDF versions of the articles detailing the effects the declining markets have had on public pension funds.

Contact information: [email protected]