WASHINGTON (CN) - The Treasury Department issued a final rule regulating federal retirement payments for District of Columbia teachers, police and firefighters.
The Balanced Budget Act of 1997 deals with the division of local and federal funds for city employees in Washington D.C., including retirement funds.
The act was amended in 2000 to transfer certain unfunded pension liabilities from the D.C. government to the federal government.
The Treasury Department is responsible for paying retirement benefits that accrued before July 1997, while the city must pay retirement and disability benefits afterwards.
The final rule, effective Nov. 19, establishes a methodology for determining the split between city and federal obligations.
The date for establishing the rules was delayed by the government's new automated retirement system, which replaced the city's old system.
In the time the new system was being completed, the Treasury Department amended the act to "simplify calculations and maintain consistency with the general principles established in the original regulations."
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