D.C. Mun. Regs. tit. 6, r. 6-B2603

Current through Register Vol. 71, No. 44, November 1, 2024

Rule 6-B2603 - PARTICIPATION IN THE PLAN

2603.1

Eligible employees (employees who are first employed in the District after September 30, 1987, in a benefit-eligible position in a covered employment as defined in § 2699 and who are not excluded from participation by law or regulation) are covered under the 401(a) Plan.

2603.2

The personnel authority shall enroll each eligible employee into the 401(a) Plan as a participant at the beginning of the first pay period immediately following the employee's completion of one (1) year of creditable service, provided the employee first completes the 401(a) Plan enrollment forms.

2603.3

A participant shall have a vested interest in his or her benefits in the 401(a) Plan as outlined in § 2605.1.

2603.4

A participant who ceases to be an eligible employee but remains employed with the District, shall resume participation in the 401(a) Plan on the first day of the first pay period that commences after he or she resumes service as an eligible employee.

2603.5

The Administrator shall suspend the participation in the 401(a) Plan of any participant who separates from service for more than three (3) workdays in accordance with the 401(a) Plan Document. The participant shall resume participation in the 401(a) Plan if reinstated, restored to duty or reemployed by the District in accordance with §§ 2603.7, 2603.8, or 2603.9. If a participant is not reemployed with the District within one (1) year of separation, except as provided in §§ 2603.8 and 2603.9, he or she shall be terminated from participation in the 401(a) Plan pursuant to § 2603.6 and his or her inactive account shall be forfeited and disposed of pursuant to § 2606.8.

2603.6

The Administrator shall terminate the participation in the 401(a) Plan for:

(a) Each participant who does not have a vested interest in his or her benefits in accordance with § 2605.1 and who is separated from service for more than one (1) year, unless the participant is reemployed by the District in accordance with §§ 2603.8 or 2603.9; and

(b) Each participant or former participant who has a vested interest in his or her benefits in accordance with § 2605.1, or his or her beneficiary, upon receipt of all benefits in his or her active or inactive account.

2603.7

A participant in the Plan who is removed or suspended without pay and later reinstated or restored to duty on the grounds that the removal or suspension was unwarranted or unjustified, shall be entitled to immediately resume accruing creditable service for purposes of vesting in the 401(a) Plan, or to resume participation in the 401(a) Plan, whichever is applicable, and to receive any creditable service which otherwise would have been credited pursuant to §§ 2604.1, 2604.2, and 2604.3. Appropriate increases shall be made in the Trust to reflect the District contributions that would have been made had the employee not been removed or suspended.

2603.8

A former employee who is reemployed by the District with in one (1) year of the date of separation shall resume participation in the 401(a) Plan immediately, without a loss of prior creditable service or forfeiture of any contributions and income allocated to his or her basic contribution account, during that period of separation from service. If a vested participant receives any or all his or her benefits during the separation from service, then he or she shall be vested only for the following amounts upon reemployment:

(a) Any remaining benefits in his or her basic contribution account;

(b) Any income allocated to his or her basic contribution account during the period of separation; and

(c) Any contributions and income allocated to his or her basic contribution account after the reemployment.

2603.9

Except as provided in § 2603.7, a participant, whether or not his or her interest in benefits has vested, who is reemployed by the District after a separation from service for more than one (1) year, must satisfy the requirements of §§2603.1 and 2603.2 to become eligible to participate in the 401(a) Plan, and must also satisfy the requirements of §2605.1 to become vested in the 401(a) Plan with respect to any contributions and income allocated to his or her basic contribution account after such reemployment. If an employee has met the vesting schedule requirements in accordance with §2605.1 prior to the separation from service, then he or she shall remain vested as to any remaining benefits, and income thereon, in his or her basic contribution account at the time of such reemployment.

2603.10

The following types of employment are "non-covered employment" for purposes of the 401(a) Plan:

(a) Any position when the employee serves under an appointment of one (1) year or less, except when the appointment follows service in a covered position by a break in service of three (3) days or less;

(b) Any position when the employee serves without an assigned tour of duty;

(c) Any position held by a summer youth employee;

(d) Any position that is not paid according to a District pay schedule and that is held by a patient or a resident in a hospital, home, or penal or mental institution of the District;

(e) Any position when the employee is paid on a contract or fee basis;

(f) Any student-employee who receives a stipend and is assigned or attached primarily for training purposes to a hospital, clinic, or laboratory operated by the District;

(g) A police officer or firefighter who is covered under the D.C. Police and Firefighters' Retirement Plan pursuant to D.C. Official Code § 5-701(1)(A) (2019 Repl.);

(h) An employee who is covered under the D.C. Teachers' Retirement Plan as specified in D.C. Official Code § 38-2021.13 (2018Repl.);

(i) An employee at the University of the District of Columbia (University)who is covered under the University's IRC § 403(b) savings plan;

(j) A substitute or evening school teacher, pursuant to D.C. Official Code § 38-2021.13 (2018 Repl.);

(k) A judge or Executive Officer employed at the District of Columbia Court of Appeals or the Superior Court, or the former Juvenile Court of the District of Columbia, District of Columbia Tax Court, Police Court, Municipal Court, Municipal Court of Appeals, or District of Columbia Court of General Sessions; and

(l) Any other service performed in a position deemed to be non-covered employment pursuant to the Act, this chapter, or the 401(a) Plan Document.

2603.11

Each participant's account shall be charged with its proportionate share of any expenses paid from the 401(a) Plan and shall also include any functional sub accounts as may be established by the Administrator from time to time. To the extent that the Administrator determines that a functional sub account no longer needs to be maintained, such functional sub account may be combined with another functional sub account. The functional sub accounts are as follows:

(1) Basic Contribution Account or

(2) Rollover Contribution Account.

D.C. Mun. Regs. tit. 6, r. 6-B2603

Final Rulemaking published at 37 DCR 954 (February 2, 1990); as amended by Final Rulemaking published at 38 DCR 2130 (April 12, 1991); amended by Final Rulemaking published at 67 DCR 004744 (5/1/2020)