Labor & Employment (Retirement Benefits)

This bill changes how the District of Columbia makes payments into three employee benefit funds, moving from annual or quarterly schedules to monthly or per-pay-period contributions. It directly affects the District government's financial management and the administration of retirement and insurance benefits for city employees. The key changes require contributions to health and life insurance funds to be made on a regular pay period basis, defined contribution plans to be funded per pay period, and police, fire, and teacher retirement funds to be deposited on the 15th and last day of each month. These adjustments allow the District to spread payments more evenly throughout the year rather than making larger lump sums at specific times.

The Automatic Retirement Savings Act of 2025 establishes a District-managed retirement savings program for private-sector employees in Washington, D.C., who lack employer-sponsored plans, and certain self-employed individuals. It requires automatic 3% wage deductions (with opt-out options) for eligible workers, managed by a new Retirement Savings Board, to build retirement savings. Accounts are portable across jobs since the District, not employers, manages them - addressing gaps for approximately 173,000 current workers without workplace retirement options.

This bill expands the District of Columbia's Deferred Retirement Option Program (DROP) to include retirement-eligible correctional officers in the Department of Corrections (DOC). It allows these officers to continue working for up to three years after their normal retirement date while earning supplemental retirement benefits in a separate account, which they receive in full upon leaving service. The goal is to help DOC retain experienced staff and address persistent staffing shortages, as the department has faced vacancy rates exceeding 12% in recent fiscal years. This policy change directly affects DOC correctional officers who meet retirement eligibility requirements.