The Treasury Department wants the District of Columbia Retirement Board to submit a plan outlining how the board's assets would be divided if the federal government were to liquidate the securities in the $5 billion system's portfolio. The DCRB already has submitted a proposal about how its assets should be split up should the Treasury decide to keep the portfolios intact.
W. Gordon Binns Jr., a Treasury Department consultant who attended today's board meeting, said the department has not yet decided how to divide the assets, but wants to study both alternatives.
Meanwhile, the Treasury hired Segal Advisors to conduct an actuarial study of the board's liabilities. Mr. Binns said the Treasury has revised upward from nine years its estimate of how long the assets would be sufficient to pay out pension benefits - assuming the Treasury liquidates the assets it takes over - but declined to elaborate.
The Treasury will take over the bulk of the board's assets under a law passed last August.