‘‘(iii) SEPARATION FROM OTHER OP-
ERATIONS.—As a condition of certification 
under this subparagraph, each issuer shall 
maintain each individual social security an-
nuity issued by such issuer separate from 
all other operations of the issuer. 
‘‘(iv) EXEMPTION FROM THIRD PARTY 
CLAIMS.—Each individual social security 
annuity shall be exempt from any and all 
third party claims against the issuer. 
‘‘(B) APPROVAL
OF
INDIVIDUAL
SOCIAL 
SECURITY ANNUITIES.—
‘‘(i) IN GENERAL.—No funds may be 
transferred into an individual social secu-
rity annuity unless the Board has approved 
an application submitted under clause (ii) 
with respect to the annuity. 
‘‘(ii) APPLICATION.—With respect to 
each individual social security annuity that 
an issuer certified under subparagraph 
(A)(i) seeks to issue, such issuer shall sub-
mit an application to the Board at such 
time, in such manner, and containing such 
information as the Board may require.
‘‘(iii) 
QUALIFICATIONS
FOR
AP-
PROVAL.—The Board may not approve an 
application under clause (i) unless the indi-
vidual social security annuity that is the 
subject of the application meets qualifica-
tions which shall be specified in regulations 
of the Board. Such qualifications shall in-
clude the safety and soundness of the an-
nuity, the experience and record of per-
formance of the issuer issuing the annuity, 
and such other factors as the Board may 
determine appropriate. 
‘‘(d) PROGRAMMED WITHDRAWAL.—On the partici-
pant’s retirement date, the participant may elect distribu-
tion under this section of the balance credited to the par-
ticipant’s part B totalization account as provided in this 
subsection. Such distribution shall be in the form of a 
combination of—
‘‘(1) equal annual or more frequent periodic in-
stallments of the principal portion of the balance 
over twice his or her life expectancy, and 
‘‘(2) any distribution of any remaining balance 
in accordance with this section. 
‘‘(e) COMBINATION OF LUMP SUM PAYMENT AND 
ANNUITY.—On the participant’s retirement date, the par-
ticipant may elect distribution under this section of the 
balance credited to the participant’s part B totalization 
account as provided in this subsection. Such distribution 
shall be in the form of a combination of a lump sum pay-
ment and an annuity approved under subsection (b). Any 
such lump sum payment shall be limited to the extent nec-
essary to ensure that remaining funds credited to the ac-
count are sufficient to provide, through the purchase of 
such an annuity, a monthly payment over the life expect-
ancy of the participant (determined under reasonable ac-
tuarial assumptions) which is at least, on an annual basis, 
equal to 120 percent of the poverty line (as determined 
on such date, for an individual, under section 673(2) of 
the Community Services Block Grant Act (42 U.S.C. 
9902(2))). 
‘‘(f) LUMP SUM DISTRIBUTIONS
OF DE MINIMIS 
AMOUNTS.—In any case in which, as of the date on which 
the participant attains retirement age (as defined in sec-
tion 216(l)(1)), a distribution under this section has not 
commenced, and the total amount of the assets credited 
to the participant’s part B totalization account is less than 
the minimum deposit balance (as defined in section 
252(c)(2)(B)), the preceding provisions of this section 
shall not apply, and such assets shall be distributed to the