‘‘(3) TRANSFERS BASED ON ESTIMATES.—The 
amounts transferred to the Board pursuant to para-
graph (1) shall be transferred in at least monthly 
payments from the general fund of the Treasury to 
the Board. Such amounts shall be determined on the 
basis of estimates, by the Commissioner and cer-
tified to the Secretary of the Treasury, and proper 
adjustments shall be made in amounts subsequently 
transferred to the extent prior estimates were in ex-
cess of or were less than actual amounts. 
‘‘(4) INVESTMENT.—Amounts held in the in-
terim fund maintained by the Board pursuant to 
paragraph (1) shall be invested by the Board in the 
same manner as is provided under section 256(c)(1). 
‘‘(b) SEPARATE ACCOUNTING AND CREDITING.—The 
Board shall provide for prompt, separate crediting of the 
amounts received by the Board under subsection (a) to 
the GROW account deposit to be made for each calendar 
year under section 255(b) with respect to each partici-
pating individual. Such crediting shall be performed as 
soon as practicable. 
‘‘GROW ACCOUNTS 
‘‘SEC. 255. (a) ESTABLISHMENT OF ACCOUNTS.—
Under regulations which shall be prescribed by the Board 
in consultation with the Secretary of the Treasury—
‘‘(1) the Board shall establish a GROW account 
for each individual who is a participating individual 
(for whom a GROW account has not otherwise been 
established under this part) upon receipt of notice 
from the Commissioner that the requirements of 
paragraphs (1), (2), and (3) of section 253(a) are 
met with respect to such individual, and 
‘‘(2) as provided in paragraph (2) of section 
259(a) and paragraph (2) of section 259(b), the 
Board shall establish a GROW account for divorced 
spouses and surviving spouses referred to in such 
paragraphs. 
‘‘(b) TRANSFERS TO GROW ACCOUNTS.—
‘‘(1) IN
GENERAL.—Under regulations which 
shall be prescribed by the Board, upon crediting of 
amounts equivalent to the GROW account deposit 
with respect to each participating individual for a 
calendar year pursuant to section 254(b), the Board 
shall transfer such amounts, from the interim fund 
maintained by the Board pursuant to section 
254(a)(1), to the participating individual’s GROW 
account. 
‘‘(2) GROW ACCOUNT DEPOSIT.—
‘‘(A) IN GENERAL.—For purposes of para-
graph (1), the GROW account deposit for a cal-
endar year with respect to a participating indi-
vidual is the product derived by multiplying—
‘‘(i) the sum of—
‘‘(I) the total amount of wages 
paid to the participating individual 
during such calendar year on which 
there was imposed a tax under section 
3101(a) of the Internal Revenue Code 
of 1986, and 
‘‘(II) the total amount of self-em-
ployment income derived by the par-
ticipating individual during the tax-
able year ending during such calendar 
year on which there was imposed a 
tax under section 1401(a) of the In-
ternal Revenue Code of 1986, by 
‘‘(ii) the surplus percentage for such 
calendar year determined under subpara-
graph (B), 
increased at a monthly rate equivalent to the 
average monthly rate of the yield on amounts 
held in the interim fund maintained by the 
Board pursuant to section 254(a)(1) from July 
1 of such calendar year to the date of the de-
posit into the GROW account (minus the rat-
able portion with respect to such participating 
individual of the total amount determined by 
the Board as administrative costs for such cal-
endar year of such interim fund, not to exceed 
30 basis points per year of the assets held in 
such interim fund). 
‘‘(B) SURPLUS
PERCENTAGE.—For pur-
poses of subparagraph (A)(ii), the term ‘surplus 
percentage’ means, for a calendar year, the 
ratio, expressed as a percentage, which—
‘‘(i) the net OASDI Trust Fund sur-
plus for such calendar year (determined 
under section 254(a)(2)), bears to 
‘‘(ii) the sum of—
‘‘(I) the total amount of wages 
paid to participating individuals dur-
ing such calendar year on which there 
was imposed a tax under section 
3101(a) of the Internal Revenue Code 
of 1986, and 
‘‘(II) the total amount of self-em-
ployment income derived by partici-
pating 
individuals 
during 
taxable 
years ending during such calendar 
year on which there was imposed a
tax under section 1401(a) of such 
Code. 
‘‘(3) CESSATION
OF
GROW
ACCOUNT
DEPOS-
ITS.—No wages paid to a participating individual, 
and no self-employment income derived by a partici-
pating individual, after the date on which such indi-
vidual first becomes entitled to a retirement benefit 
shall be taken into account in determining wages 
and self-employment income for purposes of para-
graph (2)(A)(i). 
‘‘(4) 
TRANSITION
RULE.—Notwithstanding 
paragraph (1), amounts payable to GROW accounts 
under paragraph (1) with respect to the first cal-
endar year described in paragraph (1) ending after 
the date of the enactment of the Growing Real Own-
ership for Workers Act of 2005 shall be paid by the 
Board as soon as practicable after the Board deter-
mines that the administrative mechanisms necessary 
to provide for accurate and efficient payment of such 
amounts have been established, but no later than 2 
years after such date. 
‘‘(c) REQUIREMENTS FOR ACCOUNTS.—The following 
requirements shall be met with respect to each GROW ac-
count:
‘‘(1) The account assets consist solely of 
amounts deposited or transferred pursuant to this 
part, including investment earnings thereon under 
section 256. 
‘‘(2) In accordance with section 256, the ac-
count assets are held for purposes of investment 
under the Program by a certified account manager 
designated by (or on behalf of) the participating in-
dividual for whom such account is established under 
the Program. 
‘‘(3) Disposition of the account assets is made 
solely in accordance with sections 257 and 259. 
‘‘(d) ACCOUNTING
OF RECEIPTS
AND DISBURSE-
MENTS UNDER THE PROGRAM.—The Board shall provide 
by regulation for an accounting system for purposes of 
this part—
‘‘(1) which shall be maintained by or under the 
Executive Director, 
‘‘(2) which shall provide for crediting of earn-
ings to, and debiting of losses and administrative ex-
penses from, amounts held in GROW accounts, and 
‘‘(3) under which receipts and disbursements 
under the Program which are attributable to each 
account are separately accounted for with respect to 
such account.
‘‘(e) CORRECTION
OF ERRONEOUS TRANSFERS.—
The Board, in consultation with the Commissioner, shall 
provide by regulation rules similar to paragraphs (4) 
through (7) and (9) of section 205(c) with respect to the 
correction of errors or omissions in determinations of 
amounts to be transferred to GROW accounts, and rules 
providing for the transfer, between such accounts and the 
interim fund maintained by the Board, of amounts nec-
essary to compensate for such errors and omissions. In 
connection with the implementation of such rules, section 
205(g) shall apply by substituting, for any reference there-
in to the Commissioner, a reference to the Board. 
‘‘INVESTMENT OF ACCOUNTS 
‘‘SEC. 256. (a) DESIGNATION OF CERTIFIED AC-
COUNT MANAGERS.—Under the Program, a certified ac-
count manager shall be designated by or on behalf of each 
participating individual to hold for investment under this 
section the account assets of such individual’s GROW ac-
count. 
‘‘(b) PROCEDURE FOR DESIGNATION.—Any designa-
tion made under subsection (a) shall be made at such 
times and in such form and manner as shall be prescribed 
in regulations prescribed by the Board. Such regulations 
shall provide for annual selection periods during which 
participating individuals may make designations pursuant 
to subsection (a). Designations made pursuant to sub-
section (a) during any such period shall be irrevocable for 
the one-year period following such period, except that such 
regulations shall provide for such interim designations as 
may be necessitated by the decertification of a certified 
account manager. Such regulations shall provide for such 
designations made by the Board on behalf of a partici-
pating individual in any case in which a timely designation 
is not made by the participating individual. 
‘‘(c) INVESTMENT.—The account assets of a partici-
pating individual’s GROW account which are not nec-
essary for immediate withdrawal (including administrative 
costs charged in accordance with section 259(e)(1)) shall 
be invested on behalf of such participating individual by 
the certified account manager as follows: 
‘‘(1) INVESTMENT
IN
MARKETABLE
GOVERN-
MENT SECURITIES.—In a representative mix of fixed 
marketable interest-bearing obligations of the United 
States then forming a part of the public debt which 
are not due or callable earlier than 4 years after the 
date of investment. 
‘‘(2) ADDITIONAL AND ALTERNATIVE INVEST-
MENTS.—Beginning at such time as the Board im-
plements an investment options plan to provide addi-
tional and alternative investment options in accord-
ance with section 103 of the Growing Real Owner-
ship for Workers Act of 2005, in such funds as a 
participating individual may elect that are offered 
under such plan. 
‘‘DISTRIBUTIONS OF ACCOUNT BALANCE AT RETIREMENT 
‘‘SEC. 257. (a) AVAILABILITY FOR DISTRIBUTION.—
The GROW account of any participating individual shall 
be available for distribution under this section only—
‘‘(1) on or after the participating individual’s 
retirement date, and 
‘‘(2) in such form and manner as is provided in 
this section. 
‘‘(b) REQUIREMENTS
FOR
ANNUITY
DISTRIBU-
TIONS.—
‘‘(1) IN GENERAL.—In any case in which dis-
tribution of all or a portion of the balance of a par-
ticipating individual’s GROW account is to be made 
in the form of an annuity, in accordance with regu-
lations which shall be prescribed by the Board, the 
Executive Director shall provide for such distribu-
tion in the form of an annuity—
‘‘(A) which shall be purchased from the 
Board, as soon as practicable after the partici-
pating individual’s retirement date, from annu-
ities offered by the Board, including such annu-
ities as may be made available under proce-
dures established by the Board pursuant to 
subsection (f), and 
‘‘(B) which meets the requirements of this 
subsection. 
‘‘(2) ANNUITY STARTING DATE.—The annuity 
starting date (as defined in section 72(c)(4) of the 
Internal Revenue Code of 1986) of any annuity re-
ferred to in paragraph (1) shall be the first day of 
the month beginning after the date of the purchase 
of the annuity. 
‘‘(3) LEVEL PAYMENTS.—Subject to paragraph 
(4) and subsection (d), the terms of any annuity re-
ferred to in paragraph (1) shall provide for a series 
of substantially equal annual payments, payable 
monthly to the participating individual during the 
life of the participating individual. 
‘‘(4) COST
OF
LIVING
ADJUSTMENT.—The 
terms of any annuity referred to in paragraph (1) 
shall include provision for increases in the monthly 
annuity payments thereunder determined in the 
same manner and at the same rate as primary in-
surance amounts are increased under section 215(i). 
‘‘(5) 
ASSUMPTIONS.—Determinations 
under 
this subsection shall be made in accordance with 
regulations which shall be prescribed by the Board,
providing for the use of generally accepted actuarial 
assumptions, except that no differentiation shall be 
made in such assumptions on the basis of sex, race, 
health status, or other characteristics other than 
age. Such assumptions shall include the life expect-
ancy of persons born in the same year as the partici-
pating individual, projected investment earnings 
based on investment of the account assets, expected 
price inflation, and reasonable administrative costs. 
‘‘(c) MINIMUM ANNUITY REQUIREMENT.—
‘‘(1) IN GENERAL.—Except as provided in para-
graph (3), in any case in which the total amount of 
retirement benefits payable under section 258(a) to 
a participating individual for the month in which oc-
curs the participating individual’s retirement date is 
less than the monthly poverty line for such month, 
under regulations which shall be prescribed by the 
Board, all or a portion of the participating individ-
ual’s GROW account balance shall be distributed in 
the form of an annuity offered by the Board which 
meets the requirements of subsection (b) and is in 
the form of a minimum annuity. 
‘‘(2) MINIMUM ANNUITY DEFINED.—
‘‘(A) IN GENERAL.—For purposes of this 
subsection, the term ‘minimum annuity’ means
an annuity under which the monthly payments 
are equal to at least the minimum annuity 
amount (subject to subsections (b) and (d)(1)). 
‘‘(B) MINIMUM
ANNUITY
AMOUNT.—For 
purposes of subparagraph (A), the term ‘min-
imum annuity amount’ means an amount equal 
to the excess (but not less than zero) of—
‘‘(i) the monthly poverty line for the 
month in which occurs the participating in-
dividual’s retirement date, over 
‘‘(ii) the total amount of retirement 
benefits payable under section 258(a) to 
the 
participating 
individual 
for 
such 
month. 
‘‘(C) MONTHLY POVERTY LINE.—For pur-
poses of this subparagraph (B)(i), the term 
‘monthly poverty line’ for any month means the 
monthly equivalent of the poverty line for an in-
dividual (determined under the poverty guide-
lines of the Department of Health and Human 
Services issued under section 673(2) of the Om-
nibus Budget Reconciliation Act of 1981), as 
most recently published prior to the date of the 
annuity purchase in the Federal Register by the 
Department of Health and Human Services.
‘‘(3) EXCEPTION FOR MINIMAL ACCOUNT BAL-
ANCES.—Paragraph (1) shall not apply in any case 
in which the assets of the GROW account are insuf-
ficient to purchase a minimum annuity. 
‘‘(d) REQUIREMENT OF JOINT AND SURVIVOR ANNU-
ITY.—
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), if the participating individual is married 
as of the participating individual’s retirement date, 
the entire GROW account balance available for dis-
tribution shall be distributed in the form of an annu-
ity—
‘‘(A) which meets the requirements of sub-
section (b), and 
‘‘(B) is in the form of a joint and survivor 
annuity under which payments are made during 
the joint lives of the participating individual 
and the participating individual’s spouse, with a 
survivor annuity for the life of the one of them 
who survives the other for the life of the sur-
vivor which is not less than 662⁄3 percent of 
(and not greater than 100 percent of) the 
amount which would have continued to be pay-
able to the participating individual but for the 
death of either spouse.
‘‘(2) ELECTION.—Paragraph (1) shall not apply 
in any case in which the participating individual and 
his or her spouse elect (in such form and manner as 
shall be prescribed by the Board) not to take the 
distribution of the participating individual’s GROW 
account in the form described in paragraph (1). 
‘‘(e) AUTHORITY TO CONTRACT FOR ANNUITIES.—
The Board may, under regulations prescribed by the 
Board, contract with insurance companies in the private 
sector through competitive bidding to provide for annuities 
to be offered by the Board under this section in cases in 
which the Board determines that annuities obtained in 
such manner would be in the best interest of participating 
individuals and administrative costs for such annuities 
would be reasonable. 
‘‘(f) OTHER DISTRIBUTIONS.—The Board shall pro-
vide by regulation for distribution, on or after the partici-
pating individual’s retirement date, of any balance in the 
GROW account of a participating individual which re-
mains available for distribution after the preceding re-
quirements of this section, and the requirements for dis-
tribution under any payout options plan which has been 
implemented by the Board pursuant to section 103 of the 
Growing Real Ownership for Workers Act of 2005, have 
been met. Any such distribution shall be in the form of
a lump sum or in any other form provided for by the 
Board and elected by the participating individual. 
‘‘TREATMENT OF PART A BENEFIT PAYMENTS 
‘‘SEC. 258. (a) APPLICATION OF GROW ACCOUNT 
CREDITS AND EXCESS GROW ACCOUNT CREDITS.—The 
total amount payable to an individual under part A as re-
tirement benefits for any month shall be equal to the ex-
cess (but not less than zero) of—
‘‘(1) the total amount payable (after all applica-
ble deductions and reductions) as determined with-
out regard to this section and section 202(z), over 
‘‘(2) the sum of—
‘‘(A) the amount of the individual’s GROW 
account credit for such month (if any), plus 
‘‘(B) the sum of the excess GROW account 
credits for such month (if any) determined in 
the case of such individual for such month 
under subsection (c). 
‘‘(b) GROW ACCOUNT CREDIT.—
‘‘(1) IN GENERAL.—In accordance with regula-
tions of the Board, the Board shall determine, for 
purposes of this section, the GROW account credit 
of each participating individual for each month for 
which such individual is entitled to any retirement 
benefit.
‘‘(2) DETERMINATION
OF
GROW
ACCOUNT 
CREDIT.—
‘‘(A) IN GENERAL.—The GROW account 
credit of a participating individual for any 
month shall be equal to the amount which 
would be the monthly payment for such month 
under an annuity—
‘‘(i) purchased with the participating 
individual’s benchmark account balance, 
and 
‘‘(ii) meeting the requirements of sec-
tion 257(b) and of section 257(d) (with no 
election under section 257(d)(2) and a re-
duction for the survivor annuity to 662⁄3 
percent). 
‘‘(B) REDUCTION
IN
GROW
ACCOUNT 
CREDIT IN THE CASE OF SURVIVORS.—In any 
case in which the participating individual is 
married as of the participating individual’s re-
tirement date, the GROW account credit deter-
mined for any month in connection with the 
participating individual shall reflect, for months 
after the death of the participating individual or 
the death of the participating individual’s 
spouse, a reduction in the amount of the sur-
vivor annuity described in section 257(d)(1) to 
662⁄3 percent. 
‘‘(C) BENCHMARK
ACCOUNT
BALANCE.—
For purposes of subparagraph (A), the bench-
mark account balance is an amount equal to—
‘‘(i) the total amount deposited into 
the participating individual’s GROW ac-
count under section 255(b) as of imme-
diately before the participating individual’s 
retirement date, 
‘‘(ii) increased by any net deposits to 
the account, and decreased by any net 
withdrawals from the account, under sec-
tion 259(a), occurring prior to such date, 
‘‘(iii) increased by any deposits to the 
account under section 259(b) in the case of 
a spouse who dies prior to such spouse’s 
retirement date, and 
‘‘(iv) adjusted, under regulations of 
the Board, to reflect any net increase or 
any net decrease in the balance, as it ac-
crued under clauses (i), (ii), and (iii), 
which would be attributable to investment 
of the balance in the manner described in 
section 256(c)(1), assuming payment of