in consultation with the minority leader of the
Senate.
‘‘(3) Appointments under paragraph (2) shall be
made by and with the advice and consent of the Senate.
‘‘(4) Members of the Board shall have substantial ex-
perience, training, and expertise in the management of fi-
nancial investments and the exercise of fiduciary duties.
‘‘(5)(A) A member of the Board shall be appointed
for a term of 10 years, subject only to removal by the
President for cause, except that of the members first
appointed—
‘‘(i) the Chairman shall be appointed for a term
of 4 years;
‘‘(ii) one of the members appointed under para-
graph (2)(B) shall be appointed for a term of 2
years;
‘‘(iii) the remaining member appointed under
paragraph (2)(B) shall be appointed for a term of
6 years;
‘‘(iv) one of the members appointed under para-
graph (2)(A) shall be appointed for a term of 8
years; and
‘‘(v) the remaining member appointed under
paragraph (2)(A) shall be appointed for a term of
10 years.
‘‘(B)(i) A vacancy on the Board shall be filled in the
manner in which the original appointment was made and
shall be subject to any conditions which applied with re-
spect to the original appointment.
‘‘(ii) An individual chosen to fill a vacancy shall be
appointed for the unexpired term of the member replaced.
‘‘(iii) The term of any member shall not expire before
the date on which the member’s successor takes office.
‘‘(6) The Board shall—
‘‘(A) establish policies for investments under
part B of title II of amounts in the Social Security
Investment Fund in the Common Stock Index Fund
established pursuant to section 252 and policies for
the selection and retention of investment managers
to manage such investments;
‘‘(B) review the performance of investments of
amounts in the Social Security Investment Fund;
and
‘‘(C) review and approve the budget of the
Board.
‘‘(7) The Board shall develop investment policies
under paragraph (6)(A) which provide for—
‘‘(A) prudent investments suitable for accumu-
lating funds for payment of benefits under title II;
and
‘‘(B) low administrative costs.
‘‘(8)(A) The Board may—
‘‘(i) adopt, alter, and use a seal;
‘‘(ii) except as provided in subparagraph (B),
establish policies with which the Executive Director
is required to comply under section 252; and
‘‘(iii) take such other actions as may be nec-
essary to carry out the functions of the Board.
‘‘(B) The policies of the Board may not require the
Executive Director to invest or to cause to be invested any
sums in the Social Security Investment Fund in a specific
asset or to dispose of or cause to be disposed of any spe-
cific asset of the Fund.
‘‘(9)(A) The Board shall meet—
‘‘(i) not less than once during each month; and
‘‘(ii) at additional times at the call of the Chair-
man.
‘‘(B)(i) The Board shall perform the functions and
exercise the powers of the Board on a majority vote of
a quorum of the Board.
‘‘(ii) A vacancy on the Board shall not impair the
authority of a quorum of the Board to perform the func-
tions and exercise the powers of the Board.
‘‘(C) Three members of the Board shall constitute a
quorum for the transaction of business.
‘‘(D)(i) Each member of the Board who is not an offi-
cer or employee of the Federal Government shall be com-
pensated at the daily rate of basic pay for level IV of the
Executive Schedule for each day during which such mem-
ber is engaged in performing a function of the Board.
‘‘(ii) A member of the Board shall be paid travel, per
diem, and other necessary expenses under subchapter I of
chapter 57 of title 5, United States Code, while traveling
away from such member’s home or regular place of busi-
ness in the performance of the duties of the Board.
‘‘(iii) Payments authorized under this paragraph
shall be paid from the Social Security Investment Fund.
‘‘(E) The accrued annual leave of any officer or em-
ployee of the Federal Government who is a member of the
Board shall not be charged for any time used in perform-
ing services for the Board.
‘‘(10) The members of the Board shall discharge
their responsibilities solely in the interest of the Social Se-
curity Investment Fund.
‘‘(11) The Board shall prepare and submit to the
President, and, at the same time, to the appropriate com-
mittees of Congress, an annual budget of the expenses and
other items relating to the Board which shall be included
as a separate item in the budget required to be transmit-
ted to the Congress under section 1105 of title 31, United
States Code.
‘‘(12) The Board shall submit an annual report to
the President and to each House of the Congress regard-
ing the financial and operating condition of the Social Se-
curity Investment Fund. Such report may include legisla-
tive recommendations of the Board relating to any of its
functions under this section, part B of title II, or any
other provision of law.
‘‘Executive Director
‘‘(b)(1) The Board shall appoint, without regard to
the provisions of law governing appointments in the com-
petitive service, an Executive Director of the Social Secu-
rity Investment Board, by action agreed to by a majority
of the members of the Board.
‘‘(2) The Executive Director shall have substantial
experience, training, and expertise in the management of
financial investments and the exercise of fiduciary duties.
‘‘(3) The Executive Director shall—
‘‘(A) carry out the policies established by the
Board;
‘‘(B) carry out the provisions of section 252, re-
lating to investment of the Social Security Invest-
ment Fund in common stock;
‘‘(C) administer the provisions of part B of title
II;
‘‘(D) prescribe such regulations (other than
regulations relating to fiduciary responsibilities) as
may be necessary for the administration of part B
of title II; and
‘‘(E) meet from time to time with, and provide
information to, the Board of Trustees of the Federal
Old-Age and Survivors Insurance Trust Fund upon
request of the Board of Trustees regarding matters
relating to the Social Security Investment Fund.
‘‘(4) The Executive Director may—
‘‘(A) prescribe such regulations as may be nec-
essary to carry out the responsibilities of the Execu-
tive Director under this subsection, other than regu-
lations relating to fiduciary responsibilities;
‘‘(B) appoint such personnel as may be nec-
essary to carry out the provisions of part B of title
II;
‘‘(C) in accordance with the policies of the
Board, procure the services of experts and consult-
ants under section 3109 of title 5, United States
Code;
‘‘(D) secure directly from any agency or instru-
mentality of the Federal Government any informa-
tion necessary to carry out the provisions of part B
of title II and policies of the Board;
‘‘(E) make such payments out of sums in the
Social Security Investment Fund as the Executive
Director determines are necessary to carry out the
provisions of part B of title II and the policies of the
Board;
‘‘(F) pay the compensation, per diem, and trav-
el expenses of individuals appointed under subpara-
graphs (B), (C), and (G) of this paragraph from
amounts otherwise available in the Social Security
Investment Fund;
‘‘(G) accept and use the services of individuals
employed intermittently in the Government service
and reimburse such individuals for travel expenses,
as authorized by section 5703 of title 5, United
States Code, including per diem as authorized by
section 5702 of such title; and
‘‘(H) take such other actions as are appropriate
to carry out the functions of the Executive Director
under part B of title II.
‘‘(5) The Executive Director shall discharge his or
her responsibilities solely in the interest of the Social Se-
curity Investment Fund.