administrative costs at the rate experi-
enced in connection with investments of 
the account assets of the participating in-
dividual’s GROW account under section 
256 (not to exceed 30 basis points per 
year). 
‘‘(c) EXCESS GROW ACCOUNT CREDIT.—
‘‘(1) IN GENERAL.—In accordance with regula-
tions of the Board meeting the requirements of this 
section, for purposes of determining under sub-
section (a) the total amount payable to any indi-
vidual under part A as retirement benefits for any 
month, the Board shall determine, in the case of any 
such individual who was married to his or her 
spouse on such spouse’s retirement date, the excess 
GROW account credit of such spouse for such 
month. 
‘‘(2) DETERMINATION
OF
EXCESS
GROW
AC-
COUNT CREDIT.—The excess GROW account credit 
of the spouse referred to in paragraph (1) for a 
month is the excess (not less than zero) of—
‘‘(A) such spouse’s GROW account credit 
for such month, over
‘‘(B) the total of the retirement benefits (if 
any) to which such spouse is entitled for such 
month. 
‘‘ADDITIONAL RULES RELATING TO DISPOSITION OF 
ACCOUNT ASSETS 
‘‘SEC. 259. (a) SPLITTING
OF ACCOUNT ASSETS 
UPON DIVORCE AFTER 1 YEAR OF MARRIAGE.—Subject 
to subsection (c)—
‘‘(1) IN GENERAL.—In the case of a divorce of 
a participating individual for whom a GROW ac-
count has been established under this part, if the di-
vorce occurs—
‘‘(A) prior to the participating individual’s 
retirement date, and 
‘‘(B) the participating individual and his 
or her divorced spouse were married to each 
other for at least 1 year prior to the date of the 
divorce, 
the Board shall, upon the date of the divorce, direct 
the appropriate certified account manager to trans-
fer, from the GROW account of the participating in-
dividual to the GROW account of the divorced 
spouse, an amount equal to one-half of the total 
amount of GROW account deposits made to the 
GROW account of the participating individual under 
section 255(b) during the period of the marriage
(taking into account earnings and losses attributable 
to such deposits during such period), disregarding, 
for purposes of determining such total amount, any 
amounts similarly transferred, pursuant to this 
paragraph, to such participating individual’s account 
from the account (if any) of such divorced spouse. 
‘‘(2) TREATMENT OF DIVORCED SPOUSE WHO 
IS NOT A PARTICIPATING INDIVIDUAL.—In the case 
of a divorced spouse referred to in paragraph (1) 
who, as of the time of the transfer required under 
paragraph (1), is not a participating individual— 
‘‘(A) the divorced spouse shall be deemed 
a participating individual for purposes of this 
part (subject to renunciation under section 
253(b)), and 
‘‘(B) the Board shall establish a GROW 
account for the divorced spouse and shall direct 
the appropriate certified account manager to 
perform the transfer. 
‘‘(3) PREEMPTION.—The provisions of this sub-
section, and subsection (c) (to the extent it relates 
to this subsection), shall supersede any provision of 
law of any State or political subdivision thereof 
which is inconsistent with the requirements of this 
subsection.
‘‘(b) CLOSING OF ACCOUNT UPON THE DEATH OF 
THE PARTICIPATING INDIVIDUAL.—Subject to subsection 
(c)—
‘‘(1) IN GENERAL.—Upon the death of a par-
ticipating individual, the Executive Director shall 
close out any remaining balance in the participating 
individual’s GROW account. In closing out the ac-
count, the Executive Director shall certify to the cer-
tified account manager the amount of the account 
assets, and, upon receipt of such certification, the 
certified account manager shall transfer from such 
account an amount equal to such certified amount to 
the Secretary of the Treasury for subsequent trans-
fer to—
‘‘(A) the GROW account of the surviving 
spouse of such participating individual, 
‘‘(B) if there is no person described in sub-
paragraph (A), to such other person as may be 
designated by the participating individual in ac-
cordance with regulations which shall be pre-
scribed by the Board, 
‘‘(C) if there is no person described in sub-
paragraph (A) or (B), to such successors in in-
terest to such balance as may be specified 
under applicable law and claim such interest
(within such reasonable time and in such form 
and manner as shall be prescribed in regula-
tions of the Board), or 
‘‘(D) if there is no person described in sub-
paragraph (A), (B), or (C), to the Federal Old-
Age and Survivors Insurance Trust Fund and 
the Federal Disability Insurance Trust Fund, 
allocated between such Trust Funds as deter-
mined appropriate by the Commissioner. 
‘‘(2) TREATMENT OF SURVIVING SPOUSE WHO 
IS NOT A PARTICIPATING INDIVIDUAL.—In the case 
of a surviving spouse referred to in paragraph (1) 
who, as of the time of the death of the participating 
individual, is not a participating individual—
‘‘(A) the surviving spouse shall be deemed 
a participating individual for purposes of this 
part (subject to renunciation under section 
253(b)), and 
‘‘(B) the Board shall establish a GROW 
account for the surviving spouse and shall di-
rect the appropriate certified account manager 
to perform the such transfer. 
‘‘(3) DEATH
DETERMINATIONS
AND
ABAN-
DONED ACCOUNTS.—The Board shall prescribe rules 
similar to the rules applicable under part A for pur-
poses of determining whether an individual has died 
and such individual’s date of death, including rules 
for treatment under this subsection of abandoned 
accounts. 
‘‘(c) CLOSING OF ACCOUNT OF PARTICIPATING INDI-
VIDUALS WHO ARE INELIGIBLE FOR BENEFITS UPON AP-
PLICABLE CLOSE-OUT DATE.—
‘‘(1) IN GENERAL.—In any case in which a par-
ticipating individual is not eligible for a retirement 
benefit as of the applicable close-out date, the Com-
missioner shall so certify to the Executive Director 
and, upon receipt of such certification, the Executive 
Director shall close out the participating individual’s 
GROW account. In closing out the account, the Ex-
ecutive Director shall certify to the certified account 
manager the amount of the account assets, and 
upon receipt of such certification from the Executive 
Director, the account manager shall transfer from 
such account an amount equal to such certified 
amount to the Secretary of the Treasury for subse-
quent transfer to the participating individual. 
‘‘(2) APPLICABLE CLOSE-OUT DATE.—For pur-
poses of paragraph (1), the term ‘applicable close-
out date’, in connection with a participating indi-
vidual, means the later of—
‘‘(A) the date on which the participating 
individual attains retirement age (as defined in 
section 216(l)), or 
‘‘(B) in the case of a participating indi-
vidual who is married on the date on which the 
participating individual attains retirement age 
(as so defined), the date on which the partici-
pating individual’s spouse attains retirement 
age (as so defined), or dies before attaining 
such age. 
‘‘(d) ADMINISTRATIVE EXPENSES.—
‘‘(1) IN
GENERAL.—Under regulations which 
shall be prescribed by the Board, account assets are 
available for payment of the reasonable administra-
tive costs of the Program (including reasonable ad-
ministration fees charged by certified account man-
agers under the Program), but in no event to exceed 
30 basis points per year of the assets under manage-
ment. 
‘‘(2) TEMPORARY AUTHORIZATION OF APPRO-
PRIATIONS FOR STARTUP ADMINISTRATIVE COSTS.—
For any such administrative costs that remain after 
applying paragraph (1) for each of the first 5 fiscal 
years that end after the date on which GROW ac-
counts are first established under section 255(a),
there are authorized to be appropriated such sums 
as may be necessary for each of such fiscal years. 
‘‘ADMINISTRATION OF THE PROGRAM 
‘‘SEC. 260. (a) GENERAL PROVISIONS.—
‘‘(1) ESTABLISHMENT
AND
DUTIES
OF
THE 
GROW ACCOUNTS BOARD.—
‘‘(A) ESTABLISHMENT.—There is estab-
lished in the Executive branch of the Govern-
ment a GROW Accounts Board. 
‘‘(B) NUMBER
AND
APPOINTMENT.—The 
Board shall be composed of 7 members as fol-
lows: 
‘‘(i) 3 members appointed by the 
President, of whom 1 shall be designated 
by the President as Chairman; and 
‘‘(ii) 4 members appointed by the 
President, of whom—
‘‘(I) 2 shall be appointed by the 
President after taking into consider-
ation the recommendations made by 
the Speaker of the House of Rep-
resentatives in consultation with the 
minority leader of the House of Rep-
resentatives; and 
‘‘(II) 2 shall be appointed by the 
President after taking into consider-
ation the recommendations made by 
the majority leader of the Senate in 
consultation with the minority leader 
of the Senate. 
‘‘(C) 
MEMBERSHIP
REQUIREMENTS.—
Members of the Board shall have substantial 
experience, training, and expertise in the man-
agement of financial investments and pension 
benefit plans. No more than 4 of the members 
of the Board may be of the same political party. 
‘‘(D) TERMS.—Each member of the Board 
shall be appointed for a term of 4 years, except 
that of the members first appointed— 
‘‘(i) the Chairman shall be appointed 
for a term of 4 years; 
‘‘(ii) the remaining members ap-
pointed under subsection (B)(i) shall be 
appointed for terms of 3 years; 
‘‘(iii) one of the members appointed 
under subsection (B)(ii)(I) shall be ap-
pointed for a term of 4 years and the other 
for a term of two years; and 
‘‘(iv) one of the members appointed 
under subsection (B)(ii)(II) shall be ap-
pointed for a term of 4 years and the other 
for a term of 2 years. 
‘‘(E) VACANCIES.—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. An individual 
chosen to fill a vacancy shall be appointed for 
the unexpired term of the member replaced. 
The term of any member shall not expire before 
the date on which the member’s successor takes 
office. 
‘‘(F) POWERS
AND
DUTIES
OF
THE 
BOARD.—
‘‘(i) IN GENERAL.—The Board shall 
have powers and duties solely as provided 
in this part. The Board shall prescribe by 
regulation—
‘‘(I) the terms of the GROW Ac-
counts Program established under this 
part, including policies for investment 
under the Program of account assets, 
and policies for the certification and 
decertification of account managers 
under the Program, which shall in-
clude consideration of the appropriate-
ness of the marketing materials and 
plans of such managers, and 
‘‘(II) the policies for the pur-
chase of annuities for purposes of dis-
tribution of GROW accounts under 
section 257. 
‘‘(ii) BUDGETARY
REQUIREMENTS.—
The Board shall prepare and submit to the 
President and to the appropriate commit-
tees of Congress an annual budget of the 
expenses and other items relating to the 
Board which shall be included as a sepa-
rate item in the budget required to be 
transmitted to the Congress under section 
1105 of title 31, United States Code. The 
Board shall provide for low administrative 
costs such that, to the extent practicable, 
overall administrative costs of the Program 
do not exceed 30 basis points per year in 
relation to assets under management under 
the Program. 
‘‘(iii) ADDITIONAL
AUTHORITIES
OF 
THE BOARD.—The Board may—
‘‘(I) adopt, alter, and use a seal;
‘‘(II) establish policies with which 
the Commissioner shall comply under 
this part; and 
‘‘(III) appoint and remove the 
Executive Director, as provided in 
paragraph (2). 
‘‘(iv) INDEPENDENCE
OF
CERTIFIED 
ACCOUNT MANAGERS.—The policies of the 
Board may not require a certified account 
manager to invest or to cause to be in-
vested any account assets in a specific 
asset or to dispose of or cause to be dis-
posed of any specific asset so held. 
‘‘(v) MEETINGS OF THE BOARD.—The 
Board shall meet at the call of the Chair-
man or upon the request of a quorum of 
the Board. The Board shall perform the 
functions and exercise the powers of the 
Board on a majority vote of a quorum of 
the Board. Four members of the Board 
shall constitute a quorum for the trans-
action of business. 
‘‘(vi) COMPENSATION OF BOARD MEM-
BERS.—
‘‘(I) IN
GENERAL.—Each mem-
ber of the Board who is not an officer 
or employee of the Federal Govern-
ment shall be compensated at the 
daily rate of basic pay for level IV of 
the Executive Schedule for each day 
during which such member is engaged 
in performing a function of the 
Board. Any member who is such an 
officer or employee shall not suffer 
any loss of pay or deduction from an-
nual leave on the basis of any time 
used by such member in performing 
such a function. 
‘‘(II) TRAVEL, PER
DIEM, AND 
EXPENSES.—A member of the Board 
shall be paid travel, per diem, and 
other necessary expenses under sub-
chapter I of chapter 57 of title 5, 
United States Code, while traveling 
away from such member’s home or 
regular place of business in the per-
formance of the duties of the Board. 
‘‘(vii) STANDARD FOR BOARD’S DIS-
CHARGE
OF
RESPONSIBILITIES.—The
members of the Board shall discharge their 
responsibilities solely in the interest of par-
ticipating individuals and the Program. 
‘‘(viii) ANNUAL REPORT.—The Board 
shall submit an annual report to the Presi-
dent, to each House of the Congress, and 
to the Board of Trustees of the Federal 
Old-Age and Survivors Insurance Trust 
Fund and the Federal Disability Insurance 
Trust Fund regarding the financial and 
operating condition of the Program. 
‘‘(ix) PUBLIC ACCOUNTANT.—
‘‘(I) DEFINITION.—For purposes 
of this subparagraph, the term ‘quali-
fied public accountant’ shall have the 
same meaning as provided in section 
103(a)(3)(D) of the Employee Retire-
ment Income Security Act of 1974 
(29 U.S.C. 1023(a)(3)(D)). 
‘‘(II) ENGAGEMENT.—The Exec-
utive Director, in consultation with 
the Board, shall annually engage, on 
behalf of all individuals for whom a 
GROW account is established under 
this part, an independent qualified
public accountant, who shall conduct 
an examination of all records main-
tained in the administration of this 
part that the public accountant con-
siders necessary. 
‘‘(III) DUTIES.—The public ac-
countant conducting an examination 
under subclause (II) shall determine 
whether the records referred to in 
such subclause have been maintained 
in conformity with generally accepted 
accounting principles. The public ac-
countant shall transmit to the Board 
a report on his examination. 
‘‘(IV) RELIANCE ON CERTIFIED 
ACTUARIAL
MATTERS.—In making a 
determination under subclause (III), a 
public accountant may rely on the cor-
rectness of any actuarial matter cer-
tified by an enrolled actuary if the 
public accountant states his reliance 
in the report transmitted to the Board 
under such subclause. 
‘‘(2) EXECUTIVE DIRECTOR.—
‘‘(A) APPOINTMENT AND REMOVAL.—The 
Board shall appoint, without regard to the pro-
visions of law governing appointments in the 
competitive service, an Executive Director by 
action agreed to by a majority of the members 
of the Board. The Executive Director shall have 
substantial experience, training, and expertise 
in the management of financial investments and 
pension benefit plans. The Board may, with the 
concurrence of 4 members of the Board, remove 
the Executive Director from office for good 
cause shown. 
‘‘(B) POWERS AND DUTIES OF EXECUTIVE 
DIRECTOR.—The Executive Director shall—
‘‘(i) carry out the policies established 
by the Board, 
‘‘(ii) administer the provisions of this 
part in accordance with the policies of the 
Board, and 
‘‘(iii) meet from time to time with the 
Board upon request of the Board. 
‘‘(C) ADMINISTRATIVE
AUTHORITIES
OF 
EXECUTIVE DIRECTOR.—The Executive Direc-
tor may—
‘‘(i) appoint such personnel as may be 
necessary to carry out the provisions of 
this part, 
‘‘(ii) subject to approval by the Board, 
procure the services of experts and consult-
ants under section 3109 of title 5, United 
States Code, 
‘‘(iii) secure directly from any agency 
or instrumentality of the Federal Govern-
ment on a reimbursable basis any informa-
tion which, in the judgment of the Execu-
tive Director, is necessary to carry out the 
provisions of this part and the policies of 
the Board, and which shall be provided by 
such agency or instrumentality upon the 
request of the Executive Director, 
‘‘(iv) pay the compensation, per diem, 
and travel expenses of individuals ap-
pointed under clauses (i), (ii), and (v) of 
this subparagraph, subject to such limits 
as may be established by the Board, 
‘‘(v) accept and use the services of in-
dividuals employed intermittently in the 
Government service and reimburse such in-
dividuals 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 
‘‘(vi) except as otherwise expressly 
prohibited by law or the policies of the 
Board, delegate any of the Executive Di-
rector’s functions to such employees under 
the Board as the Executive Director may 
designate and authorize such successive re-
delegations of such functions to such em-
ployees under the Board as the Executive 
Director may consider to be necessary or 
appropriate. 
‘‘(3) ROLE OF THE COMMISSIONER.—The Com-
missioner shall—
‘‘(A) prescribe such regulations (supple-
mentary to and consistent with the regulations 
prescribed by the Board) as may be necessary 
for carrying out the duties of the Commissioner 
under this part, 
‘‘(B) meet from time to time with, and 
provide information to, the Board upon request 
of the Board regarding matters relating to the 
Program, and
‘‘(C) in consultation with the Board and 
utilizing available Federal agencies and re-
sources, develop a campaign to educate workers 
about the Program. 
‘‘(b) CERTIFICATION AND OVERSIGHT OF ACCOUNT 
MANAGERS.—
‘‘(1) CERTIFICATION BY THE BOARD.—
‘‘(A) IN GENERAL.—Any person that is a 
qualified professional asset manager (as defined 
in section 8438(a)(8) of title 5, United States 
Code) may apply to the Board (in such form 
and manner as shall be provided by the Board 
by regulation) for certification under this sub-
section as a certified account manager. In mak-
ing certification decisions, the Board shall con-
sider the applicant’s general character and fit-
ness, financial history and future earnings pros-
pects, and ability to serve participating individ-
uals under the Program, and such other criteria 
as the Board deems necessary to carry out this 
part. Certification of any person under this sub-
section shall be contingent upon entry into a 
contractual arrangement between the Board 
and such person.
‘‘(B) NONDELEGATION
REQUIREMENT.—
The authority of the Board to make any deter-
mination to deny any application under this 
subsection may not be delegated by the Board. 
‘‘(2) OVERSIGHT OF CERTIFIED ACCOUNT MAN-
AGERS.—
‘‘(A) ROLE OF REGULATORY AGENCIES.—
The Board may enter into cooperative arrange-
ments with Federal and State regulatory agen-
cies identified by the Board as having jurisdic-
tion over persons eligible for certification under 
this subsection so as to ensure that the provi-
sions of this part are enforced with respect to 
certified account managers in a manner con-
sistent with and supportive of the requirements 
of other provisions of Federal law applicable to 
them. Such Federal regulatory agencies shall 
cooperate with the Board to the extent that the 
Board determines that such cooperation is nec-
essary and appropriate to ensure that the provi-
sions of this part are effectively implemented. 
‘‘(B) ACCESS
TO
RECORDS.—The Board 
may from time to time require any certified ac-
count manager to file such reports as the Board 
may specify by regulation as necessary for the
administration of this part. In prescribing such 
regulations, the Board shall minimize the regu-
latory burden imposed upon certified account 
managers while taking into account the benefit 
of the information to the Board in carrying out 
its functions under this part. 
‘‘(3) REVOCATION
OF
CERTIFICATION.—The 
Board shall provide, in the contractual arrangements 
entered into under this subsection with each certified 
account manager, for revocation of such person’s 
status as a certified account manager upon deter-
mination by the Board of such person’s failure to 
comply with the requirements of such contractual ar-
rangements. Such arrangements shall include provi-
sion for notice and opportunity for review of any 
such revocation. 
‘‘(c) FIDUCIARY RESPONSIBILITIES.—
‘‘(1) IN GENERAL.—Rules similar to the provi-
sions of section 8477 of title 5, United States Code 
(relating to fiduciary responsibilities; liability and 
penalties) shall apply in connection with account as-
sets, in accordance with regulations which shall be 
issued by the Board. The Board shall issue regula-
tions with respect to the investigative authority of
appropriate Federal agencies in cases involving ac-
count assets. 
‘‘(2) EXCULPATORY PROVISIONS VOIDED.—Any 
provision in an agreement or instrument which pur-
ports to relieve a fiduciary from responsibility or li-
ability for any responsibility, obligation, or duty 
under this part shall be void. 
‘‘(d) CIVIL ACTIONS BY BOARD.—If any person fails 
to meet any requirement of this part or of any contract 
entered into under this part, the Board may bring a civil 
action in any district court of the United States within 
the jurisdiction of which such person’s assets are located 
or in which such person resides or is found, without regard 
to the amount in controversy, for appropriate relief to re-
dress the violation or enforce the provisions of this part, 
and process in such an action may be served in any dis-
trict. 
‘‘(e) REPRESENTATIVES.—The Board shall provide 
by regulation for elections and designations otherwise to 
be made by an individual under this part to be made in-
stead on behalf of the individual by a designated rep-
resentative of the individual. 
‘‘(f) PREEMPTION OF INCONSISTENT STATE LAW.—
A provision of this part shall not be construed to preempt 
any provision of the law of any State or political subdivi-
sion thereof, or prevent a State or political subdivision 
thereof from enacting any provision of law with respect 
to the subject matter of this part, except to the extent 
that such provision of State law is inconsistent with this 
part, and then only to the extent of the inconsistency. 
‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Board, the Com-
missioner, and the Secretary of the Treasury, for fiscal 
years beginning on or after October 1, 2005, such sums 
as are necessary to carry out their respective duties under 
this part.’’. 
(b) CONFORMING AMENDMENT TO PART A.—Section 
202 of such Act (42 U.S.C. 402) is amended by adding 
at the end the following new subsection: 
‘‘Adjustments Under Part B 
‘‘(z) The amount of benefits under subsections (a), 
(b), (c), (e), (f), and (h) which are otherwise payable under 
this part and which are retirement benefits (as defined 
in section 251(8)) shall be subject to adjustment as pro-
vided under section 258.’’. 
(c) ADDITIONAL CONFORMING AMENDMENTS.—(1) 
Section 701(b) of the Social Security Act (42 U.S.C. 
901(b)) is amended by striking ‘‘title II’’ and inserting 
‘‘part A of title II, the GROW Accounts Program under 
part B of title II,’’.
(2) Section 702(a)(4) of such Act (42 U.S.C. 
902(a)(4)) is amended by inserting ‘‘other than those of 
the GROW Accounts Board’’ after ‘‘Administration’’, and 
by striking ‘‘thereof’’ and inserting ‘‘of the Administration 
in connection with the exercise of such powers and the 
discharge of such duties’’. 
SEC. 102. ANNUAL ACCOUNT STATEMENTS. 
Section 1143 of the Social Security Act (42 U.S.C. 
1320b–13) is amended by adding at the end the following 
new subsection: 
‘‘Performance of GROW Accounts 
‘‘(e) Beginning not later than 1 year after the date 
on which the first deposit is made to a participating indi-
vidual’s GROW account, each statement provided to such 
participating individual under this section shall include in-
formation determined by the GROW Accounts Board as 
sufficient to fully inform such participating individual an-
nually of the balance, investment performance, and admin-
istrative expenses of such account.’’. 
SEC. 103. REPORT AND CONGRESSIONAL CONSIDERATION 
OF PROPOSALS REGARDING ALTERNATIVE 
INVESTMENT OPTIONS AND OTHER MAT-
TERS. 
(a) REPORT.—During the period of 30 calendar days 
beginning on the first day of the 111th Congress, the
GROW Accounts Board shall submit to the President and 
each House of the Congress a report containing a consoli-
dated implementation plan for the GROW Accounts Pro-
gram, consisting of the following 3 components: 
(1) INVESTMENT
OPTIONS
PLAN.—An invest-
ment options plan, which shall provide for additional 
and alternative investment options, for GROW ac-
count balances, in broad-based index funds—
(A) which are similar to the index fund in-
vestment options available within the Thrift 
Savings Fund established under section 8437 of 
title 5, United States Code, including a lifecycle 
fund in which investments are adjusted based 
on the number of years remaining prior to the 
participating individual’s attainment of age 62, 
(B) which the Board determines would be 
prudent sources of retirement income that could 
yield greater amounts of income than the in-
vestment described in section 256(c)(1) of the 
Social Security Act (added by this title), and 
(C) which a participating individual may 
elect. 
(2) PAYOUT OPTIONS PLAN.—A payout options 
plan, which shall provide for additional and alter-
native options for the payout of GROW account bal-
ances to participating individuals upon their retire-
ment date (as defined in section 251(9) of the Social 
Security Act) which the Board determines would be 
appropriate. 
(3) PUBLIC EDUCATION PLAN.—A public edu-
cation plan, which shall provide for enhancement of 
information dissemination under, and public edu-
cation regarding, the GROW Accounts Program. 
(b) IMPLEMENTATION.—
(1) IN GENERAL.—Subject to paragraph (2)—
(A) INVESTMENT OPTIONS PLAN.—The in-
vestment options plan submitted pursuant to 
subsection (a)(1) shall take effect on the date 
immediately following the 90-day period begin-
ning on the date on which such plan is so sub-
mitted. 
(B) PAYOUT OPTIONS PLAN AND PUBLIC 
EDUCATION
PLAN.—The payout options plan 
submitted pursuant to subsection (a)(2) and the 
public education plan submitted pursuant to 
subsection (a)(3) shall be implemented in ac-
cordance with timetables which shall be in-
cluded with such plans. 
(2) CONGRESSIONAL
REVIEW.—The consoli-
dated implementation plan submitted pursuant to
subsection (a) shall not become effective if, during 
the 90-day period beginning on the date on which 
such plan is so submitted, there is enacted by the 
Congress a joint resolution of disapproval of such 
plan. 
(3) TIME PERIODS.—For purposes of this sub-
section, the days on which either House of Congress 
is not in session because of an adjournment of more 
than 3 days to a day certain shall be excluded in the 
computation of the 90-day period referred to in 
paragraphs (1)(A) and (2). 
(c) DEFINITIONS.—For purposes of this section—
(1) the term ‘‘Grow Accounts Board’’ or 
‘‘Board’’ means the GROW Accounts Board estab-
lished under section 260(a) of the Social Security 
Act; 
(2) the term ‘‘GROW Accounts Program’’ 
means the GROW Accounts Program established 
under part B of title II of such Act; 
(3) the term ‘‘GROW account’’ means a GROW 
account established under section 255 of such Act; 
and 
(4) the term ‘‘participating individual’’ has the 
meaning provided in section 253(a) of such Act.
TITLE II—TAX TREATMENT 
SEC. 201. TAX TREATMENT OF GROW ACCOUNTS. 
Section 7701 of the Internal Revenue Code of 1986 
(relating to definitions) is amended by redesignating sub-
section (o) as subsection (p) and by inserting after sub-
section (n) the following new subsection: 
‘‘(o) TAX TREATMENT OF GROW ACCOUNTS.—
‘‘(1) IN GENERAL.—All GROW accounts estab-
lished under part B of title II of the Social Security 
Act shall be exempt from taxation under this title. 
‘‘(2) CERTAIN DISPOSITIONS OF ACCOUNT AS-
SETS.—No amount shall be includible in gross in-
come by reason of a disposition under subsection (a) 
or (b) of section 259 of the Social Security Act.’’. 
SEC. 202. BENEFITS TAXABLE AS SOCIAL SECURITY BENE-
FITS. 
(a) IN GENERAL.—Section 86(d)(1) of the Internal 
Revenue Code of 1986 is amended—
(1) in subparagraph (A) by inserting ‘‘part A 
of’’ after ‘‘benefit under’’, and 
(2) by striking ‘‘or’’ at the end of subparagraph 
(A), by redesignating subparagraph (B) as subpara-
graph (C), and by inserting after subparagraph (A) 
the following new subparagraph:
‘‘(B) any distribution under section 257 of 
the Social Security Act, or ’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this subsection shall apply to taxable years beginning after 
the end of the calendar year in which this Act is enacted. 
SEC. 203. ESTATE TAX NOT TO APPLY TO ASSETS OF GROW 
ACCOUNTS. 
(a) IN GENERAL.—Part IV of subchapter A of chap-
ter 11 of the Internal Revenue Code of 1986 (relating to 
taxable estate) is amended by adding at the end the fol-
lowing new section: 
‘‘SEC. 2059. GROW ACCOUNTS. 
‘‘For purposes of the tax imposed by section 2001, 
the value of the taxable estate shall be determined by de-
ducting from the value of the gross estate an amount 
equal to the value of the assets of a GROW account trans-
ferred from such account by the Secretary under section 
258 of the Social Security Act.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for part IV of subchapter A of chapter 11 of such Code 
is amended by adding at the end the following new item:
‘‘Sec. 2059. GROW accounts.’’.
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to decedents dying in or after the 
calendar year in which this Act is enacted.
Æ