standards which must be met by fixed income securi-
ties selected for investment of account assets as pro-
vided in subparagraph (A)(ii), (B)(ii), or (C)(ii) of 
paragraph (2). Amounts invested in fixed income se-
curities by a certified account manager under the 
Program shall be held in a portfolio which shall con-
sist of a diverse range of high-grade corporate 
bonds. 
‘‘(d) DIVERSIFICATION
STANDARDS.—The Board 
shall specify by regulation standards governing invest-
ments under this section to ensure prudent diversification 
among the investments under the Program. 
‘‘DETERMINATION OF MONTHLY ANNUITY AMOUNTS AND 
USE IN DETERMINING ACCOUNT DISTRIBUTION SUP-
PLEMENTS 
‘‘SEC. 255. (a) MONTHLY ANNUITY AMOUNTS.— 
‘‘(1) IN GENERAL.—In accordance with regula-
tions of the Board meeting the requirements of this 
section, the Commissioner shall determine a monthly 
annuity amount in connection with such covered in-
dividual’s Social Security guarantee account, for 
each month— 
‘‘(A) which commences after such indi-
vidual becomes a covered individual,
‘‘(B) for which such individual is entitled 
to a covered monthly insurance benefit under 
part A, and 
‘‘(C) which ends prior to or with— 
‘‘(i) the date of the covered individ-
ual’s death, or 
‘‘(ii) if later, the date of the death of 
the covered individual’s spouse (if any), ex-
cept as provided in regulations prescribed 
by the Board pursuant to paragraph (5). 
‘‘(2) AMOUNT.—The monthly annuity amount 
shall be equal to the amount which would be the ini-
tial monthly payment under— 
‘‘(A) if the covered individual is not mar-
ried on such date, an immediate single life an-
nuity for the covered individual, or 
‘‘(B) if the covered individual is married 
on such date, an immediate annuity for the 
joint lives of the covered individual and the cov-
ered individual’s spouse, together with a sur-
vivor annuity to the one of them who survives 
the other of them for the life of the survivor 
payable in monthly installments equal to 662⁄3 
percent of the monthly payment of the annuity
that would be payable if both spouses remained 
alive, 
purchased with the balance of the account (deter-
mined after payment of the initial lump sum pay-
ment under section 256(c)). 
‘‘(3) ASSUMPTIONS.—The assumptions under 
this subsection include the probability of survival for 
persons born in the same year as the covered indi-
vidual (and the spouse, in the case of a joint annu-
ity), future projection of investment earnings based 
on investment of the account assets in the 65/35 in-
vestment option under section 254(c)(2)(B), and ex-
pected price inflation. Determinations under this 
subsection shall be made in accordance with regula-
tions which shall be prescribed by the Board, other-
wise using 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. 
‘‘(4) ADJUSTMENTS BASED ON ADDITIONAL SO-
CIAL
SECURITY
GUARANTEE
REFUNDABLE
CRED-
ITS.—The Board shall annually augment the month-
ly annuity amount in connection with each Social 
Security guarantee account by an additional monthly 
annuity amount, determined under this subsection
on the basis of any additional transfer to the ac-
count of a Social Security guarantee refundable 
credit for the year (plus deemed interest) under sec-
tion 253(c), after subtracting the amount of the an-
nual lump sum payment made from such account 
under section 256(c)(2). 
‘‘(5) TREATMENT
OF
CHANGES
IN
MARITAL 
STATUS
AND
BENEFIT
ELIGIBILITY
AFTER
COM-
MENCEMENT OF ENTITLEMENT TO BENEFITS.—The 
Board shall provide by regulation for recalculation 
or adjustment of the monthly annuity amount deter-
mined under this subsection in connection with any 
covered individual’s Social Security guarantee ac-
count so as to appropriately take into account any 
entry into marriage or divorce or changes in eligi-
bility for benefits. 
‘‘(b) AMOUNT OF ACCOUNT DISTRIBUTION SUPPLE-
MENT.—The Board shall determine for each month the 
amount of the monthly account distribution supplement 
(if any) in connection with a covered individual’s Social 
Security guarantee account and shall certify such amount 
to the Commissioner so as to allow inclusion of such sup-
plement in each covered monthly insurance benefit pay-
ment pursuant to section 202(z) or 223(j). The amount
of the supplement for each benefit shall be the excess (if 
any) of— 
‘‘(1) the sum of— 
‘‘(A) the monthly annuity amount in con-
nection with such account, plus 
‘‘(B) in the case of a covered individual 
surviving a deceased spouse, a monthly amount 
which would be the monthly equivalent of the 
survivor 
annuity 
described 
in 
subsection 
(a)(2)(B) in connection with the Social Security 
guarantee account of the deceased spouse, over 
‘‘(2) the amount of the benefit (as determined 
before applying sections 202(z) and 223(j) and be-
fore applying any reduction or deduction applicable 
under part A). 
‘‘DISPOSITION OF ACCOUNT ASSETS 
‘‘SEC. 256. (a) IN GENERAL.—Account assets with 
respect to covered individuals shall be distributed solely 
as provided in this section. 
‘‘(b) ACCOUNT MANAGER TRANSFERS TO THE TRUST 
FUNDS.— 
‘‘(1) IN
GENERAL.—In accordance with a 
schedule which shall be prescribed in regulations of 
the Board, each certified account manager holding 
account assets shall make account manager trans-
fers to the Secretary of the Treasury. Such Sec-
retary shall immediately credit each such transfer to 
the Federal Old-Age and Survivors Insurance Trust 
Fund or the Federal Disability Insurance Trust 
Fund, according to an appropriate distribution for-
mula which shall be prescribed in regulations of the 
Executive Director. The Executive Director shall 
provide to the certified account manager timely in-
formation necessary to carry out such account man-
ager’s duties under this section. 
‘‘(2) DETERMINATION OF AMOUNT OF ACCOUNT 
MANAGER TRANSFER.—The amount of each account 
manager transfer due from a certified account man-
ager for any period shall be an amount equal to the 
sum of— 
‘‘(A) 
the 
aggregate 
monthly 
annuity 
amount or amounts determined under para-
graph (3) for the month or months ending dur-
ing such period in connection with the Social 
Security guarantee accounts under the manage-
ment of the certified account manager under 
the Program, and 
‘‘(B) the aggregate monthly account remit-
tance for such period described in paragraph 
(4) in connection with such accounts.
‘‘(3) 
AGGREGATE
MONTHLY
ANNUITY 
AMOUNT.—The aggregate monthly annuity amount 
for any month in connection with the Social Security 
guarantee accounts under the management of any 
certified account manager under the Program is 
equal to the sum of all monthly annuity amounts in 
connection with such accounts, determined under 
section 255. 
‘‘(4) AGGREGATE MONTHLY ACCOUNT REMIT-
TANCE.—The aggregate monthly account remittance 
for any month in connection with the Social Security 
guarantee accounts under the management of any 
certified account manager under the Program is 
equal to the sum of all the amounts required to be 
transferred during such month from the certified ac-
count manager to the Secretary of the Treasury for 
crediting to the Federal Old-Age and Survivors In-
surance Trust Fund or the Federal Disability Insur-
ance Trust Fund under subsection (e)(2) in connec-
tion with the deaths of covered individuals for whom 
such accounts were established under this part. 
‘‘(5) WITHDRAWALS FROM ACCOUNT BALANCES 
FOR
PURPOSES
OF
ACCOUNT
MANAGER
TRANS-
FERS.—In advance of each account manager trans-
fer required under this subsection to be made by a
certified account manager managing one or more 
Social Security guarantee accounts under the Pro-
gram, the Commissioner shall certify to the Execu-
tive Director and to such certified account manager 
the monthly annuity amount in connection with each 
such account for each month during the period for 
which such transfer is to be made. At the time of 
such transfer, the certified account manager may 
withdraw from the assets of each such account the 
monthly annuity amount in connection with such ac-
count taken into account in determining each of the 
aggregate monthly annuity amounts included in the 
amount of the account manager transfer. Such with-
drawn assets shall be available to the certified ac-
count manager solely for purposes of making such 
account manager transfer. 
‘‘(c) LUMP SUM PAYMENTS.—Upon initial entitle-
ment of a covered individual to covered monthly insurance 
benefits under part A, such individual shall be entitled 
to— 
‘‘(1) an initial lump sum payment, from such 
individual’s Social Security guarantee account, equal 
to 5 percent of the balance in such account, and 
‘‘(2) a lump sum payment in connection with 
each subsequent transfer to such account (pursuant
to section 253(c)) of such individual’s social security 
guarantee refundable credits for years beginning 
after commencement of such initial entitlement, pay-
able as soon as practicable after the transfer, equal 
to 5 percent of the transferred amount (including 
deemed interest). 
The Executive Director shall certify to the certified ac-
count manager managing such account the amount of 
each lump sum payment, and upon receipt of such certifi-
cation, the certified account manager shall transfer such 
certified amount to the Secretary of the Treasury for sub-
sequent transfer to the covered individual. Such certifi-
cation shall also include such information as may be nec-
essary to make each lump sum payment in a timely man-
ner. 
‘‘(d) SPLITTING
OF ACCOUNT ASSETS UPON DI-
VORCE AFTER 1 YEAR OF MARRIAGE.—Upon the divorce 
of a covered individual for whom a Social Security guar-
antee account has been established under this part, from 
a spouse to whom the covered individual had been married 
for at least 1 year— 
‘‘(1) if a Social Security guarantee account has 
been established under this part for the divorced 
spouse of the covered individual, the Board shall di-
rect the appropriate certified account manager to 
transfer— 
‘‘(A) from the Social Security guarantee 
account with the greater amount of accruals 
(including earnings) during the time of the 
marriage, 
‘‘(B) to the other such account, 
an amount equal to one-half of the difference be-
tween the amounts of such accruals in such ac-
counts, or 
‘‘(2) if a Social Security guarantee account has 
not been established for the divorced spouse, the 
Board shall establish a Social Security guarantee ac-
count for the divorced spouse, and shall direct the 
appropriate certified account manager to transfer— 
‘‘(A) from the Social Security guarantee 
account of the covered individual, 
‘‘(B) to the Social Security guarantee ac-
count of the divorced spouse, 
an amount equal to one-half of the amount of accru-
als (including earnings) during the time of the mar-
riage in the Social Security guarantee account of the 
covered individual. 
In the case of any transfer directed under this subsection, 
the Executive Director shall certify to the appropriate cer-
tified account manager the information necessary to make 
such transfer. 
‘‘(e) CLOSING OF ACCOUNT UPON THE DEATH OF 
THE COVERED INDIVIDUAL.— 
‘‘(1) TRANSFERS UPON DEATH BEFORE ENTI-
TLEMENT.—Upon the death of a covered individual 
before the individual has become entitled to covered 
monthly insurance benefits, the Executive Director 
shall close out the covered individual’s Social Secu-
rity guarantee account. In closing out the account, 
the Executive Director shall certify to the certified 
account manager the amount of the account assets, 
and, upon receipt of such certification, such certified 
account manager shall transfer from such account 
an amount equal to such certified amount to the 
Secretary of the Treasury for subsequent transfer to 
the estate of such covered individual. 
‘‘(2) TRANSFERS
UPON
DEATH
AFTER
ENTI-
TLEMENT.— 
‘‘(A) IN GENERAL.—In any case in which 
the covered individual dies after the individual 
has become entitled to covered monthly insur-
ance benefits, the Executive Director shall, ex-
cept as provided in subparagraph (B), close out 
the covered individual’s Social Security guar-
antee account upon such covered individual’s 
death. 
‘‘(B) DELAYED CLOSING IN THE CASE OF 
SURVIVING SPOUSE.—If the covered individual 
was married at the time of the covered individ-
ual’s death, the Executive Director shall close 
out the covered individual’s Social Security 
guarantee account with the close, upon the sur-
viving spouse’s death, of the period to which the 
survivor annuity portion of the monthly annuity 
amount in connection with such account is ap-
plicable under section 255(a). The Board shall 
from time to time propose to the Congress rec-
ommendations for legislative changes necessary 
to provide for closing of the account in a man-
ner and time consistent with regulations pre-
scribed pursuant to section 255(a)(5). 
‘‘(C) CERTIFICATION
AND
TRANSFER
TO 
TRUST FUNDS.—In closing out the account, the 
Executive Director shall certify to the certified 
account manager holding the covered individ-
ual’s account assets the amount of the account 
assets, and such certified account manager shall 
transfer an amount equal to such certified 
amount to the Secretary of the Treasury for
crediting to the Federal Old-Age and Survivors 
Insurance Trust Fund or the Federal Disability 
Insurance Trust Fund, as determined appro-
priate under regulations of the Board. 
‘‘(f) CLOSING OF ACCOUNT OF COVERED INDIVID-
UALS WHO ARE INELIGIBLE FOR BENEFITS UPON AT-
TAINING RETIREMENT AGE.—In any case in which, as of 
the date on which a covered individual attains retirement 
age (as defined in section 216(l)), such individual is not 
eligible for a covered monthly insurance benefit, the Com-
missioner shall so certify to the Executive Director and, 
upon receipt of such certification, the Executive Director 
shall close out the covered individual’s Social Security 
guarantee account. In closing out the account, the Execu-
tive 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 subsequent transfer to the covered indi-
vidual. 
‘‘(g) 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 
25 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 five fis-
cal years that end after the date of the enactment 
of this part, there are authorized to be appropriated 
such sums as may be necessary for each of such fis-
cal years. 
‘‘ADMINISTRATION OF THE PROGRAM 
‘‘SEC. 257. (a) GENERAL PROVISIONS.— 
‘‘(1) ESTABLISHMENT AND DUTIES OF THE SO-
CIAL SECURITY GUARANTEE BOARD.— 
‘‘(A) ESTABLISHMENT.—There is estab-
lished in the Social Security Administration a 
Social Security Guarantee Board. 
‘‘(B) MEMBERSHIP.—The Board shall be 
composed of 6 members appointed by the Board 
of Trustees of the Federal Old-Age and Sur-
vivors Insurance Trust Fund and the Federal 
Disability Insurance Trust Fund. One member 
shall serve as Chairman, as designated by the
Board of Trustees. Members of the Board shall 
have substantial experience, training, and ex-
pertise in the area of pension benefits, finance, 
investment, or insurance. 
‘‘(C) TERMS.— 
‘‘(i) IN GENERAL.—A member of the 
Board shall be appointed for a term of 9 
years, subject only to removal by the 
Board of Trustees for cause, except that of 
the members first appointed— 
‘‘(I) two shall be appointed for a 
term of 3 years; 
‘‘(II) two shall be appointed for a 
term of 6 years; and 
‘‘(III) two shall be appointed for 
a term of 9 years. 
‘‘(ii) 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 respect to the original 
appointment. An individual chosen to fill a 
vacancy shall be appointed for the unex-
pired term of the member replaced. The 
term of any member shall not expire before
the date on which the member’s successor 
takes office. 
‘‘(D) 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 the terms of the Social Security 
Guarantee Program established under this 
part, including policies for investment 
under the Program of account assets, and 
policies for the certification and decerti-
fication of account managers under the 
Program, which shall include consideration 
of the appropriateness of the marketing 
materials and plans of such person. 
‘‘(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 25 basis points in relation to 
assets under management under the Pro-
gram. 
‘‘(E) 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 Execu-
tive Director, as provided in paragraph (2). 
‘‘(F) INDEPENDENCE
OF
CERTIFIED
AC-
COUNT MANAGERS.—The policies of the Board 
may not require a certified account manager to 
invest or to cause to be invested any account 
assets in a specific asset or to dispose of or 
cause to be disposed of any specific asset so 
held. 
‘‘(G) MEETINGS
OF
THE
BOARD.—The 
Board shall meet at the call of the Chairman or 
upon the request of a quorum of the Board. 
The Board shall perform the functions and ex-
ercise 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 
transaction of business. 
‘‘(H) COMPENSATION
OF
BOARD
MEM-
BERS.— 
‘‘(i) IN GENERAL.—Each member of 
the Board who is not an officer or em-
ployee of the Federal Government shall be 
compensated at the daily rate of basic pay 
for level I of the Executive Schedule for 
each day during which such member is en-
gaged 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 annual leave on the 
basis of any time used by such member in 
performing such a function. 
‘‘(ii) TRAVEL, PER
DIEM, AND
EX-
PENSES.—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 trav-
eling away from such member’s home or
regular place of business in the perform-
ance of the duties of the Board. 
‘‘(I) STANDARD FOR BOARD’S DISCHARGE 
OF
RESPONSIBILITIES.—The members of the 
Board shall discharge their responsibilities sole-
ly in the interest of covered individuals and the 
Program. 
‘‘(J) ANNUAL REPORT.—The Board shall 
submit an annual report to the President, to 
each House of the Congress, and to the Board 
of Trustees of the Federal Old-Age and Sur-
vivors Insurance Trust Fund and the Federal 
Disability Insurance Trust Fund regarding the 
financial and operating condition of the Pro-
gram. 
‘‘(K) PUBLIC ACCOUNTANT.— 
‘‘(i) DEFINITION.—For purposes of 
this subparagraph, the term ‘qualified pub-
lic accountant’ shall have the same mean-
ing as provided in section 103(a)(3)(D) of 
the Employee Retirement Income Security 
Act of 1974 (29 U.S.C. 1023(a)(3)(D)). 
‘‘(ii) ENGAGEMENT.—The Executive 
Director, in consultation with the Board, 
shall annually engage, on behalf of all indi-
viduals for whom a Social Security guar-
antee account is established under this 
part, an independent qualified public ac-
countant, who shall conduct an examina-
tion of all records maintained in the ad-
ministration of this part that the public ac-
countant considers necessary. 
‘‘(iii) DUTIES.—The public account-
ant conducting an examination under 
clause (ii) shall determine whether the 
records referred to in such clause have 
been maintained in conformity with gen-
erally accepted accounting principles. The 
public accountant shall transmit to the 
Board a report on his examination. 
‘‘(iv) RELIANCE ON CERTIFIED ACTU-
ARIAL MATTERS.—In making a determina-
tion under clause (iii), a public accountant 
may rely on the correctness of any actu-
arial matter certified by an enrolled actu-
ary if the public accountant states his reli-
ance in the report transmitted to the 
Board under such clause. 
‘‘(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, 
‘‘(iii) in consultation with the Board, 
prescribe such regulations (other than reg-
ulations relating to fiduciary responsibil-
ities) as may be necessary for the adminis-
tration of this part, and
‘‘(iv) 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 any information which, in the judg-
ment of the Executive Director, is nec-
essary 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 OF SOCIAL 
SECURITY.—The Commissioner shall— 
‘‘(A) prescribe such regulations (supple-
mentary to and consistent with the regulations 
prescribed by the Board and the Executive Di-
rector) 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 
Social Security Guarantee 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 covered individuals 
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) 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.’’. 
(b) 
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 Social Security Guarantee Program under part 
B of title II,’’. 
(2) Section 702(a)(4) of the Social Security Act (42 
U.S.C. 902(a)(4)) is amended by inserting ‘‘other than 
those of the Social Security Guarantee Board’’ after ‘‘Ad-
ministration’’, and by striking ‘‘thereof’’ and inserting ‘‘of 
the Administration in connection with the exercise of such 
powers and the discharge of such duties’’. 
SEC. 103. BENEFIT INCREASES. 
(a) OLD-AGE INSURANCE BENEFITS
AND OTHER 
BENEFITS UNDER SECTION 202.—Section 202 of the So-
cial Security Act (42 U.S.C. 402) is amended by adding 
at the end the following new subsection: 
‘‘Account Distribution Supplements 
‘‘(z) Each monthly insurance benefit under this sec-
tion (after application of any reduction or deduction appli-
cable under this section or under any other provision of
this part) shall be increased by the amount of the account 
distribution supplement determined for such benefit under 
section 255.’’. 
(b) DISABILITY INSURANCE BENEFITS.—Section 223 
of such Act (42 U.S.C. 423) is amended by adding at the 
end the following new subsection: 
‘‘Account Distribution Supplements 
‘‘(j) Each monthly insurance benefit under this sec-
tion (after application of any reduction or deduction appli-
cable under this part) shall be increased by the amount 
of the account distribution supplement determined for 
such benefit under section 255.’’. 
SEC. 104. TAX TREATMENT. 
(a) TAX TREATMENT OF SOCIAL SECURITY GUAR-
ANTEE ACCOUNTS.—Section 7701 of the Internal Revenue 
Code of 1986 (relating to definitions) is amended by redes-
ignating subsection (o) as subsection (p) and by inserting 
after subsection (n) the following new subsection: 
‘‘(o) TAX TREATMENT OF SOCIAL SECURITY GUAR-
ANTEE ACCOUNTS.—All Social Security guarantee ac-
counts established under part B of title II of the Social 
Security Act shall be exempt from taxation under this 
title.’’. 
(b) BENEFITS TAXABLE AS SOCIAL SECURITY BENE-
FITS.—
(1) MONTHLY BENEFITS.—Section 86(d)(1)(A) 
of such Code (relating to definition of Social Secu-
rity benefit) is amended to read as follows: 
‘‘(A) a monthly benefit under part A of 
title II of the Social Security Act (including an 
account distribution supplement referred to in 
section 202(z) and 223(j) of such Act), or’’. 
(2) SPECIAL RULES RELATING TO LUMP SUM 
PAYMENT UNDER SECTION 256(C) OF SOCIAL SECU-
RITY ACT.— 
(A) Section 86(a) of such Code is amended 
by adding at the end the following new para-
graph: 
‘‘(3) INCLUSION IN GROSS INCOME OF LUMP 
SUM PAYMENT UNDER SECTION 256(C) OF SOCIAL 
SECURITY ACT.— 
‘‘(A) IN GENERAL.—A lump sum payment 
received under section 256(c) of the Social Se-
curity Act shall be includible in gross income in 
the amount provided by subparagraph (B). 
Such payment shall not be treated as a social 
security benefit for purposes of this section. 
‘‘(B) AMOUNT
INCLUDED
IN
INCOME.— 
The portion of such lump sum payment that is 
includible in gross income shall be equal to an