sive benefit of the participant or the partici-
pant’s beneficiaries under this part. 
‘‘(B) ASSIGNMENTS
AND
ALIENATION.—
Sums in the Fund may not be assigned or 
alienated and are not subject to execution, levy, 
attachment, garnishment, or other legal proc-
ess. 
‘‘(d) RETIREMENT DISTRIBUTION.—As soon as prac-
ticable after the commencement of the distribution under 
section 256 of assets credited to a participant’s part B 
totalization account, the amount of any assets in the Tier 
I Investment Fund credited to such account shall be dis-
tributed to such participant in a lump sum, under rules 
established by the Board. 
‘‘(e) LUMP SUM PAYMENT TO ESTATE UPON DEATH 
OF PARTICIPANT.—Upon the death of a participant, the 
amount of any assets in the Tier I Investment Fund cred-
ited to such participant’s part B totalization account shall 
be transferred in a lump sum, under rules established by 
the Board—
‘‘(1) in any case in which one or more bene-
ficiaries have been designated in advance, in accord-
ance with regulations which shall be prescribed by 
the Board, to such beneficiaries in accordance with
such designation as provided in such regulations, 
and 
‘‘(2) in the case of any amount not distributed 
as described in paragraph (1), to such participant’s 
estate. 
‘‘SEC. 254. TIER II INVESTMENT FUND. 
‘‘(a) ESTABLISHMENT
OF TIER II INVESTMENT 
FUND.—There is established in the Treasury of the 
United States a trust fund to be known as the ‘Tier II 
Investment Fund’. The Board shall serve as trustees of 
such Fund. The Fund consists of all amounts derived from 
payments into the Fund under section 252(b)(1) and re-
maining after investment of such amounts under sub-
section (b) of this section, including additional amounts 
derived as income from such investments. The amounts 
held in the Fund are appropriated and shall remain avail-
able without fiscal year limitation—
‘‘(1) to be held for investment under subsection 
(b), 
‘‘(2) to pay the administrative expenses related 
to the Fund and to investment under subsection (b), 
‘‘(3) to make transfers to Tier III investment 
accounts under section 252(c)(1), 
‘‘(4) to make retirement distributions in accord-
ance with section 256, and
‘‘(5) to make lump sum distributions under sec-
tion 256 and subsection (e) of this section. 
‘‘(b) INVESTMENT IN EQUITIES AND FIXED INCOME 
INSTRUMENTS IN MANAGEMENT ACCOUNTS.—
‘‘(1) IN GENERAL.—For purposes of investment 
of the Tier II Investment Fund, the Board shall di-
vide the Fund into multiple management accounts. 
Such accounts shall consist of the 60/40 manage-
ment account and 2 or more additional management 
accounts providing for investment in each account in 
a combination of equities and fixed income instru-
ments in accordance with prescribed percentages, as 
provided in paragraph (2). The Board shall contract 
with appropriate investment managers selected for 
investment of amounts held in each management ac-
count. 
‘‘(2) RULES RELATING TO MANAGEMENT AC-
COUNTS.—
‘‘(A) IN GENERAL.—The investment man-
ager selected for investment of amounts held in 
each management account referred to in para-
graph (1) shall invest such amounts under reg-
ulations which shall be prescribed by the Board 
so as to ensure, to the maximum extent prac-
ticable, that, of the total balance in the Fund