‘‘(c) CHANGES AND REVOCATIONS.—Subject to sub-
section (b), an annuitant may change the State designated 
by that annuitant for purposes of having withholdings 
made, and may request that the withholdings be remitted 
in accordance with such change. An annuitant also may 
revoke any request of that annuitant for withholding. Any 
change in the State designated or revocation is effective 
on the first day of the month after the month in which 
the request or the revocation is processed by the Executive 
Director, but in no event later than on the first day of 
the second month beginning after the day on which such 
request or revocation is received by the Executive Direc-
tor. 
‘‘(d) RESERVATIONS TO THE UNITED STATES; RE-
PAYMENTS OF ERRONEOUS WITHHOLDINGS.—This sec-
tion does not give the consent of the United States to the 
application of a statute which imposes more burdensome 
requirements on the United States than on employers gen-
erally, or which subjects the United States or any annu-
itant to a penalty or liability because of this section. The 
Executive Director may not accept pay from a State for 
services performed in withholding State income taxes from 
annuities. Any amount erroneously withheld from an an-
nuity and paid to a State by the Executive Director shall
be repaid by the State in accordance with regulations 
issued by the Executive Director. 
‘‘(e) DEFINITION.—For the purpose of this section, 
the term ‘annuitant’ includes a survivor who is receiving 
an annuity from the Trust Fund. 
‘‘SEC. 265. TAX TREATMENT OF THE SOCIAL SECURITY IN-
VESTMENT TRUST FUND. 
‘‘The Trust Fund shall be exempt from taxation 
under subtitle A of the Internal Revenue Code of 1986. 
‘‘SEC. 266. ADMINISTRATION. 
‘‘(a) BOARD OF TRUSTEES.—
‘‘(1) IN
GENERAL.—The Federal Retirement 
Thrift Investment Board established by section 
8472(a) of title 5, United States Code, shall also 
serve as the Board of Trustees of the Social Security 
Investment Trust Fund. 
‘‘(2) DUTIES.—It shall be the duty of the 
Board to—
‘‘(A) hold the Trust Fund; 
‘‘(B) report to the Congress not later than 
the first day of April of each year on the oper-
ation and status of the Trust Fund during the 
preceding fiscal year and on its expected oper-
ation and status during the next ensuing 5 fis-
cal years;
‘‘(C) develop investment policies which pro-
vide for—
‘‘(i) prudent investments suitable for 
accumulating funds for payment of retire-
ment income, and 
‘‘(ii) low administrative costs; 
‘‘(D) recommend improvements in adminis-
trative procedures and policies designed to ef-
fectuate the proper coordination of the program 
established under this part with the old-age, 
survivors, and disability insurance program es-
tablished under part A; and 
‘‘(E) review the general policies followed in 
managing the Trust Fund and recommend 
changes in such policies, including necessary 
changes in the provisions of the law which gov-
ern the way in which the Trust Funds are to 
be managed and invested. 
‘‘(b) EXECUTIVE DIRECTOR.—
‘‘(1) IN GENERAL.—The Executive Director ap-
pointed under section 8474(a) of title 5, United 
States Code, shall also serve as Executive Director 
under this part. 
‘‘(2) DUTIES.—The Executive Director shall—