‘‘(b) EFFECTIVE DATE OF ELECTION.—An election 
under this section shall take effect on January 1 of the 
first calendar year beginning after 60 days after the date 
of the filing of the election in accordance with subsection 
(a). 
‘‘(c) IRREVOCABILITY.—Any election under this sec-
tion shall be irrevocable. 
‘‘SEC. 260. EARLY DISTRIBUTION AND TERMINATION OF 
PARTICIPATION IN PROGRAM. 
‘‘(a) IN GENERAL.—In any case in which the amount 
credited to a participant’s part B totalization account as 
of any date prior to the date on which the participant at-
tains retirement age (as defined in section 216(l)(1)) 
equals at least the amount necessary to purchase an im-
mediate life annuity which provides for payments which 
are, on an annual basis, at least equal to 120 percent of 
the poverty line (as in effect on such date, for an indi-
vidual, under section 673(2) of the Community Services 
Block Grant Act (42 U.S.C. 9902(2))), the Board shall 
promptly so inform the participant, and, upon application 
of the participant filed with the Board under this section 
in accordance with regulations of the Board—
‘‘(1) the Board shall commence distribution 
under section 256 of the amount credited to such 
participant’s part B totalization account, and
‘‘(2) in lieu of the transfer, after the date of the 
commencement of such distribution, of any amount 
credited to such participant’s part B totalization ac-
count from the Tier I Investment Fund to the Tier 
II Investment Fund or a Tier III investment ac-
count, the Board shall provide for the direct pay-
ment of such amount to the participant. 
‘‘(b) IMMEDIATE LIFE ANNUITY.—For purposes of 
subsection (a), the term ‘immediate life annuity’ means 
an annuity—
‘‘(1) the annuity starting date (as defined in 
section 72(c)(4) of the Internal Revenue Code of 
1986) of which commences with the first month fol-
lowing the date referred to in subsection (a), and 
‘‘(2) which provides for a series of substantial 
equal annual payments over the life expectancy of 
the participant. 
‘‘(c) MARRIED COUPLES.—In the case of any 2 par-
ticipants who are married, subsection (a) shall apply with 
respect to each such participant, upon the joint written 
request of such participants, by totalling the balances in 
the accounts referred to in subsection (a) of both such in-
dividuals.
‘‘SEC. 261. INDIVIDUAL INVESTMENT BOARD. 
‘‘(a) ESTABLISHMENT.—There is established in the 
executive branch of the Government an Individual Invest-
ment Board. 
‘‘(b) COMPOSITION.—The Board shall be composed 
of—
‘‘(1) 3 members appointed by the President, of 
whom 1 shall be designated by the President as 
Chairman; and 
‘‘(2) 2 members appointed by the President, of 
whom—
‘‘(A) 1 shall be appointed by the President 
after taking into consideration the recommenda-
tion made by the Speaker of the House of Rep-
resentatives in consultation with the Minority 
Leader of the House of Representatives; and 
‘‘(B) 1 shall be appointed by the President 
after taking into consideration the recommenda-
tion made by the Majority Leader of the Senate 
in consultation with the Minority Leader of the 
Senate. 
‘‘(c) ADVICE AND CONSENT.—Appointments under 
subsection (b) shall be made by and with the advice and 
consent of the Senate. 
‘‘(d) MEMBERSHIP REQUIREMENTS.—Members of 
the Board shall have substantial experience, training, and
expertise in the management of financial investments and 
pension benefit plans. 
‘‘(e) LENGTH OF APPOINTMENTS.—
‘‘(1) TERMS.—A member of the Board shall be 
appointed for a term of 4 years, except that of the 
members first appointed under subsection (b)—
‘‘(A) the Chairman shall be appointed for 
a term of 4 years; 
‘‘(B) the members appointed under sub-
section (b)(2) shall be appointed for terms of 3 
years; and 
‘‘(C) the remaining members shall be ap-
pointed for terms of 2 years. 
‘‘(2) VACANCIES.—
‘‘(A) IN
GENERAL.—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 that applied with re-
spect to the original appointment. 
‘‘(B) COMPLETION
OF
TERM.—An indi-
vidual chosen to fill a vacancy shall be ap-
pointed for the unexpired term of the member 
replaced.