a court decree, order, or agreement or an election re-
ferred to in subsection (a) shall not be effective, in 
the case of a former spouse, to the extent that the 
election is inconsistent with any joint waiver pre-
viously executed with respect to such former spouse 
under subsection (a)(2) or (b)(2). 
‘‘(8) EXCLUSIVE
RECOVERY.—Any payment 
under this subsection to any individual bars recovery 
by any other individual. 
‘‘(e) WAIVERS
AND MODIFICATIONS SUBJECT
TO 
PRESCRIBED PROCEDURES.—Waivers and notifications 
required by this section and waivers of the requirements 
for such waivers and notifications (as authorized by this 
section) may be made only in accordance with procedures 
prescribed by the Executive Director. 
‘‘(f) INAPPLICABILITY TO MINIMAL ACCOUNT BAL-
ANCES.—None of the provisions of this section requiring 
notification to, or the consent or waiver of, a spouse or 
former spouse of an account holder shall apply in any case 
in which the balance in the account holder’s investment 
account is $3,500 or less. 
‘‘(g) APPLICABLE COURT ORDERS.—The protections 
provided by this section are in addition to the protections 
provided by section 263.
‘‘SEC. 259. ADMINISTRATIVE PROVISIONS. 
‘‘(a) PAYMENTS AND TRANSFERS IN ACCORDANCE 
WITH ELECTION.—The Executive Director shall make or 
provide for payments and transfers in accordance with an 
election of an account holder under section 256 or 257(b) 
or, if applicable, in accordance with section 258. 
‘‘(b) ELECTIONS AND MODIFICATIONS OF DEFERRED 
COMMENCEMENT DATES
IN WRITING.—Any election, 
change of election, or modification of a deferred annuity 
commencement date made under this part shall be in writ-
ing and shall be filed with the Executive Director in ac-
cordance with regulations prescribed by the Executive Di-
rector. 
‘‘SEC. 260. SOCIAL SECURITY INVESTMENT TRUST FUND. 
‘‘(a) IN GENERAL.—There is established in the 
Treasury of the United States a Social Security Invest-
ment Trust Fund. 
‘‘(b) AMOUNT COMPRISING THE TRUST FUND.—The 
Trust Fund consists of the sum of all amounts contributed 
under sections 252(c) and 253, increased by the total net 
earnings from investments of sums in the Trust Fund 
under section 254 or reduced by the total net losses from 
investments of the Trust Fund under such section, and 
reduced by the total amount of payments made from the 
Trust Fund (including payments for administrative ex-
penses).
‘‘(c) APPROPRIATION OF TRUST FUND AMOUNTS.—
The sums in the Trust Fund are appropriated and shall 
remain available without fiscal year limitation—
‘‘(1) to invest under section 254; 
‘‘(2) to make distributions or purchase annuity 
contracts under this part; 
‘‘(3) to pay the administrative expenses in-
curred in carrying out this part under subsection 
(d); and 
‘‘(4) to purchase insurance as provided in sub-
section (h)(3)(B). 
‘‘(d) ADMINISTRATIVE EXPENSES.—Administrative 
expenses incurred to carry out this part shall be paid out 
of net earnings in the Trust Fund. 
‘‘(e) ASSIGNMENT OR ALIENATION AND RELATED 
MATTERS.—
‘‘(1) EXCLUSIVE
BENEFIT
OF
THE
ACCOUNT 
HOLDER.—Subject to subsection (d) and paragraphs 
(2) and (3), sums in the Trust Fund credited to the 
account of any account holder may not be used for, 
or diverted to, purposes other than for the exclusive 
benefit of the account holder or other persons to 
whom distributions are made under section 255. 
‘‘(2) IMMUNITY
FROM
ASSIGNMENT, ALIEN-
ATION, AND CERTAIN OTHER LEGAL PROCESS.—Ex-
cept as provided in paragraph (3), sums in the 
Trust Fund may not be assigned or alienated and 
are not subject to execution, levy, attachment, gar-
nishment, or other legal process. 
‘‘(3) EXCEPTIONS.—Moneys due or payable 
from the Trust Fund to any person and, in the case 
of an account holder, the balance in the individual 
account of the account holder, shall be subject to 
legal process for the enforcement of the legal obliga-
tions of such person or account holder to provide 
child support or make alimony payments as provided 
in section 459 or relating to the enforcement of a 
judgment for physically, sexually, or emotionally 
abusing a child as provided under section 263. 
‘‘(f) EXCLUSIVE APPROPRIATION.—The sums in the 
Trust Fund shall not be appropriated for any purpose 
other than the purposes specified in this section and may 
not be used for any other purpose. 
‘‘(g) CONTRIBUTIONS
AND
EARNINGS
HELD
IN 
TRUST FOR ACCOUNT HOLDERS.—All sums contributed 
to the Trust Fund by an account holder and all net earn-
ings in the Trust Fund attributable to investment of such 
sums are held in the Trust Fund in trust for such account 
holder.
‘‘(h) FIDUCIARY RESPONSIBILITIES; ENFORCEMENT 
UNDER THE SECRETARY OF LABOR.—
‘‘(1) IN GENERAL.—Under regulations of the 
Secretary of Labor, the provisions of sections 8477 
and 8478 of title 5, United States Code, shall apply 
in connection with the Trust Fund in the same man-
ner and to the same extent as such provisions apply 
in connection with the Thrift Savings Fund. 
‘‘(2) INVESTIGATIVE AUTHORITY.—Any author-
ity available to the Secretary of Labor under section 
504 of the Employee Retirement Income Security 
Act of 1974 is hereby made available to the Sec-
retary of Labor, and any officer designated by the 
Secretary of Labor, to determine whether any person 
has violated, or is about to violate, any provision ap-
plicable under paragraph (1). 
‘‘(3) EXCULPATORY PROVISIONS; INSURANCE.—
‘‘(A) IN GENERAL.—Any provision in an 
agreement or instrument which purports to re-
lieve a fiduciary from responsibility or liability 
for any responsibility, obligation, or duty under 
this part shall be void. 
‘‘(B) INSURANCE.—The Trust Fund shall 
be available and may be used at the discretion 
of the Executive Director to purchase insurance
to cover potential liability of persons who serve 
in a fiduciary capacity with respect to the Trust 
Fund, without regard to whether a policy of in-
surance permits recourse by the insurer against 
the fiduciary in the case of a breach of a fidu-
ciary obligation. 
‘‘SEC. 261. WAIVER, ALLOTMENT AND ASSIGNMENT OF PAY-
MENTS. 
‘‘(a) WAIVER OF ENTITLEMENT.—An individual enti-
tled to an annuity or other payment payable from the 
Trust Fund may decline to accept all or any part of the 
amount of the payment by a waiver signed and filed with 
the Executive Director. The waiver may be revoked in 
writing at any time. Payment of the annuity waived may 
not be made for the period during which the waiver is in 
effect. 
‘‘(b) ALLOTMENTS OR ASSIGNMENTS.—An individual 
entitled to an annuity or other payment payable from the 
Trust Fund may make allotments or assignments of 
amounts from the annuity or other payment for such pur-
poses as the Executive Director considers appropriate. 
‘‘SEC. 262. APPLICATION FOR ANNUITY OR OTHER PAY-
MENTS. 
‘‘(a) APPLICATIONS REQUIRED.—No payment of an 
annuity or other payment from the Social Security Invest-
ment Trust Fund under this part may be made unless an 
application for payment of the annuity or other payment 
is received by the Executive Director before the one hun-
dred and fifteenth anniversary of the birth of the account 
holder. 
‘‘(b) APPLICATIONS WITH RESPECT TO DECEASED 
ACCOUNT HOLDERS.—Notwithstanding subsection (a), 
after the death of an account holder, a payment of the 
annuity or other payment shall not be paid unless an ap-
plication therefor is received by the Executive Director 
within 30 years after the death or other event which estab-
lishes the entitlement to the annuity or other payment. 
‘‘SEC. 263. COURT ORDERS. 
‘‘(a) ALTERNATIVE PAYEES UNDER COURT OR-
DERS.—Payments under this part which would otherwise 
be made to an account holder or an annuitant shall be 
paid (in whole or in part) by the Executive Director to 
another person if and to the extent expressly provided for 
in the terms of—
‘‘(1) any court decree of divorce, annulment, or 
legal separation, or the terms of any court order or 
court-approved property settlement agreement inci-
dent to any court decree of divorce, annulment, or 
legal separation; or
‘‘(2) any court order or other similar process in 
the nature of garnishment for the enforcement of a 
judgment rendered against such account holder or 
annuitant, for physically, sexually, or emotionally 
abusing a child. 
In the event that the Executive Director, as the case may 
be, is served with more than 1 decree, order, or other legal 
process with respect to the same moneys due or payable 
to any individual, such moneys shall be available to satisfy 
such processes on a first-come, first-served basis, with any 
such process being satisfied out of such moneys as remain 
after the satisfaction of all such processes which have been 
previously served. 
‘‘(b) 
WRITTEN
NOTICE
REQUIREMENTS.—Sub-
section (a) shall apply only to payments made by the Exec-
utive Director under this part after the date on which the 
Executive Director receives written notice of such decree, 
order, other legal process, or agreement, and such addi-
tional information and documentation as the Executive 
Director may require. 
‘‘(c) DEFINITIONS.—For the purpose of this sec-
tion—
‘‘(1) the term ‘judgment rendered for phys-
ically, sexually, or emotionally abusing a child’ 
means any legal claim perfected through a final en-
forceable judgment, which claim is based in whole or 
in part upon the physical, sexual, or emotional abuse 
of a child, whether or not that abuse is accompanied 
by other actionable wrongdoing, such as sexual ex-
ploitation or gross negligence; and 
‘‘(2) the term ‘child’ means an individual under 
18 years of age. 
‘‘SEC. 264. WITHHOLDING OF STATE INCOME TAXES. 
‘‘(a) WITHHOLDING AGREEMENTS.—The Executive 
Director shall, in accordance with this section, enter into 
an agreement with any State within 120 days of a request 
for agreement from the proper State official. The agree-
ment shall provide that the Executive Director shall with-
hold State income tax in the case of the monthly annuity 
of any annuitant who voluntarily requests, in writing, such 
withholding. The amounts withheld during any calendar 
quarter shall be held in the Trust Fund and disbursed 
to the States during the month following that calendar 
quarter. 
‘‘(b) NO MULTIPLE REQUESTS.—An annuitant may 
have in effect at any time only one request for withholding 
under this section, and an annuitant may not have more 
than two such requests in effect during any one calendar 
year.