select, for purposes of such investment, indices 
which are comprised of equities the aggregate mar-
ket value of which is, in each case, a reasonably 
broad representation of companies whose shares are 
traded on the equity markets. Amounts invested in 
equities by each investment manager shall be held in 
a portfolio designed to replicate the performance of 
one or more of such indices. 
‘‘(5) INVESTMENT IN FIXED INCOME INSTRU-
MENTS.—In accordance with regulations which shall 
be prescribed by the Board, the Board shall estab-
lish standards which must be met by fixed income 
instruments selected for investment of amounts in 
any management account in the Tier II Investment 
Fund pursuant to paragraph (2)(A)(ii). Such stand-
ards shall take into account the competing consider-
ations of risk and return. Amounts invested in fixed 
income instruments by each investment manager 
shall be held in a portfolio which shall consist of a 
diverse range of fixed income instruments, taking 
into full account the opposing considerations of risk 
and maximization of return. 
‘‘(c) PERIODIC REPORTS BY BOARD.—
‘‘(1) IN GENERAL.—The Board shall make peri-
odic reports concerning the status of the investment
in the Tier II Investment Fund of amounts credited 
to each participant’s part B totalization account. 
Each periodic report shall be furnished to the partic-
ipant on at least a semiannual basis on or before the 
60th day following the period for which the report 
is required. 
‘‘(2) INFORMATION
REQUIRED
TO
BE
IN-
CLUDED.—The periodic report shall contain the fol-
lowing information for transactions occurring during 
the period for which the report is provided: 
‘‘(A) The balance in the Tier II Investment 
Fund credited to the participant’s part B total-
ization account. 
‘‘(B) The rate of return on such balance 
for the period covered, set forth separately for 
each management account in the case of an in-
vestment in 2 or more management accounts 
during the period. 
‘‘(C) The amount of authorized contribu-
tions made to the Tier II management account 
and credited to the participant’s part B total-
ization account. 
‘‘(D) The name and address of the Board. 
‘‘(E) Commission fees and fees for admin-
istrative expenses charged in connection with
the investment in the Tier II Improvement 
Fund during the period. 
‘‘(F) Other information which may be re-
quired from time to time by the Board. 
The language of the report shall be written in a 
form so as to be understood by the average partici-
pant. 
‘‘(d) LUMP SUM PAYMENT TO ESTATE UPON DEATH 
OF PARTICIPANT.—Upon the death of a participant, the 
amount of any assets in the Tier II 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 individual’s 
estate. 
‘‘SEC. 255. TIER III INVESTMENT ACCOUNTS. 
‘‘(a) DESIGNATION OF TIER II INVESTMENT AC-
COUNTS.—Under regulations prescribed by the Board, a
participant, upon the initial attainment of a minimum de-
posit balance in amounts in the Tier II Investment Fund 
credited to the participant’s part B totalization account, 
as described in section 252(c), may designate to the 
Board, in such form and manner as shall be prescribed 
in such regulations, a Tier III investment account to 
which deposits with respect to the individual are to be 
made under section 252(c). The individual may designate 
another Tier III investment account in lieu of any account 
previously designated, in accordance with regulations of 
the Board. 
‘‘(b) DEFINITION.—For purposes of this part, the 
term ‘Tier III investment account’ means a trust created 
or organized in the United States for the exclusive benefit 
of a participant or his beneficiaries, but only if the written 
governing instrument creating the trust meets the fol-
lowing requirements: 
‘‘(1) RESTRICTED
CONTRIBUTIONS.—No con-
tribution will be accepted unless it is in the form of 
a deposit to the account pursuant to section 
252(c)(1). 
‘‘(2) TRUSTEE
REQUIREMENTS.—The trustee 
is—
‘‘(A) a bank (as defined in section 581 of 
the Internal Revenue Code of 1986),
‘‘(B) an insured credit union (as defined in 
section 101(6) of the Federal Credit Union 
Act), 
‘‘(C) a corporation which, under the laws 
of the State of its incorporation, is subject to 
supervision and examination by the Commis-
sioner of Banking or other officer of such State 
in charge of the administration of the banking 
laws of such State, 
‘‘(D) a regulated investment company (as 
defined in section 851 of the Internal Revenue 
Code of 1986) for which an election is in effect 
under section 851(b)(1) of such Code, or 
‘‘(E) any other person designated by the 
Board under regulations prescribed under this 
paragraph, 
but only if the trustee demonstrates to the satisfac-
tion of the Board that its portfolio assets either rep-
licate the assets of a broad-based index of equities 
or fixed income instruments which is approved by 
the Board or are of a type that the Board has deter-
mined not to involve high risks for the investor, and 
that the manner in which it will administer the trust 
will be consistent with the requirements of this sec-
tion.