the Tier II Investment Fund of the Savings Fund; 
plus 
‘‘(2) the excess of—
‘‘(A) all deposits in the Tier II Investment 
Fund of the Savings Fund credited to such par-
ticipating individual’s personal social security 
savings account, subject to such increases and 
reductions as may result from allocations made 
to and reductions made in the account pursuant 
to subsection (c)(1); over 
‘‘(B) amounts paid out of the Tier II In-
vestment Fund in connection with amounts 
credited to such participating individual’s per-
sonal social security savings account; plus 
‘‘(3) the excess of—
‘‘(A) the deposits in the Tier III Invest-
ment Options credited to such participating in-
dividual’s personal social security savings ac-
count, subject to such increases and reductions 
as may result from amounts credited to, and re-
ductions made in, the account pursuant to sub-
section (c)(2); over 
‘‘(B) amounts paid out of the Tier III In-
vestment Options of such participating indi-
vidual.
The calculation made under paragraph (3) shall be made 
separately for each Tier III Investment Option of the par-
ticipating individual. The Board shall also hold for the 
participating individual any benefit credit certificate as-
signed to the participating individual’s personal social se-
curity savings account under section 255. 
‘‘(c) ALLOCATION OF EARNINGS AND LOSSES.—Pur-
suant to regulations which shall be prescribed by the 
Board, the Executive Director shall allocate to each per-
sonal social security savings account an amount equal to 
the net earnings and net losses from each investment of 
sums—
‘‘(1) in the Tier I Investment Fund and the 
Tier II Investment Fund which are attributable to 
sums credited to such account reduced by an appro-
priate share of the administrative expenses paid out 
of the net earnings, as determined by the Executive 
Director; and 
‘‘(2) in the Tier III Investment Options which 
are attributable to sums credited to such account re-
duced by the administrative expenses paid out of the 
net earnings. 
‘‘SEC. 255. BENEFIT CREDIT CERTIFICATES. 
‘‘(a) IN GENERAL.—As soon as is practicable after 
a personal social security savings account is established
under this part with respect to any participating indi-
vidual, the Board shall certify the establishment of such 
account to the Secretary of the Treasury, and, upon re-
ceipt of such certification, such Secretary shall assign to 
the account of such individual a benefit credit certificate. 
The benefit credit certificate shall be evidenced by a paper 
instrument provided to the participating individual setting 
forth the terms specified in this section, and stating on 
its face that the certificate shall be incontestable in the 
hands of the bearer, that the certificate is supported by 
the full faith and credit of the United States, and that 
the United States is pledged to the satisfaction of the 
terms of the certificate as provided in this section. 
‘‘(b) VALUE.—
‘‘(1) FACE VALUE.—The benefit credit certifi-
cate shall have an initial face value equal to the total 
estimated actuarial present value of the future 
monthly insurance benefits under section 202 to 
which the participating individual would be entitled, 
and to which other individuals would be entitled 
under section 202 based on the participating individ-
ual’s wages and self-employment income, payable on 
or after the date on which such individual becomes 
entitled to old-age insurance benefits under section 
202(a) (or the date of such individual’s death, if ear-
lier) determined under current law as in effect on 
the date of the determination, using the assumptions 
provided under paragraph (2) and taking into ac-
count the reduction in the participating individual’s 
primary insurance amount under section 215(j). 
‘‘(2) ASSUMPTIONS.—The actuarial present 
value determined under paragraph (1) shall be de-
termined—
‘‘(A) taking into account solely wages and 
self-employment income credited to the partici-
pating individual as of the date of the deter-
mination (including any amounts creditable to 
such individual as of such date but not yet 
credited as of such date, as estimated in accord-
ance with regulations which shall be prescribed 
by the Board), 
‘‘(B) assuming that the participating indi-
vidual would become entitled to old-age insur-
ance benefits under section 202(a) on the day 
such individual would attain retirement age (as 
defined in section 216(l)(1)), and 
‘‘(C) using reasonable actuarial and eco-
nomic assumptions concerning mortality rates, 
discount rates, wage growth, and other relevant 
factors.
‘‘(3) ADJUSTMENT TO VALUE.—Not less than 
annually, the Board shall update the face value of 
the benefit credit certificate to reflect any changes in 
the total estimated actuarial present value of the fu-
ture monthly benefits described in paragraph (1), as 
determined under this subsection as of the date of 
the update. 
‘‘(c) REDEMPTION.—Redemption of a benefit credit 
certificate assigned to a participating individual’s personal 
social security savings account shall be obtained only by 
means of the receipt of benefits under section 202 by indi-
viduals entitled to such benefits under part A, based on 
the wages and self-employment income of such partici-
pating individual, on or after the date on which the par-
ticipating individual becomes entitled to old-age insurance 
benefits under section 202(a) (or the date of such individ-
ual’s death, if earlier), taking into account section 215(j). 
Payment of such benefits shall constitute full redemption 
of such certificate. 
‘‘SEC. 256. TIER I INVESTMENT FUND. 
‘‘(a) ESTABLISHMENT
OF
TIER
I INVESTMENT 
FUND.—
‘‘(1) IN GENERAL.—The Savings Fund shall in-
clude a separate fund to be known as the ‘Tier I In-
vestment Fund’.