investment of amounts held in each investment 
account referred to paragraph (1) shall invest 
such amounts under regulations which shall be 
prescribed by the Board so as to ensure, to the 
maximum extent practicable, that, of the total 
balance in the Fund credited to such account 
and available for investment (after allowing for 
administrative expenses)—
‘‘(i) the prescribed equities percentage 
is invested in equities in accordance with 
paragraph (4), and 
‘‘(ii) the prescribed fixed income in-
struments percentage is invested in fixed 
income instruments in accordance with 
paragraph (5). 
‘‘(B) PRESCRIBED
PERCENTAGES.—For 
purposes of subparagraph (A)—
‘‘(i) THE
65/35
INVESTMENT
AC-
COUNT.—In the case of the 65/35 invest-
ment account—
‘‘(I) the prescribed equities per-
centage is 65 percent, and 
‘‘(II) the prescribed fixed income 
instruments percentage is 35 percent.
‘‘(ii) THE
50/50
INVESTMENT
AC-
COUNT.—In the case of the 50/50 invest-
ment account—
‘‘(I) the prescribed equities per-
centage is 50 percent, and 
‘‘(II) the prescribed fixed income 
instruments percentage is 50 percent. 
‘‘(iii) THE
80/20
INVESTMENT
AC-
COUNT.—In the case of the 80/20 invest-
ment account—
‘‘(I) the prescribed equities per-
centage is 80 percent, and 
‘‘(II) the prescribed fixed income 
instruments percentage is 20 percent. 
‘‘(3) ELECTION OF INVESTMENT OPTIONS.—
‘‘(A) DEFAULT INVESTMENT ACCOUNT.—
Except as provided in an election in effect 
under subparagraph (B), amounts held in the 
Tier II Investment Fund shall be credited to 
the 65/35 investment account. 
‘‘(B) ELECTION OF TRANSFERS BETWEEN 
INVESTMENT ACCOUNTS.—In any case in which 
a participating individual who has an amount in 
such individual’s personal social security sav-
ings account credited to any of the investment
accounts in the Tier II Investment Fund files 
with the Secretary of the Treasury a written 
election under this subparagraph, not more fre-
quently than annually and in accordance with 
regulations of the Board, the Secretary of the 
Treasury shall transfer the full amount so cred-
ited in such investment account from such in-
vestment account to any one of the other invest-
ment accounts in the Tier II Investment Fund 
(whichever is designated in such election). 
‘‘(4) INVESTMENT IN EQUITIES.—In accordance 
with regulations which shall be prescribed by the 
Board, the Board shall establish standards which 
must be met by equities selected for investment of 
the balance of the Tier II Investment Fund pursu-
ant to paragraph (2)(A)(i). In conformity with such 
standards, the Board shall select, for purposes of 
such investment, indices which are comprised of eq-
uities the aggregate market value of which is, in 
each case, a reasonably broad representation of com-
panies whose shares are traded on the equity mar-
kets. Amounts invested in equities under an invest-
ment option shall be held in a portfolio designed to 
replicate the performance of one or more of such in-
dices.
‘‘(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 the balance of 
the Tier II Investment Fund pursuant to paragraph 
(2)(A)(ii). Such standards shall take into account 
the competing considerations of risk and return. 
Amounts invested in fixed income instruments in an 
investment option shall be held in a portfolio which 
shall consist of a diverse range of fixed income in-
struments, taking into full account the opposing con-
siderations of risk and maximization of return. 
‘‘(6) 
DISCLOSURE
OF
ADMINISTRATIVE 
COSTS.—The Executive Director shall provide to 
each participating individual an annual disclosure of 
the rate of administrative costs chargeable with re-
spect to investment in each investment account in 
the Tier II Investment Fund. Such disclosure shall 
be written in a manner calculated to be understood 
by the average participating individual. 
‘‘(d) ADJUSTMENT OF PRESCRIBED PERCENTAGES 
AND ALLOWANCE
OF ADDITIONAL INVESTMENT AC-
COUNTS.—