‘‘(l) SUBMISSION
OF LEGISLATIVE RECOMMENDA-
TIONS.—The Board may submit to the President, and, at 
the same time, shall submit to each House of Congress, 
any legislative recommendations of the Board relating to 
any of its functions under this part or any other provision 
of law. 
‘‘SEC. 262. EXECUTIVE DIRECTOR. 
‘‘(a) APPOINTMENT OF EXECUTIVE DIRECTOR.—The 
Board shall appoint, without regard to the provisions of 
law governing appointments in the competitive service, an 
Executive Director by action agreed to by a majority of 
the members of the Board. 
‘‘(b) DUTIES.—The Executive Director shall, as de-
termined appropriate by the Board—
‘‘(1) carry out the policies established by the 
Board; 
‘‘(2) invest and manage the Tier I Investment 
Fund and the Tier II Investment Fund in accord-
ance with the investment policies and other policies 
established by the Board; 
‘‘(3) administer the provisions of this part re-
lating to the Tier I Investment Fund and the Tier 
II Investment Fund; and 
‘‘(4) prescribe such regulations (other than reg-
ulations relating to fiduciary responsibilities) as may
be necessary for the administration of this part re-
lating to the Tier I Investment Fund and the Tier 
II Investment Fund. 
‘‘(c) ADMINISTRATIVE AUTHORITY.—The Executive 
Director may, within the scope of the duties of the Execu-
tive Director as determined by the Board—
‘‘(1) appoint such personnel as may be nec-
essary to carry out the provisions of this part relat-
ing to the Tier I Investment Fund and the Tier II 
Investment Fund; 
‘‘(2) subject to approval by the Board, procure 
the services of experts and consultants under section 
3109 of title 5, United States Code; 
‘‘(3) secure directly from an Executive agency, 
the United States Postal Service, or the Postal Rate 
Commission any information necessary to carry out 
the provisions of this part and the policies of the 
Board relating to the Tier I Investment Fund and 
the Tier II Investment Fund; 
‘‘(4) make such payments out of sums in the 
Tier I Investment Fund and the Tier II Investment 
Fund as the Executive Director determines, in ac-
cordance with regulations of the Board, are nec-
essary to carry out the provisions of this part and 
the policies of the Board;
‘‘(5) pay the compensation, per diem, and travel 
expenses of individuals appointed under paragraphs 
(1), (2), and (6) from the Tier I Investment Fund 
or the Tier II Investment Fund, in accordance with 
regulations of the Board; 
‘‘(6) accept and use the services of individuals 
employed intermittently in the Government service 
and reimburse such individuals for travel expenses, 
authorized by section 5703 of title 5, United States 
Code, including per diem as authorized by section 
5702 of such title; 
‘‘(7) except as otherwise expressly prohibited by 
law or the policies of the Board, delegate any of the 
Executive Director’s functions to such employees 
under the Board as the Executive Director may des-
ignate and authorize such successive redelegations of 
such functions to such employees under the Board 
as the Executive Director may consider to be nec-
essary or appropriate; and 
‘‘(8) take such other actions as are appropriate 
to carry out the functions of the Executive Direc-
tor.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply with respect to wages paid after 
December 31, 2004, for pay periods ending after such
date and self-employment income for taxable years begin-
ning after such date. 
SEC. 3. ADJUSTMENTS TO PRIMARY INSURANCE AMOUNTS. 
(a) IN GENERAL.—Section 215 of the Social Security 
Act (42 U.S.C. 415) is amended by adding at the end the 
following new subsection: 
‘‘Adjustment of Primary Insurance Amount in Relation 
to Deposits Made to Personal Social Security Sav-
ings Accounts 
‘‘(j)(1) Except as provided in paragraph (3), the pri-
mary insurance amount of a participating individual under 
the Personal Social Security Savings Accounts Program 
under part B of this title, as determined in accordance 
with this section before adjustments made under sub-
section (i), shall be equal to the product derived by multi-
plying—
‘‘(A) the primary insurance amount as deter-
mined before the application of this subsection; by 
‘‘(B) a fraction—
‘‘(i) the numerator of which is the excess 
of—
‘‘(I) the total of amount of redirected 
social security contributions (as defined in 
section 252(b)(3)) that would have been 
transferred to the Social Security Personal
Savings Fund in connection with such indi-
vidual for each year after such individual 
attained the age of 18 had the individual 
been a participating individual on the date 
such individual attained the age of 18, over 
‘‘(II) the present value of the actual 
total amount of redirected social security 
contributions (as so defined) deposited in 
the Social Security Personal Savings Fund 
in connection with such individual for each 
year during which such individual was a 
participating individual, 
assuming for each year the present value of the 
amount determined for such year, and 
‘‘(ii) the denominator of which is the 
amount described in clause (i)(I), 
rounded to the next higher multiple of $0.10 where such 
product is a multiple of $0.05 but not a multiple of $0.10 
and to the nearest multiple of $0.10 in any other case. 
‘‘(2) In determining the present values for purposes 
of paragraph (1), the Commissioner of Social Security 
shall assume an annual interest rate for any period equal 
to the average annual yield on investments of the Federal 
Old-Age and Survivors Insurance Trust Fund for such pe-
riod under section 201(d).