‘‘(2) AMOUNTS IN FUND.—The Tier I Invest-
ment Fund consists of all amounts derived from 
payments into the Fund under section 252(b) and 
remaining after investment of such amounts under 
subsection (b), including additional amounts derived 
as income from such investments. 
‘‘(3) USE OF FUNDS.—The amounts held in the 
Fund are appropriated and shall remain available 
without fiscal year limitation—
‘‘(A) to be held for investment on behalf of 
participating individuals under subsection (b), 
‘‘(B) to pay the administrative expenses re-
lated to the Fund, and 
‘‘(C) to make transfers from the Fund 
under subsection (c)(2). 
‘‘(b) INVESTMENT OF FUND BALANCE.—For pur-
poses of investment of the Tier I Investment Fund, the 
Board shall contract with appropriate professional asset 
managers, recordkeepers, and custodians selected for in-
vestment of amounts held in the Fund, so as to provide 
for investment of the balance of the Fund, in a manner 
providing broad diversification in accordance with regula-
tions of the Board, in—
‘‘(1) insurance contracts, 
‘‘(2) certificates of deposit, or
‘‘(3) other instruments or obligations selected 
by such asset managers, 
which return the amount invested and pay interest, at a 
specified rate or rates, on that amount during a specified 
period of time. 
‘‘(c) SEPARATE CREDITING TO PERSONAL SOCIAL 
SECURITY SAVINGS ACCOUNTS AND TRANSFERS TO THE 
TIER II INVESTMENT FUND OR TO TIER III INVESTMENT 
OPTIONS.—
‘‘(1) CREDITING TO ACCOUNTS.—
‘‘(A) IN GENERAL.—Subject to this para-
graph, the Board shall provide for prompt, sep-
arate crediting, as soon as practicable, of the 
amounts deposited in the Tier I Investment 
Fund to the personal social security savings ac-
count of each participating individual with re-
spect to the redirected social security contribu-
tions (as defined in section 252(b)(3)) of such 
participating individual. The Board shall in-
clude in such crediting, with respect to each 
such individual, any increases or decreases in 
such amounts so as to reflect the net returns 
and losses from investment of the balance of 
the Fund prior to such crediting. For purposes 
of determining such increases and decreases for
each calendar year, the amounts deposited into 
the Fund in connection with such individual 
during such calendar year shall be deemed to 
have been deposited on June 30 of such year. 
‘‘(B) TREATMENT OF MARRIED PARTICI-
PATING INDIVIDUALS.—If the participating in-
dividual is married as of the end of the calendar 
year in which the amounts to be credited were 
deposited in the Tier I Investment Fund and 
the spouse is also a participating individual, the 
personal social security savings account of the 
participating individual and the personal social 
security savings account of his or her spouse 
shall each be credited with 50 percent of such 
amounts. 
‘‘(2) TRANSFERS
FROM
THE
TIER
I
INVEST-
MENT
FUND.—In accordance with elections filed 
with the Board by a participating individual, any 
amount credited to the personal social security sav-
ings account of such participating individual under 
paragraph (1) shall be promptly transferred to the 
Tier II Investment Fund of the Savings Fund for 
investment in accordance with section 257 and, to 
the extent available under section 258, to Tier III 
Investment Options in accordance with section 258.
‘‘(d) TREATMENT OF AMOUNTS HELD IN TIER I IN-
VESTMENT FUND.—Subject to this part—
‘‘(1) until amounts deposited into the Tier I In-
vestment Fund during any calendar year are cred-
ited to personal social security savings accounts, 
such amounts shall be treated as the unallocated 
property of all participating individuals with respect 
to whom amounts were deposited in the Fund dur-
ing such year, jointly held in trust for such partici-
pating individuals in the Savings Fund, and 
‘‘(2) amounts deposited into the Fund which 
are credited to the personal social security savings 
account of a participating individual shall be treated 
as property of the participating individual, held in 
trust for such participating individual in the Savings 
Fund. 
‘‘SEC. 257. TIER II INVESTMENT FUND. 
‘‘(a) ESTABLISHMENT
OF TIER II INVESTMENT 
FUND.—
‘‘(1) IN GENERAL.—The Savings Fund shall in-
clude a separate fund to be known as the ‘Tier II 
Investment Fund’. 
‘‘(2) AMOUNTS IN FUND.—The Tier II Invest-
ment Fund consists of all amounts derived from 
payments into the Fund under section 256(c)(2) and