109 HR 3304 IH: Growing Real Ownership for Workers Act of 2005
U.S. House of Representatives
2005-07-14
text/xml
EN
Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
1.Short title; table of contents
(a)This Act may be cited as the Growing Real Ownership for Workers Act of 2005
.
(b)The table of contents is as follows:
Sec. 1. Short title; table of contents
Title I—GROW Accounts Program
Sec. 101. Establishment of the GROW Accounts Program
Part B—GROW Accounts Program
Sec. 251. Definitions
Sec. 252. Establishment of Program
Sec. 253. Participation in Program
Sec. 254. Interim investment by Board
Sec. 255. GROW accounts
Sec. 256. Investment of accounts
Sec. 257. Distributions of account balance at retirement
Sec. 258. Treatment of part A benefit payments
Sec. 259. Additional rules relating to disposition of account assets
Sec. 260. Administration of the Program
Sec. 102. Annual account statements
Sec. 103. Report and Congressional consideration of proposals regarding alternative investment options and other matters
Title II—Tax treatment
Sec. 201. Tax treatment of GROW accounts
Sec. 202. Benefits taxable as Social Security benefits
Sec. 203. Estate tax not to apply to assets of GROW accounts
<enum>I</enum><header>GROW Accounts Program</header>
<section id="H819E38D1A7EC47178B9DEF177C10093"><enum>101.</enum><header>Establishment of the GROW Accounts Program</header>
<subsection id="HF6A2C0E224654326A7EE9DC9BDF1D7F2"><enum>(a)</enum><header>In general</header><text>Title II of the <act-name parsable-cite="SSA">Social Security Act</act-name> is amended—</text>
<paragraph id="H6E9506A8546B42CABDB1C292683B108F"><enum>(1)</enum><text>by inserting before section 201 the following:</text>
<quoted-block id="H4EDB68E6362B40BFB16BA8ED3718751F" style="traditional">
<part id="H359185D882264D788DEF43113AC618F"><enum>A</enum><header>Insurance benefits</header></part><after-quoted-block>; and</after-quoted-block></quoted-block></paragraph>
<paragraph id="HB6E091616D9D4B669DB0C83002B5594B"><enum>(2)</enum><text>by adding at the end of such title the following new part:</text>
<quoted-block style="traditional" id="H42784E7E7F644631A2CB56AC7238D7A7">
<part id="H51212BBC94B5451C8CD0C6CF1EC70969"><enum>B</enum><header>GROW Accounts Program</header>
<section id="HA5B498FBBD7A4BC8BA64A78436F9C5E5"><enum>251.</enum><header>Definitions</header><text display-inline="yes-display-inline">For purposes of this part—</text>
<paragraph id="HC8534D05E4AF4300A00097B200D7E520"><enum>(1)</enum><header>Participating individual</header><text>The term <term>participating individual</term> has the meaning provided in section 253(a).</text></paragraph>
<paragraph id="H44403128EF4A4F57BD5BC7FF6000E9BC"><enum>(2)</enum><header>Account assets</header><text>The term <term>account assets</term> means, with respect to a GROW account, the total amount transferred to such account, increased by earnings credited under this part and reduced by losses and administrative expenses under this part.</text></paragraph>
<paragraph id="HC5EF9C0B580D457D92694340FA48C6F4"><enum>(3)</enum><header>Certified account manager</header><text>The term <term>certified account manager</term> means a person who is certified under section 260(b).</text></paragraph>
<paragraph id="HEF76FCD62D104DBB9672F4DBC973B53C"><enum>(4)</enum><header>Board</header><text>The term <term>Board</term> means the GROW Accounts Board established under section 260(a)(1).</text></paragraph>
<paragraph id="HBE24C8272AD24BF486C2586BCDF04165" commented="no"><enum>(5)</enum><header>Executive Director</header><text>The term <quote>Executive Director</quote> means the Executive Director of the Board appointed under section 260(a)(2).</text></paragraph>
<paragraph id="H27D38376FE3F4C6DAB044EA436B1BE13"><enum>(6)</enum><header>Commissioner</header><text>The term <term>Commissioner</term> means the Commissioner of Social Security.</text></paragraph>
<paragraph id="H5942E7152CE6471C846946E788CB006F"><enum>(7)</enum><header>Program</header><text>The term <term>Program</term> means the GROW Accounts Program established under this part.</text></paragraph>
<paragraph id="H300BB185B112433D00BEE8F5EE22AA6B"><enum>(8)</enum><header>Retirement benefit</header><text>The term <quote>retirement benefit</quote> means, with respect to any month— </text>
<subparagraph id="H872DD0859C2C48388C303589C6FBC3EE"><enum>(A)</enum><text>an old-age insurance benefit under section 202(a) for such month,</text></subparagraph>
<subparagraph id="HAE4B86F9CDC04BE59C70D74CC7D528A7"><enum>(B)</enum><text>a wife’s insurance benefit or husband’s insurance benefit under subsection (b) or (c) of section 202 for such month, if the wife or husband has attained age 62 as of the end of such month,</text></subparagraph>
<subparagraph id="H7BBEE08300C34242A9B31BB3F99EC23B"><enum>(C)</enum><text>a widow’s insurance benefit or widower’s insurance benefit under subsection (e) or (f) of section 202 for such month, if the widow or widower has attained age 60 as of the end of such month, and</text></subparagraph>
<subparagraph id="HE737DFB05200413581B0E4983C1FC135"><enum>(D)</enum><text>a parent’s insurance benefit under section 202(h).</text></subparagraph></paragraph>
<paragraph id="H05C4E219FFB8493B866ECE97FE50D39F" commented="no"><enum>(9)</enum><header>Retirement date</header><text>The term <quote>retirement date</quote> means, in connection with an individual, the earliest date on which such individual—</text>
<subparagraph id="H3FBA7649FE4B4084AE6108CA4DB068E5" commented="no"><enum>(A)</enum><text>is entitled to a benefit described in subparagraph (A) or (D) of paragraph (8), or</text></subparagraph>
<subparagraph id="H395E30DFFE024B65923FBB833B9C6FBF" commented="no"><enum>(B)</enum><text>is entitled to a benefit described in subparagraph (B) or (C) of paragraph (8) and has attained the age described in such subparagraph.</text></subparagraph></paragraph></section>
<section id="H51FCC74B99FF4D55A0C0720030D1E739"><enum>252.</enum><header>Establishment of Program</header><text display-inline="yes-display-inline">There is hereby established a GROW Accounts Program. Except as otherwise provided under this part, the Program shall be governed by regulations which shall be prescribed by the GROW Accounts Board. The Board, the Commissioner, and the Secretary of the Treasury shall consult with each other in issuing regulations relating to their respective duties under this part. Such regulations shall provide for appropriate exchange of information to assist them in performing their respective duties under this part.</text></section>
<section id="H381651BC62EB464C9B4F6F23EB027F43" display-inline="no-display-inline" section-type="subsequent-section"><enum>253.</enum><header>Participation in Program</header>
<subsection id="HE3D75704193D41C78986BF18AED5644" display-inline="yes-display-inline"><enum>(a)</enum><header>Participating individual</header><text>For purposes of this part, the term <quote>participating individual</quote> means any individual—</text>
<paragraph id="HAC228F5FFECE4086A277CCD1A6BC91D"><enum>(1)</enum><text display-inline="yes-display-inline">who is a citizen or national of the United States or has been assigned a social security account number that was, at the time of assignment, or at any later time, consistent with the requirements of subclause (I) or (III) of section 205(c)(2)(B)(i),</text></paragraph>
<paragraph id="HBD9D835107B24C8C8E58E36E74776966" display-inline="no-display-inline" commented="no"><enum>(2)</enum><text>who is credited under part A with wages paid for services performed after December 31, 2005, or self-employment income derived in any taxable year ending after such date,</text></paragraph>
<paragraph id="H9995CEE2CEEA4B03974169CCC9FFE28C"><enum>(3)</enum><text>who is born on or after January 1, 1950, and</text></paragraph>
<paragraph id="H7D9AC431767B416E8E842EA332D4004B"><enum>(4)</enum><text>with respect to whom there is no election in effect which has been made in a timely fashion under subsection (b) to renounce such individual’s status as a participating individual or there is in effect an election under subsection (c) to renounce an election under subsection (b).</text></paragraph><continuation-text continuation-text-level="subsection">The Commissioner shall notify the Board of the identity of each individual described in paragraphs (1), (2), and (3).</continuation-text></subsection>
<subsection id="HB530735261D74BA99ED9AED0000098DE" commented="no"><enum>(b)</enum><header>Renunciation of participation</header>
<paragraph id="H1086216969A14F2EA73D10E07EF84200" commented="no"><enum>(1)</enum><header>In general</header><text>An individual may elect, in such form and manner as shall be prescribed in regulations of the Board, to renounce such individual’s status as a <quote>participating individual</quote> for purposes of this part.</text></paragraph>
<paragraph id="H4DA3189A0DA74311953DF6FAB4CBEBDB" commented="no"><enum>(2)</enum><header>If election is timely</header>
<subparagraph id="H3A4654C4356F4B989C818C75DE293D6D" commented="no"><enum>(A)</enum><header>In general</header><text>If an individual makes an election under this subsection in timely fashion (as determined under regulations of the Board), such individual shall not be treated as a participating individual under this part, effective as if such individual had never been a participating individual.</text></subparagraph>
<subparagraph id="H7FB3255D63994AC5B2AC90A9DCBB4243" commented="no"><enum>(B)</enum><header>Procedure</header><text>The Board, in consultation with the Secretary of the Treasury and the Commissioner, shall prescribe by regulation procedures governing the termination of an individual's status as a <quote>participating individual</quote> pursuant to an election described in subparagraph (A). Such procedures shall include—</text>
<clause id="H613DEA66380643DAAEACF542C599E793" commented="no"><enum>(i)</enum><text>prompt closing of the individual’s GROW account established under section 255, and</text></clause>
<clause id="H09B9853782724D67A34833F65D16C356" commented="no"><enum>(ii)</enum><text>proper crediting of the balance of the account to the Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund, allocated between the Trust Funds as determined appropriate by the Commissioner.</text></clause></subparagraph></paragraph>
<paragraph id="H15AFADA187484295A47238A2F1C4DA23" commented="no"><enum>(3)</enum><header>If election is not timely</header><text display-inline="yes-display-inline">If an individual makes an election under this subsection other than in timely fashion (as determined under regulations of the Board), GROW account deposits to such individual’s GROW account shall cease as soon as practicable after the date of the election, but such individual shall continue to be treated as a participating individual with respect to the balance in such individual’s GROW account.</text></paragraph>
<paragraph id="HBF65004DE65B4BE0A5CFE5055CAACC8" commented="no"><enum>(4)</enum><header>Notification requirement</header><text display-inline="yes-display-inline">The Board shall provide for immediate notification of any election under this subsection to the Commissioner and the Secretary of the Treasury.</text></paragraph></subsection>
<subsection id="H28BD7A0D56554100B9DA1CB053C27B24"><enum>(c)</enum><header>Reinstatement of participation</header>
<paragraph id="H50C159C5058544D7A99ED0DC5F621E54"><enum>(1)</enum><header>In general</header><text>Any individual who has filed an election under subsection (b) to renounce such individual’s status as a ‘participating individual’ under this part may elect, in such form and manner as shall be prescribed in regulations of the Board, to reinstate such status. Such regulations shall provide for regular, periodic opportunities for the filing of such an election.</text></paragraph>
<paragraph id="H10D338D6339C444C9BB9FE5C2CF21E08"><enum>(2)</enum><header>Effectiveness of reinstatement</header><text>An election under this subsection shall be effective with respect to wages earned, and self-employment income derived, beginning on the earliest date on which the Board determines it is practicable to make such election effective following the date of the filing of the election. The individual filing the election shall be treated as becoming a participating individual under this part on the effective date of the election as if such individual first met the requirements of subsection (a) on such date. Nothing in this paragraph shall be construed to affect the rights or status of an individual with respect to whom GROW account deposits have ceased under subsection (b)(3) with respect to the balance in such individual’s GROW account at the time of such individual’s election described in subsection (b)(3).</text></paragraph>
<paragraph id="H1B489306E1384A78952891C70362EA73"><enum>(3)</enum><header>Irrevocability</header><text>An election under this subsection shall be irrevocable.</text></paragraph>
<paragraph id="HD23BD639D2EF4B2AAB222C4546AE1600" commented="no"><enum>(4)</enum><header>Notification requirement</header><text display-inline="yes-display-inline">The Board shall provide for immediate notification of any election under this subsection to the Commissioner and the Secretary of the Treasury.</text></paragraph></subsection> </section>
<section id="H7C22E5C1EDFB476E8D7DDB02EF2E07E2" display-inline="no-display-inline" section-type="subsequent-section"><enum>254.</enum><header>Interim investment by Board</header>
<subsection id="H9219C7FF2E824AC4AC993821DF004C53" display-inline="yes-display-inline"><enum>(a)</enum><header>Transfers to the Board</header>
<paragraph id="H17B2BAA90A45444B007542006463113E"><enum>(1)</enum><header>In general</header><text>During each calendar year, the Secretary of the Treasury shall transfer to the Board, for deposit into an interim fund maintained by the Board, from amounts held in the general fund of the Treasury, amounts equal, in the aggregate, to 100 percent of the net OASDI Trust Fund surplus for such calendar year.</text></paragraph>
<paragraph id="H405E435C7635484C8EE4C26F3FBC76C7" commented="no" display-inline="no-display-inline"><enum>(2)</enum><header>Net OASDI trust fund surplus</header><text display-inline="yes-display-inline">For purposes of paragraph (1), the term <quote>net OASDI Trust Fund surplus</quote> for a calendar year means the excess, if any, of—</text>
<subparagraph id="H719DB3FDFFD7457B928900BBD575E97" commented="no"><enum>(A)</enum><text>the sum of—</text>
<clause id="HB3BCAC70654444B784D27BF3BE857CDD"><enum>(i)</enum><text>the total amounts which are appropriated to the Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund under subsections (a) and (b) of section 201 and attributable to such calendar year, and</text></clause>
<clause id="H1D346108FED34061AFD72D55005F00FB"><enum>(ii)</enum><text>the total amounts which are appropriated to such Trust Funds under section 121 of the Social Security Amendments of 1983 and attributable to such calendar year, over</text></clause></subparagraph>
<subparagraph id="H5C6E4430666B4B35951F9D569F61219F" commented="no"><enum>(B)</enum><text>the amount estimated by the Commissioner to be the total amount to be paid from such Trust Funds during such calendar year for all purposes authorized by section 201 (other than payments of interest on, and repayments of, loans from the Federal Hospital Insurance Trust Fund under section 201(l)(1), but excluding any transfer payments between such Trust Funds and reducing the amount of any transfer to the Railroad Retirement Account by the amount of any transfers into such Trust Funds from such Account).</text></subparagraph></paragraph>
<paragraph id="H206F5B4CE7C34798A1FE1DA714BFB787"><enum>(3)</enum><header>Transfers based on estimates</header><text>The amounts transferred to the Board pursuant to paragraph (1) shall be transferred in at least monthly payments from the general fund of the Treasury to the Board. Such amounts shall be determined on the basis of estimates, by the Commissioner and certified to the Secretary of the Treasury, and proper adjustments shall be made in amounts subsequently transferred to the extent prior estimates were in excess of or were less than actual amounts.</text></paragraph>
<paragraph id="H19A78981D31046F0B8BBE8B5026521"><enum>(4)</enum><header>Investment</header><text>Amounts held in the interim fund maintained by the Board pursuant to paragraph (1) shall be invested by the Board in the same manner as is provided under section 256(c)(1).</text></paragraph></subsection>
<subsection id="H2ED77418C8F24D5F8FC329952936AD1F"><enum>(b)</enum><header>Separate accounting and crediting</header><text>The Board shall provide for prompt, separate crediting of the amounts received by the Board under subsection (a) to the GROW account deposit to be made for each calendar year under section 255(b) with respect to each participating individual. Such crediting shall be performed as soon as practicable.</text></subsection></section>
<section id="HC184D02FE46D4889A0DF73A11FFB99DF"><enum>255.</enum><header>GROW accounts</header>
<subsection display-inline="yes-display-inline" id="H81CFA1A507AA416DB32E53C702332782"><enum>(a)</enum><header>Establishment of accounts</header><text>Under regulations which shall be prescribed by the Board in consultation with the Secretary of the Treasury—</text>
<paragraph id="HAAABE0B5E10047D492C7CA88D00772D"><enum>(1)</enum><text>the Board shall establish a GROW account for each individual who is a participating individual (for whom a GROW account has not otherwise been established under this part) upon receipt of notice from the Commissioner that the requirements of paragraphs (1), (2), and (3) of section 253(a) are met with respect to such individual, and</text></paragraph>
<paragraph id="H7DA3455F4DA24C9EB81B8C68C9F19131"><enum>(2)</enum><text>as provided in paragraph (2) of section 259(a) and paragraph (2) of section 259(b), the Board shall establish a GROW account for divorced spouses and surviving spouses referred to in such paragraphs.</text></paragraph></subsection>
<subsection id="H617022711366454D9D99B3003885C801"><enum>(b)</enum><header>Transfers to GROW accounts</header>
<paragraph id="H4DA1A8C0EBF74CA79CDBDA00B8F31DFA"><enum>(1)</enum><header>In general</header><text>Under regulations which shall be prescribed by the Board, upon crediting of amounts equivalent to the GROW account deposit with respect to each participating individual for a calendar year pursuant to section 254(b), the Board shall transfer such amounts, from the interim fund maintained by the Board pursuant to section 254(a)(1), to the participating individual’s GROW account. </text></paragraph>
<paragraph id="H20BD1915ADAC4FC7A626FE9B03CECBB4"><enum>(2)</enum><header>GROW account deposit</header>
<subparagraph id="HF5F96CDDADC341C6A4B450539B833355"><enum>(A)</enum><header>In general</header><text>For purposes of paragraph (1), the GROW account deposit for a calendar year with respect to a participating individual is the product derived by multiplying—</text>
<clause id="H4E2AD8B900B741F99925C0613983959D"><enum>(i)</enum><text>the sum of—</text>
<subclause id="H3B31C8CD2EAA42A9911D25649720CE7"><enum>(I)</enum><text>the total amount of wages paid to the participating individual during such calendar year on which there was imposed a tax under <external-xref legal-doc="usc" parsable-cite="usc/26/3101">section 3101(a)</external-xref> of the Internal Revenue Code of 1986, and</text></subclause>
<subclause id="HC64703DBD38A448E8D3FA5E84F176CE7"><enum>(II)</enum><text>the total amount of self-employment income derived by the participating individual during the taxable year ending during such calendar year on which there was imposed a tax under <external-xref legal-doc="usc" parsable-cite="usc/26/1401">section 1401(a)</external-xref> of the Internal Revenue Code of 1986, by</text></subclause></clause>
<clause id="H1B52ABAC679C461FA86C84479B346472"><enum>(ii)</enum><text>the surplus percentage for such calendar year determined under subparagraph (B),</text></clause><continuation-text continuation-text-level="subparagraph">increased at a monthly rate equivalent to the average monthly rate of the yield on amounts held in the interim fund maintained by the Board pursuant to section 254(a)(1) from July 1 of such calendar year to the date of the deposit into the GROW account (minus the ratable portion with respect to such participating individual of the total amount determined by the Board as administrative costs for such calendar year of such interim fund, not to exceed 30 basis points per year of the assets held in such interim fund).</continuation-text></subparagraph>
<subparagraph id="HA2CBB482384A433E89D8C89EE367C77B" commented="no"><enum>(B)</enum><header>Surplus percentage</header><text>For purposes of subparagraph (A)(ii), the term <quote>surplus percentage</quote> means, for a calendar year, the ratio, expressed as a percentage, which—</text>
<clause id="H2BAF4A756C75437EB9A3C7D43300E68E" commented="no"><enum>(i)</enum><text>the net OASDI Trust Fund surplus for such calendar year (determined under section 254(a)(2)), bears to</text></clause>
<clause id="H5CBE18F79C7343E8A9D5EE681D572D89" commented="no"><enum>(ii)</enum><text>the sum of—</text>
<subclause id="HE08A271550004B5987128CE3A87B0033" commented="no"><enum>(I)</enum><text>the total amount of wages paid to participating individuals during such calendar year on which there was imposed a tax under <external-xref legal-doc="usc" parsable-cite="usc/26/3101">section 3101(a)</external-xref> of the Internal Revenue Code of 1986, and</text></subclause>
<subclause id="HE5B3E36290D9458489C3280C6CDE067" commented="no"><enum>(II)</enum><text>the total amount of self-employment income derived by participating individuals during taxable years ending during such calendar year on which there was imposed a tax under section 1401(a) of such Code.</text></subclause></clause></subparagraph></paragraph>
<paragraph id="H445BED66351749DB8B4100281529B94"><enum>(3)</enum><header>Cessation of GROW account deposits</header><text>No wages paid to a participating individual, and no self-employment income derived by a participating individual, after the date on which such individual first becomes entitled to a retirement benefit shall be taken into account in determining wages and self-employment income for purposes of paragraph (2)(A)(i).</text></paragraph>
<paragraph id="HAE8B86F3565241899524B8DC68B730FE" commented="no"><enum>(4)</enum><header>Transition rule</header><text>Notwithstanding paragraph (1), amounts payable to GROW accounts under paragraph (1) with respect to the first calendar year described in paragraph (1) ending after the date of the enactment of the <short-title>Growing Real Ownership for Workers Act of 2005</short-title> shall be paid by the Board as soon as practicable after the Board determines that the administrative mechanisms necessary to provide for accurate and efficient payment of such amounts have been established, but no later than 2 years after such date.</text></paragraph></subsection>
<subsection id="H549224E8AA934409BC9F00374F19C663"><enum>(c)</enum><header>Requirements for accounts</header><text>The following requirements shall be met with respect to each GROW account:</text>
<paragraph id="H9901FAB3350D47A2A28670DD00642252"><enum>(1)</enum><text>The account assets consist solely of amounts deposited or transferred pursuant to this part, including investment earnings thereon under section 256.</text></paragraph>
<paragraph id="H036DCDF60D394B1DAD37B9C7592EBFC"><enum>(2)</enum><text>In accordance with section 256, the account assets are held for purposes of investment under the Program by a certified account manager designated by (or on behalf of) the participating individual for whom such account is established under the Program.</text></paragraph>
<paragraph id="H07671110C68540118ECA7D40EE73A287"><enum>(3)</enum><text>Disposition of the account assets is made solely in accordance with sections 257 and 259.</text></paragraph></subsection>
<subsection id="HBE2A61BF448D40519BA0E85C8DADC063"><enum>(d)</enum><header>Accounting of receipts and disbursements under the Program</header><text>The Board shall provide by regulation for an accounting system for purposes of this part—</text>
<paragraph id="HD722F993D89E4866B71C944231C6CAC"><enum>(1)</enum><text>which shall be maintained by or under the Executive Director,</text></paragraph>
<paragraph id="HF7594EF2816F4AA399FE31D34CA36E14"><enum>(2)</enum><text>which shall provide for crediting of earnings to, and debiting of losses and administrative expenses from, amounts held in GROW accounts, and</text></paragraph>
<paragraph id="HB996EC1A435240619900A088AECE2B81"><enum>(3)</enum><text>under which receipts and disbursements under the Program which are attributable to each account are separately accounted for with respect to such account.</text></paragraph></subsection>
<subsection id="HE392236A24B94E8195369363BB19001C"><enum>(e)</enum><header>Correction of erroneous transfers</header><text>The Board, in consultation with the Commissioner, shall provide by regulation rules similar to paragraphs (4) through (7) and (9) of section 205(c) with respect to the correction of errors or omissions in determinations of amounts to be transferred to GROW accounts, and rules providing for the transfer, between such accounts and the interim fund maintained by the Board, of amounts necessary to compensate for such errors and omissions. In connection with the implementation of such rules, section 205(g) shall apply by substituting, for any reference therein to the Commissioner, a reference to the Board.</text></subsection></section>
<section id="H9740A71533C94A6C9F47CFB1C2441433"><enum>256.</enum><header>Investment of accounts</header>
<subsection display-inline="yes-display-inline" id="HD85E88207E074A3CBA86A8A23755ADDA"><enum>(a)</enum><header>Designation of certified account managers</header><text>Under the Program, a certified account manager shall be designated by or on behalf of each participating individual to hold for investment under this section the account assets of such individual’s GROW account.</text></subsection>
<subsection id="H38599E773B904372B6DCBB7649FCD123" commented="no"><enum>(b)</enum><header>Procedure for designation</header><text display-inline="yes-display-inline">Any designation made under subsection (a) shall be made at such times and in such form and manner as shall be prescribed in regulations prescribed by the Board. Such regulations shall provide for annual selection periods during which participating individuals may make designations pursuant to subsection (a). Designations made pursuant to subsection (a) during any such period shall be irrevocable for the one-year period following such period, except that such regulations shall provide for such interim designations as may be necessitated by the decertification of a certified account manager. Such regulations shall provide for such designations made by the Board on behalf of a participating individual in any case in which a timely designation is not made by the participating individual.</text></subsection>
<subsection id="H0B023ACA5B114136AAF0F8A2A0DAC588"><enum>(c)</enum><header>Investment</header><text display-inline="yes-display-inline">The account assets of a participating individual’s GROW account which are not necessary for immediate withdrawal (including administrative costs charged in accordance with section 259(e)(1)) shall be invested on behalf of such participating individual by the certified account manager as follows:</text>
<paragraph id="HB2BD99459CFB4AAFA3A2D0EB05A7C726"><enum>(1)</enum><header>Investment in marketable government securities</header><text>In a representative mix of fixed marketable interest-bearing obligations of the United States then forming a part of the public debt which are not due or callable earlier than 4 years after the date of investment.</text></paragraph>
<paragraph id="H101165CED8BF437896EDB372986B539E"><enum>(2)</enum><header>Additional and alternative investments</header><text display-inline="yes-display-inline">Beginning at such time as the Board implements an investment options plan to provide additional and alternative investment options in accordance with section 103 of the <short-title>Growing Real Ownership for Workers Act of 2005</short-title>, in such funds as a participating individual may elect that are offered under such plan.</text></paragraph></subsection></section>
<section id="H1071200232864EED926F4E001002D4BC"><enum>257.</enum><header>Distributions of account balance at retirement</header>
<subsection id="H69036B0747D9457EABBB851CD0076C75" display-inline="yes-display-inline"><enum>(a)</enum><header>Availability for distribution</header><text>The GROW account of any participating individual shall be available for distribution under this section only—</text>
<paragraph id="HD31BE7B5C35D47CBB09179F7E1E5F4BB"><enum>(1)</enum><text>on or after the participating individual’s retirement date, and</text></paragraph>
<paragraph id="H99DC266D4ECB44EC9DE996C6B7EAECBB"><enum>(2)</enum><text>in such form and manner as is provided in this section.</text></paragraph></subsection>
<subsection id="H9F22CAFB72604A0C846464592B0033BF"><enum>(b)</enum><header>Requirements for annuity distributions</header>
<paragraph id="HA322ADDC2DBB4FAEA9BF218F454677C5"><enum>(1)</enum><header>In general</header><text>In any case in which distribution of all or a portion of the balance of a participating individual’s GROW account is to be made in the form of an annuity, in accordance with regulations which shall be prescribed by the Board, the Executive Director shall provide for such distribution in the form of an annuity—</text>
<subparagraph id="HA469BA58CCC848B984E9BB6DC11C1120"><enum>(A)</enum><text>which shall be purchased from the Board, as soon as practicable after the participating individual’s retirement date, from annuities offered by the Board, including such annuities as may be made available under procedures established by the Board pursuant to subsection (f), and</text></subparagraph>
<subparagraph id="H16C971DE86E34266A305E659A58EEE20"><enum>(B)</enum><text>which meets the requirements of this subsection.</text></subparagraph></paragraph>
<paragraph id="H301C0D2243B945430002FCCB32ABE774"><enum>(2)</enum><header>Annuity starting date</header><text>The annuity starting date (as defined in <external-xref legal-doc="usc" parsable-cite="usc/26/72">section 72(c)(4)</external-xref> of the Internal Revenue Code of 1986) of any annuity referred to in paragraph (1) shall be the first day of the month beginning after the date of the purchase of the annuity.</text></paragraph>
<paragraph id="H7986BE7AA54C487181B22E2775DF58F"><enum>(3)</enum><header>Level payments</header><text>Subject to paragraph (4) and subsection (d), the terms of any annuity referred to in paragraph (1) shall provide for a series of substantially equal annual payments, payable monthly to the participating individual during the life of the participating individual.</text></paragraph>
<paragraph id="H352701820F354879B8DE99168E6FA946" display-inline="no-display-inline"><enum>(4)</enum><header>Cost of living adjustment</header><text>The terms of any annuity referred to in paragraph (1) shall include provision for increases in the monthly annuity payments thereunder determined in the same manner and at the same rate as primary insurance amounts are increased under section 215(i).</text></paragraph>
<paragraph id="H90F22E06E1DC4A658500F958932CE26C"><enum>(5)</enum><header>Assumptions</header><text>Determinations under this subsection shall be made in accordance with regulations which shall be prescribed by the Board, providing for the use of generally accepted actuarial assumptions, except that no differentiation shall be made in such assumptions on the basis of sex, race, health status, or other characteristics other than age. Such assumptions shall include the life expectancy of persons born in the same year as the participating individual, projected investment earnings based on investment of the account assets, expected price inflation, and reasonable administrative costs.</text></paragraph></subsection>
<subsection id="H057DF070A39F4B2ABA9431A9CB41F9D" display-inline="no-display-inline"><enum>(c)</enum><header>Minimum annuity requirement</header>
<paragraph id="HAC65B466C70344A995AC79FA9C7ED5D5"><enum>(1)</enum><header>In general</header><text>Except as provided in paragraph (3), in any case in which the total amount of retirement benefits payable under section 258(a) to a participating individual for the month in which occurs the participating individual’s retirement date is less than the monthly poverty line for such month, under regulations which shall be prescribed by the Board, all or a portion of the participating individual’s GROW account balance shall be distributed in the form of an annuity offered by the Board which meets the requirements of subsection (b) and is in the form of a minimum annuity.</text></paragraph>
<paragraph id="H7398EF3CF1AC43F19FBAA42EAE4174F"><enum>(2)</enum><header>Minimum annuity defined</header>
<subparagraph id="H480DC30D1CFE4A43BA338BAE2E97FECD"><enum>(A)</enum><header>In general</header><text>For purposes of this subsection, the term <quote>minimum annuity</quote> means an annuity under which the monthly payments are equal to at least the minimum annuity amount (subject to subsections (b) and (d)(1)).</text></subparagraph>
<subparagraph id="HCEBFA03B76D149B69E9F5EC523C69C14"><enum>(B)</enum><header>Minimum annuity amount</header><text display-inline="yes-display-inline">For purposes of subparagraph (A), the term <quote>minimum annuity amount</quote> means an amount equal to the excess (but not less than zero) of—</text>
<clause id="HB67BDC7D769141EFA6D91E98FA67394F"><enum>(i)</enum><text>the monthly poverty line for the month in which occurs the participating individual’s retirement date, over</text></clause>
<clause id="H64817896B09243A6B90604F2ABD020F0"><enum>(ii)</enum><text display-inline="yes-display-inline">the total amount of retirement benefits payable under section 258(a) to the participating individual for such month.</text></clause></subparagraph>
<subparagraph id="HBA210143CF2942069000746D92D46D22"><enum>(C)</enum><header>Monthly poverty line</header><text display-inline="yes-display-inline">For purposes of this subparagraph (B)(i), the term <quote>monthly poverty line</quote> for any month means the monthly equivalent of the poverty line for an individual (determined under the poverty guidelines of the Department of Health and Human Services issued under section 673(2) of the Omnibus Budget Reconciliation Act of 1981), as most recently published prior to the date of the annuity purchase in the Federal Register by the Department of Health and Human Services.</text></subparagraph></paragraph>
<paragraph id="H1A3C702731B4455784224856552415AB"><enum>(3)</enum><header>Exception for minimal account balances</header><text>Paragraph (1) shall not apply in any case in which the assets of the GROW account are insufficient to purchase a minimum annuity.</text></paragraph></subsection>
<subsection id="H669A859930F44D8A8C0633FCD312514F" display-inline="no-display-inline"><enum>(d)</enum><header>Requirement of joint and survivor annuity</header><text></text>
<paragraph id="H3E119E7B44D64B5FA0C0E91DB1D0F496"><enum>(1)</enum><header>In general</header><text>Except as provided in paragraph (2), if the participating individual is married as of the participating individual’s retirement date, the entire GROW account balance available for distribution shall be distributed in the form of an annuity—</text>
<subparagraph id="H1CD4E9596A0F4F64BC5D5DC2A9B11827"><enum>(A)</enum><text>which meets the requirements of subsection (b), and</text></subparagraph>
<subparagraph id="H523A8A1AFCFA457A956472355215F7F2"><enum>(B)</enum><text>is in the form of a joint and survivor annuity under which payments are made during the joint lives of the participating individual and the participating individual’s spouse, with a survivor annuity for the life of the one of them who survives the other for the life of the survivor which is not less than 66<fraction>2/3</fraction> percent of (and not greater than 100 percent of) the amount which would have continued to be payable to the participating individual but for the death of either spouse.</text></subparagraph></paragraph>
<paragraph id="H6EE5B6D46B204739B8F9FE8BC1B9F3F1"><enum>(2)</enum><header>Election</header><text>Paragraph (1) shall not apply in any case in which the participating individual and his or her spouse elect (in such form and manner as shall be prescribed by the Board) not to take the distribution of the participating individual’s GROW account in the form described in paragraph (1). </text></paragraph></subsection>
<subsection id="H9B653C6B8F4C4902904BD3EAF9CC9D2C"><enum>(e)</enum><header>Authority to contract for annuities</header><text display-inline="yes-display-inline">The Board may, under regulations prescribed by the Board, contract with insurance companies in the private sector through competitive bidding to provide for annuities to be offered by the Board under this section in cases in which the Board determines that annuities obtained in such manner would be in the best interest of participating individuals and administrative costs for such annuities would be reasonable.</text></subsection>
<subsection id="H8C1415ADB8A346B1B183C1212250119F"><enum>(f)</enum><header>Other distributions</header><text display-inline="yes-display-inline">The Board shall provide by regulation for distribution, on or after the participating individual’s retirement date, of any balance in the GROW account of a participating individual which remains available for distribution after the preceding requirements of this section, and the requirements for distribution under any payout options plan which has been implemented by the Board pursuant to section 103 of the <short-title>Growing Real Ownership for Workers Act of 2005</short-title>, have been met. Any such distribution shall be in the form of a lump sum or in any other form provided for by the Board and elected by the participating individual.</text></subsection></section>
<section id="H22E0DCD9AC6D429D9DECE92C9C156571" display-inline="no-display-inline" section-type="subsequent-section"><enum>258.</enum><header>Treatment of part A benefit payments</header>
<subsection id="HEAB9E681C344404FABA069FEA15C226F" display-inline="yes-display-inline"><enum>(a)</enum><header>Application of GROW account credits and excess GROW account credits</header><text>The total amount payable to an individual under part A as retirement benefits for any month shall be equal to the excess (but not less than zero) of—</text>
<paragraph id="HEF36C9C23FBD41E08342336346F21C40"><enum>(1)</enum><text>the total amount payable (after all applicable deductions and reductions) as determined without regard to this section and section 202(z), over</text></paragraph>
<paragraph id="H8A00DFF90DC142ACBA7B29714879AF33"><enum>(2)</enum><text>the sum of—</text>
<subparagraph id="H4F28E296148C420E8E8FE7D0AEA682C5"><enum>(A)</enum><text>the amount of the individual’s GROW account credit for such month (if any), plus</text></subparagraph>
<subparagraph id="HF0C04352EF7D47168625CA8EB864454C"><enum>(B)</enum><text>the sum of the excess GROW account credits for such month (if any) determined in the case of such individual for such month under subsection (c).</text></subparagraph></paragraph></subsection>
<subsection id="H52C0CF0ED5DA4E82909E9085B0000C"><enum>(b)</enum><header>GROW account credit</header>
<paragraph id="HD03029E0D4844D9B89C44942BCB96BEF" commented="no"><enum>(1)</enum><header>In general</header><text>In accordance with regulations of the Board, the Board shall determine, for purposes of this section, the GROW account credit of each participating individual for each month for which such individual is entitled to any retirement benefit.</text></paragraph>
<paragraph id="HFDE2C5E9AA124DCEA3F392FCC4EE15A3" display-inline="no-display-inline" commented="no"><enum>(2)</enum><header>Determination of GROW account credit</header>
<subparagraph id="H4C519F279A964127980314FE3EFA752" commented="no"><enum>(A)</enum><header>In general</header><text>The GROW account credit of a participating individual for any month shall be equal to the amount which would be the monthly payment for such month under an annuity—</text>
<clause id="H325C1E90993E4F8098E008DFA299B8D"><enum>(i)</enum><text>purchased with the participating individual’s benchmark account balance, and</text></clause>
<clause id="H992AC7FD2E154647BA23179382CF1BBE"><enum>(ii)</enum><text>meeting the requirements of section 257(b) and of section 257(d) (with no election under section 257(d)(2) and a reduction for the survivor annuity to 66<fraction>2/3</fraction> percent). </text></clause></subparagraph>
<subparagraph id="H174BCE7425E84289A4AA361725B93F48"><enum>(B)</enum><header>Reduction in GROW account credit in the case of survivors</header><text display-inline="yes-display-inline">In any case in which the participating individual is married as of the participating individual’s retirement date, the GROW account credit determined for any month in connection with the participating individual shall reflect, for months after the death of the participating individual or the death of the participating individual’s spouse, a reduction in the amount of the survivor annuity described in section 257(d)(1) to 66<fraction>2/3</fraction> percent.</text></subparagraph>
<subparagraph id="HF3EA2922893D4C68B4FCFBD812C64B8D" commented="no"><enum>(C)</enum><header>Benchmark account balance</header><text display-inline="yes-display-inline">For purposes of subparagraph (A), the benchmark account balance is an amount equal to—</text>
<clause id="HA71624F44E924764803825CBFA58B8E"><enum>(i)</enum><text>the total amount deposited into the participating individual’s GROW account under section 255(b) as of immediately before the participating individual’s retirement date,</text></clause>
<clause id="HC857CDBE50C5431DA3E31400F4BA0775"><enum>(ii)</enum><text>increased by any net deposits to the account, and decreased by any net withdrawals from the account, under section 259(a), occurring prior to such date,</text></clause>
<clause id="H8AC6822C2299421B82C92CADC0048314"><enum>(iii)</enum><text>increased by any deposits to the account under section 259(b) in the case of a spouse who dies prior to such spouse’s retirement date, and</text></clause>
<clause id="H873B4CD3B7964629ACE3A5CC27223EC4"><enum>(iv)</enum><text>adjusted, under regulations of the Board, to reflect any net increase or any net decrease in the balance, as it accrued under clauses (i), (ii), and (iii), which would be attributable to investment of the balance in the manner described in section 256(c)(1), assuming payment of administrative costs at the rate experienced in connection with investments of the account assets of the participating individual’s GROW account under section 256 (not to exceed 30 basis points per year).</text></clause></subparagraph></paragraph></subsection>
<subsection id="H6BE5C5AC35D74A7F8C61B88F7B6B83D2" display-inline="no-display-inline"><enum>(c)</enum><header>Excess GROW account credit</header>
<paragraph id="H3C00568E2AF14053BDAB6DD06E467E6C"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">In accordance with regulations of the Board meeting the requirements of this section, for purposes of determining under subsection (a) the total amount payable to any individual under part A as retirement benefits for any month, the Board shall determine, in the case of any such individual who was married to his or her spouse on such spouse’s retirement date, the excess GROW account credit of such spouse for such month.</text></paragraph>
<paragraph id="H5160D57FC15B43889232DDE72C88F75F"><enum>(2)</enum><header>Determination of excess GROW account credit</header><text>The excess GROW account credit of the spouse referred to in paragraph (1) for a month is the excess (not less than zero) of—</text>
<subparagraph id="H795257ADE10D4AEDA7C8870047F7339"><enum>(A)</enum><text>such spouse’s GROW account credit for such month, over</text></subparagraph>
<subparagraph id="H058F33EAC85647FAB103D00BA277BD2"><enum>(B)</enum><text>the total of the retirement benefits (if any) to which such spouse is entitled for such month.</text></subparagraph></paragraph></subsection></section>
<section id="H6122AE32FCDE4670B1C4F41F6138D7FA" commented="no"><enum>259.</enum><header>Additional rules relating to disposition of account assets</header>
<subsection id="HBC0FF573DD6F40EFA3B4155862FDA75F" commented="no" display-inline="yes-display-inline"><enum>(a)</enum><header>Splitting of account assets upon divorce after 1 year of marriage</header><text>Subject to subsection (c)—</text>
<paragraph id="HC315DC620B2943409CCB4CB28B3E6C4" commented="no"><enum>(1)</enum><header>In general</header><text>In the case of a divorce of a participating individual for whom a GROW account has been established under this part, if the divorce occurs—</text>
<subparagraph id="H2C011346BD8F40D092903B17A6C56509"><enum>(A)</enum><text>prior to the participating individual’s retirement date, and</text></subparagraph>
<subparagraph id="H164C3BD7CD814DF6874D1B825F0744A1"><enum>(B)</enum><text>the participating individual and his or her divorced spouse were married to each other for at least 1 year prior to the date of the divorce,</text></subparagraph><continuation-text continuation-text-level="paragraph">the Board shall, upon the date of the divorce, direct the appropriate certified account manager to transfer, from the GROW account of the participating individual to the GROW account of the divorced spouse, an amount equal to one-half of the total amount of GROW account deposits made to the GROW account of the participating individual under section 255(b) during the period of the marriage (taking into account earnings and losses attributable to such deposits during such period), disregarding, for purposes of determining such total amount, any amounts similarly transferred, pursuant to this paragraph, to such participating individual’s account from the account (if any) of such divorced spouse.</continuation-text></paragraph>
<paragraph id="H124E65BDCA8D4AB593E8DF5DBD177512" commented="no"><enum>(2)</enum><header>Treatment of divorced spouse who is not a participating individual</header><text>In the case of a divorced spouse referred to in paragraph (1) who, as of the time of the transfer required under paragraph (1), is not a participating individual— </text>
<subparagraph id="H8A8CC3950BA54D2BA9E71EFE27B13405" commented="no"><enum>(A)</enum><text>the divorced spouse shall be deemed a participating individual for purposes of this part (subject to renunciation under section 253(b)), and</text></subparagraph>
<subparagraph id="H04C607D86E93483FAC88D1153388CFE1" commented="no"><enum>(B)</enum><text>the Board shall establish a GROW account for the divorced spouse and shall direct the appropriate certified account manager to perform the transfer.</text></subparagraph></paragraph>
<paragraph id="HB2331A6F97CC46B099B2F8BECAAC3708" commented="no"><enum>(3)</enum><header>Preemption</header><text>The provisions of this subsection, and subsection (c) (to the extent it relates to this subsection), shall supersede any provision of law of any State or political subdivision thereof which is inconsistent with the requirements of this subsection.</text></paragraph></subsection>
<subsection id="H53A8F7A4A49349F5BC88215C66D5A49" commented="no"><enum>(b)</enum><header>Closing of account upon the death of the participating individual</header><text>Subject to subsection (c)—</text>
<paragraph id="HB5B3BAE1B3EE4E4AACD503AA677FDE2D"><enum>(1)</enum><header>In general</header><text>Upon the death of a participating individual, the Executive Director shall close out any remaining balance in the participating individual’s GROW account. In closing out the account, the Executive Director shall certify to the certified account manager the amount of the account assets, and, upon receipt of such certification, the certified account manager shall transfer from such account an amount equal to such certified amount to the Secretary of the Treasury for subsequent transfer to—</text>
<subparagraph id="H120DFB2A286B4FB7B958135E7124F921"><enum>(A)</enum><text>the GROW account of the surviving spouse of such participating individual,</text></subparagraph>
<subparagraph id="H41EE411224094FDF9095DA7BCD92F035"><enum>(B)</enum><text>if there is no person described in subparagraph (A), to such other person as may be designated by the participating individual in accordance with regulations which shall be prescribed by the Board,</text></subparagraph>
<subparagraph id="H9489C4482D63458DBDDC97C082754597"><enum>(C)</enum><text>if there is no person described in subparagraph (A) or (B), to such successors in interest to such balance as may be specified under applicable law and claim such interest (within such reasonable time and in such form and manner as shall be prescribed in regulations of the Board), or </text></subparagraph>
<subparagraph id="HC0A681AFA2434A1D850856299CED5F87"><enum>(D)</enum><text>if there is no person described in subparagraph (A), (B), or (C), to the Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund, allocated between such Trust Funds as determined appropriate by the Commissioner.</text></subparagraph></paragraph>
<paragraph id="H10F83A0EA4FF456AB8F3FBAE001CC5FF" commented="no" display-inline="no-display-inline"><enum>(2)</enum><header>Treatment of surviving spouse who is not a participating individual</header><text>In the case of a surviving spouse referred to in paragraph (1) who, as of the time of the death of the participating individual, is not a participating individual—</text>
<subparagraph id="HE0E7313F447A4CA6B36935AE7C453B04" commented="no"><enum>(A)</enum><text>the surviving spouse shall be deemed a participating individual for purposes of this part (subject to renunciation under section 253(b)), and</text></subparagraph>
<subparagraph id="H7F66ABF6F0EA4E61938862F65900D7F6" commented="no"><enum>(B)</enum><text>the Board shall establish a GROW account for the surviving spouse and shall direct the appropriate certified account manager to perform the such transfer.</text></subparagraph></paragraph>
<paragraph id="H47FF225B1A53433F833CB4707EE3D627"><enum>(3)</enum><header>Death determinations and abandoned accounts</header><text>The Board shall prescribe rules similar to the rules applicable under part A for purposes of determining whether an individual has died and such individual’s date of death, including rules for treatment under this subsection of abandoned accounts.</text></paragraph></subsection>
<subsection id="HA4C09AF0353340CA932C6D776C1E6F64" commented="no"><enum>(c)</enum><header>Closing of account of participating individuals who are ineligible for benefits upon applicable close-out date</header>
<paragraph id="HE676EEF8E44A4803885159DBBF126E56"><enum>(1)</enum><header>In general</header><text>In any case in which a participating individual is not eligible for a retirement benefit as of the applicable close-out date, the Commissioner shall so certify to the Executive Director and, upon receipt of such certification, the Executive Director shall close out the participating individual’s GROW account. In closing out the account, the Executive Director shall certify to the certified account manager the amount of the account assets, and upon receipt of such certification from the Executive Director, the account manager shall transfer from such account an amount equal to such certified amount to the Secretary of the Treasury for subsequent transfer to the participating individual.</text></paragraph>
<paragraph id="H67F1AD0FCC794327ACFB3768775B6E00"><enum>(2)</enum><header>Applicable close-out date</header><text>For purposes of paragraph (1), the term <quote>applicable close-out date</quote>, in connection with a participating individual, means the later of—</text>
<subparagraph id="HAAA897030D7E43EC9027F63177163170"><enum>(A)</enum><text>the date on which the participating individual attains retirement age (as defined in section 216(l)), or</text></subparagraph>
<subparagraph id="H0AF8A9B74B374DF4AD74C7408F04A714"><enum>(B)</enum><text>in the case of a participating individual who is married on the date on which the participating individual attains retirement age (as so defined), the date on which the participating individual’s spouse attains retirement age (as so defined), or dies before attaining such age.</text></subparagraph></paragraph></subsection>
<subsection id="H9F5B70297F9B4A75BAC9F404B76DABAA" commented="no"><enum>(d)</enum><header>Administrative expenses</header>
<paragraph id="H435DBDB76C7648B088EF2C009D53FF97"><enum>(1)</enum><header>In general</header><text>Under regulations which shall be prescribed by the Board, account assets are available for payment of the reasonable administrative costs of the Program (including reasonable administration fees charged by certified account managers under the Program), but in no event to exceed 30 basis points per year of the assets under management.</text></paragraph>
<paragraph id="H2934D99DA8BA4D0A96CA2B4DB448F999"><enum>(2)</enum><header>Temporary authorization of appropriations for startup administrative costs</header><text>For any such administrative costs that remain after applying paragraph (1) for each of the first 5 fiscal years that end after the date on which GROW accounts are first established under section 255(a), there are authorized to be appropriated such sums as may be necessary for each of such fiscal years.</text></paragraph></subsection></section>
<section id="HA9C595ED4DC540B7BFA5D3275200FE4E"><enum>260.</enum><header>Administration of the Program</header>
<subsection display-inline="yes-display-inline" id="H5B52379161A741809EC605BA11D93B1C"><enum>(a)</enum><header>General provisions</header>
<paragraph id="H0C0A89F109C44191B8DA7E2D924E825C"><enum>(1)</enum><header>Establishment and duties of the GROW Accounts Board</header>
<subparagraph id="HF9DF132CE0144D25B2FACD7EA25053A5"><enum>(A)</enum><header>Establishment</header><text display-inline="yes-display-inline">There is established in the Executive branch of the Government a GROW Accounts Board. </text></subparagraph>
<subparagraph id="HE66F525BC7F44293AFDF21F17B16009D"><enum>(B)</enum><header>Number and appointment</header><text>The Board shall be composed of 7 members as follows: </text>
<clause id="HD8768266CB504C33AD7CFF1FA6B51E1B"><enum>(i)</enum><text>3 members appointed by the President, of whom 1 shall be designated by the President as Chairman; and </text></clause>
<clause id="H4FA3C597CE404900AE281136C6997D9"><enum>(ii)</enum><text>4 members appointed by the President, of whom—</text>
<subclause id="HC0B0CEA49B53412FACFB783E9045A23D"><enum>(I)</enum><text>2 shall be appointed by the President after taking into consideration the recommendations made by the Speaker of the House of Representatives in consultation with the minority leader of the House of Representatives; and</text></subclause>
<subclause id="H598A88591AC143FAB539E883BA97E9D"><enum>(II)</enum><text>2 shall be appointed by the President after taking into consideration the recommendations made by the majority leader of the Senate in consultation with the minority leader of the Senate. </text></subclause></clause></subparagraph>
<subparagraph id="H08D894FB2B394F3BBE65A680B63437E"><enum>(C)</enum><header>Membership requirements</header><text>Members of the Board shall have substantial experience, training, and expertise in the management of financial investments and pension benefit plans. No more than 4 of the members of the Board may be of the same political party.</text></subparagraph>
<subparagraph id="HFC4CCD68BB794885829225A2CDD9D823"><enum>(D)</enum><header>Terms</header><text>Each member of the Board shall be appointed for a term of 4 years, except that of the members first appointed— </text>
<clause id="HF9B8B5B4C803417EA3502EA95EE6AEE4"><enum>(i)</enum><text>the Chairman shall be appointed for a term of 4 years;</text></clause>
<clause id="H83C4FB1C49D54C98B8DEAAD22E660204"><enum>(ii)</enum><text>the remaining members appointed under subsection (B)(i) shall be appointed for terms of 3 years;</text></clause>
<clause id="H263F587030C3417D8F2100C84214CB53"><enum>(iii)</enum><text>one of the members appointed under subsection (B)(ii)(I) shall be appointed for a term of 4 years and the other for a term of two years; and</text></clause>
<clause id="HE36910BA34DD426B8765E15300A31053"><enum>(iv)</enum><text>one of the members appointed under subsection (B)(ii)(II) shall be appointed for a term of 4 years and the other for a term of 2 years.</text></clause></subparagraph>
<subparagraph id="H190EC4BD41BB4B298829980095081485"><enum>(E)</enum><header>Vacancies</header><text>A vacancy on the Board shall be filled in the manner in which the original appointment was made and shall be subject to any conditions which applied with respect to the original appointment. An individual chosen to fill a vacancy shall be appointed for the unexpired term of the member replaced. The term of any member shall not expire before the date on which the member's successor takes office.</text></subparagraph>
<subparagraph id="HD76052FA3F884178BF17890024076C9D"><enum>(F)</enum><header>Powers and duties of the Board</header>
<clause id="H40252FBDBF054D2EA47327B083888012"><enum>(i)</enum><header>In general</header><text>The Board shall have powers and duties solely as provided in this part. The Board shall prescribe by regulation—</text>
<subclause id="HD3D6E6BC4CB941B5BEA7316352EDAD39"><enum>(I)</enum><text>the terms of the GROW Accounts Program established under this part, including policies for investment under the Program of account assets, and policies for the certification and decertification of account managers under the Program, which shall include consideration of the appropriateness of the marketing materials and plans of such managers, and</text></subclause>
<subclause id="H65D4526A7B9744B300A7D1993396AAC7"><enum>(II)</enum><text>the policies for the purchase of annuities for purposes of distribution of GROW accounts under section 257.</text></subclause></clause>
<clause id="H03885F734A3B44599302E7DB8B4363E0"><enum>(ii)</enum><header>Budgetary requirements</header><text>The Board shall prepare and submit to the President and to the appropriate committees of Congress an annual budget of the expenses and other items relating to the Board which shall be included as a separate item in the budget required to be transmitted to the Congress under <external-xref legal-doc="usc" parsable-cite="usc/31/1105">section 1105</external-xref> of title 31, United States Code. The Board shall provide for low administrative costs such that, to the extent practicable, overall administrative costs of the Program do not exceed 30 basis points per year in relation to assets under management under the Program.</text></clause>
<clause id="H58052D8D597B4241B34E834D9BB51836"><enum>(iii)</enum><header>Additional authorities of the Board</header><text>The Board may—</text>
<subclause id="H88C8D11F27064C4F8826D79CBAA2EEA"><enum>(I)</enum><text>adopt, alter, and use a seal;</text></subclause>
<subclause id="H58DD151269EC481392660166ED35FBC"><enum>(II)</enum><text>establish policies with which the Commissioner shall comply under this part; and</text></subclause>
<subclause id="HAF24D9D4904D407EBDB4C47D0CA1500"><enum>(III)</enum><text>appoint and remove the Executive Director, as provided in paragraph (2).</text></subclause></clause>
<clause id="H0A6512C51E014672AF387CC10073BA5D"><enum>(iv)</enum><header>Independence of certified account managers</header><text>The policies of the Board may not require a certified account manager to invest or to cause to be invested any account assets in a specific asset or to dispose of or cause to be disposed of any specific asset so held.</text></clause>
<clause id="H76C7A91BBA82417CBF8CBCFDFD4DE28"><enum>(v)</enum><header>Meetings of the Board</header><text>The Board shall meet at the call of the Chairman or upon the request of a quorum of the Board. The Board shall perform the functions and exercise the powers of the Board on a majority vote of a quorum of the Board. Four members of the Board shall constitute a quorum for the transaction of business.</text></clause>
<clause id="HA97D23E4CDB94FF48EC806605DE2E4A6"><enum>(vi)</enum><header>Compensation of Board members</header>
<subclause id="H3D2B3E03853A4A5484995141E5D2898B"><enum>(I)</enum><header>In general</header><text>Each member of the Board who is not an officer or employee of the Federal Government shall be compensated at the daily rate of basic pay for level IV of the Executive Schedule for each day during which such member is engaged in performing a function of the Board. Any member who is such an officer or employee shall not suffer any loss of pay or deduction from annual leave on the basis of any time used by such member in performing such a function.</text></subclause>
<subclause id="H6C02D2908D5E4062AAB7C6B832217C19"><enum>(II)</enum><header>Travel, per diem, and expenses</header><text>A member of the Board shall be paid travel, per diem, and other necessary expenses under subchapter I of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/5/57">chapter 57</external-xref> of title 5, United States Code, while traveling away from such member’s home or regular place of business in the performance of the duties of the Board.</text></subclause></clause>
<clause id="HA13024AB4EA349B390A496AC5B007F37"><enum>(vii)</enum><header>Standard for Board’s discharge of responsibilities</header><text>The members of the Board shall discharge their responsibilities solely in the interest of participating individuals and the Program.</text></clause>
<clause id="H2DA856BA9D79433DB1FDEF8E00D782F"><enum>(viii)</enum><header>Annual report</header><text>The Board shall submit an annual report to the President, to each House of the Congress, and to the Board of Trustees of the Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund regarding the financial and operating condition of the Program.</text></clause>
<clause id="HEEA893DAF1784B129100F1858B2BECF"><enum>(ix)</enum><header>Public accountant</header>
<subclause id="H20FE5427229142699ED98423DCA6457D"><enum>(I)</enum><header>Definition</header><text>For purposes of this subparagraph, the term <term>qualified public accountant</term> shall have the same meaning as provided in section 103(a)(3)(D) of the <act-name parsable-cite="ERISA">Employee Retirement Income Security Act of 1974</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/29/1023">29 U.S.C. 1023(a)(3)(D)</external-xref>).</text></subclause>
<subclause id="H160EAD425ECB49DABD8716221DE3E7E"><enum>(II)</enum><header>Engagement</header><text>The Executive Director, in consultation with the Board, shall annually engage, on behalf of all individuals for whom a GROW account is established under this part, an independent qualified public accountant, who shall conduct an examination of all records maintained in the administration of this part that the public accountant considers necessary.</text></subclause>
<subclause id="H9554CB95A7134718A2EFA74C86607081"><enum>(III)</enum><header>Duties</header><text>The public accountant conducting an examination under subclause (II) shall determine whether the records referred to in such subclause have been maintained in conformity with generally accepted accounting principles. The public accountant shall transmit to the Board a report on his examination.</text></subclause>
<subclause id="HED28E5919DED4ADCA645AD06397649CF"><enum>(IV)</enum><header>Reliance on certified actuarial matters</header><text>In making a determination under subclause (III), a public accountant may rely on the correctness of any actuarial matter certified by an enrolled actuary if the public accountant states his reliance in the report transmitted to the Board under such subclause.</text></subclause></clause></subparagraph></paragraph>
<paragraph id="H9E9731E27E4A4000AE53A8EA9C3BA544"><enum>(2)</enum><header>Executive Director</header>
<subparagraph id="HD0856B8390BD48CFA3A23D49C009FF4"><enum>(A)</enum><header>Appointment and removal</header><text>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. The Executive Director shall have substantial experience, training, and expertise in the management of financial investments and pension benefit plans. The Board may, with the concurrence of 4 members of the Board, remove the Executive Director from office for good cause shown.</text></subparagraph>
<subparagraph id="H5CD2ABDD88AE4603AE53A26C38B6C66"><enum>(B)</enum><header>Powers and duties of Executive Director</header><text>The Executive Director shall—</text>
<clause id="HC4D6BDCE8D2C436889B81FD288004E54"><enum>(i)</enum><text>carry out the policies established by the Board,</text></clause>
<clause id="HF41911152DF7426500CC5EE955498495"><enum>(ii)</enum><text>administer the provisions of this part in accordance with the policies of the Board, and</text></clause>
<clause id="H8A4CB726AC144293B172694721BEBED6"><enum>(iii)</enum><text>meet from time to time with the Board upon request of the Board.</text></clause></subparagraph>
<subparagraph id="H13E3949FCFD14FCFB1A6E85CDD84E093"><enum>(C)</enum><header>Administrative authorities of Executive Director</header><text>The Executive Director may—</text>
<clause id="HD7EADF1499474D05A48B00E43FB2A25C"><enum>(i)</enum><text>appoint such personnel as may be necessary to carry out the provisions of this part,</text></clause>
<clause id="H073D60183DA24E1CB7A3AE189B2D9149"><enum>(ii)</enum><text>subject to approval by the Board, procure the services of experts and consultants under <external-xref legal-doc="usc" parsable-cite="usc/5/3109">section 3109</external-xref> of title 5, United States Code,</text></clause>
<clause id="H519968EC34D6411D906897D46D007B4F"><enum>(iii)</enum><text>secure directly from any agency or instrumentality of the Federal Government on a reimbursable basis any information which, in the judgment of the Executive Director, is necessary to carry out the provisions of this part and the policies of the Board, and which shall be provided by such agency or instrumentality upon the request of the Executive Director,</text></clause>
<clause id="H068E976352034FF78EF09D435F4F3E3"><enum>(iv)</enum><text>pay the compensation, per diem, and travel expenses of individuals appointed under clauses (i), (ii), and (v) of this subparagraph, subject to such limits as may be established by the Board,</text></clause>
<clause id="HD2CA9E6BF083401FA5917466CBDAC9D2"><enum>(v)</enum><text>accept and use the services of individuals employed intermittently in the Government service and reimburse such individuals for travel expenses, as authorized by <external-xref legal-doc="usc" parsable-cite="usc/5/5703">section 5703</external-xref> of title 5, United States Code, including per diem as authorized by section 5702 of such title, and</text></clause>
<clause id="HBDDEC1DF98C242378396C58EBC3FBC3B"><enum>(vi)</enum><text>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 designate and authorize such successive redelegations of such functions to such employees under the Board as the Executive Director may consider to be necessary or appropriate.</text></clause></subparagraph></paragraph>
<paragraph id="H021F6B31426746C596DCDEE0C000C1B0"><enum>(3)</enum><header>Role of the Commissioner</header><text>The Commissioner shall—</text>
<subparagraph id="H0222932C3D174291B53C00B08FB26747"><enum>(A)</enum><text>prescribe such regulations (supplementary to and consistent with the regulations prescribed by the Board) as may be necessary for carrying out the duties of the Commissioner under this part,</text></subparagraph>
<subparagraph id="HF7A9D2CFE5E54628A625D406618493F4"><enum>(B)</enum><text>meet from time to time with, and provide information to, the Board upon request of the Board regarding matters relating to the Program, and</text></subparagraph>
<subparagraph id="HB25EF461FB0A432B89AAB58866006880"><enum>(C)</enum><text>in consultation with the Board and utilizing available Federal agencies and resources, develop a campaign to educate workers about the Program.</text></subparagraph></paragraph></subsection>
<subsection id="HFF8DF8AAAC2A40B8B2B676EF1FBF09C5"><enum>(b)</enum><header>Certification and oversight of account managers</header>
<paragraph id="HC8E9919830B94041B9267FCCD3642DD8"><enum>(1)</enum><header>Certification by the Board</header>
<subparagraph id="HA119C48C82794F39BF057C94E40754E1"><enum>(A)</enum><header>In general</header><text>Any person that is a qualified professional asset manager (as defined in <external-xref legal-doc="usc" parsable-cite="usc/5/8438">section 8438(a)(8)</external-xref> of title 5, United States Code) may apply to the Board (in such form and manner as shall be provided by the Board by regulation) for certification under this subsection as a certified account manager. In making certification decisions, the Board shall consider the applicant’s general character and fitness, financial history and future earnings prospects, and ability to serve participating individuals under the Program, and such other criteria as the Board deems necessary to carry out this part. Certification of any person under this subsection shall be contingent upon entry into a contractual arrangement between the Board and such person.</text></subparagraph>
<subparagraph id="H97B97E65BA6047D5A304D5DC16B81500"><enum>(B)</enum><header>Nondelegation requirement</header><text>The authority of the Board to make any determination to deny any application under this subsection may not be delegated by the Board.</text></subparagraph></paragraph>
<paragraph id="H496BC2088EC24EDAA354CD7C6F1E776E"><enum>(2)</enum><header>Oversight of certified account managers</header>
<subparagraph id="H1627BA6B7E6D421F9DD3868C0700124F"><enum>(A)</enum><header>Role of regulatory agencies</header><text>The Board may enter into cooperative arrangements with Federal and State regulatory agencies identified by the Board as having jurisdiction over persons eligible for certification under this subsection so as to ensure that the provisions of this part are enforced with respect to certified account managers in a manner consistent with and supportive of the requirements of other provisions of Federal law applicable to them. Such Federal regulatory agencies shall cooperate with the Board to the extent that the Board determines that such cooperation is necessary and appropriate to ensure that the provisions of this part are effectively implemented.</text></subparagraph>
<subparagraph id="HD0710046C6064348BE32068057E58413"><enum>(B)</enum><header>Access to records</header><text>The Board may from time to time require any certified account manager to file such reports as the Board may specify by regulation as necessary for the administration of this part. In prescribing such regulations, the Board shall minimize the regulatory burden imposed upon certified account managers while taking into account the benefit of the information to the Board in carrying out its functions under this part.</text></subparagraph></paragraph>
<paragraph id="H58416F88BCBC436EBC4FF59C14FE00A5"><enum>(3)</enum><header>Revocation of certification</header><text>The Board shall provide, in the contractual arrangements entered into under this subsection with each certified account manager, for revocation of such person’s status as a certified account manager upon determination by the Board of such person’s failure to comply with the requirements of such contractual arrangements. Such arrangements shall include provision for notice and opportunity for review of any such revocation.</text></paragraph></subsection>
<subsection id="H1D01D55B39374B5DA72D4CD17334534F"><enum>(c)</enum><header>Fiduciary responsibilities</header>
<paragraph id="H07BBA242ACA34C4F83F100C51B68CB0"><enum>(1)</enum><header>In general</header><text>Rules similar to the provisions of <external-xref legal-doc="usc" parsable-cite="usc/5/8477">section 8477</external-xref> of title 5, United States Code (relating to fiduciary responsibilities; liability and penalties) shall apply in connection with account assets, in accordance with regulations which shall be issued by the Board. The Board shall issue regulations with respect to the investigative authority of appropriate Federal agencies in cases involving account assets.</text></paragraph>
<paragraph id="HF6D190C6BBF64CA1B9370000A48011D2"><enum>(2)</enum><header>Exculpatory provisions voided</header><text>Any provision in an agreement or instrument which purports to relieve a fiduciary from responsibility or liability for any responsibility, obligation, or duty under this part shall be void.</text></paragraph></subsection>
<subsection id="H1B6A0346A2FF496CB4212184DB33F5A0"><enum>(d)</enum><header>Civil actions by Board</header><text>If any person fails to meet any requirement of this part or of any contract entered into under this part, the Board may bring a civil action in any district court of the United States within the jurisdiction of which such person’s assets are located or in which such person resides or is found, without regard to the amount in controversy, for appropriate relief to redress the violation or enforce the provisions of this part, and process in such an action may be served in any district.</text></subsection>
<subsection id="HE043CCB7D7354AF49559137800A0CD19" display-inline="no-display-inline"><enum>(e)</enum><header>Representatives</header><text>The Board shall provide by regulation for elections and designations otherwise to be made by an individual under this part to be made instead on behalf of the individual by a designated representative of the individual.</text></subsection>
<subsection id="HE5920DE0B65442FCA1F609AC67F1FC05"><enum>(f)</enum><header>Preemption of inconsistent State law</header><text>A provision of this part shall not be construed to preempt any provision of the law of any State or political subdivision thereof, or prevent a State or political subdivision thereof from enacting any provision of law with respect to the subject matter of this part, except to the extent that such provision of State law is inconsistent with this part, and then only to the extent of the inconsistency.</text></subsection>
<subsection id="HCA399BD28979410897611E2436696F53" commented="no"><enum>(g)</enum><header>Authorization of appropriations</header><text>There are authorized to be appropriated to the Board, the Commissioner, and the Secretary of the Treasury, for fiscal years beginning on or after October 1, 2005, such sums as are necessary to carry out their respective duties under this part.</text></subsection></section></part><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection>
<subsection id="HCB6475EAAA64430B87F703B00E75048" display-inline="no-display-inline"><enum>(b)</enum><header>Conforming amendment to part <enum-in-header>A</enum-in-header></header><text>Section 202 of such Act (<external-xref legal-doc="usc" parsable-cite="usc/42/402">42 U.S.C. 402</external-xref>) is amended by adding at the end the following new subsection:</text>
<quoted-block style="other" id="H56883CD5F6B441E0806027401784FE00" display-inline="no-display-inline" other-style="archaic">
<subsection id="H223A9F1A57924F64809CCDC4D4D6D900"><enum>(z)</enum><header>Adjustments under part B</header><text>The amount of benefits under subsections (a), (b), (c), (e), (f), and (h) which are otherwise payable under this part and which are retirement benefits (as defined in section 251(8)) shall be subject to adjustment as provided under section 258.</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="H4C781019D685450EB4B076BAF0A71E00"><enum>(c)</enum><header>Additional conforming amendments</header>
<paragraph display-inline="yes-display-inline" id="HD4E9A9A153074907B98F75B8A2AC6E16"><enum>(1)</enum><text>Section 701(b) of the <act-name parsable-cite="SSA">Social Security Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/901">42 U.S.C. 901(b)</external-xref>) is amended by striking <quote>title II</quote> and inserting <quote>part A of title II, the GROW Accounts Program under part B of title II,</quote>.</text></paragraph>
<paragraph indent="up1" id="H2FABD32FFE064C2692F0458FABB3DD74"><enum>(2)</enum><text>Section 702(a)(4) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/42/902">42 U.S.C. 902(a)(4)</external-xref>) is amended by inserting <quote>other than those of the GROW Accounts Board</quote> after <quote>Administration</quote>, and by striking <quote>thereof</quote> and inserting <quote>of the Administration in connection with the exercise of such powers and the discharge of such duties</quote>.</text></paragraph></subsection></section>
<section id="H84C47BA0F5EB4834B65ED341DBB0E650" commented="no"><enum>102.</enum><header>Annual account statements</header><text display-inline="no-display-inline">Section 1143 of the <act-name parsable-cite="SSA">Social Security Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/1320b-13">42 U.S.C. 1320b–13</external-xref>) is amended by adding at the end the following new subsection:</text>
<quoted-block style="other" other-style="archaic" act-name="Social Security Act" id="HEAE4C818175046EEA835249164DAAB00">
<subsection id="HE855F744E781443480B4F09F3197F3D9" commented="no"><enum>(e)</enum><header>Performance of GROW accounts</header><text>Beginning not later than 1 year after the date on which the first deposit is made to a participating individual’s GROW account, each statement provided to such participating individual under this section shall include information determined by the GROW Accounts Board as sufficient to fully inform such participating individual annually of the balance, investment performance, and administrative expenses of such account.</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></section>
<section id="H3A2AB648C3AA49D2BA5927B3D927DA99" section-type="subsequent-section" commented="no"><enum>103.</enum><header>Report and Congressional consideration of proposals regarding alternative investment options and other matters</header>
<subsection id="HD60BBDDBFB39486EA753D00023D92FCF" commented="no"><enum>(a)</enum><header>Report</header><text>During the period of 30 calendar days beginning on the first day of the 111th Congress, the GROW Accounts Board shall submit to the President and each House of the Congress a report containing a consolidated implementation plan for the GROW Accounts Program, consisting of the following 3 components:</text>
<paragraph id="H6597DC4510A64E1C9BB2C23F555528E6" commented="no"><enum>(1)</enum><header>Investment options plan</header><text display-inline="yes-display-inline">An investment options plan, which shall provide for additional and alternative investment options, for GROW account balances, in broad-based index funds—</text>
<subparagraph id="H16401382ACFE43E28EE71FA92B1846D8" commented="no"><enum>(A)</enum><text>which are similar to the index fund investment options available within the Thrift Savings Fund established under <external-xref legal-doc="usc" parsable-cite="usc/5/8437">section 8437</external-xref> of title 5, United States Code, including a lifecycle fund in which investments are adjusted based on the number of years remaining prior to the participating individual’s attainment of age 62,</text></subparagraph>
<subparagraph id="H3A6DEBF166E744CDAC3B3906D38F7E01" commented="no"><enum>(B)</enum><text>which the Board determines would be prudent sources of retirement income that could yield greater amounts of income than the investment described in section 256(c)(1) of the Social Security Act (added by this title), and</text></subparagraph>
<subparagraph id="H9508CB10E19A4A4997F3B4E1C6244E1" commented="no"><enum>(C)</enum><text>which a participating individual may elect.</text></subparagraph></paragraph>
<paragraph id="H05CCCF6D198F43FBB04EF6169D980039" commented="no"><enum>(2)</enum><header>Payout options plan</header><text>A payout options plan, which shall provide for additional and alternative options for the payout of GROW account balances to participating individuals upon their retirement date (as defined in section 251(9) of the Social Security Act) which the Board determines would be appropriate.</text></paragraph>
<paragraph id="HC615538C37B64F48B7D1051E54ADB4C7" commented="no"><enum>(3)</enum><header>Public education plan</header><text>A public education plan, which shall provide for enhancement of information dissemination under, and public education regarding, the GROW Accounts Program.</text></paragraph></subsection>
<subsection id="H319611378B7E4CCDBEB1F2B1D983637C" commented="no"><enum>(b)</enum><header>Implementation</header>
<paragraph id="H3B65E5597187435287C41E75C05DBBFF"><enum>(1)</enum><header>In general</header><text>Subject to paragraph (2)—</text>
<subparagraph id="H08C94511B92246DE8E1193AFCFBF9400" commented="no" display-inline="no-display-inline"><enum>(A)</enum><header>Investment options plan</header><text>The investment options plan submitted pursuant to subsection (a)(1) shall take effect on the date immediately following the 90-day period beginning on the date on which such plan is so submitted.</text></subparagraph>
<subparagraph id="HF55CEF060C41429C85C75E107A40007" commented="no"><enum>(B)</enum><header>Payout options plan and public education plan</header><text>The payout options plan submitted pursuant to subsection (a)(2) and the public education plan submitted pursuant to subsection (a)(3) shall be implemented in accordance with timetables which shall be included with such plans.</text></subparagraph></paragraph>
<paragraph id="H743A2AEDDA41475C9858F044045CC5C"><enum>(2)</enum><header>Congressional review</header><text display-inline="yes-display-inline">The consolidated implementation plan submitted pursuant to subsection (a) shall not become effective if, during the 90-day period beginning on the date on which such plan is so submitted, there is enacted by the Congress a joint resolution of disapproval of such plan.</text></paragraph>
<paragraph id="H00D47CECA64E41208CBD2455A6E0329"><enum>(3)</enum><header>Time periods</header><text>For purposes of this subsection, the days on which either House of Congress is not in session because of an adjournment of more than 3 days to a day certain shall be excluded in the computation of the 90-day period referred to in paragraphs (1)(A) and (2).</text></paragraph> </subsection>
<subsection id="H1C23666FED69474787A084B6A007D984" commented="no"><enum>(c)</enum><header>Definitions</header><text>For purposes of this section—</text>
<paragraph id="H86826DADCA144DC3A84998BC56E99608" commented="no"><enum>(1)</enum><text>the term <quote>Grow Accounts Board</quote> or <quote>Board</quote> means the GROW Accounts Board established under section 260(a) of the Social Security Act;</text></paragraph>
<paragraph id="H1960C32A3C98447281B04D70CEE1DFEF" commented="no"><enum>(2)</enum><text>the term <quote>GROW Accounts Program</quote> means the GROW Accounts Program established under part B of title II of such Act;</text></paragraph>
<paragraph id="HB317EBB5EC614FB2A2D81612003E1EA1" commented="no"><enum>(3)</enum><text>the term <quote>GROW account</quote> means a GROW account established under section 255 of such Act; and</text></paragraph>
<paragraph id="H0DA228BDB1BF4AD5A6C37C235861F9AD" commented="no"><enum>(4)</enum><text>the term <quote>participating individual</quote> has the meaning provided in section 253(a) of such Act. </text></paragraph></subsection></section>
<enum>II</enum><header>Tax treatment</header>
<section id="HBF97042D4A074022B8D3BFB19BA74CA9"><enum>201.</enum><header>Tax treatment of GROW accounts</header><text display-inline="no-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/7701">Section 7701</external-xref> of the Internal Revenue Code of 1986 (relating to definitions) is amended by redesignating subsection (o) as subsection (p) and by inserting after subsection (n) the following new subsection:</text>
<quoted-block id="H87C63A49E2F0499DABAC064FDB0AC83">
<subsection id="H5CB110DEA134439E00337BA42B564EC4"><enum>(o)</enum><header>Tax treatment of GROW accounts</header>
<paragraph id="HE1FFF54D26724D5FA2009FB200BD09A9"><enum>(1)</enum><header>In general</header><text>All GROW accounts established under part B of title II of the <act-name parsable-cite="SSA">Social Security Act</act-name> shall be exempt from taxation under this title.</text></paragraph>
<paragraph id="HB229B753A49040ECA7956F3FE047E501"><enum>(2)</enum><header>Certain dispositions of account assets</header><text>No amount shall be includible in gross income by reason of a disposition under subsection (a) or (b) of section 259 of the Social Security Act.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></section>
<section id="H955B5A9F8DCD483B96A3116BF761A6B6"><enum>202.</enum><header>Benefits taxable as Social Security benefits</header>
<subsection id="H54F73ED48BAA492294C87FE8E71C85A8"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/86">Section 86(d)(1)</external-xref> of the Internal Revenue Code of 1986 is amended—</text>
<paragraph id="H52F3F2E008AB4C18B24DF054D7F72501"><enum>(1)</enum><text>in subparagraph (A) by inserting <quote>part A of</quote> after <quote>benefit under</quote>, and</text></paragraph>
<paragraph id="H39FA95555D4B4882A8CF16A5290743BF"><enum>(2)</enum><text>by striking <quote>or</quote> at the end of subparagraph (A), by redesignating subparagraph (B) as subparagraph (C), and by inserting after subparagraph (A) the following new subparagraph:</text>
<quoted-block style="OLC" id="H6ED85604F82A45EA9723C6CE9107F9E7" display-inline="no-display-inline">
<subparagraph id="HFBF9525B2C094D2ABEE529AA9029D453"><enum>(B)</enum><text>any distribution under section 257 of the Social Security Act, or </text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection>
<subsection id="H4A0369A16B594BAD87AF47FD8FA4CCD4"><enum>(b)</enum><header>Effective date</header><text>The amendments made by this subsection shall apply to taxable years beginning after the end of the calendar year in which this Act is enacted.</text></subsection></section>
<section id="HCCCE133FFAFD4087BA34403BFC3C521"><enum>203.</enum><header>Estate tax not to apply to assets of GROW accounts</header>
<subsection id="H3837D832DB69490C9BFB2D884F3C5B93"><enum>(a)</enum><header>In general</header><text>Part IV of subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/11">chapter 11</external-xref> of the Internal Revenue Code of 1986 (relating to taxable estate) is amended by adding at the end the following new section:</text>
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<section id="H7B745DCB452D450DB18D003900B6D2E8"><enum>2059.</enum><header>GROW accounts</header><text display-inline="no-display-inline">For purposes of the tax imposed by section 2001, the value of the taxable estate shall be determined by deducting from the value of the gross estate an amount equal to the value of the assets of a GROW account transferred from such account by the Secretary under section 258 of the <act-name parsable-cite="SSA">Social Security Act</act-name>.</text></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="HBB70458AC2AB4B398DA900CDBEAEF63C"><enum>(b)</enum><header>Clerical amendment</header><text>The table of sections for part IV of subchapter A of chapter 11 of such Code is amended by adding at the end the following new item:</text>
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<toc regeneration="no-regeneration">
<toc-entry level="section">Sec. 2059. GROW accounts</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="HB7FF964488424478B1E8A6CAEA97A4D6"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to decedents dying in or after the calendar year in which this Act is enacted.</text></subsection></section>