in subsection (a), all contributions made by employees and employers in Puerto Rico to the Social Security system with respect to persons who, upon the proclamation of independence, are residents of the nation of Puerto Rico and are not yet eligible for old age, disability, or survivors’ insurance benefits under the system, shall be transferred to the Government of the nation of Puerto Rico once said Government establishes its own social security system. The Government of the nation of Puerto Rico may not use these funds for any purpose other than the establishment and operation of a social security system. Upon the transfer described herein, the obligations of the United States Government under the Social Security Act with respect to such residents of the nation of Puerto Rico shall cease. (c) Other Federal transfer payments (1) Block grants All other Federal transfer payments to individuals and to the Government of the territory of Puerto Rico shall be maintained in the form of annual block grants to be used discretionally by the Government of the nation of Puerto Rico. (2) Annual aggregate funding During the ten fiscal years following the proclamation of independence, the annual block grants shall amount to the annual aggregate funding of all programs which currently extend to the territory of Puerto Rico, or of all programs which shall have been extended to the territory of Puerto Rico during the fiscal year immediately prior to the proclamation of independence, whichever shall be greater. (3) Decrease in amount The annual block grants shall decrease thereafter on a straight-line basis, at the rate of ten percent each year, beginning on the eleventh fiscal year after the proclamation of independence. At any time during the aforementioned transition period the terms of this subsection may be modified by agreement between the United States and the nation of Puerto Rico. II Transition and Implementation—Sovereignty in Free Association with the United States 201. Constitutional convention (a) Election of