Deferred Compensation Plan

HRS div. 1, tit. 7, ch. 0088E

in effect

HRS §88E-1 Definitions

88E-1. Definitions As used in this chapter, unless the context clearly indicates otherwise: "County" means the counties of Hawaii, Kauai and Maui, and the city and county of Honolulu. "Employee" means a person who is eligible to participate in the employees' retirement system of the State of Hawaii as defined in section 88-21. "State" means the State of Hawaii. [L Sp 1981 1st, c 7, pt of §1]

HRS §88E-3 Board of trustees

88E-3. Board of trustees (a) The authority to establish the plan and implement this chapter is vested in the board of trustees. The board shall be placed within the department of human resources development for administrative purposes. (b) The board shall adopt such rules to carry out this chapter in accordance with chapter 91; provided that rules necessary for the plan to be in compliance with federal laws or regulations may be adopted without regard to chapter 91. The board may engage services, as necessary, to establish, administer, or maintain the plan under its direction. An administrator may be engaged only after a solicitation of proposals from interested persons in accordance with specifications deemed appropriate by the board. [L Sp 1981 1st, c 7, pt of §1; am L 1994, c 56, §21; am L 2000, c 253, §126]

HRS §88E-7 Legal advisor

88E-7. Legal advisor The attorney general shall be the legal advisor of the board. [L Sp 1981 1st, c 7, pt of §1]

HRS §88E-8 Deferred funds

88E-8. Deferred funds Sums deferred under the plan, as well as property and rights purchased with such amounts and income attributable to such amounts, shall be held in trust outside the state treasury in accordance with section 457 of the Internal Revenue Code of 1986, as amended, for the exclusive benefit of participants and their beneficiaries. [L Sp 1981 1st, c 7, pt of §1; am L 1997, c 171, §1; am L 2000, c 253, §127]

HRS §88E-9 Investments

88E-9. Investments (a) The board may create a trust or other special funds for the segregation of funds or assets resulting from compensation deferred and for the administration of the plan. (b) Participating employees shall invest their deferred compensation in the investment products permitted under the plan; provided that the investment products shall be provided by companies that are licensed to provide investment products and transact business in the State. (c) The investment products may include annuities, life insurance, savings accounts, mutual funds, or other types of investment products that are commonly offered in the securities industry or other deferred compensation plans and are determined by the board to be reasonably prudent investment products. (d) The investment products shall have been reviewed and selected by the board after a competitive bidding process based on the specifications and considerations deemed appropriate by the board. (e) The investments and investment products shall not be construed to be a prohibited use of general assets of the State. (f) Nothing in this chapter shall be construed to permit any type of investment prohibited by law. [L Sp 1981 1st, c 7, pt of §1; am L 2008, c 92, §2]

HRS §88E-11 Limitation on liability

88E-11. Limitation on liability The State or county shall not be liable for the sums deferred or the results of any investment product. [L Sp 1981 1st, c 7, pt of §1]

HRS §88E-12 Deferred amounts as compensation

88E-12. Deferred amounts as compensation Any compensation deferred pursuant to a plan established under this chapter shall be deemed regular compensation for the purpose of computing contributions or benefits under existing retirement, pension, or social security systems applicable to participating employees; provided that, at the participating employee's option, all or part of the deferred compensation may be included or excluded in the computation of federal income taxes withheld on behalf of the participating employee, allowing for both a traditional contribution and a Roth contribution under section 457(b) of the Internal Revenue Code, as amended. [L Sp 1981 1st, c 7, pt of §1; am L 2019, c 86, §2]

HRS §88E-13 Costs of the plan

88E-13. Costs of the plan Costs for implementing and administering the plan shall be borne by the plan and its participants, except for incidental expenses, such as, the cost of payroll deductions and the routine processing of forms. [L Sp 1981 1st, c 7, pt of §1]

HRS §88E-15 Existing deferred compensation plans

88E-15. Existing deferred compensation plans This chapter shall not affect any existing deferred compensation plan established under section 457 of the Internal Revenue Code, as amended. [L Sp 1981 1st, c 7, pt of §1]

Source: Hawaii State Legislature (capitol.hawaii.gov), via Internet Archive capturesURL: http://www.capitol.hawaii.gov/hrscurrent/Vol02_Ch0046-0115/HRS0088E/HRS_0088E-.htmFetched: 11/10/2026