Hawaii Revised Statutes Division 1. Government § 88F-7

(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 investment products shall guarantee a full return of principal.

(f) The investments and investment products shall not be construed to be a prohibited use of general assets of the State.

(g) Nothing in this chapter shall be construed to permit any type of investment prohibited by law.