Section 389-4 - Hawaii retirement savings board; powers; duties(a) The board shall have powers and duties in accordance with law to: (1) Establish, implement, and maintain the program;(2) Cause the program and arrangements and accounts established under the program to be designed, established, and operated: (A) In accordance with best practices for retirement savings vehicles;(B) To encourage participation, saving, sound investment practices, and appropriate selection of default investments;(C) To maximize simplicity and ease of administration for employers;(D) To minimize costs, including by collective investment and other measures to achieve economies of scale and other efficiencies in program design and administration;(E) To promote portability of benefits; and(F) To avoid preemption of the program by federal law;(3) Arrange for collective, common, and pooled investment of assets of the program;(4) Determine the eligibility of an employer, employee, or other individual to participate in the program;(5) Ensure the program's compliance with all applicable laws and regulations;(6) Establish procedures for the timely and fair resolution of participant and other disputes related to accounts or program operation;(7) Develop and implement:(A) An investment policy that defines the program's investment objectives and that is consistent with the objectives of the program; and(B) Other policies and procedures consistent with those investment objectives;(8) Cause expenses incurred to initiate, implement, maintain, and administer the program to be paid from the program and other available sources;(9) Establish and collect application, account, and administrative fees;(10) Accept grants, gifts, donations, legislative appropriations, loans, and other moneys from the State, any unit of federal, state, or local government, or any other person to defray the costs of administering and operating the program;(11) Enter into contracts pursuant to chapter 103D for services that the board deems necessary to carry out the purposes of this chapter, including: (A) Services of private and public financial institutions, depositories, consultants, actuaries, counsel, auditors, investment advisors, investment administrators, investment management firms, other investment firms, third-party administrators, other professionals and service providers;(B) Research, technical, financial, administrative, and other services; and(C) Services of other state agencies to assist the board in the exercise of its powers and duties;(12) Develop and implement an outreach plan to gain input and disseminate information regarding the program and retirement savings in general;(13) Cause moneys to be held and invested and reinvested under the program;(14) Ensure that all contributions to individual retirement accounts under the program may be used only to:(A) Pay benefits to participants under the program;(B) Pay the cost of administering the program; and(C) Make investments for the benefit of the program; provided that no assets of the program shall be transferred to the general fund of the State or to any other fund of the State or otherwise encumbered or used for any purpose other than those specified in this paragraph;(15) Provide for the payment of costs of administration and operation of the program;(16) Evaluate the need for and, if the board deems necessary, procure: (A) Insurance against any and all loss in connection with the property, assets, or activities of the program; and(B) Pooled private insurance;(17) Indemnify, including procurement of insurance if and as needed for this purpose, each board member from personal loss or liability resulting from the member's action or inaction as a board member;(18) Collaborate with and evaluate the role of financial advisors or other financial professionals, including in assisting and providing guidance for covered employees; and(19) Reimburse, when appropriate, the general fund of the State of Hawaii for the initial expenses incurred for initiating, implementing, maintaining, and administering the program; and(20) Take any other action the board deems reasonably necessary to carry out the purpose of this chapter.(b) The board may develop and disseminate information designed to educate covered employees about the impacts of opting in to the program on take-home pay, savings strategies, and the benefits of planning and saving for retirement to help covered employees in deciding whether to participate and at what level participation may be appropriate.(c) Board members, the executive director, and other staff of the board shall not: (1) Have any interest, directly or indirectly, in the making of any investment under the program or in gains or profits accruing from any investment;(2) Borrow any program-related funds or deposits, or use any program-related funds or deposits in any manner, for themselves or as an agent or partner of others; or(3) Become an endorser, surety, or obligor on investments made under the program.Added by L 2022, c 296,§ 2, eff. 7/12/2022.