HRS §78-30
Cafeteria plans
This section lets each chief executive set up a cafeteria plan so eligible employees can choose to take less pay before taxes in exchange for the employer paying for certain benefits. The chief executive can sign contracts to run the plan, and plan money can be held in a trust protected from the government's general creditors.
employeesstate agencies
The statute, as written — Cafeteria plans
(a) Each chief executive may establish a wage and salary reduction benefit program which qualifies as a cafeteria plan within the meaning of section 125 of the Internal Revenue Code of 1986, as amended. The cafeteria plan shall allow eligible employees to elect to reduce their pretax compensation in return for payment by the jurisdiction of the expenses of eligible benefits. (b) In addition to any other powers and duties authorized by law, each chief executive may enter into all contracts necessary to establish, administer, or maintain the cafeteria plans. (c) The contributions, interest earned, and forfeited participant balances may be held in trust outside of the jurisdiction's treasury for the benefit of the participants and the plan. The funds in trust shall not be subject to the jurisdiction's general creditors. Interest earned or forfeited participant balances may be used to defray participant fees and other administrative costs.
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