§ 1307. Investment options. 1. The board shall establish or authorize
a default investment option for enrollees who fail to elect an
investment option. In making such determination, the board shall
consider the cost, risk profile, benefit level and ease of enrollment.
The board may change the default option if the board determines that
such change is in the best interests of the enrollees.

2. The board may establish or authorize any additional investment
options that the board deems appropriate including but not limited to:

(a) a conservative principal protection fund;

(b) a growth fund;

(c) a secure return fund whose primary objective is the preservation
of the safety of principal and the provision of a stable and low-risk
rate of return; if the board elects to establish a secure return fund,
the board may procure any insurance, annuity, or other product to insure
the value of enrollees' accounts and guarantee a rate of return; the
cost of such funding mechanism shall be paid out of the fund; under no
circumstances shall the board, program, fund, the state, or any
participating employer assume any liability for investment or actuarial
risk; the board shall determine whether to establish or authorize such
investment options based upon an analysis of their cost, risk profile,
benefit level, feasibility, and ease of implementation;

(d) an annuity fund;

(e) a growth and income fund; or

(f) a life cycle fund with a target date based upon factors determined
by the board.