Hawaii Administrative Rules
Title 14 - DEPARTMENT OF HUMAN RESOURCES DEVELOPMENT
Subtitle 5 - STATE OF HAWAII CAFETERIA PLAN
Chapter 51 - PREMIUM CONVERSION PLAN
Subchapter 1 - PURPOSE AND DEFINITIONS
Section 14-51-1 - Purpose

The purpose of this chapter is to implement and administer the State of Hawaii cafeteria plan within the meaning of section 125 of the Internal Revenue Code of 1986, as amended, for the exclusive benefit of eligible employees of the State.

The cafeteria plan will allow eligible state employees an election to reduce their pretax compensation in return for payment by the employer of expenses of eligible benefits. The value of some, but not necessarily all, such employer paid eligible benefits shall be excluded from the employees gross income for federal and state tax purposes, as provided by law. Participation in this plan shall not be considered as an employment contract between the employer and the employee, nor as giving the employee any right to continued employment.