§303-3  Withholding.  (a)  Thedepartment of education and the University of Hawaii may also enter into anagreement under which the employer shall withhold from the salary of theemployee the amount of the premiums payable on account of the annuity contract,and shall make such premium payments on behalf of the employee.  The departmentof education and the University of Hawaii may contract with third parties toadminister plans to ensure compliance with the Internal Revenue Code of 1986,as amended, state and federal laws, and for the withholding of amounts from thesalaries of their employees payable on account of annuity contracts and formaking payments on their behalf.  Costs for implementing and administeringthese plans for the University of Hawaii shall be borne by the employees orservice providers maintaining annuity contracts, as determined by theUniversity of Hawaii.  Costs for implementing and administering these plans forthe department of education shall be borne by the insurance service providersoffering the annuity products, or the annuity entity selling or maintaining theannuity contracts on behalf of the employees of the department of education.

(b)  The University of Hawaii and afterDecember 31, 2003, the department of education may also enter into an agreementunder which the employer shall withhold from the salary of the employee theamount payable on account of the custodial account, and shall make the paymentson behalf of the employee.  The University of Hawaii and the department ofeducation may contract with third parties to administer plans to ensurecompliance with the Internal Revenue Code of 1986, as amended, state andfederal laws and, for the withholding of amounts from the salaries of theiremployees payable on account of custodial accounts and for making payments ontheir behalf.  Costs for implementing and administering the plan for theUniversity of Hawaii shall be borne by the employees or service providersmaintaining custodial accounts as determined by the University of Hawaii. Costs for implementing and administering the plan for the department ofeducation shall be borne by the custodial service provider offering thecustodial account product, or the custodial entity selling or maintaining thecustodial accounts on behalf of employees of the department of education. [L1967, c 40, pt of §1; HRS §303-3; am L 1999, c 123, §2(4); am L 2001, c 186,§2]