N.Y. GBS Law § 1307

§ 1307. Investment options. 1. The board shall establish or authorize\na default investment option for enrollees who fail to elect an\ninvestment option. In making such determination, the board shall\nconsider the cost, risk profile, benefit level and ease of enrollment.\nThe board may change the default option if the board determines that\nsuch change is in the best interests of the enrollees.\n 2. The board may establish or authorize any additional investment\noptions that the board deems appropriate including but not limited to:\n (a) a conservative principal protection fund;\n (b) a growth fund;\n (c) a secure return fund whose primary objective is the preservation\nof the safety of principal and the provision of a stable and low-risk\nrate of return; if the board elects to establish a secure return fund,\nthe board may procure any insurance, annuity, or other product to insure\nthe value of enrollees' accounts and guarantee a rate of return; the\ncost of such funding mechanism shall be paid out of the fund; under no\ncircumstances shall the board, program, fund, the state, or any\nparticipating employer assume any liability for investment or actuarial\nrisk; the board shall determine whether to establish or authorize such\ninvestment options based upon an analysis of their cost, risk profile,\nbenefit level, feasibility, and ease of implementation;\n (d) an annuity fund;\n (e) a growth and income fund; or\n (f) a life cycle fund with a target date based upon factors determined\nby the board.\n