25. The administrator must provide a plan that includes a default investment option that meets the criteria determined by regulation.
The administrator must, in addition, subject to the conditions prescribed by regulation, offer from three to five other investment options of varying degrees of risk and expected return that would allow a prudent person to create a portfolio of investments appropriate for retirement savings and from among which a member may make an investment choice.
If a member does not make an investment choice under the second paragraph, the investment option provided for in the first paragraph applies to the member’s accounts.
All investments must be permitted under fiscal rules.
For the purposes of the second paragraph, “other investment option” means any investment strategy determined according to the following criteria:
(1) the investor profile determined according to risk tolerance;
(2) the term of the investment;
(3) the expected return and appreciation;
(4) the guarantees on the investment, if any; and
(5) any other criteria determined by regulation.