The State or any political subdivision thereof may, by contract, agree with any employee to defer, not more than twenty-five percent of his compensation and may subsequently with the consent of the employee contract for purchase or otherwise procure fixed or variable annuities, savings, mutual funds, insurance or such other investments as the commission may approve for the purpose of carrying out the objectives of the program with the advice and approval of the State Treasurer. The investments shall be underwritten and offered in compliance with applicable federal and state laws and regulations by persons who are authorized by the commission in accordance with the provisions of this chapter.