Employees’ Retirement System (ERS) – Pension
The Employees’ Retirement System (ERS) is a department under the State of Hawaiʻi Department of Budget and Finance that is governed by a Board of Trustees to provide a pension plan for Hawaiʻi State and county government employees.
The retirement plans provide a lifetime retirement benefit if age and service requirements are met. The formula takes into account years of creditable service and average salary over a specified period of time.
- If an employee has service comprised of periods including both part-time and full-time employment, the part-time service will be converted to full-time equivalent service or vice-versa, for the purpose of determining average final compensation and the retirement allowable payable.
- Regardless of the method of conversion used, the part-time or full-time service shall conform to the same basis of part-time or full-time salary used to determine average final compensation.
- To be eligible for ERS membership the employee must be employed in a position working 20 or more hours per week and more than 90 days in duration.
- Graduate Assistants are not eligible for ERS membership.
- Eligible employees are required under Hawaiʻi law to become members of the ERS as a condition of employment.
- The designated HR Representative will provide the necessary enrollment and beneficiary forms as part of the hiring packet.
The ERS offers three defined benefit plans – Contributory, Non-Contributory and Hybrid
- Hybrid Retirement Plan – Employees with ERS membership date after June 30, 2012
- Hybrid Retirement Plan – Employees with ERS membership date prior to July 1, 2012
- Non-Contributory Retirement Plan
- Contributory Retirement Plan
Under the Contributory plan and Hybrid plan, the State contributions are not credited to the employee’s account and are not refundable to the employee. The State contributions along with ERS investment earnings are used to pay retirement benefits to retirees and beneficiaries. Federal tax law limits the amount of compensation that may be taken into account in calculating tax-qualified pension benefits paid by the ERS.
Detailed information regarding the ERS plans and various retirement options may be found on the ERS website.