Hawaii
Overview
The Employees' Retirement System of the State of Hawaii administers pension and other benefits for substantially all public employees in the state. The system maintains three plans: a contributory, non-contributory, and hybrid plan. The hybrid plan took effect on July 1, 2006, and most new hires since this date are required to join. Most participants of the noncontributory and certain members of the contributory plan were eligible to join the hybrid plan.
Plan Design
Defined benefit plans serve as the primary retirement benefit for substantially all public employees in Hawaii.
According to the US Government Accountability Office, 83 percent of employees of state and local government in Hawaii participate in Social Security.
Authorizing Statutes and Board Structure
HI Rev Stat § 88-22 establishes the Employees’ Retirement System of the State of Hawaii. HI Rev Stat § 88-24 establishes the retirement board, which consists of eight members.
Details regarding the composition of these and other retirement boards is accessible via the Retirement and Investment Board Characteristics search tool located at the bottom of this page.
Fiduciary Duty/Prudence Standard
The standard of fiduciary duty/prudence for the Hawaii ERS is established in the board's investment policy, guidelines, and procedures, as follows:
The duties and responsibilities of the Board of Trustees are governed and limited by Hawai‘i statutes and laws. In the past, the Board of Trustees has also looked to general trust law, such as outlined by the Third Restatement, Trusts, for guidance as to its duties and responsibilities regarding the investment of ERS assets. In connection with the foregoing, the Board of Trustees has adhered to the following:
- Except as otherwise provided by law, administer ERS investments solely in the interest of Plan participants.
- Prepare written investment policies and documents the process. In doing so the Trustees must:
- Determining the Plan’s missions and objectives.
- Choosing an appropriate strategic allocation strategy.
- Establishing specific investment policies consistent with the Plan’s objectives.
- Selecting investment managers to implement the strategic allocation.
- Diversify assets with regard to specific risk/return objectives for the participants/beneficiaries.
- Use “prudent experts” to make investment decisions.
- Control investment expenses.
- Monitor the activities of all Investment Staff, investment managers, and investment consultants.
- Avoid conflicts of interest.
Legal Protections of Retirement Benefits
Membership in any employees' retirement system of the State or any political subdivision thereof shall be a contractual relationship, the accrued benefits of which shall not be diminished or impaired. See Kaho'ohanohano v. State, 162 P.3d 696 (Haw. 2007)(constitutional provision prohibiting the impairment of accrued benefits of members of Employees' Retirement System of State of Hawai'i protects not only accrued benefits but also, as a necessary implication, the sources for those benefits). (HI CONST., Article XVI, §2) Source: Robert Klausner, Esq., State Constitutional Protections for Public Sector Retirement Benefits
See also the following search tools:
Retirement System Account Interest Policies | Economic Actuarial Assumptions | Retirement and Investment Board Characteristics |
Information about interest rates applied to account balances of inactive plan participants | Assumed rates of investment return and inflation | Composition and characteristics of public retirement and investment oversight boards |
Mortality Assumptions | Plan Design Features | Post-retirement Employment Policies |
Public retirement system actuarial assumptions for mortality | Numerous elements of retirement plan design | Policies governing return-to-work for retirement system annuitants |
More Data
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Population (2024) 1,446,146 |
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Hawaii public pension statistics, |
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Assets |
$23.6 billion |
Active Members |
65,337 |
Annuitants |
55,820 |
Benefits Paid |
$1.9 billion |
Employee Contributions |
$342.1 million |
Employer Contributions |
$1.4 billion |
Systems |
One state system that accounts for 100 percent of assets and public pension plan participants in the state. |
More Data
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Roll Call (members-only)