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.

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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: 

  1. Except as otherwise provided by law, administer ERS investments solely in the interest of Plan participants. 
  2. Prepare written investment policies and documents the process. In doing so the Trustees must: 
    1. Determining the Plan’s missions and objectives. 
    2. Choosing an appropriate strategic allocation strategy. 
    3. Establishing specific investment policies consistent with the Plan’s objectives. 
    4. Selecting investment managers to implement the strategic allocation.
  3. Diversify assets with regard to specific risk/return objectives for the participants/beneficiaries. 
  4. Use “prudent experts” to make investment decisions. 
  5. Control investment expenses. 
  6. Monitor the activities of all Investment Staff, investment managers, and investment consultants. 
  7. 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

Flag of Hawaii (December 29, 1845)

Population (2024) 1,446,146

Hawaii public pension statistics,
per U.S. Census Bureau as of FY 2024

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


Become A Member

Becoming a member of NASRA offers a unique opportunity to join a community committed to the sound, efficient, and innovative stewardship of public retirement systems. Membership connects you with a network of professionals and experts, providing valuable insights into managing public retirement systems with a focus on sustainability and risk-averse strategies.

By joining NASRA, you gain the tools and resources to enhance the management of public retirement systems, ensuring their long-term success and reliability for generations to come.


 

What's New at NASRA: Balancing Stability and Sustainability: A Closer Look at Public Pension Contribution Policies

How public employers fund their pension plans has long-term implications for fiscal health and retirement security. NASRA’s latest publication explores the two primary models used across the nation—variable-rate and fixed-rate employer contribution policies—and how public pension systems are adapting these models to navigate evolving fiscal and demographic challenges.