Employees' Retirement System (ERS)

Employees appointed for any period exceeding three months, and serves in positions requiring at least one-half of full-time equivalent, are members of the Employees’ Retirement System (ERS) under a contributory, non-contributory or hybrid retirement plan as prescribed by State of Hawaii statutes effective the date of employment.

Benefits overview

The benefits of working for the Department include enrollment in the state pension plan, health plans, access to tax-deferred programs and more.

ERS plans

Contributory Plan
Employees hired after July 1, 1945 and up to June 30, 1984 are members of the ERS contributory plan. Employees in the contributory plan contribute 7.8% of their gross monthly salary to the ERS.

Upon resignation, an employee with less than five years of credited service, must within four years of the effective date of resignation, withdraw contributions made to the retirement fund. Refund is made upon application by the member on a form that may be obtained from the ERS website at http://ers.ehawaii.gov/ or from the ERS office.

Employees in this plan are eligible to retire at age 55 with a minimum of five years of credited service or with 25 years of credited service regardless of age. Employees who are under age 55 but have a minimum of 25 years of credited service may elect early retirement with reduced benefits.

The normal retirement benefit is calculated as follows: 2% x Years of Credited Service x Average Final Compensation (AFC).

Non-Contributory Plan
Employees hired after June 30, 1984 and up to June 30, 2006 are members of the ERS non-contributory plan. Employees make no contributions to the ERS. No salary deductions are made from the gross salary of members.

Employees in this plan are eligible to retire at age 62 with a minimum of 10 years of credited service or at age 55 with a minimum 30 years of credited service. Employees at age 55 with 20 years of credited service may elect early retirement with reduced benefits.

The normal retirement benefit is calculated as follows: 1.25% x Years of Credited Service x AFC.

Hybrid Plan
Employees hired on or after July 1, 2006 and up to June 30, 2012 are members of the ERS hybrid plan. Members of the contributory and noncontributory retirement plans were provided with an option to join the new hybrid plan or to remain in their current plan. Employees contribute 6% of their gross monthly salary to the ERS. Employees in this plan are eligible to retire at age 62 with a minimum of five years of credited service or at age 55 with a minimum 30 years of credited service. Employees at age 55 with 20 years of credited service may elect early retirement with reduced benefits. The normal retirement benefit is calculated as follows: 2% x Years of Credited Hybrid Service x AFC.

If a member also has Noncontributory Plan service, benefit will be based on a split formula: 1.25% x Years of Credited Noncontributory service x AFC plus 2% x Years of Credited Hybrid Service x AFC.

On June 23, 2011, the Governor signed into law Act 163. The new law provides for retirement benefit changes under the Hybrid plan for employees who become members of the ERS after June 30, 2012. Employees hired on or after July 1, 2012 are eligible to retire at age 65 with a minimum of 10 years of credited service or at age 60 with a minimum 30 years of credited service. Employees contribute 8% of their gross monthly salary to the ERS.

The normal retirement benefit is calculated as follows: 1.75% x Years of Credited Hybrid Service x AFC

Additional information concerning Employees’ rights and benefits may be obtained by contacting the State of Hawaii Employees’ Retirement System at 586-1735, via their website or by writing to the State of Hawaii Employees’ Retirement System, 201 Merchant Street, Suite 1400, Honolulu, Hawaii 96813.

Contact Information

Health Benefits and Awards Unit

Phone: 808-441-8311

Email: employee_benefits@hawaiidoe.org

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