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.
