Your percentage
- Hybrid, joined before July 1, 2012: 2% a year. Hybrid handout (Oct. 2026) p. 3, Service Retirement Eligibility Requirements (membership date prior to July 1, 2012: Age 62 w/5 yos, Age 55 w/30 yos; early Age 55 w/20 yos; multiplier 2.0%; vesting 5 yos; AFC average of 3 highest years of gross pay)
- Hybrid, joined after June 30, 2012: 1.75% a year. Hybrid handout (Oct. 2026) p. 3, Service Retirement Eligibility Requirements (membership date after June 30, 2012: Age 65 w/10 yos, Age 60 w/30 yos; early Age 55 w/20 yos; multiplier 1.75%; vesting 10 yos; AFC average of 5 highest years of base pay)
- Noncontributory: 1.25% a year. Noncontributory handout (Oct. 2026) p. 3, Service Retirement Eligibility Requirements (Regular 62/10 and 55/30, no age reduction; Early 55/20, 6% age reduction for each year between age 55-62; Deferred 65/10, 55/30, 55/20-29 with 6% reduction)
- Contributory general employees: 2% (before July 1, 2012) or 1.75% (after). Contributory handout (Oct. 2026) p. 3, Service Retirement Eligibility Requirements (membership date prior to July 1, 2012: Normal Age 55 w/5 yos; Early Any age w/25 yos; multiplier 2.0%; vesting 5 yos)
Years from two plans
If you also have Noncontributory plan service, that service is figured at 1.25% x years of Noncontributory service x AFC. Previously refunded Contributory service and forfeited non-vested Noncontributory service that a Hybrid member reacquires (free) are also credited at 1.25%. Hybrid handout (Oct. 2026) p. 3 and p. 5, Previously Refunded Contributory Service, Forfeited Noncontributory Service; ERS annual report 2024 p. 46, Note A.3 (benefit is bifurcated by the service earned in each structure)
ERS's worked examples
| Example | Years | AFC a month | ERS's figure / ours |
|---|---|---|---|
| Hybrid, joined after June 2012, age 65Hybrid handout (Oct. 2026) p. 3 | 20 | $2,500 | $875.00 ours matches |
| Hybrid, joined before July 2012, age 60, 2 yrs at 1.25%Hybrid handout (Oct. 2026) p. 7, Example of a Pension Calculation | 30 | $4,000 | $2,340.00 ours matches |
| Noncontributory, joined before July 2012, age 65Noncontributory handout (Oct. 2026) p. 3 | 25 | $4,500 | $1,406.25 ours matches |
| Noncontributory, joined before July 2012, age 62Noncontributory handout (Oct. 2026) p. 7 | 32 | $4,000 | $1,600.00 ours matches |
| Contributory, joined before July 2012, age 58Contributory handout (Oct. 2026) p. 7 | 28 | $4,000 | $2,240.00 ours matches |
| Hybrid, joined before July 2012, age 55, 17 yrs at 1.25%Military Service Credit booklet (Oct. 2026) p. 5 | 30 | $4,000 | $1,890.00 ours matches |
| Hybrid, joined before July 2012, age 55, 19 yrs at 1.25%Military Service Credit booklet (Oct. 2026) p. 5 | 34 | $4,000 | $2,150.00 ours matches |
| Contributory, joined before July 2012, age 55Military Service Credit booklet (Oct. 2026) p. 3 | 30 | $4,000 | $2,400.00 ours matches |
| Contributory, joined before July 2012, age 55Military Service Credit booklet (Oct. 2026) p. 3 | 34 | $4,000 | $2,720.00 ours matches |
| Noncontributory, joined before July 2012, age 55Military Service Credit booklet (Oct. 2026) p. 4 | 30 | $4,000 | $1,500.00 ours matches |
| Noncontributory, joined before July 2012, age 55Military Service Credit booklet (Oct. 2026) p. 4 | 34 | $4,000 | $1,700.00 ours matches |
| Hybrid, joined after June 2012, age 65Hybrid Q&A brochure (2012) Q9 | 20 | $2,500 | $875.00 ours matches |
Your AFC (average final compensation)
- Membership before July 1, 2012: average of the three highest 12-month periods of gross pay (overtime and bonuses included), excluding lump-sum vacation pay ('High-Three'). ERS Members FAQ page, 'How do I know if my High-Three or High-Five salary will be used'; Noncontributory handout (Oct. 2026) p. 3, AFC footnote; Military Service Credit booklet (Oct. 2026) p. 8, Q9 (citing HRS §88-81)
- Membership after June 30, 2012: average of the five highest 12-month periods of base pay, excluding lump-sum vacation pay ('High-Five'). The ACFR describes it as base pay and shortage differentials. ERS Members FAQ page, 'How do I know if my High-Three or High-Five salary will be used'; Noncontributory handout (Oct. 2026) p. 3, AFC footnote; Military Service Credit booklet (Oct. 2026) p. 8, Q9 (citing HRS §88-81); ERS annual report 2024 p. 17, AFC footnote ('limited to base pay and shortage differentials')
- The HI-3 or HI-5 is the highest twelve consecutive months throughout your work history, not necessarily fiscal or calendar years. Membership before January 1, 1971: the greater of the three highest years excluding lump-sum vacation pay or the five highest years including lump-sum vacation pay. ERS Members FAQ page, 'How do I know if my High-Three or High-Five salary will be used'; Noncontributory handout (Oct. 2026) p. 3, AFC footnote; Military Service Credit booklet (Oct. 2026) p. 8, Q9 (citing HRS §88-81)
In the calculator you enter your AFC as a yearly figure. We divide it by 12. Example: $30,000 a year is $2,500 a month, so 20 years at 1.75% pays 35% × $2,500 = $875. Hybrid handout (Oct. 2026) p. 3
The 2012 Hybrid brochure gives the 2012 federal compensation limit ($250,000); no current figure is in the sources, so none is applied.
What would settle it: A current ERS publication stating the IRC 401(a)(17) limitAnti-spiking (excess pension costs)
Members with an ERS membership date before July 1, 2012 who retire after June 30, 2012. Excess pension costs: if (1) average non-base pay divided by average base pay in the AFC period is greater than 10%, and (2) that ratio divided by the comparison-period non-base pay ratio is 120% or more, the excess in the maximum allowance ('pension spiking') is figured and the member's last employer pays additional employer contributions for it. In ERS's example the limited AFC is (1 + comparison-period ratio) x AFC base pay. ERS Excess Pension Costs page (Q1-Q3, citing HRS §88-100); ERS annual report 2024 p. 45 and p. 55, Note A.3
Members hired after June 30, 2012 have a base-pay-only AFC (five highest years), so non-base pay such as overtime is not in the AFC. Hybrid handout (Oct. 2026) p. 3; ERS annual report 2024 p. 17
ERS's worked example compares the three AFC years with the 7 years before them. Test 1 asks whether non-base pay is more than 10% of base pay in the AFC years. Test 2 asks whether that ratio is 120% or more of the earlier ratio. Only failing both counts as spiking. ERS anti-spiking example (2012) p. 1
| ERS's example | AFC years: base / non-base | Earlier years: base / non-base | Test 1 | Test 2 | AFC used for the excess |
|---|---|---|---|---|---|
| Employee #1 (consistent non-base pay) | $39,000 $7,800 (20%) | $34,000 $6,800 (20%) | Over 10% | Not over | $46,800 |
| Employee #2 (spiked non-base pay) | $37,000 $9,800 (26.49%) | $32,000 $1,600 (5%) | Over 10% | Over 120% | $38,850 of $46,800 |
| Employee #3 (Teacher type) | $39,000 $1,200 (3.08%) | $34,000 $0 (0%) | Not over | Over 120% | $40,200 |
The example is from 2012 and uses the police and fire multiplier, not one of the general-employee rates above. It shows how the tests work, not a teacher's pension.
How service is counted
- Employed 15 or more calendar days in a month (14 in February) earns one month of service credit. Hybrid Q&A brochure (2012) Q6; HAR §6-21-4
- For teachers, a year of service is computed on a school year, September 1 to August 31. If absences without pay total two and one-half months or more in a semester, one additional month is excluded. HAR §6-21-6
- Each month worked at 50% FTE or more counts as a month toward the minimum eligibility requirements, but for the benefit calculation part-time service and salary are converted to the full-time equivalent (12 months at 50% with $1,250/month base = 6 months full-time at $2,500/month). Hybrid Q&A brochure (2012) Q11; HAR §6-21-8
- Unused sick leave can add months at retirement. Sick leave credit
Who pays for it
Hybrid members pay 6% of pay (8% if you joined after June 30, 2012). Noncontributory members pay nothing. Hybrid Q&A brochure (2012) Q3; Leaving Employment, Hybrid (2012) Q1 Since 1989 employers 'pick up' member contributions as employer contributions for tax purposes (IRC 414(h)(2)); contributions are deducted pre-tax. ERS annual report 2024 p. 55, Note A.3; Leaving Employment, Hybrid (2012) Q1
Statutory employer contribution rate for All Other Employees (everyone but police and fire): 24% of payroll for FY 2021 and beyond. ERS actuarial valuation 2025 PDF p. 15 and PDF p. 25, Table 1 line 7a; ERS annual report 2024 p. 45, Note A.3
The 2012 Hybrid and Noncontributory Q&A brochures (Q4) say the employer 'currently contributes 15% of your compensation'. The June 30, 2025 valuation and ACFR 2024 say the statutory rate for All Other Employees is 24% (FY 2021 and beyond). The brochures are older and are not used for the rate.
Hybrid Q&A brochure (2012) Q4; ERS actuarial valuation 2025 PDF p. 25, Table 1 line 7aFrom the sources
- Your monthly Maximum Allowance = years of credited service x average final compensation (AFC) x benefit percentage.Hybrid handout (Oct. 2026) p. 3
- Benefit percentages: Hybrid 2% a year (membership before July 1, 2012) or 1.75% (after June 30, 2012); Noncontributory 1.25%; Contributory general employees 2% (before July 1, 2012) or 1.75% (after).Hybrid handout (Oct. 2026) p. 3; Noncontributory handout (Oct. 2026) p. 3; Contributory handout (Oct. 2026) p. 3
- Example: a member who joined after June 30, 2012, retiring at 65 with 20 years and a monthly AFC of $2,500, gets 1.75% x 20 = 35% x $2,500 = $875 a month.Hybrid handout (Oct. 2026) p. 3
- If you also have Noncontributory service (for example, you switched to Hybrid in 2006), that service counts at 1.25%. Example: 28 Hybrid years x $4,000 x 2% = $2,240, plus 2 Noncontributory years x $4,000 x 1.25% = $100, for $2,340 a month.Hybrid handout (Oct. 2026) p. 3 and p. 7
- Part-time service at 50% FTE or more counts month for month toward eligibility. For the benefit, part-time service and salary are converted to full-time equivalents.Hybrid Q&A brochure (2012) Q11
- For teachers, a year of service is a school year, September 1 to August 31. Working 15 or more days in a month (14 in February) earns that month's service.HAR §§6-21-4, 6-21-6
- Membership before July 1, 2012: your AFC is the average of your three highest 12-month periods of gross pay ('High-Three'). Lump-sum vacation pay is excluded.ERS Members FAQ page; Hybrid handout (Oct. 2026) p. 3
- Membership after June 30, 2012: your AFC is the average of your five highest 12-month periods of base pay ('High-Five'). Lump-sum vacation pay is excluded.ERS Members FAQ page; Hybrid handout (Oct. 2026) p. 3
- The highest 12-month periods are counted across your whole work history, not just fiscal or calendar years. Membership before January 1, 1971 uses the greater of the High-Three or a High-Five that includes vacation pay.Noncontributory handout (Oct. 2026) p. 3; ERS Members FAQ page
- Anti-spiking: for members who joined before July 1, 2012, if non-base pay in the AFC years is more than 10% of base pay and is at least 120% of the earlier comparison-period ratio, ERS figures the excess. Your last employer then pays extra employer contributions for it. In the ERS example, a teacher-type employee with small, steady non-base pay is not affected.ERS Excess Pension Costs page (citing HRS §88-100); ERS anti-spiking example (2012)
Questions
What is the ERS formula?
Years of credited service × your average final compensation (AFC) × your plan's percentage = your Maximum Allowance, the highest monthly pension.
What's my percentage?
Hybrid: 2% a year if you joined before July 1, 2012, 1.75% if after June 30, 2012. Noncontributory: 1.25%. Noncontributory years of a Hybrid member count at 1.25%.
What pay counts?
Joined before July 1, 2012: your three highest 12-month periods of gross pay (overtime included). Joined after June 30, 2012: your five highest, base pay only. Lump-sum vacation pay never counts.
What is anti-spiking?
For members who joined before July 1, 2012: if non-base pay (like overtime) in your AFC years is more than 10% of base pay and at least 120% of the earlier ratio, ERS figures the excess and your last employer pays for it.
Source: Hawaii ERS Hybrid Retirement Information, October 2026, pp. 3, 5, 7. Also: ERS annual report 2024 pp. 17, 45, 46, 55; Hybrid Q&A brochure (2012) Q3, Q6, Q9, Q11; ERS Members FAQ page; Noncontributory handout (Oct. 2026) pp. 3, 7; Military Service Credit booklet (Oct. 2026) pp. 3, 4, 5, 8, Q9; ERS Excess Pension Costs page Q1-Q3; ERS anti-spiking example (2012) p. 1; ERS actuarial valuation 2025 PDF pp. 15, 25; Leaving Employment, Hybrid (2012) Q1; Contributory handout (Oct. 2026) pp. 3, 7; HAR §§ 6-21-4, 6-21-6, 6-21-8. Last reviewed .