Hybrid and Contributory options
- Maximum Allowance. Highest lifetime monthly pension with no refund. No lifetime survivor benefit; at the retiree's death the beneficiary gets any unrefunded contributions at retirement minus the allowance already paid. Beneficiary may be changed after retirement.
- Option One (insurance reserve). Reduced lifetime pension with short-term insurance (the reserve depletes after about ten years). At death the beneficiary gets the initial insurance reserve minus the allowance already paid. Beneficiary may be changed after retirement.
- Option Two (100% joint and survivor). Reduced lifetime pension; 100% continues to the beneficiary. If the beneficiary dies first, the pension pops up to the Maximum Allowance. Beneficiary cannot be changed after retirement.
- Option Three (50% joint and survivor). Reduced lifetime pension; 50% continues to the beneficiary. Pops up to the Maximum Allowance if the beneficiary dies first. Beneficiary cannot be changed after retirement.
- Option Four (5 & Maximum). Highest lifetime pension with a partial refund of contributions.
- Option Four (5 & 1). Reduced lifetime pension with a partial refund and a short-term insurance reserve.
- Option Four (5 & 2). Reduced lifetime pension with a partial refund and 100% continuing pension; pops up to the corresponding Option Four (5 & Maximum).
- Option Four (5 & 3). Reduced lifetime pension with a partial refund and 50% continuing pension; pops up to the corresponding Option Four (5 & Maximum).
- Option Five. Lowest lifetime pension with a 100% refund of contributions (and interest), with possible tax consequences.
Hybrid handout (Oct. 2026) p. 8, Option Comparison Summary; p. 9, Summary of Options
The refund options need at least 10 years of service. Hybrid choices: Nontaxable pre-1987 contributions; 50% of contributions; 100% of contributions (Option Five only). Contributory choices: Nontaxable pre-1987 contributions; 50% of contributions; 75% of contributions; 100% of contributions (Option Five only). Hybrid handout (Oct. 2026) p. 9, Refund Options ('Members with at least 10 years of credited service qualify'); Contributory handout (Oct. 2026) p. 9
Noncontributory options
- Maximum Allowance. Highest pension allowance; nothing to a beneficiary.
- Option A (50% joint survivor). Reduced pension; 50% (plus cumulative post-retirement increases) continues to the beneficiary. Pops up to the Maximum Allowance if the beneficiary dies first.
- Option B (100% joint survivor). Reduced pension; 100% (plus cumulative increases) continues to the beneficiary. Pops up to the Maximum Allowance if the beneficiary dies first.
- Option C (ten-year guarantee). Reduced pension; if the retiree dies in the first 10 years, the same monthly pension continues to the beneficiary for the rest of the 10-year period.
Noncontributory handout (Oct. 2026) p. 8, Noncontributory Retirement Options
You can't change your option after your retirement date. ERS Retirees FAQ page, 'Under which ERS retirement options can I change my beneficiary after my retirement?'; Hybrid handout (Oct. 2026) p. 8 ('retirement option changes are only allowed prior to your retirement date')
If a member dies within one year of retirement, the beneficiary may choose the survivor benefit of the option selected or the ordinary death benefit. If the member dies after filing but before the retirement date, the beneficiary may elect the option survivor benefit or the ordinary death benefit. Hybrid handout (Oct. 2026) p. 8, footnotes 1 and 2
ERS publishes no option factor tables; only one worked example per plan (Hybrid 60/57, Noncontributory 62/57, Contributory 58/57).
What would settle it: ERS actuarial option factor tables or a member's own ERS estimateERS's worked examples
Each handout shows one member. Your own amounts depend on your age and your beneficiary's, rounded to the nearest year. HAR §6-26-13
Hybrid: member 60, beneficiary 57, Maximum Allowance $2,340
| Option | To you | To your beneficiary |
|---|---|---|
| Maximum Allowance | $2,340 | — |
| Option One (insurance reserve) insurance reserve $314,126 | $2,276 | — |
| Option Two (100% joint and survivor) | $2,023 pops up to $2,340 | $2,023 |
| Option Three (50% joint and survivor) | $2,176 pops up to $2,340 | $1,088 |
| Option Four (5 & Maximum) refund type: pre-1987 | $2,340 | — |
| Option Four (5 & Maximum) refund type: 50% refund $75,000 | $1,776 | — |
| Option Four (5 & 1) refund type: pre-1987 insurance reserve $314,126 | $2,276 | — |
| Option Four (5 & 1) refund type: 50% refund $75,000 | $1,720 | — |
| Option Four (5 & 2) refund type: pre-1987 | $2,023 pops up to $2,340 | $2,023 |
| Option Four (5 & 2) refund type: 50% refund $75,000 | $1,530 pops up to $1,776 | $1,530 |
| Option Four (5 & 3) refund type: pre-1987 | $2,176 pops up to $2,340 | $1,088 |
| Option Four (5 & 3) refund type: 50% refund $75,000 | $1,645 pops up to $1,776 | $822 |
| Option Five refund type: 100% refund $150,000 | $1,213 | — |
Hybrid handout (Oct. 2026) p. 7, Example of a Pension Calculation (member age 60, beneficiary age 57) The member's contributions: $150,000. Highest lifetime monthly pension with no refund. No lifetime survivor benefit; at the retiree's death the beneficiary gets any unrefunded contributions at retirement minus the allowance already paid. Beneficiary may be changed after retirement.
Noncontributory: member 62, beneficiary 57, Maximum Allowance $1,600
| Option | To you | To your beneficiary |
|---|---|---|
| Maximum Allowance | $1,600 | — |
| Option A (50% joint survivor) | $1,456 pops up to $1,600 | $728 |
| Option B (100% joint survivor) | $1,336 pops up to $1,600 | $1,336 |
| Option C (ten-year guarantee) | $1,560 | $1,560 |
Noncontributory handout (Oct. 2026) p. 7, Example of a Pension Calculation (member age 62, beneficiary age 57) Highest pension allowance; nothing to a beneficiary.
Contributory: member 58, beneficiary 57, Maximum Allowance $2,240
| Option | To you | To your beneficiary |
|---|---|---|
| Maximum Allowance | $2,240 | — |
| Option One (insurance reserve) insurance reserve $352,530 | $2,190 | — |
| Option Two (100% joint and survivor) | $1,983 pops up to $2,240 | $1,983 |
| Option Three (50% joint and survivor) | $2,109 pops up to $2,240 | $1,054 |
| Option Five refund type: 100% refund $150,000 | $1,281 | — |
Contributory handout (Oct. 2026) p. 7, Example of a Pension Calculation (member age 58, beneficiary age 57) The member's contributions: $150,000. Highest lifetime monthly pension with no refund. No lifetime survivor benefit; at the retiree's death the beneficiary gets any unrefunded contributions at retirement minus the allowance already paid. Beneficiary may be changed after retirement.
A beneficiary who isn't your spouse
If the beneficiary is not your spouse, the age difference (member's age minus beneficiary's age in the calendar year of retirement), reduced by the number of years the member is under age 70 in that year, may not be more than ten years for a 100% survivor option (Options 2 and 4 (5&2) in the Contributory and Hybrid plans; Option B in the Noncontributory plan). Hybrid handout (Oct. 2026) p. 11, Important Notice (HAR §6-28-8)
| ERS's example | Ages in 2042 | Adjusted gap | 100% option? |
|---|---|---|---|
| Example #1Hybrid handout (Oct. 2026) p. 11, Example #1 | Member 60 beneficiary 30 | 30 − 10 = 20 | Not allowed |
| Example #2Hybrid handout (Oct. 2026) p. 11, Example #2 | Member 55 beneficiary 30 | 25 − 15 = 10 | Allowed |
The gap is your age minus theirs in the year you retire. You subtract the years you're under 70. The result can't be more than 10.
From the sources
- Hybrid and Contributory options: Maximum Allowance (highest pension, no survivor benefit), Option One (insurance reserve that runs down over about 10 years), Option Two (100% to your beneficiary) and Option Three (50% to your beneficiary). Option Four combinations add a partial refund, and Option Five refunds 100% of your contributions with the lowest pension.Hybrid handout (Oct. 2026) pp. 8-9
- With Options Two and Three, your pension 'pops up' to the Maximum Allowance if your beneficiary dies first, but you cannot change the beneficiary after retirement.Hybrid handout (Oct. 2026) p. 9
- The refund options (pre-1987 contributions, 50%, or 100% with Option Five) need at least 10 years of credited service. Contributory members can also choose a 75% refund.Hybrid handout (Oct. 2026) p. 9; Contributory handout (Oct. 2026) p. 9
- Hybrid example (member 60, beneficiary 57, Maximum Allowance $2,340): Option One $2,276; Option Two $2,023 to you and $2,023 to your beneficiary; Option Three $2,176 to you and $1,088 to your beneficiary; Option Five $1,213 with a $150,000 refund.Hybrid handout (Oct. 2026) p. 7
- Noncontributory options: Maximum Allowance, Option A (50% survivor), Option B (100% survivor) or Option C (10-year guarantee). Example (member 62, beneficiary 57, $1,600): A $1,456/$728, B $1,336/$1,336, C $1,560.Noncontributory handout (Oct. 2026) pp. 7-8
- Check with ERSERS does not publish option factor tables. The calculator shows survivor option amounts only at the published example ages. For your own figures, use the ERS Benefits Calculator or ask for an estimate.Hybrid handout (Oct. 2026) p. 2 and p. 7
- With a non-spouse beneficiary, a 100% survivor option is not allowed if your age minus the beneficiary's age, less the years you are under 70, is more than 10 years.Hybrid handout (Oct. 2026) p. 11 (HAR §6-28-8)
Questions
Which option pays the most?
The Maximum Allowance. It pays the highest monthly pension, but no lifetime benefit to anyone after you die.
Which options protect my spouse?
In the Hybrid and Contributory plans, Option Two (100%) and Option Three (50%). In the Noncontributory plan, Option B (100%) and Option A (50%). Each pays you less for life.
What is a pop-up?
With those survivor options, if your beneficiary dies first, your pension rises to the Maximum Allowance.
Can I change my option later?
No. You can't change it after your retirement date. With the survivor options you can't change the beneficiary either.
Does ERS publish option factors?
No. Its handouts show one worked example per plan. For your own figures, use ERS's Benefits Calculator or ask ERS for an estimate.
Source: Hawaii ERS Hybrid Retirement Information, October 2026, pp. 2, 7, 8, 8-9, 9, 11. Also: Noncontributory handout (Oct. 2026) pp. 7, 7-8, 8; Contributory handout (Oct. 2026) pp. 7, 9; ERS Retirees FAQ page; HAR § 6-26-13. Last reviewed .