State of Hawaii Investor Presentation
STATE
OF
HAWAII
Pension - Employees Retirement System ("ERS")
Most Recent ERS Valuations and Funding Position Have Improved since the Approval of Act 17 Employer Contribution
Increases
ā
The ERS is a multi-employer cost sharing program
The State's proportionate share of the net pension liability as of
FY 2022 was 57% (excluding the University of Hawaii)
The State has made a number of enhancements to the pension
system over the years, most recently increasing the employer
contribution rates
FY 2022 valuation reflects positive results:
-
2nd year of decline of the UAAL to $13.5 billion
Funded ratio increased to 61.2%
Funding period remained at 24 years
The Legislature appropriated a $300 million additional
contribution to the ERS Pension Accumulation Fund for FY 2024
Asset Valuation
ERS Key Metrics
(FY 2020 2022)
FY 2020
FY 2021
FY 2022
Investment Return
UAAL
$18.1 billion
1.28%
$14.6 billion
$19.9 billion
$21.3 billion
26.63%
$14.2 billion
3.99%
$13.5 billion
Funded Ratio
55.3%
58.3%
Funding Period
26 years
24 years
Projected ERS Funded Ratio
(FY 2022-2044)
61.2%
24 years
1)
14
ā
The ERS is required to conduct annual stress tests (one of 12
states required by law), which in 2022 continued to show that
the "System is sustainable in a protracted low return
environment"(1)
120%
100%
80%
60%
40%
20%
0%
Source: Employees' Retirement System of the State of Hawaii FY 2021 and FY 2022 Valuation Reports, and 2016 Impact Statement.
Source: 2022 ERS Stress Test by Gabriel, Roeder, Smith & Company.
2022
2024
2026
2028
2030
2032
2034
2036
2038
2040
2042
2044View entire presentation