2021 Plan of Finance Amortization

Pension FY 2021 Preliminary Results have Improved Pension Funding Levels over FY 2020 Hawaii ERS Key Metrics STATE O OF 1959 HAWAI Enacted Higher Rates (Employer Contributions) (1) Hawaii ERS Asset Valuation FY 2020 $18.0 billion General Police & Fire FY 2017 17% 25% Investment Return 1.3% FY 2018 18% 28% UAAL $14.6 billion FY 2019 19% 31% Funded Ratio 55.3% FY 2020 22% 36% Funding Period 26 years FY 2021 24% 41% Projected ERS Funded Ratio (FY 2020) Investment returns for FY 2021 exceeded the State's target return of 7.0% and show a preliminary asset valuation increase to $21.4 billion (2) 100.00% 90.00% These returns will further reduce the ERS Net Pension Liability 80.00% 70.00% ■ Act 17/2017 (SB936) employer contribution increases are fully implemented 60.00% ■ Stress tests, conducted annually since 2017, show system is sustainable in a low-return environment 50.00% 40.00% ■ For further information, please visit: https://ers.ehawaii.gov (1) (2) Contributions as % of payroll. Preliminary and subject to adjustment. Note: The graphic includes contributions for both the State and counties. Source: Employee's Retirement System of the State of Hawaii. 2020 2025 2030 2035 2040 2045 Fiscal Year 15

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