Updated October 30, 2026. Quick answer: Hawaii ERS pays a fixed post retirement increase every July 1, so the next one arrives in July 2027. The rate is 2.5% for members with membership dates before July 1, 2012 and 1.5% for those on or after that date, applied to the original pension and not compounded. The ERS pages read print no separate yearly figure, only these two rates.
How the Hawaii ERS increase works
The ERS retiree FAQ says: “Every July beginning the calendar year after your retirement, you receive a post retirement increase of 2.5% (for retirees with membership dates of before July 1, 2012) and 1.5% (for retirees with membership dates on or after July 1, 2012).” The Hybrid plan guide adds: “You will receive an increase of 2.5% (membership dates prior to July 1, 2012) or 1.5% (membership dates after June 30, 2012) each July 1 starting with the calendar year after your retirement date.”
Not compounded
The Hybrid guide explains the base: “This increase is based on your original monthly pension and is not compounded.” The Contributory plan guide for police officers and firefighters says: “You will receive an increase of 2.5% (membership dates prior to July 1, 2012) or 1.5% (membership dates after June 30, 2012) each July 1 starting with the calendar year after your retirement date.” A separate ERS guide says the same thing in short form: “COLAs are not compounded; and are based on original pension amounts.”
Who gets which rate
The rate depends only on the membership date, as the quotes above show. The ERS pages read cover the Hybrid plan, the Contributory plan for police officers and firefighters, and the retiree FAQ. The Noncontributory plan guide and the Elective Officers guide were not read, so this page does not say whether those groups use a different rate.
Where 2027 stands
The July 2027 increase follows the same fixed rates by membership date, since ERS describes a July 1 increase every year; ERS prints no separate 2027 announcement, and this page updates if ERS changes the rule. The governing statute could not be read for this page, so no Hawaii Revised Statutes section is cited here.
A worked example
As a computed illustration (not a source figure), a retiree with membership before July 1, 2012 and an original monthly pension of $2,000 (invented, for the computation) would see an increase of $50 (computed) a month each year. A retiree with a later membership date would see $30 (computed) a month. Because the increase is not compounded, it stays based on the original $2,000 (invented, for the computation).
Common mistakes
- Applying 2.5% to everyone. The rate is 1.5% for membership dates on or after July 1, 2012.
- Expecting the increase to compound. ERS says it is based on the original monthly pension and is not compounded.
- Expecting an increase in the year of retirement. ERS says it starts with the calendar year after retirement.
Related: Hawaii ERS retirement decisions, how public pension decisions work, and whether Hawaii taxes pensions.
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Answer againSources
- Hawaii ERS, Retirees FAQs: ers.ehawaii.gov
- Hawaii ERS, Hybrid Retirement Information: ers.ehawaii.gov
- Hawaii ERS, Police Officers, Firefighters and Designated Categories (Contributory) retirement information: ers.ehawaii.gov
- Hawaii ERS, Annual Comprehensive Financial Report FY2020: ers.ehawaii.gov
- Related official page (not quoted): IRS Tax Topic 410, Pensions and annuities: www.irs.gov
- Related official page (not quoted): IRS Tax Topic 411, Pensions: the General Rule and the Simplified Method: www.irs.gov
Read from the primary documents linked above on October 30, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer or the IRS itself is the right place to confirm anything consequential.