Go to the Hawai'i Labor Department's Web site and you'll find "More than just a paycheck" plastered across the top of a summary of benefits state work offers.

State and counties offer a pension plan as part of a benefits package that's meant to stand out from what's offered in the private sector. Common wisdom is that the state pays less, but workers enjoy better benefits.

"It's worth it," said Sterling Sasaki, 51, who began working for the City and County of Honolulu 16 years ago and values the retirement benefit more now that he is nearing retirement age.

Benefits include healthcare coverage and 13 paid holidays and 21 days of vacation. Retiree benefits include payment of healthcare insurance premiums for those who qualify.

People can retire at age 55 after 30 years of service or at age 62 after 10 years.

For most retirees, the annual benefit is computed by taking the average pay of the workers' three highest salary years. This is multiplied by 1.25 percent times the number of years of service. A worker who earned $50,000 in his highest three years and worked for 30 years would get an annual pension of $18,750, or about 38 percent of his highest salary.

Last year, the average annual pension paid to 31,300 retirees was $19,980. The pension rises each year at an uncompounded rate of 2.5 percent for inflation.

By comparison it would cost a private-sector retiree $252,000 to purchase an annuity to receive the same payout minus the inflation adjustment, according to a calculator on the financial Web site Bankrate.com. The computation assumes the worker retiring at age 62 lives 20 more years and earns 5 percent on the investment.

Reach Greg Wiles at gwiles@honoluluadvertiser.com.