Thom Williams Interview with Funston Advisory
The interview features Thom Williams, Executive Director of the Hawaii Employees’ Retirement System (ERS), reflecting on his decade of leadership and the reforms he helped implement. Working closely with the ERS Board of Trustees and supported by internal staff and outside advisors, Williams oversaw significant changes to the system’s governance. One of the biggest shifts was delegating greater investment authority to internal staff, enabling faster, more informed decision-making and reducing reliance on lengthy board approvals. This governance modernization has been central to positioning the ERS for greater agility in increasingly complex financial markets.
On the investment side, Williams emphasized risk management and diversification as guiding principles. Under his leadership, the ERS reshaped its asset allocation to limit downside exposure during market downturns while still pursuing steady long-term growth. The portfolio was tilted toward strategies such as diversifying alternatives, private credit, and infrastructure, alongside systematic approaches like trend-following and relative value. Williams highlighted the importance of resilience, preferring consistent performance and controlled risk over chasing headline-grabbing returns. Performance against benchmarks and peer groups was tracked carefully, with an eye on both return and risk-adjusted outcomes.
Operational modernization was another major theme of his tenure. Williams led efforts to upgrade the pension administration system, incorporating more efficient processes, improved accounting, and digital self-service options for members. These changes aimed to deliver better service to beneficiaries while also making ERS operations more sustainable. He acknowledged the challenges of staffing technical roles in the public sector and emphasized the need to build and retain internal expertise in areas like investment management, risk oversight, and IT.
Beyond governance and operations, Williams was also active in legislative and policy reform. He worked to address issues with early retirement incentives, benefit restoration for wrongfully terminated employees, and compliance with IRS standards. His efforts were aimed at strengthening the long-term stability of the system and ensuring fairness for members.
As Williams prepares for retirement, much of the conversation looks ahead to the ERS’s future. He expressed confidence that the governance structures, risk discipline, and operational upgrades now in place will serve the fund well, even as it faces economic uncertainty and shifting market conditions. His legacy lies in transforming the ERS into a more modern, resilient, and professionally managed institution, leaving it better prepared to navigate future challenges on behalf of Hawaii’s public employees.
