Heisei (平成?) is the current era in Japan. The Heisei era started on 8 January 1989, the day after the death of the Emperor Hirohito. His son, the 125th Emperor Akihito, acceded to the throne. In accordance with Japanese customs, Hirohito was posthumously renamed the 124th "Emperor Shōwa" on 31 January 1989.
Thus, 1989 corresponds to Shōwa 64 until 7 January and Heisei 1 (平成元年 Heisei gannen?, gannen means "first year") since 8 January. To convert a Gregorian calendar year (after 1989) to Heisei, 1988 needs to be subtracted (e.g. 2017−1988 = Heisei 29).
On 7 January 1989, at 07:55 JST, the Grand Steward of Japan's Imperial Household Agency, Shōichi Fujimori, announced Emperor Hirohito's death, and revealed details about his cancer for the first time. Shortly after the death of the Emperor, Keizō Obuchi, then Chief Cabinet Secretary and later Prime Minister of Japan, announced the end of the Shōwa era, and heralded the new era name "Heisei" for the new incoming Emperor, and explained its meaning.