Amended budget-call letter sent to reflect true cost of ASG’s retirement fund share

Pago Pago, AMERICAN SAMOA — Office of Program Planning and Budget director Catherine D. Saelua has amended the new fiscal year 2024 budget-call letter, to increase the employer contribution rate to the ASG Employees Retirement Fund to comply with the law enacted last year.

Approved by the Fono in the previous 37th Legislature and signed into law by the governor in April 2022, the law increases ASG’s contribution at 10% from Oct. 1, 2022 through Sept. 30, 2023; “12% from Oct. 1, 2023 to Sept. 30, 2024”; and 14% after Sept. 30, 2024.

Funds for ASG’s contribution shall be provided for in the annual appropriations of ASG’s budget for the fiscal year in which the contributions are due, according to a provision of the legislation.

Saelua’s original budget call letter dated May 1, tells cabinet directors that fringe benefits for FY 2024, is to reflect a 10% of government contribution to the Retirement Fund.

However, in her May 10, amended budget call letter, Saelua informed cabinet members of the mandated increase of the ASG contribution rate, which means an “additional 2%” is to be added to the budget.

“According, we humbly ask that you amend your fringe benefits to reflect the additional 2% to the retirement,” she wrote.

Therefore, she said the cost for fringe benefits on FICA and Workmen's Compensation are 7.65% and 1.05%, respectively, for both career and contract employees, with “12% of government contribution” to the ASG Employees Retirement Fund, for a total fringe benefit rate of “20.70%” for career service and 8.70% for contract employees.

Furthermore, all fixed costs — utilities, communication, rents, and leases — should be identified and incorporated into the budget plans.

Meanwhile, some lawmakers have already planned to request financial reports and other financial information from ASG Treasury and Budget Office before the Fono takes up the FY 2024 when lawmakers convene in July.

And they are seeking details on local revenue collection trends and a comparison to the current and past fiscal years. Furthermore, did ASG meet its revenue collection projections for the past years?

Saelua had informed cabinet members that proposed the budget for FY2024 is based on the preliminary projection of local revenues. And “with confidence our total FY2024 Budget ceiling is set at approximately $125 million, or 5% above your current FY2023 approved budget,” she explained. (See Samoa News edition May 05 for details.)