Membership in ASG Govt Employees Retirement Fund keeps growing

Pago Pago, AMERICAN SAMOA — The total number of members of the American Samoa Government Employees Retirement Fund (ASGERF) increased to 7,149 at the start of fiscal year 2022 compared to total membership of 6,117 at the start FY 2021, according to data in the ASGERF audit report for FY 2022 prepared by U.S-based firm of Moss Adams LLP.

The audit also shows that 1,901 retirees and beneficiaries are currently receiving benefits while 93 were “terminated vested employees not receiving benefits.”

The auditors shared a summary of contributions to the ASGERF, saying that for the years ended September 30, 2022 and 2021, the actuary developed an employer contribution rate of 17.37% and 20.94% of total payroll, respectively. The employer rate approved by the Board of Trustees is 8% of employees’ regular earnings, excluding overtime.

Each member of the Fund contributes 3% of regular earnings and earns interest at 1.5%, effective October 1, 2014, compounded annually. For periods prior to October 1, 2014, member contributions earn interest at 5.0%, compounded annually.

The report explains that employee contributions are made through payroll deductions. Employee contributions and the related earned interest are refunded to members whose employment is terminated for any reason other than retirement and as a death benefit to the survivors of deceased employees not yet eligible for retirement. Employees are fully vested in the employer portion, payable as a retirement annuity after ten years of participation in the Fund.

For the years ended September 30, 2022 and 2021, contributions totaling over $15.75 million ($11.29 million from employers and $4.46 million from members) and more than $13.57 million ($9.70 million from employers and $3.86 million from members), respectively, were made as provided by provision of local law and as approved by the Board of Trustees.

(Samoa News notes that “employers” referred to in the report, includes the ASG semi-autonomous agencies, such as ASPA, ASTCA, Development Bank and LBJ Medical Center as well as ASG.)

The auditors explained that all member contributions are used to reduce the normal cost liability before the employers’ required contribution rate is calculated. Fiscal 2022 and 2021 employer and member contributions as a percentage of covered payroll are 8% and 3%.

Also noted by the auditors is that in April 2022, the governor signed into law legislation to increase the Fund’s employer and member contribution rates. Employer contributions will be 10% for the year ending September 30, 2023; 12% for the year ending September 30, 2024; and 14% for years ending after September 30, 2024. Member contributions will be 4% for the year ending September 30, 2023; 5% for the year ending September 30, 2024; and 6% for years ending after September 30, 2024.

According to the auditors, ASGERF contributed $37,749 and $44,861 to the Fund during the years ended September 30, 2022 and 2021, respectively, to cover the employer contribution for ASGERF employees.

As previously reported by Samoa News, the independent auditors cited “volatile market conditions” as the reason the ASGERF recorded a loss of more than $37 million in fiscal year 2022 from FY 2021.

The audit report said that the net position of ASGERF at the close of the FY 2022 totaled $158.14 million — which is held in trust for pension benefits — and this is a drop as compared to the net position of $195.49 million held in trust in FY 2021. (See Samoa News online Aug. 22 for details.)