Pago Pago, AMERICAN SAMOA — A Senate bill which seeks to increase the contribution rate to the ASG Employees Retirement Fund, will be heading soon to Gov. Lemanu Peleti Palepoi Sialega Mauga, for review and a decision, after senators agreed to a House amendment on the proposed law.

Meanwhile the governor’s nomination of new members to the Feleti Barstow Public Library board was introduced Monday in both the Senate and House, with confirmation hearings expected this week before the First Regular Session of the 37th Legislature officially ends at the close of business this Friday.

CONTRIBUTION RATE

The current 11% contribution to the Fund — as dictated by law — breaks down to 8% from the employer and 3% by the employee.  But this rate has been described by some lawmakers in the past as inadequate because there is more money going out than money coming in to the Fund.

The Senate bill, seeks a “3% increase” to be added to the government’s contribution rate while the members contribution hikes from 3% to “5%”.

The House made one amendment to the bill, dealing with the effective date, by putting in the language of the proposed law that the effective date Oct. 1st, 2021 — the start of the new fiscal year 2022 — so that the higher retirement contribution that ASG will pay is included in next year’s budget.

When the bill was returned back to the Senate during the Saturday session, Sen. Magalei Logovi’i, who sponsored the legislation, told his colleagues that an “effective date” was missing in the original language of the measure and the amendment made by the House is appropriate.

With that explanation and no objections the Senate agreed to the House amendment.

Retirement Office executive director I’aulualo Fa’afetai Talia told senators last month that the Fund pays out between $23 million to $25 million a year while contributions from employer and employees is only $10 million. And it is income earned from investments that covers the shortfall of payouts.

During a House committee hearing last week, ASG Treasurer Malemo L. Tausaga gave an estimate of about $8.2 million to be paid by ASG and $3.2 million to come from members under the contribution rate hike proposed in the bill.

He said the estimates cover roughly, 4000 ASG employees and doesn’t include the authorities — LBJ Medical Center, American Samoa Power Authority, American Samoa TeleCommunications Authority and American Samoa Community College.

PUBLIC LIBRARY BOARD

According to the governor, the new individuals nominated to the board replace the last board members whose terms have all expired.

The new members are Aitofi Lomu from the Education Department; Faailoa Seui Afalava and Dr. Ernest Seiuli representing the American Samoa Community College; Tiara Drabble and Louise Kuaea for the private sector; and representatives for the public at-large are Tuimalo Elvis Zodiacal and Beverly A. Kodak.

Terms of the at-large members expire in November 2024, while the rest of the nominees have their terms expire in February 2025.

Pursuant to local law, the Education director or designee is automatically a member of the board, without appointment or confirmation by the Fono. Lemanu said the current director, Talauega Dr. Samasoni Asaeli has selected Dr. Teresa Atuatasi to be his designee on the board. 

The board, which governs the public library selects its own officers.