Pago Pago, AMERICAN SAMOA — The net position for the end of 2022 saw a decrease in the American Samoa Government Employees Retirement Fund (ASGERF) worth close to $40 million. The losses were due to payouts in 2022 in the amount of $25.86 million versus contributions of $15 million in the same year. Payouts were both payments to members who cashed out and benefits to retirees. 

This was confirmed in the ASGERF audit report prepared by Moss Adams Auditors and released to the members during its meeting last week in Las Vegas.

According to the report, in 2021 the fund net position at the end of the year was $195.49 million, from $181.18 million at the beginning of the year.

The report states the payouts were $25.39 million versus contributions of $13.57 million and recorded a net investment income of $27.83 million. However the general and administrative services totaled $1.71 million and left a profit of $14.30 million, increasing the funding to $195.49 million in 2021.

For 2022, $15.75 million was the contribution yet benefits and cash outs amounted to $25.86 million, leaving $10.11 million; this led to a loss of $25.35 million, with general and administrative expenses at $1.884 million.

The reported losses of $37.34 recorded in the net position along with $195 million from the beginning of 2022, leaves a reduced amount of $158.14 million in the fund.

The Audit report further notes that in 2020 there were 6,037 members, which increased to 6,117 in 2021 which further increased to 7,149 members in 2022.

Regarding cash and investment allocation, the audit report states that cash equivalent for 2021 amounted to $10.18 million and $2.07 million in 2022.

Domestic equity was $144.43 million in 2021 and $109.31 million in 2022, while the fixed income funds were $25.43 million in 2021 and $26.41 million in 2022. International funds for 2022 were $7.04 million.

Furthermore the report says that investment in the territory for 2021 amounted to $12.88 million and in 2022 $11.30 million which includes real estate that included the Centennial Building; a Loan to the Development Bank (in 2021) and loans to ASTCA.

For the net pension liability the report states that in 2020 it amounted to $265.82 million; in 2021 $250.99 million and $169.67 million in 2022.

BACKGROUND

For the last several years, the government has submitted a bill to raise the contribution by both the retirement fund members and the ASG to help stop the losses the fund experiences. Finally in April of last year a new bill was signed into law .

The new law hiked total contribution rate for both ASG and employee from the current 11% to a total of 20.37% in order to reduce the shortfall, which was reported at the time at $9.4 million for Fund-year 2019.

Previous to this Lemanu had twice in 2021 rejected Fono approved bills — which originated from the Senate — to increase the contribution rate, saying that his top concern is that the bills do not identify a funding source for the increase in the government contribution.