Pago Pago, AMERICAN SAMOA — The American Samoa Government’s unpaid contributions to the Government Employees Retirement Fund have grown to $31.2 million, according to Executive Director Vaitautolu Faafetai Iaulualo.

A breakdown provided to senators shows: ASG owes $27.9 million, ASCC owes $2.8 million, and LBJ Hospital owes $1.3 million.

Vaitautolu and members of the Retirement Fund Board appeared before lawmakers last Thursday to discuss an administration bill that would change how much the government contributes to the Fund over the next several years.

The bill outlines a step‑down, then step‑up schedule for employer contributions: That is, 14% from Oct. 1, 2024 – Sept. 30, 2025, 8% from Oct. 1, 2025 – Sept. 30, 2027, 10% from Oct. 1, 2027 – Sept. 30, 2028, 12% from Oct. 1, 2028 – Sept. 30, 2029.

Starting Oct. 1, 2029, the rate would be set using an actuarial formula approved by the Retirement Fund Board.

Vaitautolu told senators that the Retirement Office had previously discussed a repayment plan with the administration. They were told ASG would make an initial $10 million payment, followed by a structured plan to pay off the rest.

However, no payment has been made, and the debt continues to grow.

He emphasized that the Retirement Office and Board have a duty to protect the Fund, and reducing the government’s contribution rate right now would hurt the Fund’s financial stability.

Vaitautolu reminded senators that the actuary who studied the Fund in 2022 recommended a combined contribution rate of 21– 22%. Without that level of funding, the actuary warned the Fund could run out of money by 2043.

Senator Magalei Logovii asked for a breakdown showing how much of the unpaid contributions should have been paid using federal grants, since grants cover fringe benefits like retirement. The Retirement Office said their accounting system does not separate contributions by funding source.

Magalei suggested raising the employee contribution rate, arguing that many government salaries have increased to $75,000– $85,000, and those employees can afford the higher deduction. He also reminded the committee that a court ruling prohibits using current‑year funds to pay old debts.

Magalei strongly objected to lowering the employer rate to 8% when the law currently requires 14%, calling the proposal “illegal.”

Senator Togiola T.A. Tulafono, who opposed the 2022 contribution increase, said the actuary presented at that time was not a full study but “an opinion”. Regarding the new bill, he argued it is unfair to reduce the government’s share while employees continue paying 6%.

He also noted that only a small portion of ASG workers earn high salaries, while many employees make $15,000 or less. Togiola asked whether an actuarial study was prepared for the current bill.

Vaitautolu said an actuary report was completed, but the Governor’s Office did not include it with the bill.

Board member Fuiavailili Keniseli Lafaele said the actuary report only analyzed the impact of dropping the government rate from 14% to 8%. It did not examine the bill’s full schedule of changing rates.

He added that the administration’s proposal reflects the weak economy. Lower government revenues affect the budgets of ASG, ASCC, LBJ, and the Retirement Fund itself. He said the administration, Fono, and Retirement Fund must work together to create a real plan to pay off the debt.

Togiola questioned why the Governor has not notified the Fono about falling revenues or requested a budget adjustment. He said reduced revenues should not affect retirement contributions for employees paid with federal grants. He agreed cooperation is needed but insisted the current law must be followed: government (employer) pays 14%, employees pay 6%.

Vaitautolu told senators that ASTCA, ASPA, the Territorial Bank of American Samoa, and the Library have all paid their contributions at the current rates.

He asked the Senate to consider keeping the 14% rate for Fiscal Year 2026, then adjusting it afterward.

The Senate decided to table the bill and notify the Governor that an actuarial report specifically based on the current proposal must be submitted before the bill can move forward.