Pago Pago, AMERICAN SAMOA — The unpaid contribution payments owed to the American Samoa Government Employees Retirement Fund (ASGERF) by the government has been the focus of the Fono and the public, especially those who are members of the Fund, for awhile now. The figure of $28 million had been the latest amount mentioned.

A letter sent by ASGERF’s Executive Director, Vaitautolu I’aulualo to House Speaker Savali Talavou Ale, dated Aug. 7, 2026, more or less confirms this amount. 

Dating back to August 2024 through to the most recent pay period ending (PPE) August 1, 2026, the Fund itself reports in the letter that it estimates the outstanding or unpaid amounts to total over $28.5 million.

The letter is cc’d to ASGERF chair, Tuaolo Fruean, who is also Senate president, Chair of the House of Representatives Retirement Committee Representative Trude Ledoux-Sunia, and Representative Vailoata Amituanai’i, Chair of the House Budget and Appropriations Committee.

The communication details the unpaid contribution amounts owed by ASG, ASCC and LBJ only. It does not include semi-autonomous entities such as ASPA and ASTCA. I’aulualo does not indicate if this means these ‘other’ agencies are up-to-date with their Retirement contributions or are a part of ASG’s reported unpaid contributions.

It offers the following “summary of the estimated outstanding payments that are owed to the Retirement Fund from ASG and some of the other agencies:”

ASG Employer Share — $24,505,855; ASG Employee Share — $976,305.49
ASCC Employer Share — $1,604,805.12; ASG Employee Share — $254,299
LBJ Employer Share — $843,243.23; ASG Employee Share — $361,389.95

The ASGERF Executive Director informed Savali that the Retirement Fund office “has been in communication with ASG officials to rectify the situation and hope that it can be resolved soon.”

The letter includes an attachment of the ASGERF’s ‘detailed breakdown’ of the estimated unpaid amounts, dating back to PPE Aug. 03, 2024 through Aug. 1, 2026. Notably, the detailed breakdown report points out that the outstanding amounts are estimates only.

COMMENTS:

FOR ASG:

PPE Aug. 03 through to Sept. 28, 2024 indicates Employer Share owed is for 12%; while Employee Share is 5%. For FY 2025, which begins with PPE Oct. 12, 2024 the Employer Share is noted at 14% with the Employee Share at 6%. 

Outstanding is indicated for Employer Share only, until PPE June 20, 2026, when Employee Share amounts are also listed as being unpaid. 

There are partial payments for Employer Share beginning in PPE Nov. 8, 2025 — they are for 8%, not 12%, with the balance shown as outstanding. These partial payments stop in PPE June 20, 2026, the same time when Employee Share starts to be listed as outstanding. They have not resumed. 

FOR ASCC:

ASCC contributions for Employer Share are listed as unpaid beginning in PPE Apr. 12, 2025 and continues through to Aug. 01. 2026. 

Both Employer Share and Employee Share are listed as outstanding on PPE Feb. 14, 2026 and have continued to be unpaid through to Aug. 01, 2026.

FOR LBJ:

LBJ outstanding contributions begin in PPE April 25, 2026 and continue through to Aug. 01. 2026. Both Employer Share and Employee Share are noted as outstanding and average around $105,000 per payroll.

ASG PROPOSED AMENDMENT

The government has proposed a bill seeking to amend ASG’s contribution rate to the ASGERF from 14% to 8% for Fiscal Years 2026 and 2027, citing the current 14% rate as unsustainable. 

The proposed rate reduction would begin from October 1, 2025 through September 30, 2027. However, from October 2027 to Sept. 30, 2028 the rate would increase to 10%. After FY 2028 new rates would be tied to a new formula that is specified in the proposed amendment.

The law setting the current contribution rate of 14% was enacted in 2021.

The bill is pending in the House, awaiting requested reports. 

Governor Pulaali’i Nikolau Pula expressed his deep concerns regarding the current contribution rate of 14%, labeling it “clearly unsustainable” in his communication with the Fono when he proposed the bill.

He reflected on the circumstances surrounding the 2021 decision to raise the contribution rate, pointing out that it was made during a critical period of the COVID-19 pandemic. During that time, financial markets were extremely volatile, and there was an urgent need to fund various responses to the health crisis, which in turn were funded in part by federal assistance. However, as the Governor noted, “those economic boons are now gone,” indicating a shift in the economic landscape.

In his communication, the Governor reflected on the difficult budget cuts implemented in the previous year, which, although painful, were necessary to maintain fiscal integrity. He asserted that in failing to make these adjustments, he would neglect his constitutional duty to the people of American Samoa.

In addition to reducing the contribution rate, Governor Pulaali’i has noted he is working to establish a collaborative agreement with the ASGERF Board. This agreement would outline a payment plan for the government to address its outstanding financial obligations over time, reinforcing a commitment to fiscal responsibility. 

As indicated in the ASGERF letter to the House Speaker, no agreement has yet been proposed or in place.

To further his goals, the Governor said he has reached out to the Fono leaders, requesting their support by passing this bill — a first step toward reforming the Retirement Fund.