Yesterday senators voted to table until early next year the administration bill which would raise the cap of local investment by the Retirement Fund from 17 to 35 percent.
Senator Nuanuaolefeagaiga Saoluaga Nua argued strongly that before any decision is made the Senate Retirement Committee should have an actuary report detailing how the increase would impact the Fund.
Nuanuaolefeagaiga was off island when the Senate reviewed its version of the administration bill which ended up in the legislation being killed.
The committee yesterday reviewed the House approved version of the bill.
There were no witnesses as Committee Chairman Senator Tuaolo Fruean noted that they had already heard from the Attorney General and the Director of the Fund during review of the Senate bill.
Nuanuaolefeagaiga while noting that the bill would allow funding for a very important development for the territory, the Hawaiki Cable, insisted on the requirement in the law that before any investment by the Retirement Fund, that an actuary be conducted.
He said no such report has been provided.
Nua recommended that the bill be tabled until early next year.
Senator Faamausili Mau Mau Jr. seconded the motion.
There was some discussion on the opinion rendered by Attorney General Talauega Eleasalo Ale regarding a provision of the law which authorized the Retirement Fund to loan $20 million loan to ASG.
He said a section of the loan law stating that after the $20 million loan is repaid, the cap on local investment revert back to 10% was repealed.
Senator Tuaolo said when the time comes a request will be made for an actuary report.
Senator Faiivae Iuli Godinet, who is also chairman of the ASTCA Board of Directors requested for the committee to continue its work on the bill, pointing out that the Hawaiki submarine Cable is operating right now.
The Fofo senator also reminded his colleagues that there’s no limit on off-island investment, and when there’s significant losses from offshore investments, there’s nothing they can do about it.
He made a motion to continue review of the bill next week and give senators a chance to review the AG’s opinion regarding the repeal of the provision calling for the cap on local investment to revert back to 10% after the $20 million loan is repaid.
But his motion was defeated while Nuanua’s motion to table the bill till next year was carried.
