ASG employees, who are members of the American Samoa Government Employees Retirement Fund, weren’t too happy to see a reduction in their latest paychecks.
The drop in their take home pay is due to an increase in their contributions towards the Retirement Fund.
Under amendments which went into law last year, the contributions of Fund members go up yearly October 1st, until 2024.
Last year members were paying 4% and effective October 1st this year, their contribution increase to 5% and for next year, they will be paying 6%.
Meanwhile, their employer ASG, which was paying 10% from October 1st last year, is now paying 12% for this fiscal year, then this will increase to 14% effective October 1st next year.
For the last decade, actuary studies by the Retirement Fund advisors have shown that there’s a serious deficit between the money that goes into the Fund from contributions, and what is paid out monthly. They’ve predicted that if something is not done to fix this unfunded liability, the Retirement Fund would be bankrupt by 2040.
