The latest audit and actuarial valuation of the American Samoa Government Employees’ Retirement Fund (ASGERF) show improvement in the fund’s financial position but also highlight serious concerns about unpaid government contributions and long-term funding risks.
According to the FY2025 audited financial statements, ASGERF’s net position increased by about $24.8 million, bringing total assets held for pension benefits to approximately $233 million. The improvement was largely driven by strong investment performance. The fund reported about $23.4 million in net investment income, meaning that nearly all of the year’s gains came from the market rather than contributions.
Unpaid contributions climb to $20 million
Despite the positive investment returns, the audit shows a sharp increase in unpaid contributions owed primarily by the American Samoa Government (ASG). As of September 30, 2025, contributions receivable totaled about $20.2 million, up from just over $5 million the previous year.
The audit notes that ASG alone accounted for about $17.9 million of that balance, rising to approximately $20.2 million by December 31, 2025. This means that while the fund recorded over $31.2 million in contributions, only about half of that amount was received in cash during the year. The financial statements explain that contributions are recorded when due, not when paid — meaning the reported revenue includes amounts that have not yet been collected.
Unpaid contributions climb to $20 million
A closer look at the numbers shows that ASGERF is operating with a significant cash shortfall. The fund paid out approximately: • $26.5 million in benefits, • $1.7 million in refunds, and • $1.6 million in administrative expenses, for total cash outflows of about $29.8 million. At the same time, actual cash inflows from contributions and investment income were significantly lower, resulting in an estimated cash deficit of roughly $9 million for the year. The difference was effectively covered by investment gains.
Contribution rates below actuarial requirements
The October 1, 2025 actuarial valuation confirms that current contribution rates remain below what is needed to fully fund the system. The actuary recommended an employer contribution rate of 17.55% of payroll, compared to the current statutory rate of 14%. This represents a shortfall of about 3.55 percentage points, or roughly $4.8 million per year.
The report also notes that, since 1998, cumulative contributions have fallen short of actuarial requirements by approximately $110.96 million. For FY2025 alone, the actuarially determined employer contribution was about $33.8 million, while actual employer contributions totaled only $21.6 million, meaning only 64% of the required amount was funded.
Funded status improves, but risks remain
The actuarial report shows that the fund’s funded ratio improved to 61.7%, up from 56.6% the previous year. The net pension liability declined to about $144.5 million. However, the report cautions that the system still relies heavily on investment performance and continued contributions to remain stable.
Concerns over proposed rate reductions
The findings come amid discussions about potentially reducing employer contribution rates. Based on the actuarial data, lowering the rate from 14% to 8% would reduce annual contributions by roughly $8 million to $9 million, significantly widening the funding gap. A return to earlier combined rates of 11% (8% employer and 3% employee) would result in contributions that are less than half of the actuarially recommended level.
