Members of the Senate Retirement Committee seems divided on a bill introduced by Senate President Tuaolo Manaia Fruean, who’s also chairman of the American Samoa Government Employees Retirement Fund, which would remove the limit on local investments.
At present, the percentage of the Retirement Fund that can be invested locally is 17%. But the bill would remove that ceiling and give the Retirement Fund Board and investment advisors the freedom to decide how much can be invested locally.
Senator Soliai Tuipine, who chairs the Senate Retirement Committee, was eager for the Committee to approve the bill and put it through a second reading. But Senators Malaepule Saite Moliga, Utu Sila Poasa, Alo Stevenson, Satele Lili’o and Tuiasina Laumoli, recommended that they first get an actuary report of the Fund and also hear testimony from the Executive Director of the Retirement Fund Office Vaitautolu Faafetai Iaulualo.
The Senate President said the bill would give flexibility to the Retirement Fund board to decided local investments that would benefit the territory. He reminded his colleagues that when the US market crashed several years ago, $50 million of Retirement Fund money was lost and couldn’t be recouped. He said there was nothing to stop such substantial losses.
According to Tuaolo, by investing locally, the Fund would help build the territory.
Senate Attorney Mitzie Jessop Taase, who is also counsel to the Retirement Fund, gave as an example of local investment the loan used to fund the Hawaiki Cable during the Togiola administration. She said that the investment has helped the territory via faster internet, and enabled continuing education using the internet.
Malaepule pointed out that the Retirement fund is already impacted by high salaries in the executive branch, and insisted that the Senate get an actuary report before they vote on the bill.
Tuaolo assured that an actuary report will be provided to the Committee members.
Review of the bill is deferred until the Committee receives the report.
