ASG retirees see increase in monthly benefit checks
A total of 822 American Samoa Government retirees saw an increase in their monthly benefit checks issued yesterday, thanks to an Administration bill that recently passed in the Fono and approved by Governor Togiola Tulafono.
The remainder of ASG retirees will get their hikes at the end of the month. In addition, beneficiaries will receive a lump sum check, as the new law is retroactive back to October 1, 2006.
The new law gives 95% of the 1,500 beneficiaries of the ASG Employees’ Retirement Fund a 2% increase in the cost-of-living allowance (COLA). This is for people who retired on or prior to September 30, 2006.
(Local law requires the ASGERF Board to review the COLA every two years.)
The new law removes an old amendment to the COLA review for recent retirees. For several years, adjustments were calculated according to the date of retirement; however, 100% of retirees will now be considered for COLA adjustments in the future.
The Board does not have a fixed increase amount for the COLA because the economy and world market indicators tend to fluctuate.
Retirement Office Executive Director Filisouaiga Ta’afua told the Fono earlier this year that the monthly benefits pay-outs are about $1.1 million for 1,500 retirees, with the highest retirement payment being about $4,000.
Contributions on a monthly basis add up to $776,000 and income earned by the Fund on its off-island investment is used to offset the shortfall in those monthly payments. If the money collected from the investments decreases, the Board says the last resort would be to increase contributions from members.
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