28 Mar 2006

American Samoa's multi-million retirement fund under review

8:57 am on 28 March 2006

American Samoa's Senate Economic Development Committee is set to review operations and financial reports of the multi-million Government Employees Retirement Fund.

The Senate President says the Retirement Fund, is a very critical issue because the Fund is being used by the government as a loan source or collateral for a loan and there is concern on the impact it will have on current and future retirees.

Lolo Letalu Moliga says Senate staff had already prepared the first analysis of the Retirement Fund.

He says a series of hearings will be held in the next couple days and its focus will be for staff to gather other information.

The staff's Retirement Fund analysis report says that in fiscal year 2005, investment gains amounted to 22 million US dollars, up from 16 million in 2004 and 19.6 million in fiscal year 2003.

According to the Senate report the fund lost 30 US million dollars under 9 investment firms in 2001.

The report says the greatest threat to the stability and longevity of the Fund emanates from a most unlikely source, the territorial government it self.