Talofa Members & Employers,
I want to issue a clarification regarding a statement in my open letter dated March 5, 2025, referencing Governor Pula’s speech on ASG’s $9 million debt to the Fund. I previously suggested that the amount owed could be higher if the reported figure did not include outstanding obligations from semi-autonomous agencies. However, I did not consider that some or all of these agencies might be current with their contributions. I should have specified that the debt could be higher only if outstanding contributions from agencies such as ASPA, ASTCA, ASCC, DBAS, ASVB, LBJ Hospital, and Feleti Library were not included in the reported $9 million. I sincerely apologize to ASPA and other agencies that have remained timely with their contribution submissions.
At the most recent annual board meeting in Seattle, WA, in May 2024, the Fund auditor presented the audit report for FY 2023. Under the section on deficiencies in internal control, two key findings were highlighted regarding Fund contributions:
- Significant Deficiency—There have been delays in enrolling new employees and discrepancies between the Fund’s database and employers’ records.
- Non-Compliance with Contribution Rate Adjustments – Some employers did not immediately implement the revised contribution rates (4% employee and 10% employer) when the law was amended in October 2022 due to a lack of timely notification.
The FY 2024 audit report should be completed by now. It should provide updates on whether these deficiencies have been addressed, and how the Fund and employers have performed in ensuring compliance with the law.
The accuracy of the Fund’s financial statements, actuarial reports, and, ultimately, the determination of member benefits rely heavily on employers’ timely and accurate submission of employment and contribution data and the Fund’s accurate and timely recording of employers’ submission. It is crucial that all participating employers work closely with Fund management to promptly resolve any reported deficiencies and uphold the integrity of members’ benefits.
Sincerely,
Fuiavailili Keniseli Lafaele
