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By Fili Sagapolutele
Samoa News Correspondent
ASG Employees Retirement Fund (ASGERF) board member Lt. Gov. Ipulasi A. Sunia says the retirement fund is "private" in the sense that it is owned by its close to 5,000 members.
He said the Fono has oversight responsibilities, however, the Retirement board does not believe the ASGERF is a public fund, but instead it is a private entity for members only.
His statement contradicts the Senate's belief that the ASGERF is a public fund and therefore any information regarding the fund should be made available.
This is especially important because the Senate had requested information from the board regarding the fund, however the board says some of the documents are confidential. The board's move has led to the Senate using its subpoena powers in an attempt to obtain the documents.
Besides Ipulasi, board chairman Aleki Sene Sr., was present at the hearing, along with Retirement Office executive director, Filisouaiga Ta'afua.
Ipulasi said the board and the Senate have a different interpretation of what constitutes confidential information. He said the board believes some information is confidential and cannot be released. Such information includes members names, how much they receive as well as the amount of their contribution.
Also confidential is any communication between investors and the board and this is to protect any confidential information from being leaked out. He said this is a common practice among pension plan providers and investors and it is not just a board policy.
The lieutenant governor said that with the exception of a few changes, most of the policies and regulations the board operates under were established long ago, before the current board came onboard.
Senate President Lolo M. Moliga said the main concern is the high expenditures involved with the fund, especially relating to travel. The board has been criticized for going on a trip to London with four of its members getting $20,000 each for trip expenses.
Lolo said the board's travel policy of flying first-class, using federal per diem rate instead of the ASG rate, and getting $200 each for additional travel money should be changed. He said the board should set policies for the operation of the retirement fund in accordance with local laws, to ensure the fund is well protected.
Ipulasi said the travel policies which includes flying first class and using the federal per diem rate was established before the current board's time.
Lolo had complained that money used by the board for travel could help increase retirement benefits for ASGERF members, however Ipulasi reminded senators that any increases in annuities have to be made through legislation.
Regarding concerns raised by the Fono and the public about the fund being in jeopardy, Ipulasi said this is not the case. He said the fund started out with $300,000 seed money appropriated by the Fono about 30 years ago, and has since grown to a $208 million fund, with retirement benefits being paid out. He said the fund is growing.
Regarding the London trip, Sen. Tuiagamoa Tavai said he is happy that the media had brought this issue out.
Ipulasi said he was not sure why this issue ended up in the media. He explained the trip followed advice from financial advisors that the board ought to look at the European market for investment opportunities. Three members of the board (Ipulasi, Sene Sr., and Budget director Magalei Logovi'i) plus Ta'afua traveled to London.
Concerning other issues, the Retirement officials told the Senate that benefits paid to retirees amounts to about $11.5 million a year, while the employees' contribution to the fund is only $2.5 million with ASG's share around $9 million. They said the difference comes from money the fund earns from its off-island investments.
The Senate was also told that the Asia market appears to be growing, and the board will look at this market in the coming years, as a possible future investment opportunity.
About the board's membership, the Senate told the witnesses that they should make a recommendation to the governor to appoint new members because the terms of the current board have long expired.
Senate special legal counsel Roy J.D. Hall cited the law dealing with terms of board members, which is five years. As their terms expire, new members shall be appointed to fill vacancies and such appointments shall be made for terms of five years. The nominations are subject to Fono confirmation.
Unlike the hospital or ASPA board, no mention in the law is made of the board members with expired terms being allowed to continue to serve until replaced or re-appointed.
Reach the reporter at fili@samoanews.com.
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