Pago Pago, AMERICAN SAMOA — The Fono did not convene Wednesday, April 22, 2026 for the Special Session called by Governor Pulaʻaliʻi Nikolao Pula, after lawmakers failed to meet quorum requirements, delaying action on a series of measures that could have significant implications for the Territory’s finances.

The Special Session, called in a letter dated April 20, was intended to run for 10 legislative days and focus on several key issues, including funding for the American Samoa Government Employees Retirement Fund (ASGERF), proposed tax increases, immigration policy, and infrastructure maintenance.

With no quorum, however, the Legislature was unable to proceed, leaving the Administration’s proposals pending as questions continue to surface over the scope and approach of the measures — particularly those dealing with the retirement system.

At the center of the Governor’s agenda is a bill to appropriate $10 million toward unpaid employer contributions to ASGERF, covering a period from August 2024 through September 2025. The proposal makes clear that the payment represents only a portion of the government’s obligation, applying to what are described as undisputed amounts, while additional liabilities remain to be resolved.

The issue of unpaid contributions has drawn attention to the broader financial condition of the retirement fund. According to the most recent actuarial valuation, issued in February 2026, the Fund carries a significant unfunded liability and has historically received contributions below the levels recommended by its actuary.

The report indicates that while the current combined contribution rate — 14 percent from the employer and 6 percent from employees — totals 20 percent of payroll, the actuarially determined rate is higher, at approximately 23.55percent. This gap, sustained over time, has contributed to accumulative shortfall in contributions and a growing unfunded liability.

Against that backdrop, the Administration is also proposing legislation to return the system to what it describes as a “funded basis,” meaning that contribution rates would once again be tied to actuarial calculations. However, the bill does not immediately raise contribution rates to the level identified in the actuarial report. Instead, it outlines a phased approach, with lower rates in the near term and a transition to actuarial funding in future years.

The combination of a partial payment toward past due contributions and a gradual adjustment to contribution rates has led to questions about whether the proposal represents a full correction of the problem or an incremental step.

At the same time, the Administration is seeking to support retirement funding through new and increased taxes. The proposals include higher excise taxes on tobacco products and motor vehicles, as well as a new 15 percent tax on sugary non-carbonated beverages. Portions of these revenues would be dedicated to ASGERF contributions.

The linkage between tax increases and retirement funding has prompted discussion over the underlying need for additional revenue.

While retirement contributions are generally treated as part of payroll costs, the combination of missed payments in recent periods and contribution rates below actuarial recommendations appears to have created a gap that the current budget structure has not fully absorbed.

The Governor has indicated that a supplemental budget for fiscal year 2026 will be submitted separately, which is expected to provide additional context on the government’s overall financial position.

Observers note that such a budget would typically present the full scope of obligations and available resources, allowing the Legislature to consider funding decisions within a broader fiscal framework.

In addition to the retirement-related measures, the Special Session agenda includes a proposal to impose a 12-month moratorium on the Immigration Board’s authority to grant exceptions to numerical limits for foreign workers. The Administration has said the pause is intended to allow for a comprehensive review of immigration trends and their impact on the Territory.

Another measure would establish a more consistent funding source for the Department of Public Works, including a five-cent per gallon diesel fuel tax and authorization for the agency to collect service fees. The Administration has pointed to the need for ongoing maintenance of the Territory’s road system and other infrastructure, which it says cannot be adequately supported under current funding arrangements.

For now, those proposals remain on hold as the Fono works to reconvene with a quorum.

The Governor has indicated he is open to extending the Special Session if necessary, suggesting that the issues raised — particularly those involving ASGERF — will require careful review once lawmakers are able to proceed.

The delay highlights both the procedural challenges facing the Legislature and the complexity of the fiscal decisions ahead, as policymakers weigh how best to address existing obligations while maintaining long- term financial stability.