American Samoa § 7.1433 - Government contributions to Fund.

§ 7.1433. Government contributions to Fund.

(a) The government shall make contributions to the Fund each year on an actuarially funded basis as determined by the Board. Based on actuarial assumptions adopted by the Board, the actuary, with approval of the Board, will determine the normal cost contribution percentage payable and accrued benefit cost contribution percentage payable by the government during each Fund-year as follows: (1) The normal cost contribution percentage for each Fund-year after 30 September 1981, is the percentage of aggregate compensation of all current members which, if contributed over each member’s prospective period of service and added to aggregate member contributions, will be sufficient, with addition of the accrued benefit cost, to provide for payment of all future benefits from the Fund. (2) The accrued benefit cost contribution percentage for each Fund-year after 30 September 1981, is the percentage of expected aggregate compensation of members for that Fund-year which, if contributed during that fund-year, will be equivalent, as determined by the actuary with approval of the Board, to the accrued benefit cost contribution for that Fund-year. The accrued benefit cost contribution for each fund-year after 30 September 1981, is the level annual payment required to liquidate the unfunded accrued benefit cost at the beginning of that fund-year over the remainder of the period of 30 years beginning 1 October 1981; the accrued benefit cost contribution may not, however, be less than interest for one year on the unfunded accrued benefit cost at the beginning of such Fund-year. (3) The unfunded accrued benefit cost at 1 October 1981, shall be $10,982,083.00. (4) The unfunded accrued benefit cost at the beginning of a Fund-year may, at the discretion of the Board, be adjusted to take account of changes in actuarial assumptions or of changes in cost attributed to service rendered prior to that Fund-year. The adjustment resulting from changed actuarial assumptions is liquidated over a period not to exceed 15 years from the date of the adjustment. The adjustment resulting from changes in cost attributed to service rendered prior to the date of such adjustment is liquidated over a period not to exceed 30 years from the date of the adjustment. Liquidation of any adjustment is by level contributions made each Fund-year by the government, however, no contribution may be less than interest for one year on the unfunded portion at the beginning of that Fund-year. (b) The amount of contribution for each Fund-year by the government is determined by applying the sum of the normal cost contribution percentage and the accrued benefit cost contribution percentage for that Fund year prescribed by this section to the total salaries paid to members during each payroll period that Fund-year, and all these amounts are paid into the Fund following the close of such payroll period concurrently with the member contributions to the Fund for that payroll period. (c) All contributions to the Fund, income from investments of the Fund, and any other income accruing to the Fund is held in the Fund and used solely to provide benefits to members of the Fund and to pay administrative expenses of the Fund. Amendments: 1986 Subsection (c): added “and to pay administrative expenses of the fund” at end of subsection.