GOVERNMENT EMPLOYEES
Chapters:
03 (Reserved)
05 (Reserved)
07 (Reserved)
08 Termination of Employment—Disciplinary
Measures
09 (Reserved)
10 Compensation
11
(Reserved)
13 (Reserved)
Chapter 01
BOARD
AND ADMINISTRATION
Sections:
7.0101 Created—Membership.
7.0102 Powers and duties.
7.0103 Punishment for perjury
or contempt.
7.0104 Administrative
appeals and grievances.
7.0110 Director
of manpower resources—Duties.
7.0101 Created—Membership.
(a) There is created a Personnel Advisory Board
consisting of 7 members appointed by the Governor, one of whom is designated by
the Governor as chairman.
(b) The members of the Personnel Advisory Board
serve without pay for their duties as members of the Board.
History: 1962, PL 7-22; amd 1981, PL 17-18 § 1.
Research Guide: For provisions regarding the Director of Manpower
Resources as Executive Secretary of the Personnel Advisory Board, see 7.0110.
7.0102 Powers and duties.
(a) The
primary duties and responsibilities of the Personnel Advisory Board shall be:
(1) to investigate
and make recommendations for improvements to the Governor with regards to the
manpower resources requirements, needs and development of the American Samoa
Government, and in carrying out such investigations, the Board shall have full
power to subpoena and compel the testimony of witnesses;
(2) to develop programs designed to improve
effectiveness of government employees’ performance and discharge of their
duties and responsibilities; and
(3) to investigate personnel problems in the
government and report to the Governor their findings and recommendations, if
any, with respect to such investigation.
(b) The Board shall perform such other duties as
are from time to time assigned to it by the Governor.
(c)
The Board
shall have the power to make such rules as are necessary for the orderly
hearing of matters before it.
(d) The Board shall from time to time review
rules and regulations promulgated in accordance with this chapter and 4.0335,
7.0110 et seq.
History: 1962, PL 7-22; amd 1998, PL 25-37 § 1.
Case Notes:
Board has no authority under this section to
order the hiring or firing of any employee: it is only advisory in nature.
Banks v. A.S.G., 4 A.S.R.2d 113 (1987).
Where evidence indicated that decision to
terminate probationary employee was made by appropriate executive official with
Governor's approval rather than by advisory board, court would not question the
decision. A.S.C.A. §§ 7.0102, 7.0206,
7.0211. Banks v.
7.0103 Punishment
for perjury or contempt.
Any
person who commits perjury before or is in contempt of the Personnel Advisory
Board shall be punished as though the offense were committed before the High
Court of American Samoa.
History: 1962, PL
7-22.
Research Guide: For
provisions regarding the High Court’s contempt power, see 3.0203.
7.0104 Administrative
appeals and grievances.
All
administrative appeals and grievances of government employees shall be referred
to the Administrative Law Judge for hearing and disposition in accordance with the
regulations of the American Samoa Government.
History: 1998, PL
25-37 § 6.
7.0110 Director of Human
Resources—Duties.
In
addition to any duty assigned by the Governor, the Director of Human Resources
shall:
(1) apply and carry out the provisions of this
chapter and 7.0201 et seq.;
(2) be executive secretary of the Personnel
Advisory Board;
(3) establish and maintain a roster and other
records of employees of the government;
(4) make recommendations to and assist the
Personnel Advisory Board in developing programs designed to improve employee
effectiveness, and to enforce such programs as the board, subject to the
approval of the Governor, may promulgate;
(5) assist the Personnel Advisory Board in
investigating personnel problems in the government.
History: 1962, PL
7-22; amd 1998, PL 25-37 § 1.
Case Notes:
Because the Governor has general supervision and
control of all executive departments, agencies and instrumentalities of the
Government, personnel decisions are subject to his direction as long as his
actions are in accordance with applicable territorial and federal laws and
rules. Rev. Const. Am.
Chapter 02
Sections:
7.0201 Purpose.
7.0202 Definitions.
7.0203 Persons included in career service.
7.0204 Employment
standards policy.
7.0205 Qualifications.
7.0206 Procedure
for filling vacancies—Examinations—Appointments.
7.0207 Categories
of appointments.
7.0208 Restoration
of preference eligibles previously in career service.
7.0209 Preference
eligibles separated or furloughed from career service.
7.0210 False
statements in employment application.
7.0211 Probationary period.
7.0212 Residency
requirement
7.0213 Annual physical examinations.
7.0214 Bonding of employees.
7.0201 Purpose.
The
general purpose of this chapter is to establish for the government a system of
personnel administration which will assure equitable treatment of employees of
the government and a merit system based on recognized principles of
appointment, promotion, termination, and other aspects of government
employment.
History: 1962, PL 7-22; 1963, PL 8-10; 1967, PL 10-30.
7.0202 Definitions.
For the purposes of this chapter:
(a) “Disabled veteran” means an individual who has
served on active duty in the armed forces of the United States, has been
separated therefrom under honorable conditions, and has established the present
existence of a service-connected disability or is receiving compensation,
disability retirement benefits, or pension because of a public statute
administered by the Veterans’ Administration or a military department of the
United States.
(b) “Preference eligible” means a
(1)a veteran as defined in subsection
(c):
(2)a disabled veteran as defined in
subsection (a); or
(3)the unmarried widow of a veteran.
(c) “Veteran” means an individual who has served
on active duty in the armed forces of the United States for a period of not
less than 180 consecutive days (other than for training), and who has been
separated from the armed forces under honorable conditions.
History: 1971, PL 12-27 § 1.
7.0203 Persons included
in career service.
The
career service includes all employees of the government except contract
employees, federal employees, district, county, and village officials, members
and employees of the Legislature and judges. Notwithstanding the above, the
employees of the Legislative Reference Bureau, except contract employees, are
members of the career service.
History: 1962, PL 7-22; amd
1975, PL 14-15 § 1.
Amendments: 1975
Added second sentence.
7.0204 Employment
standards policy.
(a) It is the declared policy of the government
that all appointments and promotions to positions in the career service of the
government shall be made solely on the basis of merit, fitness, and length and
quality of previous service.
(b) Merit and fitness shall, whenever practicable,
be ascertained by competitive examinations. In preparing such examinations, or
selecting incumbents in the absence of examinations, administrators shall take
cognizance of the trend in
History: 1962, PL 7-22; 1963,
PL 8-10; 1967, PL 10-30.
Case Notes:
ASG
regulations which set out those situations in which non-competitive procedures
are applicable do not supersede the mandatory statutory requirement relating to
the utilization of an applicant supply-file system for the hiring and promotion
of government employees. A.S.C.A. §§
7.0204(b), 7.0205(b), 7.0206; A.S.A.C. § 4.0303(b). Leiato v. Personnel Advisory Board, 21
A.S.R.2d 25 (1992).
7.0205 Qualifications.
(a) Applicants to the career service shall be
required to take preemployment physical examinations.
(b) Any person entering the career service shall
be a resident of
(c) Except as provided in subsection (d) or
elsewhere in this chapter, all persons entering the career service shall meet
the minimum requirements for employment established for the class of work for
which they apply.
(d) In determining the qualifications of a preference
eligible, as defined in section 7.0202, for examination for, appointment in or
reinstatement in the career service, the Director of Manpower Resources shall
waive:
(1) requirements as to age, height and weight
unless the requirement is essential to the performance of the duties of the
position; and
(2) physical requirements if, in the opinion of
the Director of Manpower Resources, after considering the recommendation of an
accredited physician, the preference eligible is physically able to perform
efficiently the duties of the position.
(e) The government shall not hire nor continue to
employ anyone convicted of a crime involving stealing, embezzlement, or misappropriation
of property, which is classified as a felony in
History: 1962, PL 7-22; 1967,
PL 10-30; 1970, PL 11-98; 1971, PL 12-27 § 2;amd 1976, PL 14-26; amd 1998, PL
25-38 § 1.
Amendments: 1976
Subsection (e): added.
Case Notes:
Section is essentially a preference for permanent
residents rather than for ethnic Samoans and does not breach any constitutionally
applicable standards of equal protection. Banks v .A.S.G., 4 A.S.R.2d
113(1987).
ASG regulations which set out those situations in
which non-competitive procedures are applicable do not supersede the mandatory
statutory requirement relating to the utilization of an applicant supply-file
system for the hiring and promotion of government employees. A.S.C.A. §§ 7.0204(b), 7.0205(b), 7.0206;
A.S.A.C. § 4.0303(b). Leiato v.
Personnel Advisory Board, 21 A.S.R.2d 25 (1992).
7.0206 Procedure for
filling vacancies— Examinations—Appointments.
(a) The Director of Manpower Resources shall
establish the procedure for filling vacancies in the career service on a
permanent basis from among eligible candidates for employment.
(b) When practicable, competitive examinations
shall be held, resulting in establishment of registers comprising the names of
those competitors who have attained eligible ratings arranged according to
their numerical rating scores in descending order; provided, that a preference
eligible as defined in subsection (a) of 7.0202, who receives a passing grade
in a competitive examination given pursuant to this section shall receive 10
additional points above his earned rating; and provided, further, that the
names of such preference eligibles shall be entered upon the appropriate
registers ahead of others having the same rating; and further provided that a
preference eligible as defined in subsection (b) of 7.0202 shall receive 5 additional
points.
(c) If no examination is given, applicants for
employment shall be subject to an applicant supply file system established and
administered by the Director of Manpower Resources.
(d) Upon receipt of an approved request from a
department head or other authorized operating official to fill a vacancy in the
career service on a permanent basis, the Director of Manpower Resources shall
certify to the former for consideration and selection the names of the 5
candidates from the appropriate examination register who have the highest
numerical rating scores, which scores, in the case of preference eligibles as
that term is defined in section 7.0202, shall include the additional points
added pursuant to subsection (b), or, in the absence of such a register, the
names of the 5 candidates from an applicant supply file whom the Director of
Manpower Resources considers to be best qualified by virtue of experience
and/or training. Only those candidates certified in the manner described above
are eligible for employment unless an exception is permitted under regulations
of the Governor.
(e) In no instance will a government official
allow an employee to enter on duty unless he has been assured by the Director
of Manpower Resources or a designated member of his staff that the appointment
action has been approved.
(f) In selecting a candidate for appointment, any
appointing authority who passes over a preference eligible whose name appears
on the register or list of candidates from the applicant supply file
transmitted to such appointing authority by the Director of Manpower Resources
pursuant to subsection (d) and who selects an individual who is not a
preference eligible, shall file written reasons therefor with the director of
manpower resources. The Director of Manpower Resources shall make such reasons
a part of the records of the preference eligibles so passed over. The Director
of Manpower Resources may require the submission of more detailed information
in support of passing over a preference eligible, shall determine the
sufficiency or in-sufficiency of the reasons submitted, and shall send his
findings to the appointing authority. The appointing authority shall comply with
the findings of the Director of Manpower Resources. The preference eligible or
his representative, on request, shall be entitled to a copy of the reasons
submitted by the appointing authority and the findings of the Director of
Manpower Resources.
(g) When 3 or more names of preference eligibles
appear on the register or list of candidates from the applicant supply file
transmitted to any appointing authority by the Director of Manpower Resources
pursuant to subsection (d), the appointing authority may select and appoint
only a preference eligible to fill the vacancy under consideration.
History: 1962, PL
7-22; 1967, PL 10-30; amd 1971, PL 12-27 § 4.
Case
Notes:
Section apparently violated by “order” of personnel advisory board to hire or fire an employee. Only director of manpower resources and head of agency where vacancy exists are authorized to make such decisions. Banks v. A.S.G., 4 A.S.R.2d 113 (1987).
Where evidence
indicated that decision to terminate probationary employee was made by appropriate
executive official with Governor's approval rather than by advisory board,
court would not question the decision.
A.S.C.A. §§ 7.0102, 7.0206, 7.0211. Banks v.
ASG
regulations which set out those situations in which non-competitive procedures
are applicable do not supersede the mandatory statutory requirement relating to
the utilization of an applicant supply-file system for the hiring and promotion
of government employees. A.S.C.A. §§
7.0204(b), 7.0205(b), 7.0206; A.S.A.C. § 4.0303(b). Leiato v. Personnel Advisory Board, 21
A.S.R.2d 25 (1992).
7.0207 Categories of appointments.
(a) Appointments shall be in one of the following
categories:
(1) Appointment. Appointment without time
limitations, to a position in the career service, of any eligible candidate
selected from an appropriate examination or applicant supply file certificate
as described in section 7.0206:
(2) Excepted Appointment. Appointment without
time limitation to a position in the career service as permitted by
regulations of the Governor;
(3) Reinstatement. Appointment without time
limitation to a position in the career service of a former career service
employee who satisfactorily completed the probationary period described in section
7.0211, and whose reemployment is not prohibited by regulations or laws
relating to the reemployment of employees separated for cause or who have
abandoned their position;
(4) Temporary Appointment. Appointment not to
exceed a specific date within a period not to exceed one calendar year.
(b) Any
of the appointment actions described in subsection (a) may be made subject to a
when-actually-employed (WAE) provision, restricting payment of compensation to
time actually worked. Employees appointed under such a provision, otherwise
eligible for leave or other service-credit benefits, shall be accorded such
benefits on the basis of time actually worked, provided they are subject to a
regular (prearranged) tour of duty when they do work.
(c) Any of the appointment actions described in
subsection (a) may be made subject to a part-time (PT) provision restricting
employment to a regular (prearranged) tour of duty of less than full time.
Employees appointed under such provision, who are otherwise eligible for leave
and other service-credit benefits, shall be accorded such benefits on the basis
of time actually worked.
(d) Any person convicted of a crime involving
stealing, embezzlement, or misappropriation of property, which is classified as
a felony in
History: 1962, PL 7-22; 1967, PL 10-30; 1971, PL 12-27 §
4; amd 1998, PL 25-38 § 2.
7.0208 Restoration
of preference eligibles previously in career service.
An
individual employed in the career service, who is ordered to active or reserve
duty in the armed forces of the
History: 1971, PL 12-27 § 5.
7.0209 Preference
eligibles separated or furloughed from career service.
A
preference eligible who has been separated or furloughed from the career
service without delinquency or misconduct, on request, is entitled to have his
name placed in the appropriate register or applicant supply file for every
position for which his qualifications have been established in the manner
specified in section 7.0206.
History: 1971, PL 12-27 § 6.
7.0210 False statements
in employment application.
Any
person who willfully makes false statements concerning a material matter on
any application for employment with the government shall be fined in an amount
not to exceed $100, or imprisoned for not more than 6 months, or both.
History: 1962, PL 7-22.
7.0211 Probationary
period.
(a) Employees appointed without time limitation
in the career service shall serve a probationary period of 1 calendar year
from the effective date of such appointment during which period their service
may be terminated at any time without a hearing as provided under section
7.0803.
(b) The purpose of the probationary period is to
provide an opportunity for the employee to demonstrate whether or not his
retention as part of the permanent work force is in the best interests of the
government.
(c) When considered appropriate, separation during
the probationary period shall be recommended in writing to the Director of
Manpower Resources by department heads or other authorized operating
officials, giving the reason or reasons for such recommendation.
(d) If the recommendation is followed, the
Director of Manpower Resources shall furnish the employee concerned with a
written notice advising him that he will be separated on a particular date,
and stating the reason or reasons therefor and that he has no hearing rights.
(e) In the case of all probationers, the Director
of Manpower Resources shall, 2 months prior to the expiration of the
probationary period, request from the appropriate department head or other
operating official, a recommendation as to whether the employee should be
retained beyond the expiration of his probationary period. Such
recommendations shall be in writing. In the event retention is not recommended,
the separation notification procedure described in subsection (d) shall be
followed.
History: 1962, PL 7-22; 1967,
PL 10-30; 1971, PL 12-27 § 7; amd
1973, PL 13-6.
Amendments: 1973
Subsection (f): deleted.
Case Notes:
Subsection (b) gives executive broadest possible
discretion in terminating probationary employees. Government worker with no
contractual or statutory right to continued employment may be fired for any
reason or no reason at all, except where reason itself constitutes a violation
of applicable constitutional rights. Banks v. A.S.G., 4 A.S.R.2d 113(1987).
Where evidence
indicated that decision to terminate probationary employee was made by
appropriate executive official with Governor's approval rather than by advisory
board, court would not question the decision.
A.S.C.A. §§ 7.0102, 7.0206, 7.0211. Banks v.
Judiciary must
not substitute its own judgment for that of executive branch on what is in
"the best interest of the government." A.S.C.A. § 7.0211. Banks v.
7.0212 Residency
requirement.
All
members of the career service shall be residents of
History: 1962, PL 7-22; 1967, PL 10-30; 1970, PL 11-98.
7.0213 Annual physical
examinations.
All
members of the career service shall take annual physical examinations.
History: 1962, PL 7-22; 1967,
PL 10-30; 1971, PL 12-27 § 2.
7.0214 Bonding of
employees.
(a) Subject to subsection (b), the head of each
department and independent agency in the executive branch of the government
shall obtain, under rules adopted by the Treasurer, blanket, position schedule,
or other types of surety bonds covering the officers and employees of the
departments or independent agencies who are required by law or administrative
rule to be bonded. Bonds obtained under this section shall be of the most
economical type available for the number and type of personnel to be bonded and
shall be conditioned upon the faithful performance of the duties of the
individual or individuals so bonded. The bond premium may cover a period not
exceeding 2 years and shall be paid from any funds available for the payment of
administrative expenses at the time the premium becomes payable. Whenever officers
or employees are covered by a bond under authority of this section, the surety
or sureties on any existing bond of those officers or employees shall not be
liable for any defaults occurring subsequent to the date of the new coverage.
For purposes of this section, the term “faithful performance of the duties”
shall include the proper accounting for all funds or property received by
reason of the position or employment of the individual or individuals so bonded
and all duties and responsibilities imposed upon individuals by law or by rule
adopted under law.
(b) If, in the opinion of the head of the
department or independent agency concerned, the premium cost for bonds procured
under this section covering officers or employees in the executive branch of the
government will exceed the rate of $150 a year, the procurement of the bonds
shall be made by the head of the department or independent agency only after
advertising a sufficient time previously for proposals for the furnishing of
the bonds, except that the advertising for proposals shall not be required when
the public exigencies require the immediate procurement of the bonds.
(c) The Treasurer shall transmit to the Governor
for submission to the Secretary of the Interior by 30 September each year a comprehensive
report of the operations of the departments and independent agencies under
this section. The report shall include, among other matters, information, in
summary and in detail, with respect to operations under this section, setting
forth:
(1) the number of officers and employees covered
by bonds procured under this section;
(2) the number and types of bonds procured under
this section and the individual penal sums thereof;
(3) the amounts of the premiums paid for bonds
procured under this section; and
(4) other information as may be necessary to
enable the Secretary of the Interior to determine the results of operations
under this section.
(d) Procedures for taking exceptions to holders
of bonds by another supervisory authority shall be established by rule by the
Treasurer under the rules adopted under the Administrative Procedure Act,
section 4.1001 et seq., implementing this act. Also, procedures of not
releasing bonds until all exceptions have been satisfied shall be adopted under
the rules.
History: 1977, PL 15-49.
Chapter 03
(RESERVED)
CLASSIFICATION
Sections:
7.0401 Classes for positions— Reclassification.
7.0401 Classes for
positions— Reclassification.
(a) It shall be the duty of the Director of
Manpower Resources to ascertain, record, and evaluate the duties and
responsibilities of all positions in the career service and to establish
classes for positions which are sufficiently similar so that they can be
described by the same title and carry a comparable rate of pay, so that
recruitment standards can be set on the same basis.
(b) The class titles so established shall be used
in all official personnel accounting and budget transactions.
(c) Positions may be reclassified on written
request of a department head or upon routine review of the plan by the Director
of Manpower Resources, who may require a competitive examination for filling a
position which has been reclassified. A proposed reclassification shall be made
only if funds are available.
History: 1962, PL 7-22; 1967,
PL 10-30.
(RESERVED)
Chapter 06
Sections:
7.0601 Prohibited from entering private business.
7.0601 Prohibited from
entering private business.
The Director
shall provide in contracts with contract employees a provision prohibiting them
from engaging in private business in American Samoa, either directly or
indirectly in any form whatsoever, during the terms of their contracts.
History: 1977, PL 15-43.
7.0602 Conviction of a
crime involving stealing, embezzlement or misappropriation as a ground for
ineligibility for employment or for termination of contract.
A
person convicted of a crime involving stealing, embezzlement, or
misappropriation of property, which is classified as a felony in
History: 1998, PL 25-38 § 3.
(RESERVED)
Chapter 08
TERMINATION
OF EMPLOYMENT— DISCIPLINARY MEASURES
Sections:
7.0801 Grounds for demotion, suspension, or
removal.
7.0802 Suspension.
7.0803 Demotion and termination.
7.0804 Failure to report for duty.
7.0805 Resignation.
7.0806 Abolishment of positions.
7.0807 Prohibited political acts—Penalty.
7.0801 Grounds for
demotion, suspension, or removal.
Employees
in the career service may be demoted, suspended, or removed for below standard
job performance, misconduct on the job, misconduct off the job which reflects
adversely on the government, conviction of a felony, sentence to prison for 30
days or more upon conviction of a crime, or violation of standards established
administratively which govern employee conduct and deportment, including but
not limited to, the proper use and penalty for misuse of government property.
History: 1962, PL
7-22; 1967, PL 10-30; amd 1979, PL 16-45 § 1.
Amendments: 1979 Added
inclusion at end of section.
Reviser’s Comment: Section 2 of
PL 16-45 provided: “All department, agency and instrumentality heads having
vehicles under their control and authority must adopt rules under the
Administrative Procedure Act 4.1001 et seq. for their proper and effective use
within the meaning of the disciplinary measures included in 7.0801.”
7.0802 Suspension.
(a) Any employee in the career service serving
under an appointment without time limitation, regardless of whether he has
completed his probationary period, may be suspended without pay as a
disciplinary measure for a period not to exceed 30 calendar days.
(b) When considered appropriate, such action shall
be recommended in writing to the Director of Manpower Resources by department
heads or other authorized operating officials, who shall supply the Director
with evidence in support of the recommended action.
(c) If the recommendation is followed, the
Director of Manpower Resources shall in writing notify the employee concerned
regarding the specific dates of the suspension period, the reasons therefor,
the corrective action to be taken by the employee and the consequences which
will follow if there is a continuance or repetition of the cause for the
suspension.
History: 1962, PL
7-22; 1967, PL 10-30.
Case Notes:
Inherent, executive authority exists to suspend
an employee before his removal is effective under circumstances which would
make continued performance of regular duties detrimental to the territorial
government's interests; however, this action may not be arbitrary or
capricious. A.S.C.A. § 7.0802; A.S.A.C.
§§ 4.0801, 4.0802(e). Sala v.
7.0803 Demotion and
termination.
(a) Any employee in the career service serving
under an appointment without a time limitation who has completed his
probationary period may be removed for cause or demoted on any ground set out
in 7.0801.
(b) When considered appropriate, such action shall
be recommended in writing to the Director of Manpower Resources by department
heads or other authorized operating officials, who shall supply the Director
with supportive evidence.
(c) If the recommendation is followed, the
Director shall in writing notify the employee of the nature of the charges
against him, that he is subject to removal or demotion 30 calendar days from
the date of the notice, and that he may request a hearing before the Personnel
Advisory Board within 10 calendar days of the date he receives the notice.
(d) The decision of the Personnel Advisory Board,
or of the Director of Manpower Resources in the event no hearing is requested
and held, shall be final and shall be made within the 30-day notice period
provided in subsection (c).
(e) Employees serving under temporary appointments
as defined in subsection (a) of 7.0207 may be terminated at any time without
notice or the procedures described in this section.
History: 1962, PL
7-22; 1967, PL 10-30; amd 1985, PL 19-12 § 1.
Amendments: 1985 catchline:
deleted "suspension" and added "termination".
Case
Notes:
Appeal under provisions of 4.1040 et seq. from
the Final decision of the personnel advisory board permitted. Reed v. Personnel
Advisory Board, ASR (1977).
7.0804 Failure to report
for duty.
When
an employee, without good cause, fails to report for duty for 5 or more
consecutive workdays, it shall be considered that he has abandoned the position
and his department head may recommend that the Director of Manpower Resources
take appropriate action for termination of the appointment and replacement of
the employee.
History: 1962, PL
7-22.
7.0805 Resignation.
Any
employee may resign his position for any reason. The resignation should be
submitted in writing and shall be accepted upon a satisfactory showing that the
employee has returned all government owned equipment and supplies used by him
in his employment and that he is not indebted to the Government or the
Development Bank of
History: 1962, PL 7-22.
7.0806 Abolishment of
positions.
(a) Abolishment of an encumbered position in the
career service due to lack of work or funds, or reorganization, and separation
of the incumbent from such position, shall constitute a reduction in force.
(b) The Director of Manpower Resources shall
establish and administer rules and regulations governing the disposition of
employees affected by reductions in force, which shall give due recognition to
merit and fitness, length of service, tenure, and type of appointment, thus
insuring equitable treatment of the latter.
History: 1962, PL 7-22.
7.0807 Prohibited political acts—Penalty.
(a) It is unlawful for an employee of the
government to:
(1) use his official authority or influence as an
officer or employee of the government for the purpose of interfering with or
affecting the result of an election or a nomination for office;
(2) directly or indirectly suggest, advise, command,
coerce, or attempt to coerce an officer or employee of the government to pay,
lend, or contribute anything of value to any person, committee, organization,
agency, or party for political purposes;
(3) use property belonging to the government to
directly or indirectly benefit or support any political candidate or political
campaign.
(b) Any officer or employee of the government who
violates this section is subject to suspension or dismissal from his position
with the government, and shall be fined as for a class A misdemeanor.
(c)
Employees of the government, including contract
and career service employees, may actively participate in the management of
political campaigns, their own included, if the participation is after the
employees’ normal working hours and off the premises of his place of
employment, while on annual leave, or while on leave without pay, so long as
paragraphs (a)(l), (a)(2) and (a)(3) and 7.1201 and subsection (f) of 4.0102
are not violated.
History: 1972, PL 12-23 §§ 2, 3;amd 1973, PL 13-33; 1977,
PL 15-47 § 1;amd 1980, PL 16-90 § 6.
Amendments: 1973 Subsection
(a)(1): rephrased.
1977 Subsection (a)(3), prohibiting government
employee participation, except as a candidate, in a political campaign, was
deleted, and subsection (a)(4) was redesignated (a)(3).
Subsection
(c): added.
1980
Amended to conform with penalties provided for in Title 46, Criminal Justice.
Chapter 09
(RESERVED)
COMPENSATION
Sections:
7.1001 Compensation plan.
7.1002 Per diem rates within the
Territory—Tutuila, Manu’a, Swains Island.
7.1003 Incentive awards.
7.1004.1 Overtime compensation of
gubernatorial appointees disallowed.
7.1001 Compensation
plan.
(a) A compensation plan shall be established for
the career service, which will permit the payment of either an annual salary
or hourly wage dependent on the type of work performed. The plan shall provide
for maximum and minimum salary and wage rates and such intermediate steps as
seem appropriate.
(b) No position may be assigned a rate of pay
greater than the maximum or less than the minimum rate established for the
level in the compensation plan with which such position is identified in
accordance with the provisions of 7.0401, except as permitted by rules of the
Governor.
History: 1962, PL
7-22; 1967, PL 10-30.
7.1002 Per diem rates
within the Territory— Tutuila, Manu’a,
The
Director of Manpower Resources shall adopt rules under the Administrative
Procedure Act, 4.1001 et seq. consistent with other equitable per diem rates,
a schedule of per diem rates for travel between the
History: 1980, PL 16-66 § 2.
7.1003 Incentive awards.
The
Government shall adopt an incentive award program to provide a method of
recognizing employees who show exceptional resourcefulness or skills, or
perform exceptional acts.
History: 1967, PL 10-30.
7.1004.1
Overtime compensation of gubernatorial appointees
disallowed.
All
gubernatorial appointees are not entitled to overtime compensation
notwithstanding that they may have worked beyond regular hours. However, the Governor may, at his discretion,
authorize that such appointees take additional leave with pay to compensate them
for work performed in excess of 40 hours per week, but all such leave must be
documented and authorized by the Governor in advance.
History:
1998, PL 25-26 § 1.
(RESERVED)
Chapter 12
Sections:
7.1201 Regulations governing leave.
7.1202 Sick leave.
7.1203 Annual leave.
7.1204 Vacations for teaching personnel.
7.1205 Paid holidays.
7.1201 Regulations
governing leave.
(a) Leave without pay, annual leave and sick leave shall be
granted in accordance with regulations issued by the Governor; provided, however,
that any regulation to the contrary notwithstanding, leave without pay shall be
freely granted to any government employee for the purpose of campaigning as a
candidate for public office in American Samoa for a period beginning 30 days
before and ending 10 days after the date set for the election.
(b) Leave without pay may not be granted for
periods of more than 1 year unless otherwise provided in the regulations, and
then only for reasons which are determined to be in the interest of the
government.
History: 1962, PL
7-22.
7.1202 Sick
leave.
(a) “Sick leave” means absence from duty because
of illness or other physical disability or exposure to contagious disease.
(b) An employee given leave with pay on account of
sickness for longer than 3 working days must supply on demand a certificate
from a physician or medical practitioner evidencing illness.
(c) Sick leave shall accumulate at the rate of
one-half day per biweekly pay period, and the accumulation is not limited.
(d) Employees terminated for reasons other than
retirement, employees who are medically separated and employees who retire with
the maximum service credit of 30 years are entitled to compensation for unused
accrued sick leave at the rate of 50 percent of sick leave in excess of 239
hours.
History: 1962, PL 7-22; 1970,
PL 11-107; amd 1984, PL 18-32 § 1.
Amendments: 1984
Subsection (d) added.
7.1203 Annual
leave.
(a) Employees in the career service shall be
entitled to annual leave, which shall accrue as follows:
(1) four hours for each full biweekly pay period in
the case of employees with less than 3 years of service;
(2) six hours for each full biweekly pay period,
except that the accrual for the last full biweekly pay period in the year is 10
hours, in the case of employees with 3 but less than 15 years of service;
(3) eight hours for each biweekly pay period in the case of employees
with 15 years or more of service.
(b) In determining years of creditable service for
the purposes of subsection (a), there shall be included all time spent as a
career service employee of the government and all time spent on active duty
status with the armed forces of the United States, but for an employee who is a
retired member of any of the uniformed services, such last mentioned time
shall not be included unless:
(1) his retirement was based on disability
resulting from injury or disease received in line of duty as a direct result of
armed conflict, or caused by an instrumentality of war and incurred in the
line of duty during a period of war (as defined in38 U.S.C. §§ 101 and 301);or
(2) immediately prior to the effective date of
this service he was employed in a civilian office to which the Annual and Sick
Leave Act of the United States applies and, on and after that date, he
continued to be employed in that office without a break in service of more than
30 days; or
(3) such service was performed in the armed forces
during any war, or in any campaign or expedition for which a campaign badge has
been authorized.
(c) The determination of the period service may be
made on the basis of an affidavit of the employee, if other records are
unavailable.
(d) In the case of an employee who is not paid on
the basis of biweekly pay periods, the leave provided by this section shall
accrue on the same basis as it would accrue if such employee were paid on the
basis of biweekly pay periods.
(e) Any change in the rate of accrual of annual
leave by an employee under the provisions of this section shall take effect as
of the beginning of the pay period following the pay period, or corresponding
period in the case of an employee who is not paid on the basis of biweekly pay
periods, in which such employee completes the prescribed period of service.
(f) Annual leave not used by an employee shall
accumulate for use in succeeding years until it totals an amount not to exceed
60 days at the beginning of the first complete biweekly pay period, or
corresponding period in the case of an employee who is not paid on the basis of
biweekly pay periods, occurring in any year.
(g) The annual leave provided for in this section,
including such leave as accrues to any employee during the year, may be granted
at any time during such year as the heads of the various departments and
agencies may prescribe.
(h) Notwithstanding the provisions of subsection
(a), an employee shall be entitled to annual leave under this section only
after having been employed currently for a continuous period of 90 days under
one or more appointments without a break in service. In any case in which an
employee completes a period of continuous employment of 90 days, there shall
be credited to him an amount of annual leave equal to the amount which, except
for this subsection would have accrued to him under subsection (a) during such
period.
(i)
The payment of money in lieu of leave shall not be allowed except on
termination of employment.
(j) The days of leave provided for in this section
mean days upon which an employee would otherwise work and receive pay, and
shall be exclusive of holidays and all nonwork days established by law or
administrative order.
(k) An employee shall be considered, for the
purposes of this section, to have been employed for a full biweekly pay period
if he has been employed during all of the days within such period which would
be within his usual workweek and on which he would normally work.
History: 1962, PL 7-22; 1966,
PL 9-26; 1967, PL 10-30;amd 1978, PL 15-71; 1981, PL 17-8 § l; amd 1983, PL
18-8 § 1.
Amendments: 1978
Subsection (b)(2): substituted “service” for “sentence”, “that” for “such”, and “that” for “any such”.
1983 Subsection (a) amended to refer to number of
hours rather than fractions of a day.
7.1204 Vacations for
teaching personnel.
Upon
recommendation of the Director of Education, the Governor may authorize a
special system of vacations for teaching personnel.
History: 1962, PL
7-22.
7.1205 Paid holidays.
(a) The public holidays in
(b) If any public holiday is observed by federal
employees on a different day from that specified in 1.0501, the day of
observance for employees of
(c) If any government employee is required to work
on a public holiday, he shall be given an additional day’s pay in lieu of the
holiday.
(d) This section shall apply to all employees of
the government, whether or not they are “employees” as defined in subsection
(d) of 32.0303.
History: 1968,
PL 10-72; 1969. PL 11-53; amd 1977, PL 15-12.
Amendments: 1977 Subsection
(c): deleted provision that in the alternative, employee could be given another
day off with pay.
Research Guide: For provisions regarding public holidays, see
1.0501.
Chapter 13
(RESERVED)
Chapter 14
GOVERNMENT
EMPLOYEES’ RETIREMENT FUND
Sections:
7.1401 Purpose and intent.
7.1402 Title of fund.
7.1403 Definitions.
7.1405 Legislative changes.
7.1410 Board of Trustees—Term of office.
7.1411 Board of Trustees—Duties.
7.1412 Executive Director—Duties.
7.1413 Repealed.
7.1414 Repealed.
7.1415
Employment of an assistant director, staff and professional
services.
7.1416
Indemnification.
7.1420 Members of fund.
7.1421 Persons ineligible for membership.
7.1430 Credit.
7.1431 Computation of credit.
7.1432 Repealed.
7.1433 Government contributions to fund.
7.1434
Members’ contributions to the fund.
7.1435
Prohibition of deductions from ineligible employees’ salaries.
7.1436
Individual accounts for each member.
7.1437
Interest of members in fund.
7.1438
Transfer and attachment of interest prohibited.
7.1439
Refund of contributions of separated employees—Return to
employment.
7.1440
Withdrawals by employees prohibited.
7.1441
Retirement—Voluntary and mandatory--Elected officials may finish
term.
7.1442 Retirement payments.
7.1442.1 Repealed.
7.1443 Death benefits.
7.1444 Investment of reserves exceeding current
requirements.
7.1444.1 Repealed.
7.1444.2 Repealed.
7.1444.3 Loans to the American
Samoa Government.
7.1444.4 Credit facility
authorization—Assistance—American Samoa Medical Center Authority.
7.1445 Conflicts of interest—Prohibited acts.
7.1446 Accounts and records.
7.1447 Costs and expenses.
7.1448 Actuarial
surveys and valuations of the fund.
7.1448.1 Administrative
costs—Procedures for payment.
7.1449 False
representation—Penalty.
7.1401 Purpose and
intent.
(a) The purpose of the Government Retirement Fund
shall be to provide retirement annuities for the employees of the government
who become aged, thereby enabling the employees to accumulate reserves for
themselves in order to meet, without prejudice or hardship, the hazards of old
age upon termination of their government service. It is the further objective
of this fund to act as a strong incentive in attracting qualified personnel to
enter and remain in government service to the end that their talents may be
utilized for the sake of achieving greater economy and efficiency in the
administration of the government.
(b) It is the intention of this chapter that the
payment by the government of the required contributions and all allowances,
annuities, and benefits shall be obligations of the government.
History: 1971, PL 12-29,
§§ 2, 26; amd 1986, PL 19-37 § 1.
Amendments: 1986 Subsection
(b): inserted “and” before “benefits”, deleted “and administration expenses”.
Reviser’s Comment: Section 33.0203 of XXXIII Code Am. Samoa. 1961
Ed., provided that “The fund shall become operative as of
7.1402 Title of fund.
The
fund shall be known as the “American
History: 1971,
PL 12-29 § 3; amd 1986, PL 19-37 § 2.
Amendment:
1986 changed name of fund.
7.1403 Definitions.
As
used in this chapter:
(a) “Actuary” means any actuary that is qualified and
has been engaged by the Board to provide actuarial services.
(b) “Average annual salary” means the highest
average annual salary received by a member during any 3 consecutive years of
creditable service accruing to a member prior to the fund-year in which that
member attains age 66. Overtime compensation shall not be considered when
calculating a member’s average annual salary.
(c) “Board” means the Board of Trustees provided
for in this chapter as the agency responsible for the direction and operation
of the affairs and business of the Retirement Fund.
(d) “Creditable service” means service credited
for purposes of computation of benefits, and may not exceed 30 years of
creditable service.
(e) “Early retirement date” means the date on
which a member attains age 55 and 10 years of creditable service, or a later
date elected by the member.
(f) "Employee” means any person in the
employ of the government, in all occupational classifications.
(g) “Fiscal year” means the period of twelve
consecutive months beginning on the first day of October each year.
(h) “Fund”
means the “American
(i) “Fund-year” means a period of 12 consecutive
months beginning
(j) “Member” means any active, inactive or
retired participant in the Fund.
(k) “Membership service” means service rendered
on or after the operative date of the fund.
(l) “Normal retirement date” means the earlier of
the dates on which the member attains age 65 and 5 years of creditable service
or the member attains age 55 and 30 years of creditable service.
(m)
“Operative date” means
(n) “Prior service” means service rendered prior
to the operative date of the Fund.
(o) “Regular interest” means such rate as shall be
fixed by the Board; provided, that for the first 5 years of operation of the
Fund, the regular interest shall be 3 percent per year, compounded annually.
(p) “Salary” means the amount received by an
employee for service.
(q) “Service” means actual employment by the
government as an employee for salary or compensation, or service otherwise
creditable as herein provided.
(r) “Spouse” means the husband or wife of, a
member to whom the member was lawfully married.
(s) “Total service” means prior service,
membership service and military service.
History: 1971, PL
12-29 § 5; 1981, PL 17-28 § 1;amd 1986, PL 19-37 § 3; 1989, PL 21-22; 1996, PL
24-12; amd 1997, PL 25-15.
Amendments: 1986 Subsection (b): added provisions on overtime
compensation.
Subsection (c): replaced “system” with "retirement fund”. Subsection
(g): added.
Subsection (h): relettered from former subsection (g); name of fund
changed according to 7.1402.
Subsections (i)—(s): relettered from former subsections (h)—(r).
Research Guide: For operative date of fund, see Reviser’s comment,
7.0801,
7.1405 Legislative
changes.
(a) The Senate and the House of Representatives
shall establish retirement fund standing committees.
(b) All proposed legislation which concerns
membership in the Fund, benefits paid by the Fund, contributions to the Fund,
investment of Fund assets, or management of the Fund shall be referred to the
Senate and House Retirement Fund Committees.
(c) Before the final vote is taken in either the
Senate or House on any such legislation, the retirement fund committee of that
body must submit to the voting members a written report from both the actuary
and the Board of Trustees regarding the proposed legislation. The actuary’s report
shall indicate the financial impact of the legislation on the future solvency
of the fund-and future benefit payments. The report of the Board of Trustees
shall contain its recommendations concerning the legislation: whether the
Board supports or opposes it, any recommended changes, and the board’s
detailed reasons.
(d) Any legislation which is passed but which does
not follow the procedures set forth in this section is null and void.
History: 1986, PL 19-37 § 18.
7.1410 Board of
Trustees—Term of office.
(a) The responsibility for the proper administration
of the fund and the direction of its policies shall be vested in a Board of
Trustees consisting of five members as follows: three members appointed by the
Governor, who shall be members of the Fund having at least five years of
service; and two members appointed by the Governor who shall not be members of
the Fund. The Governor, in consultation with the Board will decide upon
suitable candidates to fill any Board vacancy or vacancies. The Governor will
choose his appointee(s) from among those individuals and send the name(s) to
the Legislature for confirmation. The Board shall select its own chairman.
(b) The term of office of the members shall be 5
years except that the original appointees shall be appointed for terms of 1, 2,
3 and 4 years. As their terms expire, new members shall be appointed to fill
vacancies and such appointments shall be made for terms of 5 years. A trustee
can be removed from the Board by the Governor only for breach of his fiduciary
responsibilities or for just cause.
History: 1971, PL,
12-29 § 15; 1972, PL 12-48 § 6;amd 1983, PL, 18-3 § 1; 1986, PL 19-37 § 4; amd
1996, PL 24-12.
Amendments 1983 Number of board members increased from 5 to 6.
1986 Subsection (a). amended generally.
Subsection (b): deleted “appointive”; added provision on removal of
trustee for breach of fiduciary responsibility.
7.1411 Board of
Trustees—Duties.
The
Board of Trustees shall have, in addition to other duties arising out of this
chapter. the following duties:
(1) establish and maintain an office, in the
facilities provided by the government; provided however that should the
trustees determine that facilities provided by the government are inadequate,
appropriate facilities may be built or leased by the Fund, for the meetings of
the Board and the keeping of the books, accounts and records of the fund; hold
regular meetings bimonthly, and such special meetings as may be deemed
necessary; and keep a full record of all of its proceedings, which shall be
open to inspection by the public;
(2) hire an Executive Director who shall be
directly responsible to the Board for the management of the Retirement Fund
and the Retirement Fund Office;
(3) provide for the installation of a system of
accounts and records which will give full effect to the requirements of this
chapter; adopt all necessary actuarial tables to be used in the operation of
the Fund: and provide for the compilation of such statistical and financial
data as may be required for actuarial valuations, periodic surveys and
calculations;
(4) obtain such information from the participating
members and the government as shall be necessary for the proper operation of
the Fund;
(5) consider and pass upon all applications for
annuities, benefits, refund and other payments, and authorize the expenditures
for such purposes, in accordance with the provisions of this chapter; the Board
may delegate this duty in whole or in part, to the executive director;
(6) accept any gift, grant, or bequest of any
money or property of any kind, for the purposes designated by the grantor if
such purposes are specified as providing cash benefits to some or all of the
members or annuitants of the Fund: if no such purposes are designated, the same
shall be credited to the account representing income from investments;
(7) have the accounts of the fund audited at the
end of each fiscal year by a certified public accounting firm, and submit an
annual report to the Governor and Legislature no later than 120 days following
the close of the fiscal year embodying, among other things. a balance sheet
showing the financial and actuarial condition of the Fund, a statement of
income and expenditures for the year, a statement showing changes in the
asset, liability and reserve accounts during the year. a statement of
investments owned by the Fund, and such other financial and statistical data as
are necessary for proper interpretation of the condition of the Fund and the
results of its operation: the Board shall also cause to be published for
distribution among the members a synopsis of such report;
(8) the board or its qualified agents or
custodians shall hold, for the fund title to all assets of the Fund;
(9) establish and promulgate rules and regulations,
not inconsistent with this chapter, determined necessary by the Board to carry
out the purposes of this chapter.
History: 1971, PL
12-29 §§ 5, 16, 19;amd 1986, PL 19-37 § 5; amd 1989, PL 21-22.
Amendments: 1986 Subsection (2): added.
Subsection (3): renumbered from former subsection (2). Subsection (4): renumbered from former subsection (3).
Subsection (5): renumbered from former subsection (4); added provision on
delegation of duties.
Subsection ( 6): renumbered from former subsection (5).
Subsection (7): renumbered from former subsection (6): replaced
“competent accountant” with “certified public accounting firm”: replaced
“government as soon as possible” with “Governor and Legislature no later than
120 days”; deleted statements of investment acquired and disposed of during the
year, including the description of each security, purchase or sale price and
names of vendors and vendees”.
Subsection (8): renumbered from former subsection (7).
Subsection (9): renumbered from former subsection (8).
7.1412 Executive
Director—Duties.
The Executive
Director shall be in charge of the administration of the detailed affairs of
the Fund. He shall keep all books, records, files, and accounts of the Fund and
receive all applications for annuities, benefits, and refunds. He shall prepare
periodic reports relative to the operations of the fund and an annual report
at the close of each fiscal year reflecting the results of the financial
operations of the Fund and embodying all important financial and statistical
data pertinent to its operation.
History: 1971, PL,
12-29 § 17; 1972, PL, 12-48 § 9; amd 1986, PL, 19-37 § 6.
Amendments: 1986 replaced “director of manpower resources shall be ex officio director of the fund and” with “executive director” and changed catchline accordingly.
7.1413 Treasurer.
Repealed
by PL 24-12 § 8.
7.1414 Retirement
officer.
Repealed
by PL 19-37 § 19.
7.1415 Employment of an
assistant director, staff and professional services.
(a) Subject to the approval of the Board, the
Executive Director may employ an assistant director and such clerical, medical
or other assistance as shall be necessary for the proper administration of the
fund. Subject to the approval of the Board, the Executive Director may also
engage actuarial, accounting or other professional services to assist in the
preparation of the annual reports, to advise in matters of policy, and to make
the periodic actuarial surveys. The executive director, assistant director and
full-time clerical staff are employees of the government fund, under the
direction of the Board.
(b)
Legal services shall be provided by the government through the appropriate
department. The board may, however, employ independent legal counsel if in its
opinion, such services are necessary.
History: 1971, PL,
12-29 § 18; 1972, PL, 12-48 § 10;amd 1986, PL, 19-37 § 7; amd 1996, PL 24-12.
Amendments: 1986 Amended generally.
7.1416 Indemnification
The
Fund shall save harmless, indemnify and defend all Trustees of the Board,
officers, employees and attorneys of the fund from financial loss arising out
of any claim, demand, suit or judgment by reason of alleged negligence or other
act by such trustee, officer, employee, or attorney provided that such trustee,
officer, employee, or attorney at the time of such alleged negligence or act
was acting in good faith, with prudence and due diligence in the discharge of
that person’s duties and within the scope of his employment, and that such
damages did not result from the willful and wrongful act or gross negligence of
such trustee, officer, employee or attorney.
History: 1996, PL 24-12.
7.1420 Members of fund.
The
following employees shall be members of the Fund and subject to the provisions
of this chapter:
(a) All employees, regardless of age or length of
service, in the service of the government on the operative date of the fund,
shall become members of the Fund by virtue of their employment.
(b) Any person on an approved leave of absence on
the operative date, on account of disability or military service, shall be
subject to membership as of such date as though he were in active service. If
such leave of absence is for any other cause, such person shall be subject to
the membership as of the operative date only if the leave of absence is
extended, in the aggregate, for less than one year after the operative date.
(c)
All qualified persons becoming employees after the operative date shall become
members as a condition of employment.
(d) Elective officers, including
but not limited to the Governor and Lieutenant Governor, and members of the
Legislature; provided, however, any elective officer may decline membership in
the fund by notifying the board in writing of his intent to do so.
(e) Employees of the Fund under the direction of
the Board, unless ineligible pursuant to 7.1421.
(f)
The employees of the Development Bank of American
Samoa, unless ineligible pursuant to 7.1421, provided that the bank makes
payment to the Fund for all prior service credit as determined jointly by the
trustees of the fund and the directors of the bank.
History: 1971, PL, 12-29 § 6;amd 1979, PL, 16-15 § 1; 1986, PL 19-37 § 8; 1987, PL 20-13 § 1; 1989, PL 21-21 §1; 1996, PL 24-12.
Amendments: 1979 Subsection
(d): added the Governor and Lieutenant Governor to the elective officers
listed.
1986 Subsection (c): inserted” qualified” before “persons”.
Subsection (d): inserted “and” before “members”.
Subsection (e): added.
1987 Subsection (c): replaced “60” with “65”.
Subsection (d): deleted “and the Delegate-at-Large to
7.1421 Persons
ineligible for membership.
The
following employees are not eligible for membership in the Fund:
(1) a person occupying a position whose duties
will not permit service for more than 100 days per year;
(2) a person whose services are compensated on a
fee basis;
(3) an independent contractor;
(4) a person whose employment is purely temporary,
seasonal, intermittent, part-time or only for a specific project;
(5) an employee who is a member of any other
retirement system except the military, and who is accruing creditable service
in that system, unless the employee terminates his membership in the other
system. This provision does not apply to former government employees with ten
years vested interest; and
(6) an
employee of the government for a definite or fixed term; however, notwithstanding
the foregoing, judges, district, county and village officials and employees,
department heads and executive level appointees, and noncareer service
employees of the Legislature, other than contract employees are eligible for
membership.
History: 1971, PL 12-29 4 7;amd 1979, PL, 16-53 § 5; 1981, PL 17-28 § 2; 1983, PL
15-1 § 1;amd 1985, PL 19-22 § 1;amd 1986, PL 19-37 § 9; 1987, PL 20-28 § 1;
1989, PL 21-22; 1996, PL 24-12.
Amendments: 1979 Paragraph (7): added proviso that judges
shall be eligible for membership.
1983
Grammatical changes made to the section and paragraph (5) amended to refer to
those accruing creditable service under another retirement system.
1985
Subsection (5): added “except the military”.
1986
Subsection (5): added provision excepting former government employees with
ten-year vested interest from provisions of section.
1987
Subsection (7): added “district, county arid village officials and employees,
and noncareeer service employees of the Legislature, other than contract employees”.
7.1430 Credit
(a) Credit for service prior to the operative date
of the Fund is granted as follows:
(1) Every employee who becomes a member of the
fund on its operative date shall be entitled to prior service credit, without
cost to himself, for periods of prior employment during which he has rendered
service to the government.
(2) An employee who becomes a member and whose
work schedule prior to the operative date of the fund required employment for
less than 12 but more than 2 months in a calendar year, may be granted prior
service credit for the months of inactivity by payment to the Fund before 1
January 1983 of the contributions which the employee would have paid had the
employee been continuously employed and had the Fund been operative at that
time.
(3) Persons who become members and who have held
elective offices in the government before the operative date of the Fund shall
be granted prior service credit for the length of the actual terms of office:
provided, however, that any person applying for prior service credit under this
subsection shall not receive prior service credit if he is entitled to
creditable service for the same period under any other provision of this
section.
(4) Any employee who becomes a member of the Fund
and who was a member of the Civil Service Retirement Fund of the United States
Government at the operative date, whether in an active or inactive status, may
be granted prior service credit only if he definitely terminates his membership
in such fund, receives a refund of his accumulated contributions therefrom, and
pays such amount in full, including regular interest from the date of such
termination, if subsequent to the operative date, to the date of payment, to
the Government Retirement Fund.
(5) Any employee not in service on the operative
date, or on an approved leave of absence on such date, for disability, military
leave or other cause, shall be entitled to receive credit for prior service
only when such employee has completed at least 5 years of contributing membership
service subsequent to the operative date.
(b) A member who was ineligible for membership in
the Fund during any employment by the government prior to attaining membership
but subsequent to the operative date may receive credit for that period of
ineligible service if he deposits in the Fund the contributions he would have
made if he had been a member of the Fund during that period together with
regular interest thereon. No credit will be allowed until the deposit is made.
(c) Credit shall be granted to any employee for
active service in the Armed Forces of the
(d) In
addition to the credit authorized in the immediately preceding subsection,
credit shall be granted for active service performed during a national
emergency proclaimed by the President of the United States or during a national
emergency or state of war declared by the Congress of the United States
occurring before or subsequent to the operative late of this title, provided
the employee entered such active service while employed by the government and
reenters its service within a period of 90 days following his discharge from
the Armed Forces of the United States, under conditions other than
dishonorable.
(e) Any person employed by the government for 10
years or more who is a member of the fund and who is appointed for a position
within the United States Government which requires his continued residence
within American Samoa and has not terminated his membership in the fund may
be allowed credit for such federal service; provided, he does not become a
member of the Civil Service Retirement System; and provided further that he
pays to the fund during the years for which he claims credit as a federal
employee the contributions which he would have paid had his employment been
with the government, together with regular interest thereon, from the date on
which such contributions would have been made had such service not been with
the federal government, to the date of actual payment.
(f) Any person employed by the government who
takes leave of absence without pay or terminates from such employment in order
to further his education may upon returning to employment with the government,
claim retirement credit for such time spent in furthering his education, by
paying to the retirement fund contributions which he would have paid had such
time spent on education not been excluded by virtue of his leave of absence
without pay or termination, together with regular interest thereon from the
date on which such contributions would have been made, had such time so spent
not been excluded, to the date of actual payment; provided, however, that this
section shall apply only to those persons who resume employment in the
government within 2 years after completing their studies.
History: 1971,
PL 12-29 § 8; 1972 PL 12-48 § 1;amd 1973, PL 13-41; 1981, PL, 17-28 § 3 amd
1985, PL 19-22 § 2; amd 1986, 19-37 § 10.
Amendments: 1973 Subsection (c): increased period of service in armed forces.
1985 Subsection (C): deleted “in addition to any” and replaced it with
“or”; added “before or”: deleted final sentence concerning granting of prior
service credit to employees receiving a pension or annuity from the
1986 Subsection (c): amended generally.
Subsection (d): added.
Subsection (C): relettered from former subsection (d).
Subsection if): relettered from former subsection (e).
7.1431 Computation of
credit.
(a) The contributions required pursuant to 7.1430
for the purchase of creditable service, with the exception of subsection (b)
thereof, shall be computed by multiplying the member’s normal monthly
contributions at the time the request for credit is initiated by the number of
months of prior service being acquired.
(b) In the case of a member purchasing creditable
service pursuant to subsection (b) of 7.1430, the number of months of prior
service being acquired shall be multiplied by the monthly contributions he
would have made if he had been a member of the fund during the period of prior
service being acquired.
(c) In the computation of credit for service for
purpose of the Fund 15 days or more of service during any month shall
constitute a month of service. Service of less than 15 days during any month
shall be disregarded. A year shall mean any period of 12 consecutive months and
shall not be confined to a calendar year.
(d) Members failing to qualify for the 30 years
maximum retirement benefits may apply unused accrued sick leave on an hour for
hour basis for service credits.
History: 1971, PL.
12-29 §§ 8, 9; 1972, PL 12-48 § 2; amd 1984, PL 18-32 § 2.
Amendments: 1984 Subsection
(d) added.
7.1432 Certificate of
prior service.
Repealed
by PL 17-28 § 13.
History: 1971, PL 12-29 § 8.
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
(2)
The accrued benefit cost contribution percentage for each Fund-year after
(3) The unfunded accrued benefit cost at
(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.
History: 1971, PL 12-29 § 14;
1972, PL 12-48 § 5; 1981, PL 17-28 § 4; amd 1986, PL 19-37 § 11.
Amendments: 1986 Subsection (c): added “and to pay administrative
expenses of the fund” at end of subsection.
7.1434 Members’
contributions to the Fund.
(a)
Each member of the Fund shall contribute 2.85 percent of the salary earned and
accruing to such member subsequent to the operative date. Beginning
(b) Every employee who is a member of the Fund
shall be deemed to consent and agree to the deduction from salary, and payment
to such employee of salary less such deduction shall constitute a full and
complete discharge and acquittance of all claims and demands whatsoever for
the services rendered by such employee during the period covered by such
payment, except as to the benefits herein provided.
History: 1971,
PL 12-29 § 13; 1972, PL 12-48 § 4; 1981, PL 17-28 § 5; amd 1987, PL 20-17§ 1.
Amendments: 1987 Subsection
(a): added “, and applies only to income earned during regular working hours.
Income earned on overtime is not subject to this contribution”.
7.1435 Prohibition of
deductions from ineligible employees’ salaries.
An employee who is ineligible for membership in the Fund shall
not have any deduction made from his salary for a contribution to the Fund.
History: 1971, PL 12-29 § 13; 1972, PL 12-48 § 4.
7.1436 Individual
accounts for each member.
(a) An individual account shall be maintained for
each member, to which shall be credited the amounts of his contributions and
regular interest thereon.
(b)
Regular interest on such contributions shall be credited annually, at the close
of each year, and shall be allowed only on the amount of the accumulated
contributions standing to the credit of each member at the beginning of each
year.
History: 1971, PL 12-29 § 22; amd 1986, PL 19-37 § 12.
Amendments: 1986 Subsection (a): added “regular” before
interest
Research Guide: For provisions on regular interest, see
subsection (j) of 7.1403.
7.1437 Interest of
members in Fund.
Each
member shall, by virtue of the payment of contributions to the Fund, receive a
vested interest in such contributions, and, in consideration of such vested
interest, shall be conclusively deemed to undertake and agree to pay the same
and to have the amounts deducted from his compensation as provided in 7.1434.
History: 1971, PL I2-29 § 23.
7.1438 Transfer and
attachment of interest prohibited.
The
right to a retirement annuity, or refund, is personal to the recipient, and the
assignment or transfer of such benefit or any part thereof shall be void,
except as otherwise provided in this chapter. No annuity or refund shall answer
for debts contracted by the person receiving the same, and it is the intention
of this chapter that they shall not be attached or affected by any judicial
proceeding.
History: 1971, PL 12-29 § 24.
7.1439 Refund of
contributions of separated employees—Return to employment.
(a) Any member whose employment is terminated
for any reason other than retirement is entitled to the return of all
contributions he has made plus regular interest. Refund is made upon
application by the member on a form provided by the board.
(b)
Acceptance of this refund terminates membership in the fund and causes
forfeiture of any further benefits.
(c) A
member whose employment is terminated for any reason before he is eligible for
vested retirement may leave his accumulated contributions in the fund, and they
shall continue to earn regular interest. After 5 years the board may cause a
member’s accumulated contributions to be forfeited if they total less than
$25.00.
(d) A member whose employment is terminated for
any reason after he is eligible for vested retirement may leave his accumulated
contributions in the fund in order to be eligible for vested retirement
benefits.
(e) Should a member in an inactive status return
to government employment, he shall resume active fund membership with full
credit for service previously rendered.
(f) A
former member reentering government employment after having withdrawn his
accumulated contributions (thereby terminating membership in the fund) must
redeposit the amount of his previous refund with interest from the date of
payment in order to obtain credit for such service.
(g)
The withdrawal privilege granted by this section applies only to members whose
employment has been terminated.
History: 1971,
PL 12-29 § 11; 1981, PL 17-28 § 6;amd 1985, PL 19-15 § 1;amd 1986, PL 19-37 §
13; amd 1987, PL 20-13 § 2.
Amendment 1985 Subsection (c): deleted “is not required to
withdraw his accumulated contributions immediately upon termination of
employment. He” and added “whose employment
is terminated for any reason before he is eligible for vested retirement”;
replaced the numeral “4’ with the word “four”.
Subsection (d): added.
Subsection (e): relettered from former subsection (d). Subsection (f):
relettered from former subsection (e). Subsection (g): relettered from former
subsection (f).
1986 Subsection (c): added "regular” before “interest”.
1987 Subsection (c): deleted “for 4 calendar years following his
termination of employment”, and “At the end of this period he must accept the
refund”: added “After 5 years the board may cause a member’s accumulated
contributions to be forfeited if they total less than $25.00”.
7.1440 Withdrawals by
employees prohibited.
An
active member may not withdraw any of his accumulated contributions during his
employment.
History: 1971, P 12-29 § 11.
7.1441 Retirement—Voluntary and mandatory—Elected officials may finish
term.
(a) Notice. All employees must be advised of
their eligibility for normal or early retirement upon attaining the necessary
age and creditable service. However,
failure to receive the notice shall not prevent the retirement or postpone the
retirement date.
(b) Voluntary Retirement. Any member of the fund
may voluntarily retire if he is at least 55 years of age and has completed 30
years of creditable service or has reached 65 years of age with 5 years of
creditable service. Any member qualified for retirement under this subsection
may apply for retirement on forms provided by the board. His retirement shall
be executed on the day he specifies; provided, however, the retirement may not
be less than 30 days nor more than 90 days after the date the application is
filed.
(c) Medical
Separation. (1) A member who has
attained his normal retirement date or early retirement date may be
involuntarily separated and entitled to an immediate unreduced retirement
annuity if it is determined by the Board after certification of the Director of
Health, that the member’s health is not likely to improve; provided, the member
is not eligible for workmen’s compensation for the condition causing the
involuntary separation.
(2) A member who has not attained his early
retirement date and who has contributed to the fund for at least 5 years may be
separated and entitled to an immediate unreduced retirement annuity if it is
determined by the Board, after certification of the Director of Health, that
the member’s health prohibits him from satisfactorily performing the duties of
any assigned position in the service of the government; provided, the member
is not eligible for workmen’s compensation for the condition causing the separation.
(3) At least once each year during the first 5
years following the approval of a medical retirement annuity to a member under
subsection (2) and at least once in every 3-year period thereafter, the board
requires the disabled annuitant to undergo a medical examination at the place
of residence of the annuitant or at any other place mutually agreed upon, by a
physician or physicians engaged by the Board of Trustees. If the examination
indicates that the annuitant is no longer physically or mentally incapacitated
for service, or that he is able to engage in a gainful occupation, payments of
disability retirement annuity from the Fund shall be discontinued, and the
annuitant shall be reinstated in governmental service in a position for which
he is found qualified and capable of performing. However, in no case shall the
payments be discontinued if the member has attained age 65.
Should
the disabled annuitant become gainfully employed in any capacity and his
earnings are less than his salary on his medical retirement date or the salary
currently paid for a similar position, whichever is lower, the Board shall
continue a medical retirement annuity in an amount which is equal to the
difference, but not to exceed the amount of the medical retirement annuity.
Should
any member receiving a medical retirement annuity refuse to submit to the
medical examination, payments by the fund shall be discontinued by the Board
until the withdrawal of his refusal and, should his refusal continue for one
year all rights of the member to any medical retirement annuity are revoked by
the Board. After a medical retiree reaches the age of 65, no further annual or
3-year medical examinations may be required.
(4) A member who has recovered from medical
retirement and who is restored to active service immediately becomes an active
member of the Fund and has member contributions deducted from his pay and upon
subsequent retirement has his service retirement allowance based upon all
creditable service including both that service upon which his medical
retirement annuity was based and his creditable service after his recovery.
(d) Early Retirement. A member of the fund may
voluntarily retire with a reduced pension if he is at least 55 years of age and
has completed 10 years of creditable service.
(e) Vested Retirement. A member of the fund who
separates from service on or after 1 October, 1984 and who has completed 10
years of creditable service but is not eligible for early retirement may
voluntarily retire with a reduced pension as of the first day of any month
after attaining age 55 provided the member does not withdraw his member
contributions.
(f) A retired member receiving an annuity who is
reemployed by the government in any capacity in which he again becomes a member
of the fund, or who is remunerated by the government for personal services in a
status other than as an employee or official for a period in excess of six
months, including renewals, has his right to receive payment of his annuity
suspended for the duration of his employment or contract, but all other rights
pertaining to his annuity are retained by him.
History: 1971, PL 12-29 § 10; 1972, PL 12-58 § 3; 1975,
PL 14-3 § 1;amd 1977, PL 15-46;amd 1979, PL 16-10 § 1; PL 16-20 § 1; 1981, PL
17-28 § 7;amd 1985, PL 19-15 § 2;amd 1986, PL 19-37 § 14;amd 1987, PL 20-13 §
3; amd 1989, PL 21-22.
Amendments: 1973 Subsection
(e): added.
1977 Subdivisions (e)(l) to (e)(4) redesignated as (e)(2) to (e)(5), and
a new (e)(i) added.
1979 Subsection (b): lowered voluntary retirement age from 60 to 55
years.
Subsection to): deleted from proviso at end of subsection provisions
that employee be certain age, ranging from 50 to 62, and have certain period,
from 15 to 30 years, of service.
1985 Subsection (g): added.
Subsection (h): relettered from former subsection (g).
1986 Subsection (c). paragraph (3): replaced “are discontinued until”
with "shall be discontinued by the board until”: added provision excepting
from medical examinations medical retirees reaching age 65.
Subsection (h): added “in any capacity,” after “government”.
1987 Subsection (b): added “or has reached 65 years of age with 5 years of creditable service”.
Subsection (e)(3): in the first paragraph, deleted “engaged in or is”; added “and the annuitment shall be
reinstated in governmental service in a position for which he is found
qualified and capable of performing”; in second paragraph, deleted “able to
resume a gainful occupation”: added “gainfully employed in any capacity” and
“but not to exceed the amount of the medical retirement annuity”.
Subsection (h): replaced “a service retirement” with “an” before
“annuity”; added “in any capacity us which he again becomes a member of the
fund, or who is remunerated by use government for personal services in a status
other than as an employee or official for a period in excess of six months,
including renewals” and “or contract” after “his employment”.
7.1442 Retirement
payments.
(a)
Each member shall receive an annual service retirement annuity on retirement
equal to 2 percent of the average annual salary of the member multiplied by his
total years of service up to a maximum of 30 years. Effective immediately and
payable from October 1, 2004, as applicable, the annual service retirement
annuity is increased to allow for a two (2) percent increase for all retirees
who have retired on, or prior to September 30, 2004. This increase shall not apply to retirees who
have retired on, or after
(b) Service retirement annuities shall be payable in equal monthly installments, rounded to the nearest dollar, as life annuities, and shall not be increased, decreased, revoked, or repealed except for error, or except where specifically otherwise provided.
(c) The first payment of a life annuity shall be
made pro rata for the fraction of a month elapsing between the date of
retirement and the end of that month. The last payment shall be made as of the
date of death.
(d) Instead of an annuity payable for the life of
a retired member, the member may elect to receive a lesser retirement annuity
during his lifetime but with all or a portion of that annuity continued to a
contingent annuitant designated by the member at the time of retirement. The
amount of the lesser annuity elected is determined by the Board so that the
value of that annuity at the time of retirement will be the same as the value
of the life annuity otherwise payable without an election. The election may not
be permitted by the Board unless the value at retirement of expected monthly
annuity payments during the life of the retired member is no less than one-half
the value of the life annuity otherwise payable without such an election.
(e) Should a member who is eligible for early
retirement as provided by 7.1441 retire, the amount of his retirement annuity
is determined in the same manner as described, but then reduced by one-fourth
of one percent multiplied by the number of completed months in the period which
begins at the date of early retirement and ends at the date when the member
first would be eligible to retire with an unreduced retirement annuity.
(f) Should a member who is eligible for vested
retirement as provided by section 7.1441 retire, the amount of his retirement
annuity is determined in the same manner as described for early retirement in
7.1442(e), but then reduced in addition by one-fourth of one percent multiplied
by the number of completed months in the period which begins at the date of
termination and ends at the date of the member’s fifty-fifth birthday, subject
to maximum additional deduction of 15 percent. The annuity so determined, that
is normal retirement annuity less deduction for early retirement and
additional deduction as calculated above, will be paid to retiree or beneficiary.
(g) Should a member retire after attaining age 65,
the amount of his retirement annuity is determined as described, but is
additionally increased by one-fourth of one percent multiplied by the number
of completed months in the period which begins on the date of the member’s
sixty-fifth birthday and ends on the member’s retirement date.
(h) Not less often than once every 2 years the
board recommends to the Governor, for proposal to the Legislature, that service
and medical retirement annuities currently payable to retired members and other
annuitants be increased or not. These recommendations by the Board are made
after due consideration by the Board of current conditions, and are accompanied
by a statement of the cost of any proposed increase as certified by the
actuary.
(i) In addition to service retirement annuities
paid under terms of subsections (a), (e) and (g) above, an additional
retirement incentive benefit will be paid in accordance with the following
terms and conditions:
(1) Eligibility is limited to those active
members age 55 or over with ten or more years of service who are currently
eligible for retirement or early retirement, and who complete application for
retirement within ninety (90) days of the effective date of this act.
(2) An annual incentive benefit equal to $100.00
per year of service, up to a maximum of 30 years, will be paid on a prorated
monthly basis as a supplement to the service retirement annuity until the
retiree reaches the age of 62, or for a minimum period of five years.
(3) Reemployment by the government, in any
capacity, will result in termination of the retirement incentive supplement and
loss of eligibility for such benefits.
(4) Supplemental incentive benefits will not be
considered in determining the amount of contingent annuities or for future
increases authorized under subsections (a), (d) and (h) above.
History: 1971, PL
12-29 §§ 12, 25;amd 1979, PL 16-24 § 1; 1981, PL 17-28 § 8;amd 1983; PL 18-12 §
1;amd 1985, PL 19-15 § 3;amd 1987, PL
20-10 § 1; 1989, PL 21-22; 1991 PL 22-13 § 1; 1991, PL 22-4 § 1; 1993 PL 23-1
§1, 23-6 § 1; 1995 PL 24-7 § 1; 1998 PL 25-21 § 1; 2000, PL 26-18; amd 2002, PL
27-26, amd 2004, PL 28-23; 2006, PL 29-27.
Amendments: 1979 Subsection
(d): added.
1983 Subsection (a)
amended to increase retirement annuities.
1985
Subsection (C): deleted “retire
early” and added “who is eligible for early retirement” and “retire”.
Subsection (f): added.
Subsection (g): relettered from former subsection (f).
Subsection
(h): relettered from former subsection (g).
1987
Subsection (a): added annual service retirement annuity increases beginning
October 1. 1986.
Reviser’s Comment: Section 1 of PL 16-32 provided: “Notwithstanding
7.1442, a person who is now qualified or after the effective day of this act,
qualifies for a service retirement annuity under 7.1401 et seq. shall receive
no less than $50 a month.”
Section 2 of PL 29-27 provided: “Because of the urgent financial needs of
our retired employees, it is deemed appropriate for this act to become effective
immediately upon passage by the Legislature and approval by the Governor.”
Research Guide: For a definition of average annual salary. see 7.1403 of this title.
7.1442.1 Retirement
benefits to otherwise ineligible persons.
Repealed
by PL 19-37 § 19.
7.1443 Death
benefits.
(a) Should a member in either an active or
inactive status die prior to actual retirement, his accumulated contributions
plus interest to the date of death shall be paid to his survivors as provided
in this section. Should a retired member die before the annuity paid equals the
amount of his retirement contributions plus interest accumulated to his
retirement date, the difference shall be paid.
(b) Under regulations prescribed by the Board, a
member may designate a beneficiary or beneficiaries for the purpose of this
section.
(c) Benefits authorized under subsections (a),
(b), (e) and (f) of this section shall be paid to the person or persons
surviving the member in the following order of precedence:
(1) to the beneficiary or beneficiaries designated
by the member in a signed and witnessed writing received by the board before
his death;
(2) if not the above, to the widow, or widower, of
the member;
(3) if neither of the above, to the child or
children of the member and descendants of deceased children by representation;
(4) if none of the above, to the parents of the
member or the survivor of them;
(5) if none of the above, to the next of kin as
the board determines entitled;
(6) if none of the above, the duly appointed
executor or administrator of the estate of the member.
(d) Should an
active member die before retirement, but after attaining eligibility for
retirement, but after attaining eligibility for retirement under 7.1441 leaving
a surviving spouse, the surviving spouse, if eligible, may elect to receive
either the death benefits provided under this section or a life annuity payable
from the Fund in an amount equal to one-half the retirement annuity that
otherwise would have been payable to the deceased member had he retired on the
date of his death. Should the surviving spouse die before the total of annuity
payments made equals the amount of the member’s accumulated contributions and
interest at his death, the difference is paid to the duly appointed executor or
administrator of the estate of the spouse.
(e) In addition to benefits payable under
subsections (a) or (d) above, a death benefit will be paid to the person or
persons surviving a member who dies while on active status as follows in
accordance with subsection (c) of this section:
(1)
a benefit of $2,500.00 upon the death of a member
with less than five years of service;
(2) a benefit of $5,000.00 upon the death of a
member with at least of five years, but less than ten years of service;
(3) a benefit of $10,000.00 upon the death of a
member with ten or more years of service.
(f) Upon the death of a retired member, a benefit
of $1,500.00 shall be paid to the survivors of the retired member in accordance
with subsection (c) of this section.
This benefit is in addition to other benefits provided for in this
chapter. Payment of benefits bars recovery by any other person.
(g) Death benefits shall not be paid for deaths by
suicide, nor may they be paid to a potential beneficiary of a member who has
been charged with and is subsequently convicted of the homicide of that
member. Payment of benefits bars
recovery by any other person.
History: 1971, PL 12-29 § 25;amd 1981, PL 17-28 § 9;
1992, PL 22-25 § 1; 1996, PL 24-12; amd 1999, PL 26-10.
7.1444 Investment of
reserves exceeding current requirements.
(a) The reserves of the Fund in excess of
requirements for current operations shall be invested and reinvested by or
under authority of the Board of Trustees. At its discretion, the Board may
designate one or more of its members to supervise this function; in either
case, references to the Board in this section are considered to refer to the
individual or committee exercising the function.
(b) The Board of Trustees has full power and
authority to direct the investment and reinvestment of the fund without
distinction between principal and income, in property (defined in (c) below) it
considers advisable. The Board may invest and reinvest the fund in property in
which a prudent man familiar with those matters and using care, skill,
prudence, and diligence enterprise would invest in the conduct of like
character and with like aims, insuring that the investments of the fund are
diversified so as to minimize the risk of large losses unless to do so would
clearly not be prudent. The power to manage investments includes, but is not
limited to, the power to hold, purchase, sell, convey, assign, transfer,
dispose of, lease, subdivide, or partition any assets held or proceeds thereof,
to execute or cause to be executed relevant documents; to enter into protective
agreements, execute proxies, grant consent; and to do all other things
necessary or appropriate to its position as an owner or creditor.
(c) The word “property” means and includes real,
personal, and mixed property of any and every kind and nature, including but
not limited to, bonds, preferred or common stocks, mortgages, interests in any
kind of investment trust or common trust fund, notes, leases, oil or gas
royalties, or other evidences of rights, interests or obligations, secured or
unsecured, and whether or not they are of a wasting asset nature.
(d) All proceeds and income from investments, of
whatever nature, must be credited to the account of the Fund. Transactions in
marketable securities are carried out at prevailing market prices.
(e) Investments may be held in bearer form, or may
be registered either in the name of the fund or the nominee of the custodian.
(f) Due bills may be accepted from brokers
against payment for securities purchased, pending delivery within a reasonable
period of time of certificates representing the investments.
(g) Investments may not be made if, after the
investment, the fund would own:
(1) any combination of obligations of any one
political subdivision, corporation or other single issuing entity in excess of
5 percent of Fund assets at cost. This paragraph does not apply to general
obligations of the
(2) obligations of the Dominion of Canada,
together with its political subdivisions and corporations organized under its
law or the law of its provinces in excess of 10 percent of fund assets at cost;
or
(3) obligations or other investments issued or
guaranteed by the government in excess of 10 percent of Fund assets at cost;
provided, however, that this limitation does not apply to the obligations or
other investments that are unconditionally guaranteed as to principal and
interest by, or supported by lease assignment from, another entity whose
principal business is outside of American Samoa.
(h) The Board may engage one or more financial
institutions as custodians to assume responsibility for the physical’
possession of Fund assets or evidences of assets. The custodian submits
reports, accountings, and other information in a form and at such times as
requested by the Board. All costs
incurred for custodial services are paid by the Fund. The custodian holds all
assets for the account of the Fund and acts only upon instructions of the
board. Custodians may not be engaged unless they:
(1) have been continuously engaged in rendering
pension trust investment services for a period of 10 or more years; and
(2) are organized under the laws of the
(3) are custodians for not less than 20 corporate,
municipal or governmental retirement funds with total assets of not less than
$30,000,000.
(i) In order to secure expert advice and counsel,
the Board may engage an investment agent who is an investment counselor as
qualified by this subsection. The custodian may be engaged as the investment
agent. All costs incurred in this connection are paid by the fund. Persons,
firms, or corporations may not be eligible for employment as investment agent
which acts as principal for its own account or as broker for a client other
than the fund in connection with the sale of any security to or the purchase of
any security from the Fund. Investment agents may not be engaged unless:
(1) the principal business of the person, firm, or
corporation selected by the Board consists of rendering investment supervisory
services; i.e., the giving of continuing advice concerning investment of funds
on the basis of the individual needs of each client;
(2) the principal control of the person, firm, or
corporation rests with individuals who are actively engaged in the business;
(3) the person, firm, or corporation and its
predecessors have been continuously engaged in the business for a period of 10
or more years;
(4) the person, firm, or corporation is registered
as an investment advisor under
(5) the contract between the Board and the
investment agent is of no specific duration and is voidable at any time by
either party; and
(6) the person, firm, or corporation certifies, in
writing, to the Board, that the assets under its direct investment supervision
are in excess of $30,000.000. The Board establishes and may from time to time
change operating arrangements with the investment agent in order to facilitate
efficient management and timely -investment action. Investment may not be made
unless in the opinion of the investment agent it is an appropriate investment
for the Fund and is an authorized investment, or in the absence of that
opinion, unless preceded by a resolution of the Board directing the investment.
History: 1971, PL 12-29 § 20; 1971, PL 17-28 §
10;amd, 1985, PL 19-35 § 1; amd 1986, PL 19-37 § 15.
Amendments: 1985 Subsection (g)(2): replaced the numeral “10”
with the word “ten”.
Subsection (h): deleted “government”
and added, “fund”.
Subsection (i): deleted “government”
and added, “fund”.
1986 Subsection (c): deleted
“commodities”.
Subsection (g)(2): substituted word
“ten” with numeral "10”.
Subsection (h): deleted ‘its ex
officio director, or a member, committee or agent so authorized by the board.”.
Subsection (h)(2): deleted’ ownership
and”.
7.1444.1 Loans to
development bank.
Repealed by PL 24-12 § 8.
7.1444.2
Repealed by PL 29-21
and PL 29-14.
7.1444.3 Loans
to the
(a) In accordance with the provisions of section
7.1444(g)(3), which limits any investment in obligations or other instruments
issued or guaranteed by the government to no more than ten percent of Fund
assets at cost, and in addition to section 7.1444.2, which authorized borrowing
by the government of five million dollars ($5,000,000), the Fund is authorized
to lend to the American Samoa Government and the American Samoa Government is
authorized to borrow from the Retirement Fund the sum of thirteen million
dollars ($13,000,000) on the following conditions:
(1) interest on the loan would be set at a rate
equal to the then current market rate of United States Government bonds or
notes of similar term;
(2) interest
and principal payments on such loan would be amortized over a ten-year term and
payments made quarterly;
(3) repayment
of the loan would be guaranteed and paid for, directly to the fund, by
earmarked revenue measures passed by the Legislature and approved by the
Governor in installments as required by paragraph (2) above, or as agreed upon
by the board of trustees and the government;
(4) collateral,
in the form of a pledge of specific real property with a marketable commercial
value equal to the amount of the obligation must be furnished to guarantee the
ultimate satisfaction of any such obligation; and
(5) other terms
and conditions as determined jointly by the trustees of the fund and the
government.
(b) The loan proceeds shall be placed in an
earmarked fund and used exclusively for the following purposes and in the
following priority:
(1) fund
payroll for Fiscal Year 1998 for government employees, $4,500,000;
(2) pay
individual tax refund, $3,500,000; and
(3) pay
government’s accounts payables to vendors, $5,000,000.
History: 1998, PL 25-30 § 1.
7.1444.4 Credit facility authorization—Assistance—
(a) In
accordance with the provisions of section 7.1444(g)(3), which limits any
investment in obligations or other instruments issued or guaranteed by the
government to no more than ten percent of Fund assets at cost, the Governor, on
behalf of the American Samoa Government (ASG), and the Board of Directors of
the American Samoa Government Employees Retirement Fund (ASGERF) are authorized
to enter into a credit facility whereby, the ASGERF will lend and ASG will
borrow an amount of $10,000,000.
(b) The
Governor, the Treasurer and the Chief Financial Officer for the American Samoa
Medical Center are authorized to negotiate the terms of the credit, including
an interest rate, repayment terms and such other terms and conditions as may be
required to obtain the credit facility, except that the interest rate must be
tied to the current actuarial rate of return and the interest rate shall not be
less than 8% per annum. The Governor,
the Treasurer and the Chief Financial Officer for the
(c) The loan
proceeds shall be placed in an earmarked fund and used exclusively for the
following purposes and in the following priority:
(1)debts,
obligations and payables accumulated and owing to appropriate American Samoa
Medical Center Authority (ASMCA) vendors, amounts not to exceed:
(A)Contingent—Liabilities
(B)Contingent—Liabilities Penalty & Interest
Total $1,800,000
(C)Vendor—Liabilities $5,092,794
(i)
SRW Industries
(ii)
SPHI (Pharmacy consultant)
(iii)
HPMR (Third party off-island Administrator)
(iv)
KPMG, LLP 2003-2005 Audit fees
(v)
ASPA
Total Liabilities $5,000,000
Total expenditures $6,800,000
(2)Continuing Operation of
ASMCA $1,700,000
(3)Matching funds $1,500,000
Total $10,000,000
(d)
The Governor, the
Treasurer and the Chief Financial Officer for the American Samoa Medical Center
shall be authorized to expend proceeds of the loan to satisfy only the debts,
obligations and payables accumulated and owing to ASMCA vendors as provided for
in 7.1444.4(c)(1)(A)-(C) above and any surplus or remaining funds shall be
utilized for the following specific purposes, in descending order of priority:
(1) purchasing diagnostic equipment;
(2) purchasing treatment equipment;
(3)
paying for capital
improvement projects, excluding housing projects; and equipment and continuing
operation of ASMCA shall be provided directly to ASMCA and a full accounting of
the said expenditures shall be made by ASMCA to Governor and the Legislature
with full supporting documentation. The
ASMCA shall enter into a fiscal and operations reform plan with ASG, which shall
be approved by the Governor, whereby ASMCA will implement procedures to
increase its revenues, reduce its expenditures, achieve a balanced budget and
improve the operations of ASMCA (“ASMCA Fiscal and Operations Reform
Plan”). The Plan shall be submitted
within six (6) months of the date of the loan.
History: 2005, PL 29-14; 2006,
PL 29-21.
Amendments:
7.1444.4
A.S.C.A. was inadvertently created twice by PL 29-14 and PL 29-21.
Reviser’s Comments:
Sec.
3 PL 29-21 creates Appropriation of
revenue – Source of funding – Payments in lieu of taxes.
Sec. 4
PL 29-21 Lack of ASTCA revenues – Avoidance of default.
Sec. 5 PL 29-21 Sunset clause. ASTCA’s payment of $1,100,000 as set forth in
this Act shall cease upon the full payment of all principal and interest of the
credit facility entered into between ASG and ASGERF in accordance with
7.1444.4(a) and (b) above.
Sec.
6 PL 29-21 repeals sections 7.1444.2,
15.0301 and 15.0302 A.S.C.A.
Sec. 7 PL 29-21 Effective date. Due to the urgent need to provide financial
assistance to ASMCA, this act shall become effective upon passage by the
Legislature and approval by the Governor.
7.1445 Conflicts
of interest—Prohibited acts.
A
member or an employee of the Board may not have any direct or indirect interest
in the income, gains or profits on any investment made by the Board, or receive
any pay or emolument for services in connection with any investment made by the
Board. A member or an employee of the Board or an agent engaged by the Board
may not become an endorser or surety or in any manner an obligor of investment
made by the fund or for money loaned by or borrowed from the Fund, nor may the
members, employees, or agents be held liable for actions taken in good faith
and in performance of their duties. Participation as a member of the Fund is not
construed to include interest, pay, or emolument within the meaning of this
section.
History: 1971, PL 12-29 § 20;
1981, PL 17-28 § 11; amd 1986, PL 19-37 § 16.
Amendments: 1986 Replaced “his” with “their”.
7.1446 Accounts and records.
An
adequate system of accounts and records shall be established and maintained for
the Fund. It shall fully reflect the requirements of the provisions of this
chapter, and shall be integrated, to the extent possible, with the accounts,
records and procedures of the government, to the end that the same shall
operate most effectively and at minimum expense, and that duplication of
records and accounts may be avoided.
History: 1971, PL 12-29 § 21.
7.1447 Costs and expenses.
The
costs and expenses of the administration of the Fund, including any custodial
and audit fees incurred in connection with the financial operations of the Fund
are paid by the Fund.
History: 1971, PL 12-29 § 18; 1972, PL 12-48 § 10; amd
1985,
Amendments: 1985 deleted “shall be paid from funds appropriated
annually by the government for such expenditures” and added, “are paid by the
fund”.
7.1448 Actuarial surveys
and valuations of the fund.
Every
5 years an actuarial survey and investigation shall be made of the operating
experience of the fund, including a study of the rates of mortality,
disability, retirement and separations, and of other essential factors
relating to the operations of the Fund. The survey also provides for a
verification or redetermination of the rates of contribution by the government.
At least once in each 5-year period between surveys, an actuarial valuation of
the Fund is made showing the status of the fund and providing a verification or
a redetermination of the rates of contribution by the government. At least once
each year the Board shall obtain an actuarial opinion providing a verification
or a redetermination of the rates of contribution by the government. The Board
shall obtain and provide to the Governor and the Legislature an actuarial
opinion of the cost of any proposed amendments affecting the operation of the
Fund. The costs of the surveys, valuations, and opinions are paid by the Fund.
History: 1971, PL 12-29 § 18; 1972, PL 12-48 § 10; 1981,PL 17-28 § 12; amd l985, PL I9-35 § 3.
Amendments: 1985 Deleted “from
funds appropriated by the Legislature under 7.1447” and added “by the Fund”.
7.1448.1 Administrative
costs—Procedures for payment.
All
costs incurred to administer the Fund pursuant to title 7, chapter 14 will be
approved by the Board, prior to payment and will be paid by the Fund.
History: 1985, PL 19-35 § 4; amd 1986, PL 19-37 § 17.
Amendments: 1986
Deleted “, the Office of Budget, and
the Office of the Treasurer”.
7.1449 False
representation—Penalty.
(a) A person who knowingly makes any false statement,
or falsifies, or permits to be falsified, any record or records of the Fund in
any attempt to defraud the Fund, shall be sentenced as for a class D felony.
(b) In addition to the penalty in subsection (a),
the government has a right to recover any payments made as the result of false
representation.
History: 1971, PL 12-29 § 27; amd 1980, PL 16-90 § 7.
Amendments: 1980 Amended to conform with penalties provided
for in Title 46, Criminal Justice.
Chapter 15
Sections:
7.1501 Definitions.
7.1502 Territorial Deferred Compensation Plan.
7.1503
Board of Trustees.
7.1504
Composition of the Board of Trustees.
7.1505
Appointment and terms.
7.1506
Compensation and expenses,
7.1507
Legal advisor.
7.1508
Assets of the plan.
7.1509
Investments.
7.1510
Custodian of the funds.
7.1511
Limitation on liability.
7.1512
Deferred amounts as compensation.
7.1513
Costs of the plan.
7.1501 Definitions.
As
used in this chapter, unless the context clearly requires otherwise:
(1) ‘Treasurer”
means the Treasurer of American Samoa:
(2) “Government”
means the American Samoa Government:
(3) “Employee” mean persons who are employed by
the government in all occupational classifications;
(4) “Director”
means the Director of Manpower Resources.
History: 1986, PL 19-55 § 1.
7.1502 Territorial deferred
compensation plan.
The
Government, through a Board of Trustees, may establish a compensation plan in
accordance with section 457 of the United States Internal Revenue Code of 1954,
as amended, for the benefit of employees to defer a portion of their
compensation to a future period of time. Participation in the plan shall be
totally voluntary and by written agreement between the employee and the
government. An employee may authorize deductions to be made from the employee’s
wages for the purpose of participation in the plan.
History: 1986, PL 19-55 § 1.
7.1503 Board
of Trustees.
(a) The authority to establish the plan and make
this chapter effective is vested in the Board of Trustees for the government
deferred compensation plan. The Board shall be placed within the Office of
Manpower Resources for administrative purposes.
(b) The Board shall adopt such rules as necessary
to carry out the intent of this chapter. Such rules shall be published and made
available to the public. The Board may engage services as necessary to
establish, administer, or maintain the plan under its direction. An
administrator may be engaged to administer the plan only after a solicitation
of proposals from interested persons in accordance with specifications deemed
appropriate by the Board.
History: 1986, PL 19-55 § 1.
7.1504 Composition of the Board of Trustees.
The
Board of Trustees shall consist of 7 members as follows:
(1) the Director, who shall serve as its chairperson,
ex officio;
(2) the Treasurer, ex officio;
(3) five other persons, 3 of whom shall be
government employees and who are participants of the plan, representing
employees’ interests.
History: 1986, PL 19-55 § 1.
7.1505 Appointment
and terms.
(a) Except for the Director and Treasurer, the
members of the Board shall be appointed by the Governor and shall serve terms
of 4 years each; provided, that of the trustees first appointed upon establishment
of the Board, one shall be appointed for one year, one shall be appointed for 2
years, one shall be appointed for 3 years, and 2 shall be appointed for 4
years.
(b) A vacancy on the Board shall be filled by
appointment of the Governor. The person appointed to fill a vacancy shall serve
for the remainder of the unexpired term. If by the end of a term a trustee is
not reappointed or a successor is not appointed, the trustee shall serve until
his successor is appointed.
History: 1986, PL 19-55 § 1.
7.1506 Compensation and
expenses.
Each
trustee shall serve without compensation but shall be reimbursed from the Fund
for any necessary expense incurred in the performance of duties.
History: 1986, PL 19-55 § 1.
7.1507 Legal advisor.
The
Attorney General or his designee shall be the legal advisor of the Board.
History: 1986, PL 19-55 § 1.
7.1508 Assest
of the plan.
Assets
of the plan, including funds deferred, investments, property and rights
purchased with such funds, and any interest or income attributable to such
funds, are restricted assets of the government employees who are participants
of the plan. Such assets may not be used for any purpose other than investment
under the plan except as made available to participants in this plan or their
beneficiaries.
History: 1986, PL 19-55 § 1.
7.1509 Investments.
The
Board may create a trust or other special funds for the segregation of funds or
assets resulting from compensation deferred and for the administration of the
plan. Funds held by the Board pursuant to a plan established under this chapter
shall be invested in investment products permitted under the plan; provided,
that any investment contract entered into shall be made with companies
authorized and licensed to do business in
History: 1986, PL 19-55 § 1.
7.1510 Custodian
of the funds.
The
Treasurer shall be the custodian of the Funds created under the plan. All
payments from the Fund shall be made by the Treasurer only upon vouchers signed
by the Chairperson of the Board and countersigned by other members of the Board
designated by the Board.
History: 1986, PL 19-55 § 1.
7.1511 Limitation
on liability.
The
Government shall not be liable for the sums deferred or the results of any
investment.
History: 1986, PL 19-55 § 1.
7.1512 Deferred
amounts as compensation.
Compensation
deferred pursuant to a plan established under this chapter shall be deemed
regular compensation for the purpose of computing contributions to or benefits
under existing retirement, pension, or social security systems applicable to
participating employees, but shall not be included in the computation of income
taxes withheld on behalf of any participating employees.
History: 1986, PL 19-55 § 1.
7.1513 Costs
of the plan.
Costs
for implementing and administering the plan shall be borne by the plan and its
participants, except for incidental expenses such as the cost of payroll
deductions, and the routine processing of forms which shall be borne by the
American Samoa Government.
History: 1986, PL 19-55 § 1.