Retirement in American Samoa: Residency, French Pension, Taxation, Medicare and Retiree Health

The Department of the Interior indicates that the territory controls its own immigration matters and that no one can enter without meeting the requirements of the American Samoa government. The Department of Legal Affairs describes for a short stay a 30-day visitor permit, applied for online for $40 by nationals of countries in the US visa waiver programme, at least 72 hours before travel (excluding weekends and public holidays); it requires a passport valid for at least 6 months after departure and a return ticket, and cannot be extended. Other travellers obtain a 30-day permit through a sponsor, a US citizen or national aged at least 21, extendable once by 30 days for $50.

To settle, the territory describes only two residency petitions: one based on family (form P-12), the other on employment (form P-45), to be approved before entry, with a $75 application fee, $30 for the identity card and a bond that varies by country of origin. No residency category specific to retirees is described in the pages read, and any financial conditions are not published: a retirement project is prepared directly with the immigration office, reachable on (684) 633-4163 or at info@la.as.gov, and with the French Consulate General in San Francisco, whose page mentions the US Pacific territories. Registration on the roll of French nationals living abroad is recommended as soon as you settle (see living in American Samoa).

The social security agreement between France and the United States, signed on 2 March 1987 and in force since 1 July 1988, expressly cites the American Samoa Islands in its territorial scope. It coordinates three branches: disability, old age and survivors. Your French pension remains calculated and paid by your pension funds; the agreement organises relations between the two systems for people who have contributed in both countries, with totalisation of periods from six US quarters of insurance.

On the American side, CLEISS reminds readers that the Social Security old-age pension requires 40 quarters of insurance, or ten years of work; a quarter is credited from an income threshold raised each year. The full-rate age reaches 67 for people born from 1960, early retirement is possible from age 62 with a reduction of 0.5% per month of anticipation, and deferral up to 70 increases the pension. A retiree who has never worked in the United States draws their income from their French entitlements, their savings and any private annuities.

The France-US tax treaty of 31 August 1994 defines in its article 3 the term “United States” as the United States of America, without Puerto Rico, the Virgin Islands, Guam or any other territory or possession of the United States (text published by the IRS). American Samoa is not named, but falls within this general exclusion. Article 18, which provides that private pensions are taxable only in the beneficiary’s state of residence and that social security pensions are taxable only in the state that pays them, therefore cannot be taken for granted for a retiree settled in the territory, and their situation should be confirmed before departure with the French tax administration, the territory’s tax office and the IRS.

On the French side, the tax administration defines tax residence by the home or main place of stay, the main professional activity and the centre of economic interests; a single criterion is enough, and it recommends systematically contacting the local tax administration when living abroad. A French-source pension paid to a non-resident is subject to withholding tax applied after a 10% allowance: 0%, 12% or 20% by band (thresholds revised each year), the 0% and 12% brackets being final and the 20% bracket creditable against the tax. If the retiree is no longer a French tax resident, they pay neither CSG, nor CRDS, nor Casa on their pension, and a health contribution of 3.2% (basic pension) or 4.2% (supplementary pension) may be withheld as long as they remain attached to a French scheme (CLEISS).

On the territorial and federal side, the IRS explains that American Samoa has its own tax system, separate and independent, whose laws are inspired by the federal code with differences, and that the territory’s tax office (Government Tax Office) is based in Pago Pago. Bona fide resident status requires three tests: sufficient presence (183 days in the year or one of the alternatives provided), no tax home outside the territory and a closer connection to the territory than to the United States or a foreign country. A bona fide resident files a federal return that excludes local-source income, with form 4563 attached, and a mutual agreement procedure exists between the United States and American Samoa for cases of double taxation. How a foreign-source French pension is taxed by the territory should be confirmed with the Government Tax Office and a French-American tax adviser who secures the set-up before departure.

CLEISS specifies that the 1987 agreement contains no provision allowing reimbursement of care received in the United States under a French pension: form S1 does not exist in this framework. For cover on site, two routes are offered: voluntary CFE membership for a French national, or private insurance. The CFE retirees’ plan is for holders of a pension from the French basic scheme with no professional activity, asks for no health questionnaire whatever the age and has a contribution depending on the country, age and family composition. It covers care provided abroad; cover is immediate if membership takes place before departure or within three months, otherwise a waiting period of three months (under 44) or six months (from 45) applies. The CFE estimator asks for the country of residence from a list: whether American Samoa appears should be confirmed with the CFE before joining. See the guide health insurance for retirees abroad.

For stays in France, a retiree’s care is covered if they receive a pension from a French basic scheme, do not work and can show at least 15 years of insurance in France; a hospital stay of more than one month requires prior recognition, and the accompanying spouse is not covered (CLEISS). International insurance with worldwide cover completes the arrangement; see retirement abroad insurance.

Medicare covers people aged 65 and over. According to CMS, US citizens and qualified immigrants with at least 40 quarters of contributions receive Part A, hospital insurance, premium-free. Without enough quarters, Part A can be bought: a reduced monthly premium from 30 quarters, higher below that. Part B (doctors) has a monthly premium and an annual deductible, and Part A a hospital deductible, all revised each year. For Part B, permanent residents must show five years of residence. CMS refers Medicare questions to 1-800-MEDICARE.

A French retiree with no permanent resident card or contribution history therefore cannot count on Medicare on arrival and arranges their cover through the CFE or private insurance. The territory’s Medicaid, run by the American Samoa Medicaid Agency, rests on presumptive eligibility of the population below 400% of the federal poverty level (Medicaid.gov), with a five-year waiting period for many qualified immigrants (CMS): the page healthcare system in American Samoa details these schemes, and the page healthcare reimbursement in American Samoa compares the situations.

The Census Bureau gives a median household income below $30,000 and a large majority of owner-occupier households. The official sources consulted publish neither a median rent, nor a price index, nor a ranking of villages by their appeal to retirees. For housing, the territory’s immigration pages recall that land may be communal, in which case the owner’s consent is signed by the head of the family (matai) and the village mayor (pulenu’u). They mainly document the hazards that matter in choosing a place to live: tropical cyclones, whose season runs from 1 November to 30 April according to the American weather service in Pago Pago, dengue and Zika, and the presence of a single hospital in the territory, the LBJ Tropical Medical Center, in Faga’alu.

A retiree’s budget also includes health insurance, which is a significant item, and the cost of a possible medical repatriation. Benchmarks on housing, climate and formalities are in the page living in American Samoa.

• Contact the territory's immigration office and the Consulate General in San Francisco to identify the residency route suited to the project, before buying any ticket or housing.
• Have the taxation of the pension estimated by a French-American adviser, without presuming that the treaty applies.
• Notify the pension fund, Assurance Maladie (French health insurance), the CAF and the tax administration of the departure.
• Arrange health cover from the day of arrival: CFE, private insurance, then Medicare if the conditions are met.
• Check with the Insurance Commissioner that a local insurer is licensed and operating before taking out a policy.
• Organise medical follow-up: medical file, current treatments and care stays in France.
• Register on the roll of French nationals living abroad and keep proof of residence.

The United States page recalls the rules common to the federal territory, and Expavy compares international health cover suited to retirees.