Published On: Thu, Jul 21st, 2016

SVB director warns of political games with pension

svb buildingWILLEMSTAD -  The Director of the Social Insurance Bank (SVB) Phillip Martis warns against politicians and political parties who use promises on the pension to attract voters.

Several politicians have promised that they will increase the pension to 1000 guilders per month, which is now 862 guilders for a full pension benefit. Also, these politicians have proposed to reduce the retirement back to 60 years. Martis indicates that this would be disastrous for the pension fund.

Last year the pension fund had a deficit of 99 million guilders. There are no more reserves. Since the retirement age was increased last March the deficit will be much less this year, but not completely eliminated, because of the aging population.

The recent measures to curtail pension benefits for those living abroad by 10 percent and eliminating the year-end bonus are not enough. However, there is now enough space to guarantee pensions in the next five years.

Rolling back the retirement age and increasing the pension would make that impossible, said Martis.

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