WILLEMSTAD – Finance Minister Javier Silvania has pledged to provide clarity before the end of this year on the amount and timing of an adjustment to the General Old Age Pension (AOV). However, the debate over raising and indexing the pension remains complex and politically sensitive.
The Pisas cabinet recently organized a National Dialogue on the future of the AOV. Minister of Social Development, Labor and Welfare (SOAW), Charetti America-Francisca, stressed that any solution must be sustainable, noting that “every route has long-term consequences.”
Concerns over fairness and financing
Various stakeholders—including trade unions, pensioners’ associations, the Social Insurance Bank (SVB), the Central Bureau of Statistics (CBS), and civil servants—voiced concerns about the execution, funding, and fairness of the current system.
The SVB explained that, by law, indexation is based on economic growth, which requires GDP data from the CBS. However, CBS representatives pointed out that company financial statements, which form the basis for GDP calculations, are often delayed. As a result, it may take up to two years before complete data is available. Using inflation figures instead could provide a faster solution.
Pensioners’ organizations UPAH, APPK, APT, and MPK argued that all retirees are entitled to indexation under the law once the economy grows. They opposed the idea of excluding retirees with supplemental pensions from the APC fund. “Everyone has the right to equal treatment, without distinction,” said UPAH chairman Oswin Martina.
Criticism of government’s approach
The SSK labor federation criticized the government for holding the National Dialogue outside the framework of the Tripartite Platform. Chairman Wendell Muelen argued that the AOV should be discussed jointly by government, employers, and employees, since all three contribute to the fund. He also called for more space for genuine dialogue rather than what he described as non-committal sessions.
Solidarity vs. Universality
Senior Finance Ministry official Miguel Jackson raised the question of whether all residents should continue to receive AOV, including those with large supplemental pensions or living abroad. He emphasized that the system should prioritize solidarity with seniors who rely solely on AOV to survive.
Jackson suggested a possible increase of 23 percent—above the previously proposed 20 percent—but noted that such a move would require reforms to Curaçao’s tax system to ensure sustainability.
As the debate continues, retirees and unions are pressing for clarity, while the government balances fiscal realities with demands for fairness and social justice.
