WILLEMSTAD - The Pisas cabinet (MFK) is not shelving the indexation of the Curaçao old-age pension (AOV) entirely but has decided to “park” the discussion for now, according to Finance Minister Charles Cooper.
His predecessor, Javier Silvania — also from the MFK and who stepped down temporarily on October 15 — had strongly supported a retroactive 23% increase to correct years of unadjusted pensions. Likewise, Minister Charetti America-Francisca of Social Development, Labor, and Welfare (SOAW) voiced support for the adjustment during the first session of the national AOV dialogue.
However, concerns quickly emerged after Curaçao Chronicle and other outlets reported, based on the 2024 annual report of the Social Insurance Bank (SVB), that the proposed correction would require at least 91 million guilders in additional funding. During the second national dialogue session, an SVB representative warned that even with a modest 2% annual indexation plus compensation, the AOV fund could face a deficit approaching 150 million guilders by 2030.
Law changed in 2013
Minister Cooper emphasized that the government is not avoiding the issue, but explained that the AOV adjustment formula was changed in 2013. Since then, pension increases are no longer tied to inflation, but rather to economic growth (GDP).
While Curaçao’s economy has grown in recent years since 2021, Cooper noted that overall growth since 2014 has been negative — about -6%. Aside from a minor uptick in 2015 (+0.3%), the economy contracted almost continuously, particularly following the closure of the Isla refinery and the severe -17% drop during the 2020 pandemic year.
That same year, the government had to borrow 911 million guilders in liquidity support from the Netherlands to maintain basic services — including the payment of AOV pensions — a debt that will take decades to repay.
Pending court case over AOV payments
Cooper also confirmed that the government has joined a legal case filed against the SVB, as the state ultimately bears financial responsibility for the pension fund. The case, initiated by Dennis Evertsz Jr. on behalf of a retired family member, will be heard on February 12, 2026, before the administrative court.
“Let the court decide,” Cooper told local media, adding that the government now holds multiple legal opinions and a “fundamentally different view” on the matter compared to previous administrations.
Political promises versus economic reality
When asked about his party’s campaign promises, Cooper acknowledged that the MFK, which holds a parliamentary majority, did pledge to improve the AOV during the 2021 elections. However, he clarified that the party’s commitment was to “raise” the pension amount, not necessarily to “index” it according to inflation.
For now, the Pisas government insists the AOV indexation issue remains on the table, but the debate will be paused until after the court ruling and further fiscal evaluation.
This decision highlights the growing tension between social expectations, financial constraints, and legal challenges surrounding Curaçao’s aging population and the sustainability of its public pension system.
