WILLEMSTAD - Four pensioners’ organizations — UPAH, APT, MPK, and APKK — walked out of a meeting with the government on Friday after officials once again failed to address the issue of legal indexation of the AOV pension. The unions said they felt “strung along” and are now demanding a direct meeting with the Council of Ministers.
According to the unions, no ministers were present at the meeting, and the information shared was merely a repetition of what had already been presented earlier by ministerial advisors. Frustrated by the lack of progress, the representatives left the discussion and announced that they will send a formal letter requesting an audience with the full Cabinet.
The core issue: indexation vs. one-time increase
At the heart of the dispute lies the distinction between a pension increase and indexation. Under indexation, pension payments automatically rise in line with the cost of living and inflation, ensuring retirees maintain their purchasing power. A one-time increase, by contrast, offers only temporary relief and fails to keep pace with ongoing price rises.
The unions argue that the absence of indexation has caused years of structural loss for retirees. As living costs continue to climb, the real value of their pensions keeps shrinking. They estimate that without indexation, pensioners have already lost about 23 percent of their purchasing power due to inflation — a gap that, they say, cannot be closed with a single adjustment.
Government proposes increases, not indexation
The government has announced plans to distribute a year-end bonus in December, along with an extra allowance for retirees who rely solely on the AOV pension. In January, the monthly AOV payment is expected to rise to 970 guilders, an increase of roughly 12 percent.
However, the unions stress that this measure does not constitute legal indexation as stipulated in Curaçao’s social security legislation. Instead, they claim the government intends to gradually compensate for lost purchasing power through incremental increases up to 2030.
“We are not against an increase,” said union leader Hato in the Èxtra podcast 3 or ku Gino. “Curaçao already has the lowest old-age pension in the entire Kingdom. But what we want is the legal indexation that pensioners are entitled to — that is our right.”
A politically charged debate
The unions also reminded the government that several current ministers protested against pension cuts when they were in opposition during the COVID-19 crisis, arguing then that retirees deserved protection from financial hardship.
It remains unclear when the requested meeting between the unions and the Council of Ministers will take place. Meanwhile, the tension underscores the growing frustration among Curaçao’s elderly population, who are struggling to keep up with rising living costs despite the government’s promises of financial relief.
