WILLEMSTAD – A proposal to correct the long-standing lack of pension indexation in Curaçao could cost more than 150 million guilders, according to estimates reviewed by the Advisory Council.
The advisory body examined calculations presented by the authors of a parliamentary initiative to reform pension laws.
According to those estimates, correcting the backlog in pension adjustments could require approximately 151.2 million guilders in payments to pension recipients.
The estimate is based on an average additional amount of about 2,800 guilders per pensioner and an estimated 54,000 beneficiaries.
However, the council questioned the assumptions used in these calculations. It noted that the proposal does not clearly explain how the average amount per pensioner was determined or why the calculations start in 2016 instead of 2013, when the indexation mechanism first became ineffective.
The council also warned that if pension funds are unable to absorb the cost, the national government could ultimately be responsible for covering the financial gap.
Because of these uncertainties, the council advised that a more comprehensive financial analysis be conducted before any legislative changes are adopted.