WILLEMSTAD - This Monday, the Parliament of Curaçao will deliberate on the MAN party’s proposed legislation for a general pension plan. If passed, it would mark a significant breakthrough for retirement provisions. Currently, many residents do not build up any pension savings and only receive an AOV (General Old Age Pension) payment of ANG 862 per month after turning 65.
The proposed law introduces the establishment of a supplementary pension for employees, with both employers and employees contributing 3% of salaries. In larger companies that already provide pensions, contributions typically reach at least 10%. “But you have to start somewhere. Three percent for both employers and employees is a minimum. Parties can always negotiate to contribute more,” said the proponents.
This general supplementary pension proposal dates back to 2016, introduced by then-Minister of SOAW, Hensley Koeiman (MAN Party). The proposal was presented to Parliament at the time and has since successfully passed through key advisory bodies such as the Social Economic Council (SER). The proposal is now set for discussion and potentially a vote in Parliament this Monday. If deliberations proceed smoothly, a vote could take place the same day. Martina, who is championing the legislation, believes it will secure majority approval.
Impact on Businesses
Martina explained that preliminary discussions were held with various employers’ organizations, including the Curaçao Business Association (VBC). These organizations acknowledge that the current AOV benefit is insufficient to live on comfortably. In the past, the response often was, “Given the economic situation, it’s not the right time to introduce a pension plan.” Martina counters this by stating, “With that mindset, it will never be the right time. It has to happen eventually.”
While some businesses are not opposed to the plan, others, particularly those facing financial challenges, view the additional premiums as a significant burden and have shown greater resistance to the proposal.
If approved, the legislation would provide much-needed financial security for Curaçao's retirees and pave the way for broader economic and social benefits.