WILLEMSTAD - Minister of Social Development, Labor and Welfare (SOAW), Charetty America-Francisca, has acknowledged that the government owes a debt to pensioners due to the lack of AOV indexation payments in recent years. The minister confirmed that the overdue payments must and will be made, as required by law.

The statement came after four pension organizations — UPAH, APT, MPK, and APPK — delivered a letter to the minister on Thursday at the World Trade Center (WTC). In the letter, they requested clarity and immediate action regarding the long-delayed indexation of old-age pension (AOV) benefits.

“The Law Must Be Followed”

Minister America-Francisca addressed the group of retirees, noting that she has only been in office for four months but recognizes the government’s ongoing responsibility.

“I know that indexation has not been paid since 2021,” she told the pensioners. “I have formed a working group, and I’ve made it clear that there can be no debate about indexation because it is established by law — it must be paid. We are working on that.”

The minister emphasized that the government will arrange payment and asked pensioners for patience and trust.

“We are working hard to resolve this, because it is a debt the government owes to pensioners,” she said. “We must determine how to finance it, but the indexation must be paid because it is mandated by law.”

Formal Consultation Set for November 4

During the meeting, the minister read a letter reaffirming her commitment to addressing the AOV issue as a top priority within her ministry. The SOAW acknowledged that the lack of clarity around AOV indexation has caused concern among retirees.

To ensure progress, Minister America-Francisca has invited the four pension groups to a formal consultation on November 4, where their concerns will be discussed in detail. The six representatives of the pensioners’ organizations have accepted the invitation.

Background

Since 2021, AOV pensions have not been adjusted to keep up with inflation, despite the law requiring regular indexation to reflect price developments. Pensioner organizations have repeatedly urged the government to act, arguing that the rising cost of living has eroded the real value of their benefits.

The minister’s public acknowledgment marks the first official confirmation from the government that the arrears in AOV payments constitute a legal debt — a key step toward resolving the issue that has sparked growing frustration among Curaçao’s elderly population.