WILLEMSTAD – A political debate has erupted in Curaçao over the government's decision not to adjust the AOV pensions in line with real economic growth, despite clear recommendations from the Council of Advice (RvA). 

According to the RvA’s 2023 advisory, the government was urged to consider indexing pensions based on the country’s real economic growth as stipulated in the 2013 AOV law. However, the government chose instead to prioritize the ongoing financial issues at Ennia, opting to guarantee 100% of pensions for those affected by that crisis, rather than increase AOV pension payments for all retirees. 

The political parties MAN and PIN have now publicly questioned Minister of Social Development, Labor and Welfare (SOAW), Ruthmilda Larmonie-Cecilia, about why the government has not implemented indexation of AOV pensions based on the same law cited by the RvA. 

“Since 2021, Curaçao has experienced real economic growth,” the parties argue. “So why hasn't the government used this growth to improve the living conditions of all elderly people depending on AOV?” 

The AOV (Algemene Ouderdomsverzekering) is Curaçao’s public old-age pension system, and any adjustments based on inflation or economic performance are seen as crucial to ensuring purchasing power for retirees. 

Critics fear the government’s inaction could worsen the financial strain many pensioners are already experiencing amid rising costs of living. Meanwhile, the government insists that limited financial resources have forced them to make difficult choices. 

With 2027 approaching—the year Curaçao celebrates 30 years as a UNESCO World Heritage Site—pressure is growing on the Pisas III Cabinet to demonstrate greater social and fiscal responsibility, particularly toward the island’s aging population.