WILLEMSTAD - Pensioners in Curaçao are threatening to take the government to court if their AOV benefits are not adjusted in full accordance with the law. They are demanding a monthly pension of 1,086 guilders starting January, which is 116 guilders more than the amount currently proposed by the government.
According to Wimbert Hato, board member of UPAH (Unie van Gepensioneerden voor Vooruitgang en Rechtvaardigheid), the government must take responsibility for ensuring the AOV fund has sufficient resources.
“If the government claims it doesn’t have money for indexation, then it must take the necessary measures to secure funding for the AOV,” Hato said.
He expects that the formal advice requested by the government will affirm that the pension must be indexed in line with the law.
Two Competing Proposals
During a technical meeting last Thursday at the offices of the Sociale Verzekeringsbank, two proposals were presented:
UPAH insists on full indexation of the AOV according to the law.
The government wants to grant an increase based on the rise in the cost of living.
The Central Bank, the College Financieel Toezicht (Cft) and the Department of Legislation and Legal Affairs will provide recommendations on both proposals.
Lawsuit Looms if Advice Is Unfavorable
Hato stressed that if the advice issued within two weeks is not favorable to pensioners, UPAH will file a lawsuit against the government.
Pensioners argue that the law is clear: the benefit must be indexed based on economic growth from 2021 to 2025.
Government’s Four-Year Plan vs. Full Indexation
The Minister of Finance has proposed a 23% increase spread over four years to offset loss of purchasing power:
2026: +12% (raising the pension to 970 guilders)
2027: +7%
2028 & 2029: +2% each year
However, pensioners say this plan is not based on the law.
By their calculation, legal indexation would bring the AOV to 1,086 guilders as of 1 January 2026 — 116 guilders more than the government’s proposal.
Bonus Proposal Rejected as “Discriminatory”
The government is considering a one-time 500 guilder bonus for some pensioners, but not all. UPAH views this as discriminatory and a tactic that creates division among elderly citizens.
“Money Is Available”
Hato criticized the government for rapidly advancing laws to increase vacation allowances for civil servants and parliamentarians while failing to take action for AOV indexation.
He noted that the government itself has announced multiple potential funding sources, including:
the LOK law,
the proposed entry fee for tourists,
and the sugar tax.
UPAH insists there is no excuse for delaying legal indexation.