Urgent measures needed to safe pension fund

WILLEMSTAD - The increase in the retirement age to 65 has certainly contributed to a healthier pension fund in recent years, but will, as a result of the lack of economic growth, the corona crisis, the resulting lower premium payments and the entry of more pensioners, lead to a new deficit.

This was explained by the Minister of Finance Kenneth Gijsbertha during the recent budget debate in parliament and is also confirmed by Philip Martis, director of the Social Insurance Bank (SVB).

"This year there is already a deficit of 35 million guilders and an increase to 50 million guilders is expected next year," said Martis. The corona crisis is exacerbating the situation. “There are companies that do not comply with the payment of premiums because this is currently not possible financially. In addition, there are more unemployed people and companies that are closed that no longer pay contributions,” says Martis.

In 2021 it will be eight years since the retirement age was raised from 60 to 65. A transitional arrangement was introduced for people who were 56 or older eight years ago. From 2021, this transitional arrangement will no longer apply. In this year, all persons who were 57 years old at the time will be 65. This means that there is now a group that receives a pension for the first time at the age of 65.

“The swing fund, in which the results of all SVB funds come together, shows a deficit and that must be legally supplemented by the government. Due to the corona crisis, the SVB does not receive all premiums. In addition, it had already been predicted in 2013 that if the economy does not improve in the meantime, there will be increased pressure on the fund again when all 65-year-olds join the fund. The COVID-19 crisis has created a bad economic situation,” says Gijsbertha.

Martis hopes for economic improvement with the establishment of the Entity for Reform and Development (OHO).

 




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