WILLEMSTAD - Government representatives, led by Prime Minister Gilmar Pisas, held an open and constructive meeting today with organizations representing pensioners and trade unions to discuss the ongoing debate surrounding the indexation of the Algemene Ouderdomsverzekering (AOV) pension. During the meeting, these organizations emphasized the urgent need to adjust the AOV and highlighted that no indexation has taken place since 2021.
Pensioners manifesting
Prime Minister Pisas noted that there is a fundamental difference of opinion regarding the method of AOV indexation between the government on one side and pensioners’ organizations and unions on the other. He reiterated that the matter is currently before the court, limiting the government’s ability to comment further. Pisas also stressed that full retroactive indexation would place an unsustainable financial burden on the country. Such a measure would severely strain the social insurance reserve fund and the national budget, threatening the stability of public finances.
At the same time, the government acknowledges that many seniors have experienced a significant loss of purchasing power in recent years and that the current AOV level no longer reflects the reality of the cost of living. According to Pisas, this creates the risk of an impasse—an undesirable situation that could heighten social tensions.
To prevent such a deadlock, Prime Minister Pisas reached an agreement with pensioners’ organizations and unions: early next week, they will submit a joint proposal for an AOV increase to the government. The Social Insurance Bank (SVB) will then carry out the necessary calculations. Based on these calculations, the government will consult several advisory bodies to assess the feasibility of the proposal and consider possible alternatives.
The objective is to implement an increase in the AOV by 1 January 2026, at a level acceptable to all parties. The exact amount is expected to be determined later this month. Following this, the AOV system— including a new indexation model—will be revised to ensure it remains future-proof, transparent, practical, and financially sustainable. For long-term AOV funding, the government is developing a comprehensive package of measures to be implemented in 2026 and 2027.
The government expressed appreciation for the constructive attitude shown by pensioners’ groups and trade unions. Further discussions will continue in the coming weeks. Prime Minister Pisas reaffirmed that the government remains committed to an AOV system that honors the dignity of the island’s elderly while safeguarding Curaçao’s financial stability.
