WILLEMSTAD – The Advisory Council of Curaçao has raised serious concerns about a parliamentary proposal to change the country’s pension system, warning that the financial impact of the plan has not been sufficiently calculated.
In an advisory opinion submitted to the Curaçao Parliament, the council examined an initiative bill seeking to amend the laws governing the national old-age pension and the survivors’ pension systems. The proposal aims to change the method used to adjust pension benefits annually and to introduce an additional pension for elderly residents with low incomes.
According to the council, the initiative recognizes the need for government action because pension benefits have not been indexed for years. However, the advisory body warns that the financial consequences of the proposed changes remain unclear and insufficiently supported by detailed calculations.
The council noted that any legislative reform affecting pension benefits could place a significant burden on public finances if the pension fund or reserve funds are unable to cover the costs.
Under Curaçao’s legal framework, the government ultimately guarantees the obligations of the Social Insurance Bank, meaning any shortfall could fall directly on the national budget.
The advisory council concluded that the proposal currently does not meet the required standards for financial accountability and advised Parliament to reconsider moving forward with the bill in its present form.