WILLEMSTAD – The General Pension Fund of Curaçao (APC) will increase pensions by 0.51 percent after deciding to restore part of the indexation that pensioners missed in previous years.
The increase will take effect retroactively from January 1, 2026, APC announced Friday. Retired participants will see the adjustment reflected in their November pension payment and will also receive back payments covering the increase from January through the months preceding the adjustment.
The so-called “duurtetoeslag,” or cost-of-living supplement, will also increase by 0.51 percent where applicable.
APC explained that in previous years it was not always financially possible to grant the full pension indexation. The portions that could not be awarded were recorded by the pension fund as missed indexation.
Under APC's policy, part of that accumulated shortfall can later be restored when the fund's financial position becomes strong enough.
That threshold has now been reached.
APC ended 2025 with a funding ratio of 115.6 percent. The funding ratio measures whether a pension fund has sufficient assets to meet its current and future pension obligations.
Under APC's indexation policy, previously missed indexation may be restored when the funding ratio exceeds 115 percent, provided that granting the increase does not cause the ratio to fall below that level.
Based on its financial position, the APC board concluded that there is sufficient room to grant a 0.51 percent increase while remaining within those requirements.
The increase should not be confused with regular pension indexation for 2026.
APC previously announced that pensions would not receive regular indexation as of January 1 because the salaries of government employees were not indexed on that date. The newly announced 0.51 percent increase instead compensates pension participants for a portion of indexation that could not be granted in previous years.
The adjustment also applies to pension entitlements accumulated as of January 1, 2026, by active participants and participants who are no longer paying contributions but retain pension rights with APC.
APC stressed that the 0.51 percent increase does not eliminate all previously missed indexation. The remaining amount will continue to be registered by the pension fund.
Whether another portion can be restored in the future will depend on APC's financial position and whether the fund continues to meet the conditions established under its indexation policy.