WILLEMSTAD – The Court has ruled that the indexation of AOV pensions is not the responsibility of the Social Insurance Bank (SVB) or the administrative court, but lies solely with the government.
The ruling follows an appeal filed by an AOV pensioner who challenged a decision by the SVB to reject a request to increase his pension through indexation. The Court found that the SVB acted correctly in denying the request.
According to the judgment, Article 7, paragraphs 2 and 3, of the National Ordinance on General Old Age Insurance (AOV) clearly stipulates that pension indexation must be determined by national decree. This means that decisions on whether and how pensions are adjusted are political in nature and fall under the authority of the government.
The Court emphasized that the case was not about whether AOV pensions should be indexed, but rather whether the pensioner had directed his request to the correct authority. In this case, the Court concluded that he had not, as the SVB does not have the legal mandate to decide on indexation.
While acknowledging the concerns raised by the pensioner, the Court also noted the broader social implications of the issue, recognizing that many citizens are affected by the lack of indexation.
However, the Court made clear that it does not have the authority to order pension increases. Any decision on adjusting AOV pensions must come from the government through the appropriate legislative process.