WILLEMSTAD – The General Pension Fund of Curaçao (APC) is facing increasing pressure on its available cash resources as pension payments continue to rise, the population ages, and outstanding financial claims against the Curaçao government remain unresolved.
According to APC's 2027 budget, the pension fund expects to withdraw approximately XCG 173 million from its foreign investment portfolio next year, primarily to finance investments in Curaçao while maintaining sufficient liquidity to meet its financial obligations.
The budget was approved by APC's board on July 21, 2026, and received by the Curaçao Parliament on October 9.
APC manages pension arrangements for civil servants and other affiliated employees and retirees. Its financial position is therefore important to thousands of current and former workers who depend on the fund for retirement income.
One of the principal challenges identified in the budget is the widening difference between contributions received from active employees and pension payments made to retirees.
As Curaçao's population continues to age, the number of pensioners is increasing, while the number of active participants contributing to the fund is growing only modestly.
For 2027, APC expects to pay nearly XCG 262 million in pensions, approximately XCG 19 million more than in 2025.
The fund must also meet additional obligations under cost-of-living and compensation arrangements, placing further demands on its available financial resources.
Another concern involves outstanding amounts owed to APC by the government of Curaçao.
According to the pension fund, formal repayment arrangements have not yet been established for some of these claims.
This creates uncertainty in APC's liquidity planning because the fund must account for money it is entitled to receive without having an agreed payment schedule for all outstanding amounts.
The budget's liquidity explanation does not separately specify how much of the government's outstanding debt remains without a formal repayment arrangement.
The financial relationship between APC and the government is particularly important because the government is both an employer within the pension system and a party with financial obligations arising from previous pension arrangements.
Without clear repayment schedules, APC must manage its cash flow while taking into account uncertainty about when some government payments will be received.
Despite these pressures, the fund is not projecting an overall financial loss.
APC expects a positive financial result of approximately XCG 67 million in 2027 and a funding ratio of 117.9 percent.
The funding ratio measures the relationship between the pension fund's assets and the estimated value of its pension obligations. A ratio above 100 percent indicates that the fund's assets exceed its calculated liabilities under the applicable valuation assumptions.
However, a favorable funding ratio does not necessarily mean that all assets are immediately available as cash.
APC must ensure that sufficient liquid resources are available to pay monthly pensions, finance approved investments, and meet other obligations as they become due.
The projected withdrawal from foreign investments illustrates the importance of maintaining this balance.
The fund's financial planning also highlights the longer-term implications of Curaçao's aging population.
As pension payments increase faster than contributions, APC will need to rely more heavily on investment income, portfolio management, and careful liquidity planning to meet its obligations.
The outstanding government claims add another element of uncertainty to that process.
Although APC's projected financial indicators remain positive, its 2027 budget makes clear that liquidity management, demographic developments, and the government's payment obligations will remain important issues for the pension fund in the years ahead.