WILLEMSTAD – The General Pension Fund of Curaçao (APC) expects to record a positive financial result of XCG 67.2 million in 2027, supported by investment returns and a projected improvement in its funding ratio to 117.9 percent.
The projections are included in APC's 2027 budget, approved by the fund's board on July 21 and received by the Curaçao Parliament on October 9, 2026.
According to the budget, APC expects an average investment return of 5.1 percent in 2027. Domestic investments are projected to generate a return of 4.6 percent, while foreign investments are expected to yield 5.4 percent.
The fund maintains a diversified investment portfolio consisting of assets such as shares, bonds, loans, and real estate. Its investments are distributed between Curaçao, other Caribbean territories, and international financial markets.
Returns from these investments are essential to financing pension obligations and maintaining the financial reserves needed to meet future payments.
The projected results follow a strong financial performance in 2025, when APC recorded a positive result exceeding XCG 145 million and achieved an investment return of 8.4 percent.
At the end of that year, the fund's funding ratio stood at 115.6 percent.
APC now expects that ratio to increase to 117.9 percent by the end of 2027.
The funding ratio measures the relationship between a pension fund's assets and its calculated pension liabilities. A ratio of 117.9 percent means that APC expects to hold approximately XCG 117.90 in assets for every XCG 100 in pension obligations.
This provides a financial buffer against unfavorable investment developments and future liabilities.
However, the positive outlook does not mean that the fund is free from financial challenges.
APC expects pension payments to increase from approximately XCG 243 million in 2025 to nearly XCG 262 million in 2027, reflecting the growing number of retirees and the increasing cost of meeting pension obligations.
At the same time, the number of active employees contributing to the pension system is growing relatively slowly.
This demographic development places greater importance on maintaining adequate investment returns and ensuring that sufficient liquid assets remain available to pay pensions.
The fund also expects to withdraw approximately XCG 173 million in liquidity from its foreign investment portfolio during 2027, primarily to finance domestic investments.
The planned movement of funds reflects APC's intention to allocate additional resources to investment opportunities closer to home while continuing to manage its international portfolio.
Such investments could contribute to local economic activity, but the fund must also ensure that its investment decisions remain consistent with its responsibility to protect pension assets and meet future obligations.
Despite the projected financial improvement, APC is budgeting for a pension indexation of only 0.75 percent in 2027.
The percentage is a planning assumption rather than a final decision on pension increases.
Actual indexation will depend on the applicable regulations, the fund's financial position, and its policy regarding financial reserves.
The projected XCG 67.2 million result also remains dependent on investment market performance. Returns may differ from the budget assumptions as financial conditions change.
For APC, the challenge will be maintaining the projected financial strength while managing rising pension expenditures, funding domestic investments, and protecting the long-term interests of its participants.
The 2027 budget presents a positive financial outlook, but the figures remain projections rather than guaranteed results.