WILLEMSTAD - APC has learned that the government has decided to index civil servant salaries starting January 1, 2024. Once the formal steps to implement this decision are completed, APC will be able to proceed with pension indexation in accordance with the Pension Ordinance for Government Employees (Plvo). While awaiting the completion of these formal steps, APC has already initiated the necessary procedures for decision-making, in line with Article 30, paragraph 2 of the Plvo.
Fund's Financial Position is Key APC’s financial position plays a crucial role in this decision-making process. By the end of fiscal year 2023, APC's coverage ratio stood at 107.9%. A partial pro-rata indexation is possible when the coverage ratio is between 105% and 115%. The current financial position will also be considered in the decision-making. The outlook is positive, but the proper procedures must be followed before any decisions are made.
Indexation and Communication Regarding the indexation: once it is implemented, all pensions will be indexed retroactively as of January 1, 2024. This applies to all APC participants: active participants, deferred pensioners, and retirees. Duration allowances will also be indexed retroactively to January 1, 2024.
APC will provide further updates to its participants once more information is available. In the meantime, preparations are being made to ensure that the indexation process proceeds smoothly once all procedures are completed.