WILLEMSTAD – Prime Minister Gilmar Pisas and representatives of the pensioners’ organizations UPAH, APT, MPK, and APPK signed a national agreement on December 18, formally concluding the long-running public discussions on the indexation of the General Old Age Insurance benefit, known as the AOV.
The agreement represents what the parties describe as a balanced and sustainable compromise. On one hand, it improves the income position of AOV beneficiaries, while on the other, it safeguards the financial sustainability of the AOV system and public finances.
Under the agreement, the monthly AOV benefit will be increased to XCG 1,000 as of January 1, 2026. In addition, AOV beneficiaries will receive a one-time lump-sum payment of XCG 2,500 as compensation for the loss of purchasing power up to December 31, 2020. This lump sum will be paid in two equal installments, in January 2026 and January 2027. The final amount received will depend on the number of years a beneficiary has accrued AOV rights as a resident.
With this agreement, the parties have formally closed the public debate on AOV indexation. From 2026 onward, a new framework will be implemented for the annual indexation of AOV benefits, linked to the Consumer Price Index (CPI) and real economic growth as calculated by the Central Bureau of Statistics (CBS).
Consultations and Independent Advice
The agreement follows intensive consultations between government representatives and the pensioners’ organizations. It is based in part on independent advice from the Central Bank of Curaçao and Sint Maarten and the Board for Financial Supervision (Cft). Both sides said they deliberately opted for a solution that is socially and financially responsible, as well as practically feasible.
Prime Minister Pisas emphasized that the agreement contributes to social stability and provides long-awaited clarity for pensioners. “With this agreement, we are bringing a lengthy discussion to a positive conclusion just before the end of the year, while at the same time offering clarity for the future. This is in the interest of pensioners and the country as a whole,” Pisas said. He also thanked the pensioners’ organizations for their patience and dedication throughout the negotiations.
Positive Response From Pensioners’ Organizations
The pensioners’ organizations welcomed the agreement, describing it as an important step toward greater security and predictability for AOV beneficiaries. Oswin Martina, president of Unidad di Penshonadona, and Wimbert Hato, the chief negotiator on behalf of the four organizations, both said they were “very satisfied” with the outcome of the talks with Prime Minister Pisas and his team of ministers and advisers.
The Social Insurance Bank (SVB) is expected to begin preparations shortly to implement the agreement, ensuring that AOV beneficiaries can access the increased monthly benefit and the first half of the lump-sum payment starting in January 2026.