AOV Pension System to be addressed by Minister De Weever

The Ministry of Public Health Social Development & Labor under the guidance of Minister Cornelius De Weever is looking towards a sustainable and affordable AOV pension system. The Steering Committee Social Security and Pensions has already drafted a report entitled "Towards a sustainable and affordable AOV Pension System" to the minister with recommendations.


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Some of the recommendations are: to increase the maximum income to pay premiums to Naf 100.000,-; to further research the consequences of refraining from reducing the missing years for people with hardly or no income and/or living on St. Maarten as resident for 10 years in connection to the effects on financial assistance; to increase the pension age to 62; to increase the AOV to Naf 1.000,- and to strengthen the so called second layer pension system (private employers and employees pension plans) and research the financial consequences, conditions and constraints of implementing a mandatory second pillar pension plan (private employers and employees pension plans.)

"Although the steering committee recommended the age of 62 for the increase in retirement age, I would prefer a flexible retirement age between the ages of 60-65 depending on the individual and/or the company needs," said Minister of Public Health Social Development & Labor, Cornelius De Weever.

According to the report of the steering committee a relatively conservative reform is recommended. In addition reform is seen as a continuous process that needs to be monitored, evaluated and improved gradually. The report drafted by the steering committee will be sent to the Council of Ministers for approval. In addition, the report will also be sent to the Social Economic Council (SER) and tripartite committee for sensitization, dialogue and feedback. Legislative change to the AOV benefits, retirement age and change in amount of the maximum income to pay premiums will also have to be worked on.

Minister the De Weever further stated that "After listening to the needs of the senior and pensioner association, the cries of the newly retired and those who are receiving financial assistance, I understand the need of the people to raise the AOV pension."

In addition, the minister stated that "As we look toward the future we are looking at mandatory pension plans for all employees to ensure a better retirement package for all workers."