Ryan James pushes for support on a pensioner allowance

Candidate # 6 on the N.O.W. party Ryan James continues to advocate for seniors and press home that their well-being is of utmost importance and that begins with an additional government allowance.

“Many seniors I have spoken with believe that the pension allowance does not meet their needs, and they struggle to make ends meet. Consequently, they desire an increase of their old age pension.

He went on to outline some key points to consider regarding the potential benefits of this approach:

Potential Benefits

• An increase of the old age pension would directly increase the amount of money available to retirees, enhancing their purchasing power and helping them cover living expenses, healthcare costs, and other needs.
• Many seniors live on fixed incomes and struggle to make ends meet. An increase of the old age pension could provide greater financial stability and reduce poverty among the elderly.
• With more disposable income, seniors are likely to spend more on goods and services, stimulating the economy and potentially creating jobs.
• Financial stress can negatively impact seniors’ health and well-being. An increase in the old age pension could alleviate some of this stress, contributing to better overall health and quality of life.

James continued by providing a break down of AOV and drew comparisons to other islands:

AOV stands for “Algemene Oudersdomsverzekering.” It is a general insurance scheme based on the principle of solidarity, guaranteeing a basic pension to individuals who have reached retirement age.

The pensionable age has changed over the past 64 years in Sint Maarten. It initially began at 65 and decreased over some years, then gradually increased back to 65. These changes in AOV/AWW legislation were based on two main reasons, which were:

1. The needs of the society of that time
2. Due to the aging of the population

Here is an overview of when and how our pensionable age has changed in the past 64 years:

September 1, 1960 the pensionable age was 65 years

January 1, 1975 the pensionable age increased to 62 years

January 1, 1991 the pensionable age decreased to 60 years 

January 1, 2016 the pensionable age increased to 62 years

January 1, 2020 the pensionable age increased to 65 years

Did you know that up until 1990 the AOV pension was administered at SVB, now SZV, as what was called “married pensioner”? This meant that for a married couple, the husband would get the pension funds. One of the main reasons for this change was to give married women who were pensioners more independence and access to their own pension benefits.

The principle of solidarity entails that:

• Anyone who earns an income in the (former) Netherlands Antilles must pay the AOV premium.
• Everyone who has resided in the (former) Netherlands Antilles is entitled to AOV benefits, regardless of nationality or employment status.

Eligibility for the AOV Pension

• Individuals born before 1958 can apply at age 60.
• Those born in 1958, 1959, and up to and including June 30, 1960, can apply at age 62.
• Individuals born on or after July 1, 1960, can apply at age 65.

Currently, the pensionable age in Sint Maarten is 65 years. It is advisable to apply for the AOV pension and its benefits six (6) months before reaching the pensionable age, as the process is lengthy. The AOV allowance is generally NAf. 1,100 per month, paid by SZV and deposited into your bank account. The pension amount may vary depending on various personal aspects and situations. Always contact SZV for accurate and up-to-date information.

In the Netherlands, the AOW pension is set at €1,569.75 per month, equivalent to NAf. 3,076.71, and is adjusted every six months. In Aruba, the AOV pension is set at Afl. 1,065 per month per person, for married couples, whether living together or not. A single person receives Afl. 1,265 per month. Additionally, a pensioner receives a monthly compensation of Afl. 170 from the government of Aruba.

In Curacao, the AOV pension is set at NAf. 862 per month, with additional government compensation bringing the total to NAf. 1,031 per month, which is a compensation of NAf. 169. 

In Bonaire, the AOV pension is set at $1,047 per month, equivalent to NAf. 1,884.60.

In St. Eustatius, the pension amount is set at $1,113 per month, equivalent to NAf. 2,003.40. 

In Saba, the pension amount is set at $1,175 per month, equivalent to NAf. 2,115. 

In Sint Maarten, the AOV pension is set at NAf. 1,338 per month, surpassing the AOV pension of Curacao, but not Aruba. However, both the governments of Aruba and Curacao pay an allowance in addition to the AOV pension to each pensioner.

“The cost of living in Sint Maarten is much higher than in any of the other countries. Therefore, it is of vital importance that we continue to advocate for either an increase in the AOV pension or additional compensation from the government, as is done by the governments of Aruba and Curacao. There is no need to reinvent the wheel,” James said.

“If the minimum wage is calculated based on the cost of living as well as the salaries of the members of parliament and the ministers of this country, so should also be done the old age pension. Government take charge and responsibility and fix the situation for our pensioners,” he concluded.