CFT advises changes to politicians’ pension

The Com­mittee for Financial Su­pervision CFT has advised a solution for the pension issue of (former) politicians of Bonaire, St. Eustatius and Saba to Dutch State Secretary of Home Affairs and Kingdom Relations Raymond Knops.

In a letter to the state secretary dated October 5, CFT Chairman Raymond Gradus pointed out the various risks that the finan­cial consequences of the pensions present for the budgets of the public entities Bonaire, St. Eustatius and Saba.

The CFT advised Knops to have the building-up of pensions of (former) politicians brought in line with those of civil servants, which means a build-up of the pension based on av­erage wage instead of last wage, conditional index­ation and a lower building-up percentage.

The CFT further advised to see whether the pension entitlement can be trans­ferred to the pension fund in order to terminate the risks for the islands’ bud­gets and to improve effi­ciency.

Pension advisor Montae & Partners was asked by the CFT to draft a report on the pension issue, which was shared with the three public entities. The CFT asked the public entities to respond, if needed. No re­action was received.

The issue of the pension burden was recently point­ed out by the public entity Saba, by Finance Commis­sioner Bruce Zagers in particular. In addressing the Saba Island Council during the handling of the 2019 annual report, Zagers spoke of Saba’s first-time deficit of US $621,000 and the financial challenges. Part of the budget deficit was caused by the increase in the pension provision for former politicians in the amount of US $556,000. Zagers remarked that this expenditure was not bud­geted, was outside the control of the public entity Saba and was not financed through any additional in­come.

The Daily Herald.

St. Maarten: 28 persons recover from COVID•19
Invitation to public meetings of the Central Committee and Island Council on October 21st

One comment

  1. René Caderius van Veen

    Apart from that they should have been advising to stop payments to formar civil servants in functions as “advisors”.

Leave a Reply

Your email address will not be published. Required fields are marked *