Targeted fiscal alleviation measures for pensioners with multiple incomes (see Tuesday newspaper) seem like a good idea. The current maximum General Old Age Provision AOV is 1,407 Caribbean guilders per month, after indexation from Cg. 1.398 in 2025 and Cg. 1.338 in 2024.
That’s obviously not a liveable wage in St. Maarten, with a relatively high cost of living, including for housing. Yet seniors still able to earn an extra buck to make ends meet get punished because all is added to their income at the end of each year, placing them in a higher tax bracket.
Based on questions by NA faction member Egbert Doran, Finance Minister Marinka Gumbs (DP) told Parliament about plans to address this issue. Talks exploring practical solutions with the public sector’s General Pension Fund APS were mentioned.
It would be good to study what happens with private company pensions as well. Here also, the impression exists that too much ends up going into government’s coffers.
The minister said they are reviewing the treatment of AOV as taxable income. According to her, adjustments in this area would especially benefit persons “compelled to seek supplementary employment to meet their basic living expenses.”
Things are even worse for immigrants who did not reside in the country their entire adult life. They receive only a fraction of the full pension amount to begin with.
These situations obviously promote poverty, so whatever relief would no doubt be appreciated.
