Government explores supplementary pensions, Minister Brug asks SER to advise on options

GREAT BAY--The Minister of Public Health, Social Development and Labor (VSA), Richinel Brug, has formally requested the advice of the Social Economic Council (SER) regarding the potential introduction of a supplementary pension system for St. Maarten.

The request aligns with the Governing Program 2024–2028 and forms part of the Ministry of VSA’s broader commitment to strengthening long-term income security and social protection. Pension reform is one of the principal labor policy priorities the Ministry intends to pursue throughout the governing period.

As the Ministry continues evaluating measures aimed at improving financial stability for retirees and strengthening long-term income security for workers, it has become increasingly important to assess whether St. Maarten’s current pension framework sufficiently meets the future needs of the labor force.

In his formal request to the Chairman of the SER, Minister Brug asked the Council to provide its advice on several key matters, including:

• What type of supplementary pension system would be most suitable for St. Maarten, taking into account the size of the labor market, economic structure, and administrative capacity;
• Whether the introduction of a mandatory supplementary pension system would be advisable, and under what conditions such a system could be viable and sustainable;
• Which model or structure, such as defined contribution, defined benefit, hybrid, sector-based, or a national pension fund, would be most appropriate;
• What safeguards, governance mechanisms, and transitional arrangements would be necessary to ensure transparency, affordability, and broad stakeholder support;
• Whether Social & Health Insurances (SZV) could play a role in administering or overseeing such a system, or whether the system should instead be managed through private insurance providers, including the advantages and disadvantages of each approach.

Minister Brug stated that the SER’s expertise and tripartite composition, representing employers, employees, and independent members, makes its guidance essential for a policy initiative of this scale. The Minister indicated that a well-designed supplementary pension framework could improve retirement outcomes, reduce future social dependency, and strengthen confidence in St. Maarten’s social protection system.

Since taking office in November 2024, the Minister has engaged the SER on key social and labor matters, and formal requests for advice have already been submitted regarding: an amendment to the Financial Aid National Decree that includes an increase of funeral assistance to better reflect cost-of-living realities; an updated SER position on establishing a poverty line for St. Maarten; and amendments related to labor permit reform and associated fee structures.

In the coming period, the Minister’s cabinet and the relevant VSA departments will engage with the community, employers, employees, and other stakeholders on supplementary pensions. The Ministry said dialogue with businesses and workers will be essential to ensure any future system is balanced, sustainable, and broadly supported.

Alongside exploring a supplementary pension framework, the Ministry stated it will also place focus on existing mechanisms that support financial security at retirement age, including current savings plans, private pension arrangements, funeral insurance products, and other long-term financial instruments offered by private institutions. The Ministry said these discussions are intended to inform future policy development and raise public awareness of options already available for individuals and families to strengthen long-term financial security.

Minister Brug also expressed appreciation to the SER for its continued collaboration, the quality of its advice, and the constructive working relationship with the Ministry, describing the partnership as an important pillar for advancing forward-looking labor and social policy.

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