KRALENDIJK- Pensioenfonds Caribisch Nederland (PCN) has granted retirees and active participants an indexation of 1.7% as of January 1, 2024. With this, the fund fully compensates participants and retirees for the increased cost of living between September 2022 and September 2023.

The fund has a conditional surcharge scheme. The starting point is that pension entitlements and pension rights are generally adjusted annually on January 1 based on the price development. Price development refers to the average of the price developments in Saba, Sint Eustatius, and Bonaire, weighted by the number of inhabitants per island. The price development as of the end of September according to the publication of CBS is taken into account.

Price development varied quite strongly per island in the past year. Prices rose by 2.8% on Saba and 1.9% on Bonaire. On St. Eustatius, prices fell slightly by 1.1%.

The indexing of pensions and entitlements is granted for the second time within a short period. As of September 1, 2023, PCN already granted an interim indexation of 3%.

Interest and Investments

The pension fund claims to be able to fully compensate for the increased costs due to a rising interest rate and favourable investment results. “Although the year was somewhat volatile, PCN has greatly benefited from a sharply rising interest rate and good investment results. This not only allows us to grant full indexation but also means the fund ended the year 2023 with a very healthy coverage ratio of 128.3%,” says PCN chairman Harald Linkels.

A coverage ratio of 128% simply means that for every dollar in obligations, PCN has one dollar and 28 cents in assets.

The new adjusted pension amounts will be paid out this month.