The General Pension Law Aruba (LAP) is currently under revision. At this time, 38,000 employees are covered under the General Pension Law Aruba, which was introduced in 2011. This law was established during the Mike Eman I Cabinet to ensure that many private sector employees, who previously lacked pension coverage, would have access to a pension plan separate from the old-age pension (AOV). The General Pension Law Aruba (LAP) was introduced to guarantee that both employers and employees contribute to a pension plan for workers.
After operating for several years, Prime Minister Mike Eman led a series of dialogues with the Social Insurance Bank (SVB), the APFA, insurance companies, and labor and commercial unions to evaluate the law and suggest areas for improvement. The outcomes of these discussions were presented during the most recent Social Dialogue.
Prime Minister Mike Eman, Minister Mervin Wyatt-Ras, Minister Wendrick Cicilia, and Minister of Economic Affairs and Finance, Geoffrey Wever, participated in the Social Dialogue alongside SVB and APFA.
The Prime Minister emphasized the importance of balanced participation from all sectors and stakeholders in the dialogue.
SVB Director Edwin Jacobs expressed support for the government’s initiative to review the General Pension Law Aruba (LAP) within the framework of the Social Dialogue. According to Jacobs, the decision to review and improve the law is a responsible and timely step.
“The fact that the government chose to review the General Pension Law Aruba in dialogue with unions and relevant sectors shows it is open to improving and strengthening the system,” Jacobs stated.
During the review process, areas within the law were identified that could be clarified and made more understandable, strengthening workers’ rights. The most significant change relates to supervision.
Jacobs explained that since the law officially came into effect in 2011, it became evident after a few years that structural supervision was necessary to ensure compliance and transparency.
The proposed revision formalizes the role of SVB as the supervisor of the General Pension Law Aruba. This includes granting SVB the authority to exchange information with insurance companies, enabling more effective control over compliance with employer and employee obligations.
During the Social Dialogue, Prime Minister Mike Eman shared calculations from the SVB about the number of employees currently covered by the LAP. It is calculated that 38,000 employees are covered under the General Pension Law Aruba as of now. Eman pointed out that this is a significant advance compared to the earlier days of the LAP. However, he emphasized that the law should eventually cover 48,000 employees, underscoring the importance of the revision to ensure compliance.
“All employees are entitled to an additional pension on top of their AOV, but they also have an obligation to pay their premiums correctly and on time,” Jacobs emphasized.
He added that supervision is not just a technical mechanism, but also a social responsibility. In this context, SVB will take on a more active role in communication and awareness, informing workers of their rights and obligations under the General Pension Law Aruba.
According to Jacobs, dialogue with different stakeholders confirmed that there is consensus on the importance of effective supervision, transparency, and strengthening the private pension system.
The LAP revision is part of a broader Social Dialogue process aimed at enhancing the financial sustainability and social protection for workers in Aruba.
Eman mentioned that the change in the General Pension Law Aruba will also increase the amount eligible for pension payments, establishing criteria for when the payout can begin. Previously, an individual could only claim a minimum of Afl. 50 per month, but this amount will now increase to Afl. 100 or more, potentially increasing pension payouts significantly.
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