After the Staatsblad’s publishing of its article (S.B.2014 no. 113), dated August 7, 2023, the indexation of the General Pension Fund’s (APF) benefits becomes official. As a result, the members’ pensions have grown from SRD 300 to at least SRD 1,350. Additionally, the pension base was raised to a maximum of SRD 22,500. The Central Bank of Suriname is in charge of the other pension funds; the Interior Ministry is responsible for the APF.
Bronto Somohardjo, the minister, is aware that these are trying times and that this is only a drop in the ocean. He emphasizes that the government is doing everything it can to bring relief to the people. He points out that all civil servants receive SRD 2,500 monthly in purchasing power enhancement and the various social provisions, including AOV and AKB (General Child Benefit) have already been increased a number of times.
Chairman Marius Karioredjo of the Pension Council refers to the General Pension Fund Act and indicates that the increase of the minimum pension benefit from SRD 300 to SRD 1,350 will take place on 1 January 2023.
This indexation is based on the minimum hourly wage of SRD 20, taking into account adjustments in the future.
According to the State Decree, the pension benefits are indexed. The indexation is described as the adjustment of inflations and in this case on the basis of wage increases. In the pay-as-you-go system, all active participants contribute to the pension of the pensioners. This means that the contribution from the increased income can be used to increase the pension benefit (indexation).
In a capital funding system, the participants themselves save through their retirement. “This means that you will receive what you have saved. The possibility of increasing your pension is slim, only if the investment returns exceed inflation”. This concerns the private individuals in which it is laid down in the APF Act 2014. The adjustment depends on wage increases. It is required by law.
