Philipsburg, Sint Maarten
Honorable Minister of Finance, Marinka Gumbs is moving forward with the introduction of a pension contribution for politicalofficeholders, which include Ministers, the Minister Plenipotentiary and Members of Parliament, as part of her broader efforts to strengthen fiscal responsibility, fairness andaccountability in the management of the country’s finances.
The initiative follows a review which established that politicalofficeholders presently do not make an employee contributiontoward the pension benefits attached to their political office. Thishas been the situation since 10 October 2010.
Minister Gumbs noted that Article 30 of the National OrdinancePension Regulation Political Authorities provides for a contribution to be regulated by National Decree, containinggeneral measures.
According to Article 30 of said National Ordinance, in accordancewith rules to be established by or pursuant to a national decreecontaining general measures, an amount shall be deducted fromthe remuneration of the political officeholder and from thebenefit of the former political officeholder corresponding to thededuction made from the remuneration of public servants.
However, the national decree containing general measures, whichwill be the framework necessary to give effect to this provision, has not been established.
“This is something that I believe must be corrected,” Minister Marinka Gumbs stated. “Our civil servants contribute toward theirpensions, and many workers throughout our society alsocontribute toward their future pension. I cannot justify asking thetaxpayer to carry the full burden of the pensions of politicalofficeholders while we make no contribution ourselves.”
The Minister has therefore sought and received the approval of the Council of Ministers to move forward with establishing a contribution, subject to completion of the required legal process. The intention is to have the measure take effect as of January 1, 2027.
The Ministry of Finance stated that a contribution could have a positive recurring fiscal annual impact. As part of the legislative tofollow, a calculation will be made, after which the impact will beshared through further information, letters with the Prime Minister, six Ministers, the Minister Plenipotentiary, fourteenMembers of Parliament and the Chair of Parliament.
While the measure can be viewed as a cost saving measure, Minister Marinka Gumbs emphasized that its significance goesbeyond additional income for Government.
“This is a structural fiscal measure. It means that those who earnthe pension entitlement will begin contributing toward the cost of that entitlement, rather than leaving that responsibility entirelywith the public purse,” Minister Gumbs stated.
The Minister also noted that the proposal reflects the principlethat fiscal responsibility must apply equally across Government.
“If we expect our civil servants, businesses and citizens tocontribute their fair share, then those of us entrusted with public office must be prepared to do the same. We cannot speak aboutfiscal discipline and shared responsibility and then excludeourselves from those principles.”
Minister Marinka Gumbs said the measure is also intended tobring Sint Maarten more in line with the contributory approach applied to political officeholders elsewhere within the Kingdom.
The Ministry of Finance will now proceed with the necessary legaland administrative work to give effect to the contribution, withthe objective of implementation from January 1, 2027.
“Ultimately, this is about fairness to the taxpayer,” Minister Marinka Gumbs concluded. “Leadership must begin with thestandards we are prepared to apply to ourselves. Fair share must mean everyone’s fair share, including ours.”
