Philipsburg, Sint Maarten — Honorable Minister of Finance, Marinka Gumbs is moving forward with the introduction of a pension contribution for political officeholders, which include Ministers, the Minister Plenipotentiary and Members of Parliament, as part of her broader efforts to strengthen fiscal responsibility, fairness and accountability in the management of the country’s finances.
The initiative follows a review which established that political officeholders presently do not make an employee contribution toward the pension benefits attached to their political office. This has been the situation since 10 October 2010.
Minister Gumbs noted that Article 30 of the National Ordinance Pension Regulation Political Authorities provides for a contribution to be regulated by National Decree, containing general measures.
According to Article 30 of said National Ordinance, in accordance with rules to be established by or pursuant to a national decree containing general measures, an amount shall be deducted from the remuneration of the political officeholder and from the benefit of the former political officeholder corresponding to the deduction made from the remuneration of public servants.
However, the national decree containing general measures, which will 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 their pensions, and many workers throughout our society also contribute toward their future pension. I cannot justify asking the taxpayer to carry the full burden of the pensions of political officeholders 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 to follow, a calculation will be made, after which the impact will be shared through further information, letters with the Prime Minister, six Ministers, the Minister Plenipotentiary, fourteen Members 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 goes beyond additional income for Government.
“This is a structural fiscal measure. It means that those who earn the pension entitlement will begin contributing toward the cost of that entitlement, rather than leaving that responsibility entirely with the public purse,” Minister Gumbs stated.
The Minister also noted that the proposal reflects the principle that fiscal responsibility must apply equally across Government.
“If we expect our civil servants, businesses and citizens to contribute their fair share, then those of us entrusted with public office must be prepared to do the same. We cannot speak about fiscal discipline and shared responsibility and then exclude ourselves from those principles.”
Minister Marinka Gumbs said the measure is also intended to bring 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 legal and administrative work to give effect to the contribution, with the objective of implementation from January 1, 2027.
“Ultimately, this is about fairness to the taxpayer,” Minister Marinka Gumbs concluded. “Leadership must begin with the standards we are prepared to apply to ourselves. Fair share must mean everyone’s fair share, including ours.”
