THE BOTTOM – Representatives of PCN (Pension funds Caribbean Netherlands) visited Saba this past Tuesday where they spoke with residents about PCN’s standpoint in the battle to make the Netherlands pay the approximately $77 million-$100 million deficit.
PCN will take the Dutch government to court in July. The representatives explained that in court PCN will use the position of the Central Bank which highlighted that the 4 percent fixed rate used by APNA was wrong.
The question is ‘Who will finance the 77 million-100 million?’ “They who made the error first or the participants and the governments”, said PCN Board Member Dr. Valdemar Marcha.
PCN Board Member Dr. Valdemar Marcha speaking with residents during Tuesday’s town hall meeting. Photo: Hazel Durand
PCN will subpoena the court to force APNA to release the actuary reports conducted prior to the inception of PCN. PCN says that APNA’s actuary report calculated the rate of 4 percent, which was not realistic considering the fluctuating markets.
As a resident present at the town hall meeting pointed out the deficit puts PCN in a position where it now has about $30 million less to spend on investments, which drive the PCN fund.
In the event that PCN wins the court case and the Dutch government has to pay the deficit, another resident asked if the 3.5 percent reduction on pensions would be reimbursed. Marcha stated that this would not happen.
Moreover he said in the event that PCN loses the case then in 2018 an additional 12.2 percent would have to be deducted from the already meager pension payouts. “Higher premiums and lower pensions”, Marcha remarked.