PHILIPSBURG:---The General Audit Chamber submitted its report entitled Compliance audit: APS’ 2020 Financial Statements (General Pension Fund Sint Maarten / Algemeen Pensioenfonds Sint Maarten) to Parliament. The report addresses findings and conclusions resulting from the review of the pension fund's 2020’s financial statement.
The Fund’s coverage ratio at the end of 2020 was 101.9% (2019: 103.8%). The Fund’s capital remains insufficient to cover general and investment risks. It is the opinion of the Audit Chamber that the 2020 Financial Statements fairly represent APS’ financial position as of December 31, 2020, but uncertainty continues to exist regarding the valuation of receivables from the Government of St. Maarten, as well for other participating organizations.
APS’ coverage ratio is not at the desired target level of 105%. APS’ actuary noted that the benefit (increase) to the coverage ratio resulting from raising the retirement age from 62 to 65 years of age, was borne by the participants.
APS’ Asset Liability Management (ALM) study completed in 2021, suggests that APS is at risk of reducing members' pensions in the near future if (further) measures are not taken. One of the main reasons for this is the falling actuarial interest rate. Based on the ALM study, it appears that the pension accrual of 2% annually is unrealistic using the current premium contribution of 18%.
The General Audit Chamber will continue to monitor APS’ progress in executing measures to secure the sustainability of the Fund.
The report is published in both English and Dutch and is available on the website of the General Audit Chamber (www.arsxm.org).
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