PHILIPSBURG:--- On July 2nd, the Algemeen Pensioenfonds Sint Maarten (APS) presented its 2024 annual report with a clean (unqualified) opinion to the Minister of Finance. Mr. Emilio Kalmera (Board member) and Mr. Oscar Williams (Managing Director) met with the Minister to discuss the financial growth and strategic developments of the pension fund throughout the year. The presentation highlighted APS’s financial status, current developments within APS and the commitment to its participants.
Mr. Williams stated, “We are pleased to announce that in the month of July, the pensions will be increased retroactively from 1 January 2025 with 3,61%, which is based on the inflation over 2024. This year was a positive year for APS, whereby we realized an increase in the value of our investment portfolio due to favorable developments in the international markets. In addition, the actuarial interest rate was increased which resulted in a decrease in the pension benefit obligation. These factors combined improved the financial position of APS, resulting in an increase of the coverage ratio to 114,13% end of 2024 compared to 109.09% of last year 2023.” APS can only increase pensions if the coverage ratio is at least 105%.
A clean (unqualified) opinion by the auditor means that the financial statement is presented fairly, in all material aspects and is in accordance with the applicable financial reporting framework. Mr. Williams stated further, “This is the result of continuous hard work and dedication of the organization and the constructive collaboration with the affiliated employers and relevant stakeholders”.
Regarding local investments, APS continued to devote considerable time and attention in 2024 to establishing a robust organization to objectively assess and realize local investments. An important step in this process was the finalization of the agreement (SLA) with the Sint Maarten Investment Company (SMIC) which was executed in July 2024. SMIC evaluates financing requests and proactively seeks potential investments in Sint Maarten. With this, APS aims to build a solid local investment portfolio that adheres to the pension fund’s investment guidelines and leads to successful and profitable projects in Sint Maarten.
Looking forward to 2025, APS made a considerable strategic change in their international investment portfolio by selecting BlackRock as the new fiduciary manager and Northern Trust as the custodian. In addition to the aforementioned, APS conducted and finalized their Asset Liability Management study (ALM). The purpose of the ALM study was to examine whether the current policies (actuarial and financial) of APS still match the ambition and risk appetite and explore alternative asset allocations that lead to a more optimal risk and return.
Mr. Kalmera stated “With these changes and the execution of the ALM study, the focus of APS remains on maintaining the financial stability of the pension fund while ensuring the welfare of its participants. While we can index pensions this year, there may be years when this isn't possible. Our ability to make these adjustments depends heavily on the financial markets and prevailing interest rates.”
The APS board remains committed to continuous improvement. We will keep enhancing our expertise, optimizing our governance processes, and making informed decisions to benefit our participants. Our focus will continue to be on sustainable growth, innovation, and delivering tangible benefits to our participants. We are dedicated to being a reliable and forward-thinking partner to all our stakeholders.