One of the most fundamental pillars to guarantee the well-being of our workers upon reaching retirement age is a solid pension system. In this context, the Landsverordening Algemeen Pensioen (LAP)—the general pension law designed specifically for private-sector employees—plays a crucial role in securing purchasing power and a dignified life for those who have dedicated years of work to our economy.
This law, introduced in 2011 under the Eman I Cabinet, was created with the goal of requiring and facilitating that employers withhold the premium from the employee’s salary to be deposited into a pension fund. However, for a law to fulfill its social objective, it cannot simply exist on paper; it must be properly executed, controlled, and supervised.
The Challenge of Compliance and the Lack of a Supervisor (Toezichthouder) Although the legal framework exists, the implementation and enforcement (handhaving) of this law have faced serious obstacles in recent years. In 2017, the Social and Economic Council (SER) conducted an in-depth evaluation of the LAP. In that report, presented to the Wever-Croes Cabinet, the council clearly pointed out that a key element was missing: the appointment of an official supervisor (toezichthouder).
Regrettably, from 2017 to 2024, this necessary supervisor was not appointed for the law to function de facto. The absence of a supervisor for more than seven years created a void where proper monitoring was lacking to ensure that all employers complied with their pension law obligations, leaving workers in a vulnerable position.
The Role of Parliament and the Duty of Government The Parliament of Aruba has the constitutional responsibility to create laws, but also to execute its supervisory role (controlerende taak) over government management. When an important law like the LAP is not properly executed, it is the duty of parliamentarians to demand action and transparency.
The lack of attention and structured dialogue between the previous government and the business sector (employers) stagnated progress that should have taken place. Without structured dialogue between the Government and employers, concrete steps to guarantee the execution of this law failed to materialize.
Looking to the Future: Concrete Steps to Protect the Worker In order to guarantee a secure financial future for private-sector workers, it is of vital importance to take the necessary steps to:
• Appoint the Supervisor (Toezichthouder): Activate the legally mandated control mechanism to ensure that premiums are properly collected and deposited.
• Strengthen Control and Enforcement (Handhaving): Ensure that existing laws are respected and executed by all parties involved.
• Re-establish Social Dialogue: Engage in direct consultation with employers to reach practical and concrete agreements that benefit Aruba’s workforce.
A private-sector worker’s pension is not a luxury, but an earned right after years of effort and dedication. It is time for our laws to not only exist, but to function for the well-being of the citizen.