PHILIPSBURG:--- The General Audit Chamber has released its report on the 2023 General Pension Fund (APS) financial statements.
The findings show a financial turnaround, with the fund achieving a coverage ratio of 109.1% in 2023, compared to 98.8% the previous year. This marks an important milestone, as for the first time since its inception, it exceeds the 105% threshold required to index pensions.
The financial statements reveal a profit of ANG 84.1 million, a stark contrast to the ANG 44.5 million loss reported in 2022. The improvement is largely attributed to the performance in international investments. The actuarial interest rate was increased to 3.75%, which impacted the coverage ratio positively. The Audit Chamber cautions that raising the actuarial interest rate while improving the coverage ratio can pose risks by potentially underestimating the liabilities, which may impact the fund's long-term stability if investment returns do not meet expectations.
The report mentions the need to maintain financial stability and the importance of closely examining ongoing issues and delays in local real estate projects. The General Audit Chamber remains committed to monitoring APS's efforts to ensure the fund's sustainability. The main recommendations include completing an Asset Liability Management study to better align with market conditions, encreasing the governance of the Sint Maarten Investment Company (SMIC), and improving transparency in investment decisions. The Audit Chamber acknowledges APS’s progress and its efforts to secure long-term sustainability for its participants. The report is published in both English and Dutch and is available on the website of the General Audit Chamber (www.arsxm.org).
