Finance Ministry, APS to tackle recurring pensioner tax bills

GREAT BAY--A recurring tax liability affecting many pensioners has been identified as an urgent issue requiring practical relief, following discussions between Minister of Finance Marinka J. Gumbs and Algemene Pensioenfonds Sint Maarten (APS) during a recent working visit to the fund’s new offices.

During the meeting, the Minister and APS reviewed how this problem can arise even when pension payments are taxed correctly at the moment they are disbursed. In some cases, when a pensioner’s APS pension is combined with AOV income during annual income tax filing, the total taxable income may place the individual in a higher tax bracket, creating an additional tax liability after filing.

Because of that outcome, many pensioners must return each year to arrange payment plans with the Receivers’ Department to settle the additional tax owed. The Minister described this recurring cycle as placing avoidable financial pressure and administrative stress on elderly residents, particularly because it repeats annually rather than being resolved at the source.

As a proposed mitigation measure, the Tax Inspectorate has drafted a form, which has been reviewed by APS, that would allow pensioners, on a voluntary basis, to have additional taxes withheld directly from their pension payments. The intent is to reduce unexpected tax bills after filing and lessen the need for yearly payment arrangements by aligning withholding more closely with a pensioner’s total taxable income. Further information on the form, its use, and the roll-out approach will be shared in a separate press release.

The tax discussion formed part of a broader engagement during the Minister’s visit to APS’s new office located in Diamond Estate, Cole Bay, where she was welcomed by APS Managing Director Oscar Williams and members of the APS team. During a guided tour, the Minister commended the modern office space and highlighted accessibility features, including available parking, as practical improvements that support customer service delivery.

Following the tour, the Minister and APS held discussions building on topics previously raised during Finance Fridays and APS’s participation in Financial Literacy Month.

One initiative discussed was the possibility of hosting a one-time “Register to the APS Portal Day” at the Government Building, where civil servants could register, receive their password, and access the APS portal on-site. The aim is to encourage more civil servants to verify their personal information, gain a clearer picture of accrued pension benefits, and better understand expected retirement outcomes.

The Minister also emphasized the importance of publishing the annual franchise amount so employees can accurately calculate net salary from gross income, a point previously addressed during a payroll-focused Financial Literacy Month session led by the Minister. APS indicated it is working toward publishing the franchise annually on its website to support employees and pensioners in making accurate calculations.

Minister Gumbs reaffirmed her commitment to continued collaboration with APS on practical measures that improve administrative processes, strengthen pension awareness, and support greater financial clarity for pensioners and civil servants. She congratulated APS on its new office and expressed appreciation for ongoing joint efforts aimed at improving pension literacy and financial stability in St. Maarten.

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