MPs and Ministers make no contribution toward their pension benefits, Gumbs wants to change that

GREAT BAY--“I do not believe that we political office holders should ask the people of St. Maarten to carry a burden that we ourselves are not prepared to," Minister of Finance Marinka Gumbs declared on Thursday.

Members of Parliament and Ministers currently make no employee contribution toward the pension benefits attached to their political office, while civil servants contribute 8 percent toward their pensions, Finance Minister Marinka Gumbs disclosed during the public meeting on the 2026 Budget on Thursday.

Gumbs said the present arrangement has existed since October 10, 2010, with taxpayers ultimately carrying the full cost when former or current political office holders become entitled to their pensions.

She announced that Government intends to change that system by introducing an 8 percent pension contribution for Ministers and Members of Parliament, with implementation targeted for January 2027, subject to the required legal and legislative process.

“One final measure that I believe speaks directly to the principles of fairness, accountability and shared responsibility,” Gumbs told Parliament as she outlined the proposal.

The Finance Minister said that during her review of Government’s financial obligations, she was surprised to discover that neither MPs nor members of the Council of Ministers presently make an employee contribution toward their political pensions.

She explained that Article 30 of the National Ordinance Pension Regulation Authorities provides for such a contribution to be regulated through a national decree containing general measures. However, according to Gumbs, the necessary framework to give effect to that provision has never been established.

“Meanwhile, our civil servants contribute 8% toward their pensions,” Gumbs said, contrasting that requirement with the arrangement for political office holders.

She argued that the existing system cannot reasonably be defended at a time when Government is asking the wider population to accept financial discipline and contribute toward the country’s obligations.

“Madam Chair, that is simply not fair. It is simply not just,” Gumbs said. “I do not believe that we political office holders should ask the people of St. Maarten to carry a burden that we ourselves are not prepared [to carry].”

Under the current arrangement, she explained, when a Minister or Member of Parliament becomes entitled to a pension, the financial obligation ultimately falls on the public purse without that political office holder having made an employee pension contribution during his or her time in office.

“In simple terms, the taxpayer pays in full to all past and present political office holders,” Gumbs told Parliament. “That cannot be the standard we defend while asking everyone else to contribute their fair share.” The Finance Minister said she has already sought and received the approval of the Council of Ministers to proceed with the introduction of an 8 percent pension contribution for Ministers and MPs.

The measure will still have to go through the necessary legal and legislative process before it can take effect. Gumbs said her intention is to advance those steps as soon as possible, with the objective of implementing the contribution beginning January 2027.

She described the proposal as more than a symbolic gesture, saying it should be regarded as a structural fiscal measure based on fairness, shared responsibility and political leadership.

“Charity begins at home, but so must fiscal responsibility,” Gumbs said.

She added that Government cannot ask residents to accept greater financial discipline while elected and appointed political office holders exempt themselves from the same principle.

“We cannot stand before the people [and ask for] discipline while exempting ourselves from that very principle,” the Minister said. “If we expect the people of St. Maarten to contribute to the future of this country, then those of us entrusted to lead it must be prepared to contribute as well.”

Gumbs concluded that the principle of everyone paying their fair share must extend to those holding the country’s highest political offices.

“Fair share must mean everyone’s fair share, including ours,” she said.

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