Substantial differences in pension and social security among the territories of the Netherlands

Facts

The author resides on Saba Island, in the Caribbean Netherlands, a Dutch overseas territory. He has been receiving pension under the General Pension Insurance Ordinance since 2001. Upon dissolution of the Netherlands Antilles, the author received an old age pension under the General Pension Insurance Act BES (AOV BES). The amount of the allowance (524 USD) is substantially lower than that in the European Netherlands (1076 USD) under the General Pension Insurance Act (AOV). Upon reaching the Court of First Instance in the island, the Court referred to parliamentary documents stating an intentional decision not to introduce a social level equivalent to the European Dutch level to prevent illegal migration. Further, the competitiveness of the islands, the investment climate, consumer price index, and the minimum wage were considered in making the differentiation. Thereafter, the author submits that article 26 of the Covenant does not allow States parties to maintain two different welfare regimes in different parts of its territory as it constitutes discrimination on the grounds of ethnic origin and residency. The Kingdom of the Netherlands maintains that the differentiation is valid because of the different socioeconomic situation and legislative framework between its territories.

Admissibility

The author’s allegations under article 26 of the Covenant, have been sufficiently substantiated for the purposes of admissibility and proceeds with their consideration on the merits.

Merits

There is no violation of article 26 of the Covenant. The author’s place of residence, the Caribbean Netherlands, does not place the author in a relevantly similar position to pensioners living in the European Netherlands. A domestic social security system may entail a breach of the Covenant if the relevant legislation or its application is based on discriminatory grounds. A differentiation, which is compatible with the Covenant and is based on objective and reasonable grounds, does not amount to prohibited discrimination. The difference in treatment of old age pensioners is taken into account based on the place of residency where the individual has been insured, regional differences in terms of economic and social factors, statutory retirement age, and other analogous factors.

Implementation

Deadline for Implementation: 11 September 2022

By: Maricon Torres Lorenzo