KLM pension schemes buck trend to grant full indexation
NETHERLANDS - All three of KLM's pension funds have said they will grant indexation on 1 January 2011, following improved coverage ratios during the past quarter.
The €5.1bn scheme for ground staff said it would pay its pensioners and deferred participants a full allowance of 1.4% based on the consumer index.
However, active participants whose indexation is salary-linked will not receive indexation, as there have not been any collective salary increases, the scheme explained.
During the fourth quarter, the pension fund's coverage ratio increased by 6.7 percentage points to 122%.
The €1.5bn pension fund for cabin staff also granted its pensioners and deferred members a 1.4% indexation.
The scheme's coverage ratio at year-end was 121.8%, up from 111.9% at the end of September.
The €6bn scheme for flight staff said it has granted all its participants and pensioners an inflation compensation of 0.7%, based on the salary index.
The funding ratio of the pension fund for flight staff has increased from 119.2% at the end of the third quarter to 134.5% at year-end.
The funding ratio of all three pension funds already include the longevity forecasts of Statistics Netherlands and the Actuarial Society, according to a spokesman for Blue Sky Group, the schemes' pensions provider.