NETHERLANDS – The €6.8bn pension fund for KLM's pilots is to grant all its participants a full indexation of 1.7%, based on the salary index.
The pension fund's decision followed a coverage ratio of 128.5% at November-end, it said.
The scheme's funding exceeds both the minimum required coverage of 105% and the required financial buffers, equating to a funding of 116.5%.
The Pensioenfonds Vliegend Personeel KLM, which had a funding of 117% at June-end, saw its coverage increase by 3.9 percentage points thanks to the introduction of the ultimate forward rate in September.
Its return on investments of 10.2% during the first three quarters of 2012 also contributed to its improving financial position, it said.
It also benefited from an increase in long-term interest rates, which reduced its liabilities.
The pension fund for flying staff has 2,780 active participants, 155 deferred members and 2,245 pensioners.