KLM Royal Dutch Airlines, the Dutch Air Line Pilots Association VNV, the KLM Flight Engineers Association VKB, and the Dutch Cabin Attendants Union VNC, have reached an accord regarding surpluses and shortfalls in the KLM Pension Fund for Flight Personnel.
The agreement outlines arrangements regarding the financial effects of over-financing and under-financing of the Fund.
Surpluses will accrue to the benefit of KLM through discounts in the premiums contributed to the fund by the company. Over the next four-year period, the annual premium discount is expected to rise from approximately NLG 60 mn. in calendar 2001, to approximately NLG 100 mn. in later years. Provided that the investment performance remains at a certain level, the annual discount will also remain to be approximately NLG 100 mn. in the years thereafter.
Should there be any future shortfalls, the company’s premium contributions will be raised.
All the KLM pension funds, and especially the flight personnel fund, have produced substantial surpluses over a period of years.
Accords regulating surpluses and shortfalls experienced by the KLM pension funds for cabin attendants and ground personnel were reached in 1994 and 1995 respectively, whereby similar arrangement regarding premium discounts were agreed.