KLM Agrees Pension Deal With Pilots

Air France-KLM has agreed a pension deal with the Dutch Airline Pilot Union VNV, after discussions that started in 2015.

As part of the deal, KLM will pay EUR€194 million (USD$228.2 million) into the pilots’ pension fund, paid in annual instalments. The fund will move to a defined contribution scheme with yearly pension contributions, from its existing final salary scheme. The changes are subject to approval by VNV union members.

The deal comes on top of an agreement with the airline’s cabin staff to also change their pensions to a collective defined contribution scheme. That deal, agreed in August, will cost the airline €311 million.

Air France-KLM said the agreements will “reduce significantly the volatility of the annual pension contributions.”