New pension scheme agreement reached for ground staff KLM
11 Juni 2021 - 06:00PM
New pension scheme agreement reached for ground staff KLM
Roissy, June 11, 2021
New pension scheme agreement reached for
ground staff KLM, KLM Ground pension fund now also a Defined
Contribution Scheme
Following the earlier conversion of KLM pension
schemes into collective defined contribution schemes for Cockpit
and Cabin staff in 2017, now also an agreement has been reached for
the KLM Ground staff fund. This implies that all major KLM pension
funds now (finally) have a collective defined contribution scheme.
This will lead to more predictable annual contributions and less
volatility on the Balance Sheet. A shift fully in line with the
general trend in The Netherlands.
KLM and the five Dutch ground unions in KLM
reached an agreement allowing the modification of the ground’s
pension scheme as per January 2021. This formal agreement between
KLM and the Board of the KLM Ground pension fund has been reached.
In summary:
- This agreement will eliminate the
risk for deficit payments and thus will avoid significant variances
in the equity position.
- The amended pension scheme will
qualify as a collective defined contribution scheme under
IFRS.
- KLM agreed to a modest increase of
the yearly pension premiums as from January 2021.
- Following changes in Dutch pension
regulation since 2014, lower pension premiums were paid by KLM to
the KLM Ground pension fund. As agreed with the unions, the savings
since 2014 were set aside by KLM and amount to 49 million euros.
This amount will now be paid as a one-off contribution to the
Ground pension fund in June 2021.
According to IAS 19, the de-risking of the
Ground pension fund will lead to the derecognition of the so-called
“Pension Asset” on Air France KLM’s balance sheet. The pension
asset amounted to 211 million euros on the Balance Sheet of 31
December 2020. It increased by 340 million euros during Q1 2021 as
a result of the higher discount rate and positive return on asset
under management. As per 31 March 2021, the pension asset amounted
to 551 million euros (414 million euros net of tax). The impact of
the derecognition of the pension asset (non-cash), the one-off
contribution to be paid in June 2021 and the additional pension
premiums from January through May 2021 will be taken in the P&L
as a non-current expense. The actual amounts will be calculated and
recorded in Q2 2021.
With this agreement, KLM has finalized the
de-risking of the three main Dutch KLM pension schemes, thus
contributing to reduce significantly the volatility of the annual
pension contributions and the Group’s balance sheet. In addition,
the Group balance sheet will not show a “Pension asset” anymore as
from June 2021.
Investor relations |
|
Press |
Olivier
Gall |
Michiel
Klinkers |
+33 1 41 56 56 00 |
+33 1 49 89 52 59 |
+33 1 49 89 52 60 |
|
olgall@airfranceklm.comWebsite:
www.airfranceklm.com |
michiel.klinkers@airfranceklm.com |
|
- Air France-KLM Press release New pension scheme agreement
reached for ground staff KLM ENG
Air FranceKLM (BIT:1AF)
Historical Stock Chart
Von Feb 2024 bis Mär 2024
Air FranceKLM (BIT:1AF)
Historical Stock Chart
Von Mär 2023 bis Mär 2024