KLM seeks to terminate ‘unaffordable’ contract with pilots scheme

first_imgKLM, the Dutch airline, is seeking to terminate its obligation to plug any funding shortfalls at its €8.2bn pension fund for pilots (Pensioenfonds Vliegend Personeel KLM).The airline cites the stricter buffer requirements within the new financial assessment framework (nFTK), which, in the KLM scheme’s case, requires a funding ratio of more than 122% to award full inflation compensation. Falling interest rates, however, lowered the pension fund’s coverage ratio from 122% at the end of 2015 to just 112.5% in June.The company said it feared it would have to pay an additional contribution worth hundreds of millions of euros to be able to grant indexation next year. To avoid this, KLM said it would terminate the pension-provision contract with the pension fund on 1 December, with financial news daily Het Financieele Dagblad (FD) quoting a KLM spokesman as saying: “The mandatory supplementary payment poses too much risk to the company, so we therefore want to conclude a new contract.”The pilots union VNV, in a letter to members, described KLM’s plan as an “attack” on pensions provision.The airline, however, said it had proposed an alternative whereby changes would have been made solely to the indexation guarantee.The Pensioenfonds Vliegend Personeel KLM is one of the few pension funds in the Netherlands were indexation is not in arrears.Last year, the airline announced that it wanted its three largest pension funds to switch to collective defined contribution arrangements.In its 2015 annual report, it described the current defined benefit plans – with more than €19bn in combined assets under management – as “untenable” and a burden on the company’s balance sheet.last_img read more

India Team Selection For WI Tour Postponed Due To New CoA Diktat

first_imgNew Delhi: The Committee of Administrators (CoA) on Thursday decided to change the age-old rule of the Board of Control for Cricket in India (BCCI) Secretary convening the selection committee meeting of the Indian team by handing the responsibility to the chief selector – currently M.S.K. Prasad. And that has seen the selection meeting to pick the team for the West Indies tour get postponed to Sunday.Speaking to IANS, sources in the know of developments said that the directive of the CoA has led to a complete change of plan and that had led to a delay in the process. “The change in the rule announced by the CoA means that the Secretary will not convene the meeting and that is behind the delay as that has leads to some complexities which need to be addressed,” the source explained.The CoA has decided that neither any officer bearer nor the CEO shall attend any Cricket Committee meetings henceforth. In fact, as of now, the Selection Committee had to keep the Secretary in the loop for any replacement sought or for posting of selectors to watch any game. The CoA has made it clear that the Selection Committee doesn’t need to do so anymore.”The Committee of Administrators have been informed that the practice of the Secretary convening and attending Selection Committee meetings has continued even after the new BCCI constitution has become effective. Further, it is learnt that the Selection Committees continue to address emails to Secretary to seek his approval in relation to any change or replacement in the team(s).”Similarly, the Selection Committees continue to address e-mails to the Secretary seeking his approval on travel arrangements and posting for selectors to watch and attend cricket matches. The Selection Committee does not need any approval either from the Secretary or the CEO in relation to any selection made or change or replacement in the team,” the CoA declared.Speaking to IANS, a senior BCCI official asked if the CoA wasn’t aware of the constitution till now and if it took them a year to realise the rules and regulations of the constitution that was registered by the committee itself.”The new Constitution of the BCCI has been mandated by the Supreme Court and in that regard it is correct that it must be followed. Why did it dawn on the CoA now after nearly about a year since it was registered? What triggered this awakening? Do they not know what is happening in the Board?” the official enquired. IANS Also Read: Trio of Kapil Dev, Anshuman Gaekwad & Shantha Rangaswamy Favourites to Pick India Coachlast_img read more