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.

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