Lufthansa proposes to merge transitional pension into company plan for pilots

Lufthansa announced it has made a new offer to the Vereinigung Cockpit union regarding the company pension plan for cockpit employees at Lufthansa and Lufthansa Cargo. 

The airline’s negotiators have proposed a “comprehensive pension package” that would involve transferring the transitional pension (ÜV) into the company pension plan (bAV).

In a statement, Lufthansa acknowledged that the union has publicly presented the pension plans of competitors such as KLM and British Airways as exemplary, noting that these airlines have integrated pension systems and do not require a separate transitional pension. The airline expressed its openness to this option and a willingness to resume negotiations with the union on the matter.

Lufthansa highlighted a particular disadvantage of the current transitional pension system for cockpit staff, stating that it lapses for colleagues who continue to fly until they reach the statutory retirement age due to their career or individual life plans. The airline emphasized the importance of ensuring planning certainty for affected colleagues, particularly those who are approaching retirement and must be able to rely on their retirement benefits.

The airline drew parallels with a similar approach taken in the past when transitioning the pension plan for cabin crew, which resulted in an enhancement of the company pension scheme. Lufthansa estimated that transferring the transitional pension could improve the company pension plan by up to 50%, without increasing the company’s total pension costs.

The proposal comes amidst an ongoing collective bargaining dispute between Lufthansa and the Vereinigung Cockpit union over the company pension plan for cockpit employees. The airline’s offer to integrate the transitional pension into the company pension plan is seen as a step towards resolving the dispute and aligning its pension system with those of its competitors.

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