Lufthansa to cut retirement benefits

German airline Deutsche Lufthansa said it would cancel its retirement-pension agreements starting at the beginning of next year since the previously negotiated retirement payments are clearly higher than market interest rates, reported Dow Jones Newswires. At the last pension agreement with unions, the company negotiated retirement payments between six to seven percent, while market rates are generally below two percent, Lufthansa manager Peter Gerber said. Retired employees are also receiving retirement benefits longer than before, adding to costs, the company explained. Lufthansa plans to make pension rates flexible, so .... Read more