Air New Zealand 2011 Annual Report Download - page 50

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26. RETIREMENT BENEFIT OBLIGATIONS
Defined benefit plans
The Group operates two defined benefit plans for qualifying employees in New Zealand and overseas. The New Zealand plan is now
closed to new members. The plans provide a benefit on retirement or resignation based upon the employee’s length of membership and
final average salary. Each year an actuarial calculation is undertaken using the Projected Unit Credit Method to calculate the present
value of the defined benefit obligation and the related current service cost. The most recent actuarial valuation of the New Zealand plan
was provided for 30 June 2011 and for the overseas plan for 31 March 2011.
GROUP AND COMPANY
2011
$M
2010
$M
Amounts recognised in the Statement of Financial Position:
Present value of funded obligations (116) (112)
Fair value of plan assets 110 100
(6) (12)
Unrecognised actuarial losses 10 11
Included in Statement of Financial Position 4 (1)
Expense recognised in the Statement of Financial Performance:
Current service cost (2) (3)
Interest cost (4) (6)
Expected return on plan assets 5 5
Net actuarial losses recognised in the year - (2)
Total included in "Labour" (1) (6)
Actual return on plan assets 6 11
Changes in the present value of the defined benefit obligation:
Defined benefit obligation at the beginning of the year (112) (104)
Current service cost (2) (3)
Interest cost (4) (6)
Contributions by plan participants (2) (3)
Actuarial gains 1 1
Benefits paid 3 3
Defined benefit obligation at the end of the year (116) (112)
Changes in the fair value of plan assets are as follows:
Fair value of plan assets at the beginning of the year 100 82
Expected return on plan assets 5 5
Contributions by employer 5 7
Contributions by participants 2 3
Actuarial gains 1 6
Benefits paid (3) (3)
Fair value of plan assets at the end of the year 110 100
The Group expects to contribute approximately $8 million to its defined benefit plans in 2012.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
AS AT 30 JUNE 2011
AIR NEW ZEALAND ANNUAL FINANCIAL RESULTS 2011