Air New Zealand 2011 Annual Report Download - page 52

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NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
AS AT 30 JUNE 2011
26. RETIREMENT BENEFIT OBLIGATIONS (CONTINUED)
Defined contribution plans
The Group operates defined contribution retirement plans for qualifying employees. The assets of the plan are held separately from
those of the Group and invested in funds under the control of trustees. Employees receive a benefit on retirement or upon resignation,
based upon the employee’s accumulated contributions plus a proportion of the company’s contributions depending upon their period of
membership. Where employees leave service prior to vesting fully in the contributions, the forfeited contributions are retained in the plan
and may be used by the plan to meet expenses, fund the company’s future contributions or provide other benefits for members.
The Group contributes to the NPF Defined Benefit Plan Contributors retirement plan, to which other employers contribute in respect of
their own employees. This has been accounted for as a defined contribution plan as insufficient information is available to allocate the
plan across all participants on a meaningful basis. The Group is not a dominant participant in the plan, contributing approximately 10.2%
of the plan’s total annual contributions (30 June 2010: 9.5%). The information in respect of 2011 presented below is the same as that
disclosed for 2010 as the actuarial valuation for the scheme was not available at the time of preparing these financial statements.
GROUP AND COMPANY
2011
$M
2010
$M
Overall position of the plan in respect of all employers:
Present value of defined benefit obligation (240) (240)
Fair value of plan assets 284 284
Past service surplus 44 44
The past service deficit of the plan is actuarially valued each year using the attained age valuation methodology. Participating employers
are contractually obliged to contribute at rates specified by the trustee who act on the advice of the actuary. The agreed contribution
requirements seek to fund any deficit over the future working lifetime of the members. Should the fund be in deficit at the time of
winding up the scheme, the Group would be obliged to fund its share of that deficit.
Contributions of $39 million were made to Group defined contribution plans during the year (30 June 2010: $38 million). Contributions
of $33 million were made to Company defined contribution plans during the year (30 June 2010: $31 million).
AIR NEW ZEALAND ANNUAL FINANCIAL RESULTS 2011