Air New Zealand 2013 Annual Report Download - page 47

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Air New Zealand Annual Financial Results  45
. PENSION 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 valuations were provided for 30
June 2013.
GROUP AND COMPANY

M

M
Amounts recognised in the Statement of Financial Position:
Present value of funded obligations (132) (130)
Fair value of plan assets 126 113
(6) (17)
Unrecognised actuarial losses 19 27
Included in the Statement of Financial Position 13 10
Expense recognised in the Statement of Financial Performance:
Current service cost (3) (2)
Interest cost (3) (3)
Expected return on plan assets 5 6
Net actuarial losses recognised in year (2) -
Total included in "Labour" (3) 1
Actual return on plan assets 14 2
Changes in the present value of the defined benefit obligation:
Defined benefit obligation at the beginning of the year (130) (116)
Current service cost (3) (2)
Interest cost (3) (3)
Contributions by plan participants (2) (2)
Actuarial losses (4) (14)
Benefits paid 9 6
Selements - 1
Foreign exchange differences on overseas plans 1 -
Defined benefit obligation at the end of the year (132) (130)
Changes in the fair value of plan assets are as follows:
Fair value of plan assets at the beginning of the year 113 110
Expected return on plan assets 5 6
Contributions by employer 5 5
Contributions by participants 2 2
Actuarial gains/(losses) 10 (3)
Benefits paid (9) (6)
Selements - (1)
Fair value of plan assets at the end of the year 126 113
The Group expects to contribute approximately $8 million to its defined benefit plans in 2014.
Notes to the Financial Statements (Continued)
For the year to and as at 30 June 2013