Air New Zealand 2014 Annual Report Download - page 47

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AIR NEW ZEALAND ANNUAL FINANCIAL RESULTS 2014 45
28. PENSION 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 14.2%
of the plan’s total annual contributions (30 June 2013: 13.1%). The information in respect of 2014 presented below is the same as that
disclosed for 2013 as the actuarial valuation for the scheme was not available at the time of preparing these financial statements.
GROUP AND COMPANY
2014
$M
2013
$M
Overall position of the plan in respect of all employers:
Present value of defined benefit obligation
Fair value of plan assets
(226)
244
(226)
244
Past service surplus 18 18
The past service surplus 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 $43 million were made to Group defined contribution plans during the year (30 June 2013: $40 million). Contributions of
$37 million were made to Company defined contribution plans during the year (30 June 2013: $34 million).
29. RELATED PARTIES
Crown
The Crown, the major shareholder of the Company, owns 52 percent of the issued capital of the Company (30 June 2013: 73 percent).
The balance is owned by the public. On 25 November 2013 the Crown completed the sale of 221,336,465 Ordinary Shares reducing the
shareholding by 20 percent.
Air New Zealand enters into numerous transactions with Government Departments, Crown Agencies and State Owned Enterprises on an
arm’s length basis. All transactions are entered into in the normal course of business.
All members of the Group are considered to be related parties of the Company. This includes the subsidiaries, joint ventures and
associates identified in Note 14.
Key management personnel
Compensation of key management personnel (including directors) was as follows:
GROUP
2014
$M
GROUP
2013
$M
COMPANY
2014
$M
COMPANY
2013
$M
Short-term employee costs
Directors’ fees
Share-based payments
12
1
4
11
1
5
12
1
4
11
1
5
17 17 17 17
Certain key management personnel (including directors) have relevant interests in a number of companies (including non-executive
directorships) to which Air New Zealand provides aircraft related services in the normal course of business, on standard commercial terms.
Staff share purchase schemes
The Air New Zealand A and B Staff Share Purchase Schemes were established by the Group in 1998. All full time and regular part-time
employees were invited to participate in the Schemes with a share allotment date, being 12 August 1998. The shares were held by the
Trustees during a three year restrictive period, which expired in September 2001. As at 30 June 2014, the Scheme held 93 unallocated
Ordinary Shares (30 June 2013: 93 shares).
Executive share option plans
Executive share option plans are detailed in Note 24.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR TO AND AS AT 30 JUNE 2014