Cathay Pacific 2003 Annual Report Download - page 55

Download and view the complete annual report

Please find page 55 of the 2003 Cathay Pacific annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 76

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76

53Cathay Pacific Airways Limited Annual Report 2003
Notes to the Accounts – Balance Sheet
15. RETIREMENT BENEFITS
(continued)
Group Company
2003 2002 2003 2002
HK$M HK$M HK$M HK$M
Movements in net retirement benefit liability comprise:
At 1st January 346
-
368
-
Prior year adjustment for transitional liabilities
-
605
-
605
Movements for the year
-
Net expenses recognised in the profit and loss account 450 379 432 365
-
Contributions paid (615) (638) (576) (602)
At 31st December 181 346 224 368
2003 2002
HK$M HK$M
Net expenses recognised in the Group profit and loss account:
Current service cost 409 391
Interest on obligations 272 318
Expected return on plan assets (273) (330)
Actuarial loss recognised 42
-
To t al included in staff costs 450 379
Actual (return)/loss on plan assets (1,257) 373
The difference between the fair value of the schemes’ assets and the present value of the accrued past
services liabilities at the date of an actuarial valuation is taken into consideration when determining future
funding levels in order to ensure that the schemes will be able to meet liabilities as they become due. The
contributions are calculated based upon funding recommendations arising from actuarial valuations.
(b) Defined contribution retirement schemes
Staff employed by the Company in Hong Kong on expatriate terms are eligible to join a defined contribution
retirement scheme, the CPA Provident Fund 1993. All staff employed in Hong Kong are eligible to join the CPA
Provident Fund.
Under the terms of these schemes, other than the Company contribution, staff may elect to contribute from
0% to 10% of the monthly salary. During the year, the benefits forfeited in accordance with the schemes’
rules amounted to HK$9 million (2002: HK$10 million) which have been applied towards the contributions
payable by the Company.
A mandatory provident fund (“MPF”) scheme was established under the MPFSO in December 2000. Since
the Company has obtained exemption for its existing retirement schemes, all staff were offered the choice of
switching to the MPF scheme or staying in existing schemes. Where staff elected to join the MPF scheme,
both the Company and staff are required to contribute 5% of the employees’ relevant income (capped at
HK$20,000). Staff may elect to contribute more than the minimum as a voluntary contribution.
Contributions to defined contribution retirement schemes charged to the Group profit and loss account are
HK$320 million (2002: HK$298 million).