Cathay Pacific 2015 Annual Report Download - page 74

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Cathay Pacific Airways Limited
72
Notes to the Financial Statements Statement of Financial Position
14. Retirement benefits (continued)
2015
HK$M %
2014
HK$M %
Fair value of plan assets comprises:
Equities
 –AsiaPacific 1,016 13 1,138 14
 –Europe 460 6 476 5
 –NorthAmerica 947 12 981 12
 –others 709 9 832 10
Debt instruments 1,935 24 2,283 27
Deposits and cash 2,812 36 2,662 32
7,879 100 8,372 100
All equities and bonds are held in quoted unit trusts, through reputable investment managers.
The performance and risks are monitored and managed by an investment committee that meets between four and
six times a year.
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. The Group expects to make
contributions of HK$164 million to the schemes in 2016.
2015 2014
SGRBS CPALRS SGRBS CPALRS
The significant actuarial assumptions are:
Discount rate 3.22% 3.22% 3.27% 3.27%
Expectedrateoffuturesalaryincreases 5.00% 3.06% 5.00% 3.41%
The sensitivity of the defined benefit obligations to changes in the actuarial assumptions are set out below. This
showshowthedefinedbenefitobligationsat31stDecember2015wouldhave(increased)/decreasedasaresultof
0.5% change in the actuarial assumptions:
Increase in 0.5% Decrease in 0.5%
2015
HK$M
2014
HK$M
2015
HK$M
2014
HK$M
Discount rate 282 303 (298) (315)
Expectrateoffuturesalaryincreases (323) (283) 310 275
The above sensitivity analysis is based on a change in an assumption while holding all other assumptions constant.
In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating
the sensitivity of the defined benefit obligations to significant actuarial assumptions the same method has been
applied as when calculating the retirement benefit liability recognised within the statement of financial position.