Cathay Pacific 1999 Annual Report Download - page 54

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Notes to the Accounts – Directors and Employees
58 CATHAY PACIFIC AIRWAYS LIMITED ANNUAL REPORT 1999
30. Retirement benefits
(continued)
The cost of the schemes to the Group is calculated based upon funding recommendations arising from
actuarial valuations. Details of the latest actuarial valuations of CPALRS and of the portion of SGRBS
funds specifically designated for the purposes of the actuarial valuation for the Group’s employees are:
SGRBS CPALRS
Latest actuarial valuation 31st December 1998 31st December 1998
Actuaries Watson Wyatt Hong Kong Limited Watson Wyatt Hong Kong Limited
Actuarial valuation method Attained age Attained age
Assumed long-term 1% higher than 1.5% higher than assumed
average return on assumed average average salary increase
investment salary increase
Market value at date of HK$2,774 million HK$1,939 million
valuation
Asset market valuation as a 114% 113%
percentage of the present
value of past service liabilities
The differences between the market values of the schemes’ assets and the present value of the accrued past
services liabilities at the date of an actuarial valuation are taken into consideration when determining
future funding levels in order to ensure that the schemes will be able to meet these liabilities as they
become due.
(b) Defined contribution retirement scheme
Staff employed by the Company in Hong Kong on expatriate terms after 31st March 1993 are eligible to
join a defined contribution retirement scheme, the CPA Provident Fund 1993. Under the terms of this
scheme, only the Company is required to make contributions. During the year, the benefits forfeited in
accordance with the scheme’s rules amounted to HK$3.0 million (1998: HK$1.5 million) which have been
applied towards the contributions payable by the Company.