Cathay Pacific 2000 Annual Report Download - page 70

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68 CATHAY PACIFIC AIRWAYS LIMITED ANNUAL REPORT 2000
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 1999 31st December 1999
Actuaries Watson Wyatt Hong Watson Wyatt Hong
Kong Limited 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 of scheme assets at date
of valuation HK$3,563 million HK$2,299 million
Asset market valuation as a
percentage of the present value
of past service liabilities 139% 133%
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.
The Group enjoyed a contribution holiday for both schemes in 2000.
(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. During the year, the
benefits forfeited in accordance with the scheme’s rules amounted to HK$1.5 million (1999:
HK$3.0 million) which have been applied towards the contributions payable by the Company.
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.
(c) Mandatory provident fund scheme (“MPF”)
This scheme is established under the MPF Ordinance 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, 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.
Notes to the Accounts – Directors and Employees