Cathay Pacific 2001 Annual Report Download - page 58

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56 Cathay Pacific Airways Limited Annual Report 2001
29. RETIREMENT BENEFITS
The Group operates various defined benefit and defined contribution retirement schemes for its employees in
Hong Kong and in some overseas locations. The assets of these schemes are held in funds administered by
independent trustees. The retirement schemes in Hong Kong are registered under and comply with the
Occupational Retirement Schemes Ordinance. Most of the employees engaged outside Hong Kong are covered
by appropriate local arrangements.
Retirement benefit costs for the year were:
2001 2000
HK$M HK$M
Swire Group Retirement Benefit Scheme 226
-
Cathay Pacific Airways Limited Retirement Scheme 135
-
CPA Provident Fund 1993 74 67
CPA Provident Fund 50 34
Other schemes 161 151
646 252
The Group operates the following principal schemes:
(a) Defined benefit retirement schemes
The Swire Group Retirement Benefit Scheme (“SGRBS”) in Hong Kong, in which the Company and Cathay
Pacific Catering Services (Hong Kong) Limited (“CPCS”) are participating employers, provides resignation and
retirement benefits to its members, which include the Company’s cabin attendants who joined before September
1996 and other locally engaged employees who joined before June 1997, upon their cessation of service. The
Company and CPCS meet the full cost of all benefits due by SGRBS to their employee members who are not
required to contribute to the scheme.
Staff employed by the Company in Hong Kong on expatriate terms before April 1993 were eligible to join another
scheme, the Cathay Pacific Airways Limited Retirement Scheme (“CPALRS”). Both members and the Company
contribute to CPALRS.
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 2000 31st December 2000
Actuaries Watson Wyatt Hong Kong Limited Watson Wyatt Hong Kong Limited
Actuarial valuation method Attained age Attained age
Assumed long-term average 1% higher than assumed 1.5% higher than assumed
return on investment average salary increase average salary increase
Market value of scheme
assets at date of valuation HK$3,033 million HK$1,938 million
Asset market valuation as a
percentage of the present
value of past service liabilities 102% 105%
NOTES TO THE ACCOUNTS
-
DIRECTORS AND EMPLOYEES