Cathay Pacific 2001 Annual Report Download - page 59

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Cathay Pacific Airways Limited Annual Report 2001 57
29. RETIREMENT BENEFITS
(CONTINUED)
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 commenced contribution to both schemes in 2001 upon the end of a contribution holiday.
(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$15 million (2000: HK$1.5 million) which have been applied towards the contributions payable by
the Company.
(c) Mandatory provident fund scheme (“MPF”)
This scheme was 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$20,000). Staff may elect to contribute more
than the minimum as a voluntary contribution.
30. RELATED PARTY TRANSACTIONS
Material transactions between the Group and associated companies and other related parties which were carried
out in the normal course of business on commercial terms are summarised below:
2001 2000
Other Other
Associated related Associated related
companies parties companies parties
HK$M HK$M HK$M HK$M
Turnover 80
-
67
-
Aircraft maintenance costs 775 1,845 74 8 1,650
Route operating costs 189 607 195 673
Dividends received (77) (28) (65) (28)
Fixed assets purchase 10 12
-
61
(a) Other transactions with related parties
(i) Under an agreement between the 2 parties, the Company pays fees and reimburses costs to John Swire &
Sons Limited in exchange for services provided. Management services fees calculated at 2.5% of the
Group’s profit before tax, results of associated companies, minority interests, and any profits and losses on
disposal of fixed assets will be paid annually. Management fee paid for the year ended 31st December
2001 was HK$21 million (2000: HK$126 million) and expenses of HK$165 million (2000: HK$150 million)
were reimbursed at cost.
NOTES TO THE ACCOUNTS
-
DIRECTORS AND EMPLOYEES/RELATED PARTY TRANSACTIONS