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54 Cathay Pacific Airways Limited 2004 Annual Report
15. RETIREMENT BENEFITS
(continued)
Group Company
2004 2003 2004 2003
HK$M HK$M HK$M HK$M
Movements in net retirement benefit liability
comprise:
At 1st January 181 346 224 368
Movements for the year
– Net expenses recognised in the profit
and loss account 380 450 373 432
– Contributions paid (459 ) (615 ) (431 ) (576 )
At 31st December 102 181 166 224
2004 2003
HK$M HK$M
Net expenses recognised in the Group profit and loss account:
Current service cost 454 409
Interest on obligations 287 272
Expected return on plan assets (361 ) (273 )
Actuarial loss recognised – 42
Total included in staff costs 380 450
Actual return on plan assets 845 1,257
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.
(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$11
million (2003: HK$9 million) which have been applied towards the contributions payable by the Company.
A mandatory provident fund (“MPF”) scheme was established under the MPFSO in December 2000. Where staff elect to join the MPF
scheme, 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.
Contributions to defined contribution retirement schemes charged to the Group profit and loss account are HK$351 million
(2003: HK$320 million).
Notes to the Accounts – Balance Sheet