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67
Cathay Pacific Airways Limited Annual Report 2005
14. Retirement benefits (continued)
Group Company
2005 2004 2005 2004
HK$M HK$M HK$M HK$M
Movements in net retirement benefit
liability comprise:
At 1st January 102 181 166 224
Movements for the year
– net expenses recognised in the profit and
loss account 267 380 246 373
– contributions paid (297) (459) (285) (431)
At 31st December 72 102 127 166
2005 2004
HK$M HK$M
Net expenses recognised in the Group profit and loss account:
Current service cost 382 454
Interest on obligations 297 287
Expected return on plan assets (411) (361)
Actuarial gain recognised (1) –
Total included in staff costs 267 380
Actual return on plan assets 590 845
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$12 million (2004: HK$11 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$386 million (2004: HK$351 million).
Notes to the Accounts Balance Sheet