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73
Cathay Pacific Airways Limited Annual Report 2006
14. Retirement benefits (continued)
Group
2006
HK$M
2005
HK$M
2004
HK$M
2003
HK$M
2002
HK$M
Present value of funded obligations 7,844 7,341 7,227 6,326 5,937
Fair value of plan assets (8,065) (7,387) (6,933) (6,061) (4,574)
(Surplus)/deficit (221) (46) 294 265 1,363
Actuarial losses/(gains) arising on plan liabilities 267 (132) 592 93 314
Actuarial (gains)/losses arising on plan assets (529) (179) (484) (984) 703
Company
2006
HK$M
2005
HK$M
2004
HK$M
2003
HK$M
2002
HK$M
Present value of funded obligations 7,196 6,818 6,825 5,938 5,563
Fair value of plan assets (7,369) (6,833) (6,415) (5,609) (4,235)
(Surplus)/deficit (173) (15) 410 329 1,328
Actuarial losses/(gains) arising on plan liabilities 261 (216) 592 99 314
Actuarial (gains)/losses arising on plan assets (495) (171) (453) (910) 646
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. The Group
expects to make contributions of HK$265 million to the schemes in 2007.
(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 (2005: HK$12 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$487 million (2005: HK$386 million).
Notes to the Accounts Balance Sheet