Cathay Pacific 2007 Annual Report Download - page 71

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Notes to the Accounts
Balance Sheet
15. Retirement benefits (continued)
Group Company
2007
HK$M
2006
HK$M
2007
HK$M
2006
HK$M
Fair value of plan assets comprises:
Equities 6,542 5,070 6,002 4,724
Debt instruments 2,276 1,962 2,059 1,848
Deposits and cash 304 807 292 797
Others 9226 ––
9,131 8,065 8,353 7,369
The overall expected rate of return on plan assets is determined based on the average rate of return of major
categories of assets that constitute the total plan assets.
Group
2007
HK$M
2006
HK$M
2005
HK$M
2004
HK$M
2003
HK$M
Present value of funded obligations 8,223 7,844 7,341 7,227 6,326
Fair value of plan assets (9,131) (8,065) (7,387) (6,933) (6,061)
(Surplus)/deficit (908) (221) (46) 294 265
Actuarial losses/(gains) arising on plan liabilities 205 267 (132) 592 93
Actuarial gains arising on plan assets (990) (529) (179) (484) (984)
Company
2007
HK$M
2006
HK$M
2005
HK$M
2004
HK$M
2003
HK$M
Present value of funded obligations 7,549 7,196 6,818 6,825 5,938
Fair value of plan assets (8,353) (7,369) (6,833) (6,415) (5,609)
(Surplus)/deficit (804) (173) (15) 410 329
Actuarial losses/(gains) arising on plan liabilities 178 261 (216) 592 99
Actuarial gains arising on plan assets (893) (495) (171) (453) (910)
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$3 million to the schemes in 2008.
(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$23 million (2006: 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$576 million (2006: HK$487 million).
Cathay Pacific Airways Limited Annual Report 2007 69