Cathay Pacific 2008 Annual Report Download - page 74

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Notes to the Accounts STATEMENT OF FINANCIAL POSITION
17. Retirement benefits (continued)
Group Company
2008
HK$M
2007
HK$M
2008
HK$M
2007
HK$M
Fair value of plan assets comprises:
Equities 3,717 6,542 3,396 6,002
Debt instruments 1,780 2,276 1,616 2,059
Deposits and cash 427 304 414 292
Others –9––
5,924 9,131 5,426 8,353
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
2008
HK$M
2007
HK$M
2006
HK$M
2005
HK$M
2004
HK$M
Present value of funded obligations 7,108 8,223 7,844 7,341 7,227
Fair value of plan assets (5,924) (9,131) (8,065) (7,387) (6,933)
Deficit/(surplus) 1,184 (908) (221) (46) 294
Actuarial (gains)/losses arising on plan liabilities (1,324) 205 267 (132) 592
Actuarial losses/(gains) arising on plan assets 3,368 (990) (529) (179) (484)
Company
2008
HK$M
2007
HK$M
2006
HK$M
2005
HK$M
2004
HK$M
Present value of funded obligations 6,522 7,549 7,196 6,818 6,825
Fair value of plan assets (5,426) (8,353) (7,369) (6,833) (6,415)
Deficit/(surplus) 1,096 (804) (173) (15) 410
Actuarial (gains)/losses arising on plan liabilities (1,210) 178 261 (216) 592
Actuarial losses/(gains) arising on plan assets 3,070 (893) (495) (171) (453)
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$726 million to the schemes in 2009.
(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 their monthly salary. During the year, the benefits forfeited in accordance with the schemes’ rules
amounted to HK$26 million (2007: HK$23 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 are HK$655 million
(2007: HK$576 million).
72 Cathay Pacific Airways Limited Annual Report 2008