Qantas 2006 Annual Report Download - page 104

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102
Notes to the Financial Statements
for the year ended 30 June 2006
24. Superannuation
Qantas Group Qantas
2006
$M
2005
$M
2006
$M
2005
$M
CHANGES IN THE PRESENT VALUE OF THE DEFINED BENEFIT OBLIGATION
Opening defined benefit obligation 2,042.9 1,789.0 2,042.9 1,789.0
Current service cost 164.5 140.8 164.5 140.8
Interest cost 92.6 96.2 92.6 96.2
Actuarial (gains)/losses (112.2) 98.5 (112.2) 98.5
Exchange differences on foreign plans 8.3 (17.8) 8.3 (17.8)
Benefits paid (154.3) (63.8) (154.3) (63.8)
Closing defi ned benefi t obligation 2,041.8 2,042.9 2,041.8 2,042.9
CHANGES IN THE FAIR VALUE OF PLAN ASSETS
Opening fair value of plan assets 2,077.9 1,712.6 2,077.9 1,712.6
Expected return 136.9 124.4 136.9 124.4
Actuarial gains 179.7 180.1 179.7 180.1
Exchange differences on foreign plans 6.6 (12.9) 6.6 (12.9)
Contributions by employer 135.7 109.6 135.7 109.6
Contributions by plan participants 28.5 27.9 28.5 27.9
Benefits paid (154.3) (63.8) (154.3) (63.8)
Closing fair value of plan assets 2,411.0 2,077.9 2,411.0 2,077.9
EXPENSE RECOGNISED IN THE INCOME STATEMENT
Service cost 148.2 125.0 148.2 125.0
Interest cost 92.6 96.2 92.6 96.2
Members’ contribution (28.5) (27.9) (28.5) (27.9)
Expected return on plan assets (136.9) (124.4) (136.9) (124.4)
Actuarial losses 0.1 –0.1 –
Increase in allowance for contributions tax on net liability 12.9 12.3 12.9 12.3
Expenses 3.3 3.3 3.3 3.3
Total included in employee benefi t91.784.5 91.7 84.5
THE MAJOR CATEGORIES OF PLAN ASSETS AS A PERCENTAGE OF TOTAL PLAN
ASSETS ARE AS FOLLOWS:
%%%%
Equity instruments 73 73 73 73
Debt instruments 19 20 19 20
Property 8787
The Qantas Superannuation Plan (QSP) is a hybrid defined benefit/defined contribution fund within 13 separate divisions which commenced operation in June
1939. The total fund value as at 30 June 2006 is $5.8 billion. In addition to the QSP there are a number of small offshore defined benefit plans. The Australian
Airlines Flight Engineers’ Superannuation Plan was wound up with effect from 1 July 2005.
The Qantas Group makes contributions to defi ned benefi t superannuation plans that provide defi ned benefi t amounts for employees upon retirement. Under the
plans, employees are entitled to retirement benefi ts determined, at least in part, by reference to a formula based on years of membership and salary levels. The
total plan assets include fi nancial instruments issued by Qantas with a fair value of $15.1 million (2005: $26.7 million). Plan assets also include an investment
in a Trust which owns a 50 per cent interest in property occupied by the Qantas Group. The value of this investment is $17.4 million (2005: $10.0 million).