23 PENSION OBLIGATIONS
Group
2015
2014
HK$’000
HK$’000
Defined benefit plans
Pension obligations
200,269
144,079
The Group operates a number of defined benefit and defined contribution plans, the assets of which are held independently
of the Group’s assets in trustee administered funds.
(a) Defined benefit plans
The Group’s defined benefit plans in Hong Kong are a contributory final salary pension plan and a non-contributory
guaranteed return defined contribution plan. The Group’s plans were valued by Towers Watson Hong Kong Limited, qualified
actuaries at 31 December 2015 and 31 December 2014 using the projected unit credit method to account for the pension
accounting costs in accordance with HKAS 19 (2011) “Employee Benefits”.
The principal actuarial assumptions used for accounting purposes are as follows:
2015
2014
Percentage
Percentage
Discount rate
1.20 – 1.50
1.50 – 1.90
Future salary increases
4.00
4.00
Interest credited on plan accounts
5.00 – 6.00
5.00 – 6.00
The amounts recognised in the consolidated statement of financial position are determined as follows:
2015
2014
HK$’000
HK$’000
Present value of defined benefit obligations
1,368,791
1,300,081
Fair value of plan assets
(1,168,522)
(1,156,002)
Net defined benefit liabilities
200,269
144,079
Notes to the
Financial Statements
OPTIMISING FOR THE FUTURE
102
