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Hong Kong Ferry (Holdings) Company Limited Annual Report 2013

Notes to the Accounts (Continued)

17 EMPLOYEE BENEFITS ASSETS

(a) Defined benefit retirement plan

The Group makes contributions to a defined benefit retirement plan registered under the Occupational

Retirement Schemes Ordinance (Chapter 426 of the Laws of Hong Kong) ("ORSO"), which covers 14.6% (2012:

15.1%) of the Group's employees. The plan is administered by independent trustees with their assets held

separately from those of the Group.

The plan is funded by contributions from the Group in accordance with an independent actuary's

recommendations based on annual actuarial valuations. The latest independent actuarial valuation of the plan was at 31 December 2013 and was prepared by qualified staff of Towers Watson Hong Kong Limited, who

are members of recognised actuarial bodies, using the projected unit credit method. The actuarial valuation

indicates that the Group's obligations under the defined benefit retirement plan were fully covered by the plan

assets held by the trustees.

The plan exposes the Group to actuarial risks, such as interest rate risk, investment risk and longevity risk. Information about the plan is disclosed below:

(0

The amounts recognised in the balance sheets are as follows:

The Group and the Company

2013

2012

HK$'000

HK$'000

Restated

Present value of wholly or partly funded obligations

(38,973)

(41,746)

Fair value of plan assets

43,080

46,548

4,107

4,802

The plan assets do not include any share issued by the Company or any property occupied by the Group.

A portion of the above liability is expected to be settled after more than one year. However, it is not practicable to segregate this amount from the amounts payable in the next twelve months, as future contributions will also relate to future services rendered and future changes in actuarial assumptions and market conditions. The Group does not expect to pay contributions to defined benefit retirement plan in 2014.

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