NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
16 NET EMPLOYEE RETIREMENT BENEFITS (LIABILITIES)/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 12.2% (2014: 13.6%) 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 recommendation based on annual actuarial valuations. The latest independent actuarial valuation of the plan was at 31 December 2015 and was prepared by qualified staff of Willis Towers Watson, 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 are fully (2014: 100%) 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:
(i)
The amounts recognised in the consolidated statement of financial position are as follows:
2015
2014
HK$'000
HK$'000
Present value of wholly or partly funded obligations
(41,039)
(40,434)
Fair value of plan assets
36,709
41,854
(4,330)
1,420
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 expect to pay HK$721,000 in contributions to defined benefit retirement plan in 2016.
Hong Kong Ferry (Holdings) Company Limited Annual Report 2015