142
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
16
NET EMPLOYEE RETIREMENT BENEFITS LIABILITIES (Continued)
(a)
Defined benefit retirement plan (Continued)
(v)
(Continued)
(vi)
The current service cost, the net income on defined benefit liability and the administrative expenses paid are recognised in the following item in the consolidated statement of profit or loss:
Administrative expenses
2018
HK$'000
2017
HK$'000
1,337
1,346
Significant actuarial assumptions (expressed as weighted averages) and sensitivity analysis are as
follows:
Discount rate
Long-term salary increase rate
2018
2017
1.9%
3.5%
1.7%
3.5%
The below analysis shows how the net defined benefit liability would have (increased)/decreased as a result of 0.25% change in the significant actuarial assumptions:
Discount rate
Future salary
Increase in 0.25%
2018
HK$'000
2017
HK$'000
Decrease in 0.25%
2018
HK$'000
2017
HK$'000
611
(587)
677
(649)
(628)
574
(697)
634
The above sensitivity analysis is based on the assumption that changes in actuarial assumptions are not correlated and therefore it does not take into account the correlations between the actuarial
assumptions.
(b) Defined contribution retirement plan
The Group also operates a Mandatory Provident Fund Scheme (the "MPF Scheme") under the Hong Kong Mandatory Provident Fund Schemes Ordinance for employees employed under the jurisdiction of the Hong Kong Employment Ordinance and not previously covered by the defined benefit retirement plan. The MPF scheme is a defined contribution retirement plan administered by independent trustees. Under the MPF scheme, the employer and its employees are each required to make contributions to the plan at 5% of the employees' relevant income, subject to a cap of monthly relevant income of HK$30,000. Contributions to the plan vest immediately.
Hong Kong Ferry (Holdings) Company Limited Annual Report 2018