1995 — Page 108

REPORT OF THE DIRECTORS

The most recent actuarial valuations of the two schemes were at 31 December 1994 which

showed that there were sufficient assets in the schemes to cover both the solvency and on-going liabilities of the schemes. Other relevant information extracted from the valuation pertaining to

the two schemes is set out below:

The KMB Monthly Rated Employees Provident Fund Scheme

i.

The scheme was established with effect from 15 February 1978.

ii.

iii.

The actuary of the scheme is Mr C K Cheung, Fellow of the Canadian Institute of Actuaries and

Fellow of the Society of Actuaries. In the actuarial valuation, the aggregate cost valuation method

was used. Other major assumptions used in the valuation were: Investment return and Salary

Escalation at 8% per annum; Mortality Rates 1981 Hong Kong Life Tables; Normal Retirement Age

65; and Service Related Withdrawal Rates.

The market value of the scheme assets at 31 December 1994 was HK$452.8 million.

iv.

The minimum level of funding as recommended by the actuary was 11.1% of pay.

V.

The on-going funding surplus in the scheme was HK$98.7 million and the solvency basis funding

surplus was HK$158.6 million as at 31 December 1994.

The KMB Daily Rated Employees Retirement Fund Scheme

i.

The scheme was established with effect from 1 July 1983.

ii.

iii.

The actuary of the scheme is Mr C K Cheung, Fellow of the Canadian Institute of Actuaries and

Fellow of the Society of Actuaries. In the actuarial valuation, the aggregate cost valuation method

was used. Other major assumptions used in the valuation were: Investment return and Salary

Escalation at 8% per annum; Mortality Rates 1981 Hong Kong Life Tables; Normal Retirement Age

60; and Service Related Withdrawal Rates.

The market value of the scheme assets at 31 December 1994 was HK$922.5 million.

iv. The minimum level of funding as recommended by the actuary was 3.7% of pay.

V.

The on-going funding surplus in the scheme was HK$296 million and the solvency basis funding

surplus was HK$448.7 million as at 31 December 1994.

THE KOWLOON MOTOR BUS COMPANY (1933) LIMITED

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