NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
17
EMPLOYEE BENEFITS ASSETS (Continued)
(a)
Defined benefit retirement plan (Continued)
(vi) Significant actuarial assumptions (expressed as weighted averages) and sensitivity analysis are as follows:
(b)
Discount rate
Future salary increases
- 2014
- 2015 and onwards
The Group and the Company
2014
HK$'000
2013
HK$'000
1.4%
1.6%
3.5%
3.5%
3.5%
3.5%
The below analysis shows how the defined benefit asset as at 31 December 2014 would have increased/ (decreased) as a result of 0.25% change in the significant actuarial assumptions:
Discount rate
Future salary increases
Increase
in 0.25%
Decrease
2014
HK$'000
2013
HK$'000
in 0.25%
2014
HK$'000
2013
HK$'000
(502)
(543)
516
558
434
475
(425)
(465)
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.
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 (HK$25,000 prior to June 2014). Contributions to the plan vest immediately.
Hong Kong Ferry (Holdings) Company Limited Annual Report 2014
87
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