16
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
NET EMPLOYEE RETIREMENT BENEFITS LIABILITIES
(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), which covers 10.8% (2017: 11.2%) 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 2018 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 89.6% (2017: 91.9%) of the Group's obligations under the defined benefit retirement plan are 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:
2018
HK$'000
2017
HK$'000
Present value of wholly or partly funded obligations Fair value of plan assets
(38,643)
(37,109)
34,640
34,085
(4,003)
(3,024)
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 expects to pay HK$712,000 in contributions to defined benefit retirement plan in 2019.
Hong Kong Ferry (Holdings) Company Limited
139
Annual Report 2018
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