Annual Report 2023

179 2023 Annual Report Transport International Holdings Limited Directors’ Report Senior management The Executive Director of the Company, Mr Roger Lee Chak Cheong, is a member of the senior management of the Group whose brief particulars are set out on page 163 of this Annual Report. Staff retirement schemes The Group operates two separate non-contributory defined benefit retirement schemes, The Kowloon Motor Bus Company (1933) Limited Monthly Rated Employees Provident Fund Scheme (“The KMB Monthly Rated Employees Scheme”) and The Kowloon Motor Bus Company (1933) Limited Daily Rated Employees Retirement Fund Scheme (“The KMB Daily Rated Employees Scheme”), and participates in a defined contribution retirement scheme, SHKP MPF Employer Sponsored Scheme. (a) Defined benefit retirement schemes The Group makes contributions to two defined benefit retirement schemes that provide pension benefits for employees upon retirement. The schemes are administered by an independent trustee and the assets are held separately from those of the Group. Both schemes are formally established under trust and are registered under the Occupational Retirement Schemes Ordinance. The members’ benefits are determined based on the employees’ final remuneration and length of service. Contributions to the defined benefit retirement schemes are made in accordance with the recommendations of independent actuaries who value the retirement schemes at regular intervals. The most recent actuarial valuations of the two schemes were at 31 December 2023 which showed that there were sufficient assets in the schemes to cover both the solvency and ongoing 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 Scheme (i) The scheme was established with effect from 15 February 1978. (ii) The actuary of the scheme is Ms Wing Lui, Fellow of the Society of Actuaries of the United States of America. In the actuarial valuation, the attained age valuation method was used (see note below) for calculation of contributions paid to the scheme. Other major assumptions used in the valuation were: salary escalation at 4.0% per annum; mortality rates 2022 Hong Kong Life Tables; and normal retirement age of 65. (iii) The market value of the scheme assets at 31 December 2023 was HK$876,184,000 (2022: HK$860,246,000). (iv) On the basis of the assumptions made as to the future economic and demographic experience of the scheme, and assuming the past service surplus is to be utilised faster to offset the Group’s contribution requirement, the Group took a contribution holiday for the years ended 31 December 2023 and 2022. (v) The ongoing funding surplus in the scheme was HK$501,802,000 (2022: HK$485,838,000) and the solvency surplus was HK$506,705,000 (2022: HK$485,901,000) at 31 December 2023.