the group rsquo s obligations are 106 2009 97 covered by the plan assets held by the 600809

The Group’s obligations are 106% (2009: 97%) covered by the plan assets held by the trustees as at 31st December 2010.

The overall expected rate of return on plan assets is determined based on the average rate of return of major categories of assets that constitute the total plan assets.

The difference between the fair value of the schemes’ assets and the present value of the accrued past services liabilities at the date of an actuarial valuation is taken into consideration when determining future funding levels in order to ensure that the schemes will be able to meet liabilities as they become due. The contributions are calculated based upon funding recommendations arising from actuarial valuations. The Group expects to make contributions of HK$378 million to the schemes in 2011.

(b) Defined contribution retirement schemes

Staff employed by the company in Hong Kong are eligible to join a defined contribution retirement scheme, the CPA Provident Fund.

Under the terms of the schemes, other than the Company contribution, staff may elect to contribute from 0% to 10% of their monthly salary. During the year, the benefits forfeited in accordance with the schemes’ rules amounted to HK$18 million (2009: HK$ 19 million) which have been applied toward the contributions payable by the Company.

A mandatory provident fund (“MPF”) scheme was established under the MPFSO in December 2000. Where staff elect to join the MPF scheme, the Company and staff are required to contribute 5% of the employee’s relevant income (capped at HK$20 000). Staff may elect to contribute more than the minimum as a voluntary contribution.

Contributions to defined contribution retirement schemes charged to the Group profit and loss are HK$756 million (2009: HK$677 million).