Consolidated - CHUNGHWA PICTURE TUBES, LTD.

(12) Accrued pension liability and deferred pension cost
Funded defined benefit pension plan:
a. The Company has a funded defined benefit pension plan covering all regular employees effective from
October 1996; as required by the ROC Labor Standard Law, the Company makes monthly contributions
to a pension fund at certain percentage of salaries paid. The pension fund is administered by the
employee committee and deposited, in the committee's name, with Central Trust of China, a ROC
government entity.
b. The details of net periodic pension cost for the years ended December 31, 2003 and 2004 are as follows:
2003 2004
Employee service cost $146,121 $158,087
Interest cost 80,124 54,642
Expected return on plan assets (12,370) (8,088)
Amortization of net transition obligation 33,746 33,746
Amortization of prior service cost 66,634 -
Amortization of actuarial gain or loss 9,669 10,610
Total $323,924 $248,997
c. The funded status as of December 31, 2003 and 2004:
December 31,
2003 2004
Pension obligation
Vested $101,480 $216,800
Non-Vested 1,854,564 1,915,577
Accumulated benefit obligation 1,956,044 2,132,377
Additional benefits based on future salaries 229,619 526,017
Projected benefit obligation 2,185,663 2,658,394
Fair value of plan assets (323,506) (437,950)
Funded status 1,862,157 2,220,444
Unamortized net transition obligation (236,221) (202,475)
Unrealized loss on pension assets (388,330) (680,394)
Deferred pension cost 236,221 202,475
Excess of additional pension liability over unrecognized
prior service cost 158,711 154,376
Accrued pension liability 1,632,538 1,694,426
Less: current portion (93,772) (182,436)
Long-term portion-net of current portion $1,538,766 $1,511,990
d. The major actuarial assumptions are as follows:
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