28.  PENSION PLANS Chunghwa completed privatization plans on August 12, 2005. Chunghwa is required to pay all accrued pension obligations  including service clearance payment, lump sum payment under civil service plan, additional separation payments, etc. upon  the completion of the privatization in accordance with the Statute Governing Privatization of Stated-owned Enterprises. After  paying all pension obligations for privatization, the plan assets of Chunghwa should be transferred to the Fund for Privatization  of Government-owned Enterprises (the “Privatization Fund”) under the Executive Yuan. On August 7, 2006, Chunghwa  transferred the remaining balance of fund to the Privatization Fund. However, according to the instructions of MOTC,  Chunghwa is requested to pay all accrued pension obligations including service clearance payment, lump sum payment under  civil service plan, additional separation payments, etc. on behalf of MOTC upon the completion of the privatization. The pension plan under the Labor Pension Act of ROC (the “LPA”) is considered as a defined contribution plan. Based on the  LPA, Chunghwa and its subsidiaries make monthly contributions to employees’ individual pension accounts at 6% of monthly  salaries and wages. The Company’s pension plan is considered as a defined benefit plan under the Labor Standards Law that provide benefits based  on an employee’s length of service and average six-month salary prior to retirement. Chunghwa and its subsidiaries contribute  an amount no more than 15% of salaries paid each month to their respective pension funds (the Funds), which are administered  by the Labor Pension Fund Supervisory Committee (the Committee) and deposited in the names of the Committees in the Bank  of Taiwan.  The Company used December 31 as the measurement date for their pension plans.  Pension costs of the Company were NT$2,948 million (NT$2,737 million subject to defined benefit plan and NT$211 million  subject to defined contributed plan), NT$2,982 million (NT$2,752 million subject to defined benefit plan and NT$230 million  subject to defined contribution plan) and NT$3,057 million (NT$2,810 million subject to defined benefit plan and NT$247  million subject to defined contributed plan) for the years ended December 31, 2009, 2010 and 2011, respectively. Pension information of the Company of the defined benefit plan is summarized as follows: Year Ended December 31 2009 2010 2011 NT$ NT$ NT$ (In Millions) Service cost $  2,695 $  2,694 $  2,760 Interest cost 189 242 266 Expected return on plan assets (144) (183) (215) Amortizations (3) (1) (1) Net periodic benefit pension cost $  2,737 $  2,752 $  2,810 PART III a.  Components of net periodic pension cost F-46