The CPE continued to maintain an income of about $52 million and self-financing programmes/projects generated from teaching departments amounted to $45 million. The Master of Education programme, the Certificate (KG) programme and other projects commissioned by the Education and Manpower Bureau contributed significantly to this $45 million.

Expenditure
Expenditure for the year totalled $828 million, representing a significant decrease of $198 million from $1,026 million in 2004/05. Almost all of the reduction came from the decreased staffing expenditure. In order to keep the Institute's core activities intact, most other expenditure items were contained at a level similar to last year. Staff costs and benefits in 2005/06 reduced by about $72 million as compared with 2004/05, after excluding the effect brought about by the Voluntary Departure Scheme and Compulsory Redundancy Scheme for academic staff which was implemented in 2004/05. A smaller academic staff establishment following the reduction in student numbers, a lower provision for unutilised leave, and the unfilled senior academic positions all contributed to the reduction of the overall staff costs. In anticipation of the new "3+3+4" academic system, additional staff members to meet the double cohorts and to teach the new curriculum will be needed. Since this will not be an issue to the Institute but applies to all other UGC-funded institutions, the Council will subsequently address the issue of attracting new talents as well as retaining existing ones.

Superannuation Scheme
The Hong Kong Institute of Education Superannuation Scheme ("Superannuation Scheme") had 256 members and total net assets of $296 million as at 30 June 2006.

During the year, the sub-scheme A under the Superannuation Scheme (which was a hybrid scheme carrying both defined benefit features and defined contribution features) was given approval to be wound up in response to staff members' appeal. The winding up was conducted and completed after a series of discussions, consultations, surveys, and indications of preference amongst the concerned scheme members. Upon the winding up of the sub-scheme A in August 2006, all former Scheme A members transferred their account balances to the sub-scheme B under the Superannuation Scheme, which is a defined contribution scheme. It was through staff members' volition and management's hard work that the Institute managed to adopt an innovative mechanism for transferring the unit holdings, which avoided unnecessary selling and buying of investment units and thus minimised the out-of-market risk normally associated with such a transfer.

The Institute had 827 participants in the Mandatory Provident Fund scheme with an approximate total net asset value of $65 million as at 30 June 2006.