Page 216 - Tata_Chemicals_yearly-reports-2019-20

38. Employee benefits obligations
(a) The Company makes contributions towards provident fund, in substance a defined benefit retirement plan and towards pension
fund and superannuation fund which are defined contribution retirement plans for qualifying employees. The provident fund is
administered by the Trustees of the Tata Chemicals Limited Provident Fund and the superannuation fund is administered by the
Trustees of the Tata Chemicals Limited Superannuation Fund. The Company is liable to pay to the provident fund to the extent of the
amount contributed and any shortfall in the fund assets based on Government specified minimum rates of return relating to current
services. The Company recognises such contribution and shortfall if any as an expense in the year incurred.

On account of the above contribution plans, a sum of ` 10.00 crore (2019: ` 11.78 crore) has been charged to the Standalone
Statement of Profit and Loss.

(b) The Company makes annual contributions to the Tata Chemicals Employees' Gratuity Trust and to the Employees' Group Gratuity-
cum-Life Assurance Scheme of the Life Insurance Corporation of India, for funding the defined benefit plans for qualifying employees.
The scheme provides for lump sum payment to vested employees at retirement or death while in employment or on termination of
employment. Employees, upon completion of the vesting period, are entitled to a benefit equivalent to either half month, three fourth
month and full month salary last drawn for each completed year of service depending upon the completed years of continuous
service in case of retirement or death while in employment. In case of termination, the benefit is equivalent to fifteen days salary last
drawn for each completed year of service in line with the Payment of Gratuity Act, 1972. Vesting occurs upon completion of five years
of continuous service.

The Company also provides post retirement medical benefits to eligible employees under which employees at Mithapur who
have retired from service of the Company are entitled for free medical facility at the Company hospital during their lifetime. Other
employees are entitled to domiciliary treatment exceeding the entitled limits for the treatments covered under the Health Insurance
Scheme upto slabs defined in the scheme. The floater mediclaim policy also covers retired employees based on eligibility, for such
benefit.

The Company provides pension, housing / house rent allowance and medical benefits to retired Managing and Executive Directors
who have completed ten years of continuous service in Tata Group and three years of continuous service as Managing Director/
Executive Director or five years of continuous service as Managing Director/Executive Director. The directors are entitled upto seventy
five percent of last drawn salary for life and on death 50% of the pension is payable to the spouse for the rest of his/her life.

Family benefit scheme is applicable to all permanent employees in management, officers and workmen who have completed one
year of continuous service. In case of untimely death of the employee, nominated beneficiary is entitled to an amount equal to the
last drawn salary (Basic Salary, DA and FDA) till the normal retirement date of the deceased employee.

The most recent actuarial valuations of plan assets and the present values of the defined benefit obligations were carried out at
March 31, 2020. The present value of the defined benefit obligations and the related current service cost and past service cost, were
measured using the Projected unit Credit Method.

214 I INTEGRATED ANNuAL REPORT 2019-20