Page 296 - Tata_Chemicals_yearly-reports-2019-20

contribution rates with agreement from tCel after taking advice from the independent actuary. the most recent triennial
valuation was performed at december 31, 2017, and a payment schedule was agreed between the trustees of the pension
scheme and tCel whereby tCel will make contributions towards the deficit in the fund from december 2017 to March 2041.
tCel will also continue to make contributions towards the expenses of the fund.
the present value of the defined benefit obligation was measured using the projected unit method. the projected unit method
is an accrued benefits valuation method in which the scheme liabilities make allowance for projected benefit increases for
employed members. the assumptions which had the most significant effect on the results of the valuation were those relating
to investment returns and price inflation.
Defined benefit scheme - British Salt Limited (‘BSL’)
BSl operates defined benefit pension arrangements in the uK. eligible employees of the salt business were members of the British
Salt retirement Income and life assurance plan (‘rIla’) which was closed to future accrual and new members on January 31, 2008.
rIla is funded by the payment of contributions to a separately administered trust fund. the fund is valued every three
years using the projected unit method by an independent, professionally qualified actuary. the trustees of the fund set the
contribution rates with agreement from the BSl after taking advice from the independent actuary. the most recent triennial
valuation was performed at december 31, 2017 and a payment schedule was agreed between the trustees and BSl whereby
BSl will make contributions which aim to cover the expenses of the scheme.
the present value of the defined benefit obligation was measured using the projected unit method. the assumptions which
had the most significant effect on the results of the valuation were those relating to investment returns and price inflation.

(ii) USA subsidiaries - Tata Chemicals North America and its subsidiaries (‘TCNA’)
tCna also sponsor defined contribution retirement savings plans. participation in one of these plans is available to substantially
all represented and non-represented employees. tCna matches employee contributions up to certain predefined limits for
non-represented employees based upon eligible compensation and the employee’s contribution rate.
tCna’s contribution to these plans was ` 5.84 crore (2019: ` 5.56 crore).
Pension plans and other post retirement benefit
tCna maintains several defined benefit pension plans covering hourly employees hired/rehired on or before June 30, 2017
and salaried employees hired/rehired on or before September 6, 2016 . a participating employee’s annual post retirement
pension benefit is determined by the employee’s credited service and, in most plans, final average annual earnings with the
tCna. Vesting requirements are five years. tCna’s funding policy is to annually contribute the statutorily required minimum
amount as actuarially determined. tCna also maintains several plans providing non-pension post retirement benefits covering
substantially all hourly and certain salaried employees. tCna funds these benefits on a pay-as-you-go basis.

Plan assets
the assets of tCna’s defined benefit plans are managed on a commingled basis in a Master trust. the investment policy and
allocation of the assets in the Master trust were approved by tCna’s Investment Committee, which has oversight responsibility
for the retirement plans.
the pension fund assets are invested in accordance with the statement of Investment policies and procedures adopted by
tCna, which are reviewed annually. pension fund assets are invested on a going-concern basis with the primary objective
of providing reasonable rates of return consistent with available market opportunities, a quality standard of investment, and
moderate levels of risk.

294 I Integrated annual report 2019-20