Page 278 - Tata_Chemicals_yearly-reports-2020-2021

Integrated Annual Report 2020-21

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 31
January, 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 ` 6.55 crore (2020: ` 5.84 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 co-mingled 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.

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