Page 275 - Group Insurance and Retirement Benefit IC 83 E- Book

224 AS 15

The Group expects to contribute Rs. 900 to its defined benefit pension
plans in 20X6-X7.

The major categories of plan assets as a percentage of total plan assets
are as follows:

Defined benefit Post-employment
pension plans medical benefits
20X5-X6 20X4-X5 20X5-X6 20X4-X5

Government of India Securities 80% 82% 78% 81%

High quality corporate bonds 11% 10% 12% 12%

Equity shares of listed companies 4% 3% 10% 7%

Property 5% 5% - -

Principal actuarial assumptions at the balance sheet date (expressed as
weighted averages):

20X5-X6 20X4-X5
Discount rate at 31 March 5.0% 6.5%

Expected return on plan assets at 31 March 5.4% 7.0%

Proportion of employees opting for early
retirement 30% 30%

Annual increase in healthcare costs 8% 8%

Future changes in maximum state health
care benefits 3% 2%

The estimates of futuresalaryincreases, considered in actuarial valuation,
take account of inflation, seniority, promotion and other relevant factors,
such as supply and demand in the employment market.

Assumed healthcare cost trend rates have a significant effect on the
amounts recognised in the statement of profit and loss. At present,
healthcare costs, as indicated in the principal actuarial assumption given