TPCC Annual Report 2008.indd - HeidelbergCement

Tanzania Portland Cement Company Ltd, Annual Report 2008
The company contributions during the year are as follows:
TZS ‘000 2008 2007
Endowment Scheme 289,310 238,520
Parastatal Pension Fund (PPF) 297,536 265,404
National Social Security Fund (NSSF) 109,618 72,857
52
696,464 576,781
At year-end the following amount was payable to the Jubilee Insurance Company. It relates to the December contribu-
tions and have subsequently been paid.
TZS ‘000 2008 2007
Endowment Scheme 26,064 90,642
In addition to the three defined contribution schemes above, the company has entered into a voluntary agreement with
Tanzania Union of Industrial and Commercial Workers (TUICO) of Tanzania Portland Cement Company to provide end-
of-service benefits to employees reaching retirement age. The retired employee is paid based on the length of service.
Also, the voluntary agreement provides for long-service awards paid in cement throughout the employment (every five
years). Both are unfunded defined benefit plans. The end-of-service benefit scheme is reported as post-employment
benefit, while the long-service award is reported as other long-term benefits. The cost of both are fully met by the Com-
pany.
At the end of 2008 the voluntary agreement was re-negotiated for another two years. Modifications to the defined ben-
efit plans resulted from both statutory (labour law) and negotiated changes. For the end-of-service benefit scheme the
past service cost resulting from these modifications is recognised on a straight-line basis over the average period until
the benefits become vested (13 years including 2008), while for the long-service award scheme all past service cost is
recognised immediately (ref IAS 19.96 and 19.127).