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28. Employee Benefits - AS 15 (revised 2005)
28.1 The Bank has provided the liability towards employee benefits for Gratuity, Leave
Encashment, Medical Retirement Benefits, Leave Travel Concession, and Pension on
actuarial basis for its permanent employees in accordance with the AS-15 (revised 2005)
issued by Institute of Chartered Accountants of India.
28.2 The Bank is transferring contribution of provident fund to Reserve Bank of India and
other parent organizations in respect of employees including who are on deputation
from Reserve Bank of India/Other banks. During the year ended June 30, 2021, the
Bank has contributed ` 0.09 crores as compared to 0.05 Crores in the Previous year to
Provident Fund and has charged the same to Profit and Loss Account under the head
‘Staff Salaries, Allowances and Terminal Benefits’.
28.3 As per National Housing Bank (Employees’) Pension Regulations, 2003, the Bank
provides for pension, a defined benefit retirement plan covering all employees who have
opted for pension plan. The scheme provides a monthly pension payment to employees
on retirement or termination of employment as per Service Regulation. The scheme is
managed by a separate trust and the liability for the same is recognized on the basis of
actuarial valuation as on June 30, 2021 is ` 6.03 crores as compared to 4.22 Crores in the
Previous year in addition to Bank’s monthly contribution to the fund.
28.4 The employees, who have joined the services of the Bank on or after 1st April, 2010 are
governed by a Defined Contributory Pension Scheme, which shall be governed by the
provision of the Contributory Pension Scheme introduced for officers of the Central
Government w.e.f. 1st January, 2004 and as modified from time to time. During the year,
the employees have contributed 0.96 crores as compared to 0.88 Crores in the Previous
year under the Scheme and the Bank has also provided for equivalent contribution for
the same.
28.5 Defined benefit Obligations: Gratuity, Leave Encashment, Medical Retirement benefits,
Leave Travel Concession and Pension payable to employees as on June 30, 2021. The
liability, wherever, necessary has been accounted for on actuarial valuation.
a) Methodology used in actuary calculation: Actuary has used the Projected Unit Credit
actuarial Method to assess the plan’s liabilities as prescribed in the accounting
standard. Liabilities have been determined in accordance with generally accepted
actuarial principles and procedures.
298 | Annual Report 2020-21
28.1 The Bank has provided the liability towards employee benefits for Gratuity, Leave
Encashment, Medical Retirement Benefits, Leave Travel Concession, and Pension on
actuarial basis for its permanent employees in accordance with the AS-15 (revised 2005)
issued by Institute of Chartered Accountants of India.
28.2 The Bank is transferring contribution of provident fund to Reserve Bank of India and
other parent organizations in respect of employees including who are on deputation
from Reserve Bank of India/Other banks. During the year ended June 30, 2021, the
Bank has contributed ` 0.09 crores as compared to 0.05 Crores in the Previous year to
Provident Fund and has charged the same to Profit and Loss Account under the head
‘Staff Salaries, Allowances and Terminal Benefits’.
28.3 As per National Housing Bank (Employees’) Pension Regulations, 2003, the Bank
provides for pension, a defined benefit retirement plan covering all employees who have
opted for pension plan. The scheme provides a monthly pension payment to employees
on retirement or termination of employment as per Service Regulation. The scheme is
managed by a separate trust and the liability for the same is recognized on the basis of
actuarial valuation as on June 30, 2021 is ` 6.03 crores as compared to 4.22 Crores in the
Previous year in addition to Bank’s monthly contribution to the fund.
28.4 The employees, who have joined the services of the Bank on or after 1st April, 2010 are
governed by a Defined Contributory Pension Scheme, which shall be governed by the
provision of the Contributory Pension Scheme introduced for officers of the Central
Government w.e.f. 1st January, 2004 and as modified from time to time. During the year,
the employees have contributed 0.96 crores as compared to 0.88 Crores in the Previous
year under the Scheme and the Bank has also provided for equivalent contribution for
the same.
28.5 Defined benefit Obligations: Gratuity, Leave Encashment, Medical Retirement benefits,
Leave Travel Concession and Pension payable to employees as on June 30, 2021. The
liability, wherever, necessary has been accounted for on actuarial valuation.
a) Methodology used in actuary calculation: Actuary has used the Projected Unit Credit
actuarial Method to assess the plan’s liabilities as prescribed in the accounting
standard. Liabilities have been determined in accordance with generally accepted
actuarial principles and procedures.
298 | Annual Report 2020-21
