Dear friends,
Supreme Court in its judgement dated 14th August 2013 (copy attached) has held that pension and gratuity cannot be withheld during pendency of departmental/criminal proceedings under executive instructions in the absence of any provision in the pension rules.
The court has held that the right to receive pension is recognised as right to property and a person cannot be deprived of his pension without authority of law which is constitutional mandate in Article 300-A of the constitution. The court has held that executive instructions do not have statutory character and cannot be termed as law within the meaning of Article 300A. [State of Jharkhand v. Jitendra Kumar Srivastava, Civil Appeal No.6770 of 2013 decided on 14th August 2013].
25th August 2013 From India, Malappuram

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File Type: pdf SC on withholding of pension & gratuity 14.8.2013.pdf (235.2 KB, 1457 views)

Manager To Actuary
Raj Kumar Hansdah
Shrm, Od, Hrd, Pms

Thanks for the contribution !!!
Its a great judgement and must be highly appreciated by all concerned.
It provides relief from misery and hardships to families of innocent employees, which suffer as these cases/proceedings continue for years, after which the ex-employee gets exonerated.
Warm regards.
28th August 2013 From India, Delhi
Accounting & Disclosure for Employee Benefits in Compliance of

Accounting Standard (AS) 15 (revised 2005)


Accounting Standard (AS) 15 (revised 2005) is issued by the Institute of Chartered Accountants of India and is mandatory in nature (refer to the text of the standard for details).

The objective of the standard is to prescribe accounting and disclosure for employee benefits. The statement requires an enterprise to recognize:-

A liability when an employee has provided service in exchange for employee benefits to be paid in the future; and

An expense when the enterprise consumes the economic benefit arising from service provided by an employee in exchange for employee benefits.

Employee Benefits fall under 2 type of plans:- Defined Contribution Plans and Defined Benefit Plans.

Employee Benefits are further classified as:-

Short Term Employee Benefits

Post Employment Benefits such as Gratuity, Pension, Other Retirement Benefits, Post-Employment Life Insurance and Post-Employment Medical Care;

Other Long-Term Employee Benefits, including long-service leave or sabbatical leave, jubilee or other long-service benefits, long-term disability benefits and, if they are not payable wholly within twelve months after the end of the period, profit-sharing, bonuses and deferred compensation; and

Termination Benefits

Because each category identified above has different characteristics, this statement establishes separate requirements for each category.

Broadly Employee Benefits fall into following categories :

Defined Contribution Benefits &

Defined benefit benefits:- Defined benefit benefits are other than defined contribution Benefits. ﴾Refer to Definitions-Paragraph 7 of AS-15 (Revised). ﴿

Accounting and Disclosure requirements for Defined Benefits need the skill of an Actuary.

Most common Defined Benefits relevant in the Indian context which need the services of an actuary for compliance of the accounting standard, whilst finalizing the financial statements are:-


Compensated Absences (Earned Leave)

Compensated Absences (Sick Leave)

Post Retirement Medical Benefits

Superannuation (Pension Benefits), Etc.

Frequent items to be conversant with the subject are:-

Projected Unit Credit Method (PUC)

Present Value of Obligation

Current Service Cost

Interest Cost

Actuarial Gains/Losses

Employer’s Expense

Experience Adjustment on Plan Liabilities

Experience Adjustment on Plan Assets

Current & Non-Current Liabilities

We provide actuarial services for compliance of the standards :-

AS-15 (Revised 2005)

Ind AS – 19



We have expertise, experience and in-depth knowledge in this field. We have a large clientele spread in almost all sectors of the economy in Public and Private Sectors including Multinational Companies, Limited Companies, Schools, Hospitals, Banks, Electricity/Power Companies etc. etc.

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8th October 2016 From India, Delhi
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