Dear All,
I have encountered with an issue for gratuity valuation:
As on 31st march 2010, as per actuarial valuation the prov. we have created in our B/s is for Rs. 198416. Also we have a Group Gratuity scheme with LIC, wherein as on 31st March 2010 already deposited amount is Rs. 998416.
Now for upto 31st August 2010, LIC is asking for an amount to be deposited with them is say Rs. 10 over and above what has already been deposited,which they say as Current Service Cost + Add. contribution for existing fund for the period 1st Aug 2009 to 31st Aug. 2010.
Now my question is how much amount we shud deposit with LIC so that no rules/law gets violated.
Again as per actuarial valuation if the company winds up or discontinue then the amount we have to pay to our employees by way of gratuity is Rs. 21 lac.
Pls. advise on the correct amount to be deposited with LIC to maintain the fund value, which can be used to pay off the gratuity to employee who leaves the service and who has completed 5 yrs. of service.
Thanks in advance