Defined Benefit Pension Plan

3 Months Ended

Sep. 30, 2019

Defined Benefit Pension Plan

Defined Benefit Pension Plan

NOTE 11 – Defined Benefit Pension Plan

The Bank’s Defined Benefit Pension Plan (the “Plan”) covers substantially all employees hired prior to March 31, 2012. The benefits are based on years of service and the employee’s average monthly pay received during the five highest consecutive calendar years in the last 10 years of employment under the Plan. Management contributes annually the amounts necessary to provide for defined benefit payments upon retirement or death as determined by the Plan’s actuary. The defined benefit pension plan was frozen effective March 31, 2012 for all employees. No additional benefits are being accrued for active participants after this date, and no new participants will be entered into the Plan.

In accordance with accounting guidance for defined benefit plans, the Bank recognizes the funded status of defined benefit pension and other post-retirement plans as a net asset or liability on its consolidated balance sheet.

The Bank recognized pension income of $21,174 and $38,133 for the three months ended September 30, 2019 and September 30, 2018, respectively.

The Bank has a valuation of the Plan completed at fiscal year ending June 30, 2019, therefore, there is not a change in pension obligation reported in the condensed consolidated balance sheet, statements of comprehensive income (loss) or in the condensed consolidated statements of changes in equity as of September 30, 2019.