Defined Benefit Pension Plan

3 Months Ended

Sep. 30, 2021

Defined Benefit Pension Plan

Defined Benefit Pension Plan

NOTE 11 – 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 $82,155 for the three months ended September 30, 2021, and pension expense of $26,250 for the three months ended September 30, 2020.

The Bank had a valuation of the Plan completed as of the fiscal year ended June 30, 2021, which included estimated amortizations from accumulated other comprehensive loss into net periodic pension cost during the next fiscal year of

$159,594. The change in pension obligation reported in the condensed consolidated balance sheets, condensed consolidated statements of comprehensive income, and in the condensed consolidated statements of changes in stockholders’ equity as of September 30, 2021 reflect this estimation.