Hi,
LIC is like a fund manager , and will invest in various financial instruments to see that the Group Gratuity fund also grows, instead of idling the contributions made by us. therefore, even though we contribute an amount for the bunch of employees, LIC will keep it as a fund in total.
If an employee leaves in less than 5 years, the contributions paid towards this employee will remain in group gratuity fund itself, and they will not return to the company back, as they will not be keeping employeewise fund.
Every year we are expected to send fresh list of employees in addition to sending the details of employees who have joined / left, LIC will intimate the gratuity liability based on actuarial method of valuation and addition and deletion in the amount will be done by them based on the list sent by us once a year.
Regards,
Guruprasanna B.K.