PRINCIPLES OF MY ADVOCACY - HYSEA...BRIEF PROFILE OF M. RADHA KRISHNA MURTY Practicing as an...

RKM MADIRAJU ASSOCIATES

Advocates & Corporate Legal Consultants

http://rkmmadirajuassociates.com/

PRINCIPLES OF MY ADVOCACY

I am proud to enter into a noble profession of Law - I am thankful to God for my timely selection.

I am not that Lawyer whose learning is for earning - I am but that Lawyer whose earning is for serving.

I am not that Lawyer who poses to be busy - I am but that Lawyer who has access easy.

I am not that Lawyer who Says ‘I am dispenser of Justice’ - I am but that Lawyer who says ‘God is Chief Justice’

I am not that Lawyer to whom ‘Money is God’ - I am but that Lawyer to whom ‘Truth is God’.

I am not that Lawyer who is eager for his fees - I am but that Lawyer who is eager for justice.

I am not that Lawyer who has arrogance and pride - I am but that Lawyer who is a humane and kind.

--- M. RADHA KRISHNA MURTHY, Lawyer----------------------------------------------------------------------------------------------------------------------------------------------

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RKM MADIRAJU ASSOCIATES

Advocates & Corporate Legal Consultants


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Mitigation of litigation

because

litigation is a speculation

without knowing the destination

RKM MADIRAJU ASSOCIATES Advocates & Corporate Legal Consultants

http://rkmmadirajuassociates.com/; [email protected] --------------------------------------------------------------------------------------------------------------------------------

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mailto:[email protected]

BRIEF PROFILE OF M. RADHA KRISHNA MURTY

Practicing as an advocate in High Court of Andhra Pradesh & Telangana States, both original and appellate jurisdiction and also

a corporate legal consultant / advisor since 1987.

Practicing in the areas of Industrial & Labor & Employment and Corporate Legal Matters, etc.

Core competency in Industrial, Labor and Employment Laws with Strategic IR & HR Management and Planning.

Recommending and correcting potential trouble spots in personnel and human resource policies and practices, Comprehensive

Statutory Compliance of Labor and Employment Laws.

Former Regional Board Governing Body Member of the ESI.

Member – A.P. Minimum Wages Board Rationalization Committee Representing Employers

Member of IR & HR committee of Federation of Telangana and Andhra Pradesh Chambers of Commerce & Industry (FTAPCCI).

Life Member of A.P High court Advocates Association.

Life Member of National HRD Network

Guest faculty for some of the Management Institutions.

Delivered several lectures on Industrial and Labor Laws, in the seminars conducted by the FTAPCCI, NHRD, SHRM and in-

house training programs of some of the corporate (i.e. in Deloitte, CoMakeIT, RAMKY Group, Voltas, etc., ).

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The Team:-

Mr. M. RADHA KRISHNA MURTHY

a HR executive turned Lawyer, and practicing law since 1987 in the areas of Labour

and Employment Laws.

Mr. G. ANANDAM

practicing since 1987 in the areas of Civil and company matters (both Original and

Appellate Jurisdiction).

Mr. K. PINAKAPANI

practicing since 1995 before the labour court / tribunal and quasi-judicial authorities

under various labour laws

Mrs. M. BHRAMARA

practicing since 2003 before the High Court of Andhra Pradesh.

Mrs.A.S. RAVIA BEGUM,

Practicing at the High Court of Telangana.


http://rkmmadirajuassociates.com/; [email protected]

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http://blog.hcdigital.com/wp-content/uploads/2014/10/HenryBlog_10114.jpg

Our Services:-End to end solutions and guidance / consultancy in the following areas with the object of

prevention of litigation and industrial disputes;


http://rkmmadirajuassociates.com/-

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Strategic I.R & H.R. Management and Planning.

Recommending and correcting potential trouble spots in personnel and

human resource policies and practices, Industrial / employee relations,

Statutory compliance prescribed under various employment and labour

laws,

Disciplinary procedures, drafting of charge sheets, termination letters,

promotions, suspensions, transfers, etc

drafting, vetting and documentation pertaining to employment, right from

recruitment to exit of employment, such as appointment letters, service

agreements, non-disclosure agreements, standing orders, Industrial Relation

Policy, Code of Conduct and discipline Rules, policy for engagement of

contract labor/outsourcing of employment.

Strategies for the long term wage settlements and drafting of the same.

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http://rkmmadirajuassociates.com; [email protected]

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Categorization of employment, optimum utilization of man-power and

machinery,

Good working practices in the shop floor,

Labour/Trade union management with the object of inculcation of positive

attitude among the workmen, and their commitment to achieve the

objectives/goals of the company.

Institution and defending of cases on behalf of the employer before Labour

Courts, Industrial Tribunals, Authorities under Payment of Wages Act,

Minimum Wages Act, Gratuity Act, Employee’s Compensation Act, Shops and

Establishments Act, High Courts, etc.

Online legal services to provide opinions, agreements, bonds, and any

documentation pertaining to employment right from entry to exit level of

employment of employees/workmen.

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http://rkmmadirajuassociates.com; [email protected]

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http://rkmmadirajuassociates.com ; [email protected]

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-OUR CLIENTS (to name a few) :-

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http://rkmmadirajuassociates.com ; [email protected]

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OUR CLIENTS (to name a few) :-

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http://rkmmadirajuassociates.com/; [email protected], -------------------------------------------------------------------------------------------------------------------------------------------------

INTERACTIVE SESSION ON LATEST JUDGMENT OF SUPREME COURT, IT’S IMPACT ON

HIGHER PENSION SCHEME

26TH APRIL 2019

RADHA KRISHNA MURTHY MADIRAJUAdvocate & Corporate Legal Consultant

&RAVIA BEGUM,

Advocate , High Court of Telangana





Factors to be considered before opting for higher pension under EPS scheme





Highlights

Now, if you opt for full pension, the entire 8.33%

of your pensionable salary will go into the EPS.

While your EPS contribution will go up, your

contribution to EPF will fall proportionately.

Pension under EPS is fully taxable, just like

annuity. So, you need to make an assessment

about your tax liability after retirement.





Until recently, the pension you could get under the Employees’ Pension Scheme (EPS) was capped at Rs 7,500 per month. But as per the recent Supreme Court (SC) ruling, this cap has now been lifted. Your pension will now depend on your last drawn pensionable (basic salary plus dearness allowance) salary.





The Supreme Court has cleared all doubts and now everyone can get a pension based on their last-drawn salaries





But it is to be understand that this higher pension will come from your own pocket.





Currently, 12% of your pensionable salarygoes into the EPF.





Your employer matches this 12%. Prior to the SC ruling, 8.33% of the employer’s contribution or Rs 1,250, whichever was higher, went into the EPS and the rest went into EPF.





Now, if you opt for full pension, the entire 8.33% of your pensionable salary will go into the EPS. So, while your EPS contribution will go up, your contribution to EPF will fall proportionately.





You can get a much higher pension now





pension under EPS has now been linked to your last-drawn salary.









Pensionable salary means basic salary plus dearness

allowance





To illustrate, if you are 58 and about to retire after 35 years of service, and want a full pension

you will have to shift the entire 8.33% of the employers’ contribution from EPF to EPS from the date you started working.

So, if your salary grew at 7% per annum and is currently Rs 90,000, the additional contribution for the last 35 years will be to the tune of Rs 10.35 lakh,

plus interest.





Interest is what makes the real difference. When you add the interest, the additional contribution comes close to Rs 45.15 lakh. You will have to shift this amount from the EPF to the EPS to be eligible for your full pension— Rs 45,000 per month.





Monthly EPS contribution will shoot upNow 8.33% of your actual pensionable salary will go towards EPS. Earlier, pensionable salary was capped at Rs 15,000









Contribution to EPS is less because of the Rs 15,000 pensionable salary cap under the old regime





The Supreme Court ruling in a nutshell





•

Arbitrary restriction of Rs 15,000 on pensionable salary has been removed. Now, you can opt for ahigher pension, if your pensionable salary more than Rs 15,000.





Average pensionable salary will be based on 12 months’ pay and not 60 months’ pay as was the case earlier.





Employees from organizations with PF trusts can also opt for higher EPS contribution for higher pensions.





Recently retired people can also opt for higher pension.

But they will have to return proportionate amount of EPF

money.





Are you financially prudent?

If you prefer spending money over saving for the future, you must go for the full pension option





Even financially-savvy people may also not be able to manage their finances at an advanced age, when they need the security of a regular monthly income.

Due to the increase in life expectancy, we all need some regular monthly income. So, it will be better if people opt for higher EPS contributions.





If you choose to let the money accumulate in the EPF, you may use it to purchase an annuity. But annuity from an insurance company will fetch you a slightly lower income.

For instance, if you put Rs 45.15 lakh in LIC JeevanAkshay, you would get a monthly annuity of Rs 32,054. But the monthly additional pension under EPS would be Rs 37,500.





EPS is a better option than annuity





The payout under EPS can be higher by 16-40% depending on income level









*Monthly payout based on whole life annuity, calculated for 58-year-olds.

Note: Calculations are for 58-year-olds eligible for full EPS pension. Values will be lower for people with less years of service.





Pension is taxable





Pension under EPS is fully taxable, just like annuity. So, you need to make an assessment about your tax liability after retirement.

“As pension is fully taxable, going for a higher pension may not be beneficial for people in the higher tax bracket. However, it works for those in the lower tax brackets,”





Investing in debt funds and opting for systematic withdrawal plans is the most tax-efficient option for retirees who fall in the higher tax bracket.

Even if you are in the lower tax bracket, exhaust other high yielding safe instruments such as the Senior Citizens’ Savings Scheme before putting additional money into EPS.





Salary growth trajectory

For the sake of calculations, we assumed a salary hike of 7% per annum.

However, it may be different for you and the amount that needs to be shifted from the EPF to the EPS would vary accordingly.

The biggest beneficiaries of the Supreme Court ruling will be people whose salaries were low for most part of their careers but have grown sharply in the past few years.





If you want higher pension? Be ready to pay

A chunk of funds accumulated in the EPF will have to be shifted to the EPS.

•Historical salaries have been computed assuming an increase of 7% per

annum.





Due to the jump in salaries, this will be a great boon for such people and they should opt for the higher pension.

If you are not sure how your salary has grown over the years, you can approach the EPFO office. It will help you determine the exact amount that needs to be shifted from your EPF to the EPS, based on the growth in your salary.





Higher pensions sustainable?





As EPS has a huge corpus and is controlled by the Ministry of Labor, most people assume that it is totally risk free.

Also, as inflows in the EPS are far higher than outflows, currently it appears a safe product.





During 2015-16, the total inflows into the pension fund were Rs. 32,307 crore and the payments it made totalled Rs 13,545, leaving a net surplus ofRs 17,762 crore.

More importantly, the pension fund’s huge corpus also generated interest income of Rs 21,662 croreduring 2015-16, and it has been growing regularly.



Any questions?

You can find me at:

• Website: http://rkmmadirajuassociates.com/

• EMAIL : [email protected]

RKM MADIRAJU ASSOCIATES Advocates &

Corporate Legal Consultants

http://rkmmadirajuassociates.com/--------------------------------------------------------------------------------------------


http://rkmmadirajuassociates.com/-------------------------------------------------------------------------------------------------------------------------------------------------

Contact us:- M. Radha Krishna Murthy

Advocate & Corporate Legal Consultant

OFFICES:

#1-9-639/A, Street No.8

Adikmet Road, Vidyanagar

Hyderabad – 500 044.

Flat No.501, 3-1/CV/SA/501,

Plot Nos. 86, 87, 100, 101, Srini Abode,

Cyber Village, New Hafeezpet,

Kondapur, Hyderabad – 500 049.-----------------------------------------------------------------------------------------------

[email protected] mrkm14@gmail.com-----------------------------------------------------------------------------------------------

Mobile : +91-9848262573

+91-9441338745

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Landline: +91-40-27601928

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