Curious About Voluntary Retirement Schemes? Seeking Insights and Manager Interviews

Hi friends,

I am working on a project on VRS. If anyone has any kind of information on it, please share.

Anybody working in a firm that provides this scheme, please mention because I want to interview the concerned manager.

Please reply.

Thank you.

Y 🙄 GI 🤔

Dear Friend,

As I know, VRS stands for Voluntary Retirement Service, where an employee chooses to retire before reaching the official retirement age.

If I am wrong, please correct me.

Regards,
Daniel

Hi Yogi,

VRS stands for Voluntary Retirement Scheme, where the employee chooses to retire from the service on their own. They would also be eligible for fringe benefits, which are available only after completing 33 years as per the rules of the Central Government.

There are two similar terms, VRS and CRS. VRS can also be taken on medical grounds by the employee and for seeking additional benefits from the employer.

CRS refers to the Compulsory Retirement Scheme, where the employee is required to retire from the service based on various reasons.

Thanks and Regards,
Veerendra S Kumbar.

There is a presentation that speaks about VRS or Voluntary Retirement Scheme. I don't remember the link. Please check for it.

Regards,
Mallet.

I agree with Veerendra on his views of VRS. VRS is also used as a possible strategy when an organization faces an “employee excess situation”.

Dear friends,

Under VRS (Voluntary Retirement Scheme), an employee can retire before reaching superannuation after serving the prescribed notice period. In this scheme, the employee will receive terminal benefits on a pro-rata basis. (33 years is the maximum period for terminal benefits like pension, gratuity, etc.).

A person can also seek retirement on medical grounds, and in this case, a medical certificate from an authorized person must be submitted. If the request is accepted, the employee will receive benefits.

Another scheme is called 'Premature Retirement,' where the authority has the absolute right to retire a person by providing benefits.

Wishes,

Senthil Raj

VRS schemes vary among different organizations.

In common terms, it is known as 'Golden Handshake', wherein the employer asks the employee to leave the organization for various reasons (such as downsizing, cost-cutting, technology). However, in some cases, like SAIL (Steel Authority Of India Ltd), there are very lucrative schemes under VRS, where employees actually benefit from this.

Unlike other organizations, where a lump sum amount is paid to the VRS employee when they are asked to leave, in SAIL, the employee continues to receive their monthly salary and other benefits without working until their actual retirement date! I know of many people who took VRS because of this reason, and with their monthly salary secured, they joined other organizations where they were paid for their services, effectively earning double without extra effort!

That's the magic of VRS in some places!

Regards,
Shweta Banerjee

Hi all,

I am in agreement with Swetha but VRS is being considered for the following in the organization:

Organizations opt for VRS when they are dealing with excess manpower, looking to cut costs on manpower, or when leadership deems automation necessary in the company, resulting in a significant reduction in manpower. Organizations cannot simply terminate employees directly due to reasons such as the Draft Standing Order and the notice period required for employees on the company's payroll. Therefore, to streamline this process, organizations must consider alternatives for employees by offering various benefits post-retirement.

Thanks,
Veerendra S Kumbar

Hey VRS, I am working on a project related to Voluntary Retirement Schemes (VRS). If anyone has any information on this topic, please share it with me. If anyone is currently employed in a firm that offers this scheme, kindly mention it as I am interested in interviewing the relevant manager. Please reply.

VRS, short for Voluntary Retirement Schemes, are offered to employees who wish to retire before their actual retirement age. These schemes provide benefits to both employees and organizations.