Retirement Process for Employees Turning 58: How Should We Handle It?

Dear Seniors, Good morning. In our company, the retirement age is 58, and one of our employees will be reaching this milestone on March 15, 2023. Could you please suggest the process that should be followed? Thank you.

Hi, As he is attaining 58 years on 15.3.23, keep him posted about his retirement on the said date. Get his FFS ready. Organize a small function. A senior official can give a speech about his contribution to the company, his hard work, etc. Provide an opportunity for the concerned employee as well. Conclude the session with a gift, issue FFS cheques, and finally distribute some snacks. The concerned employee's department HOD, along with colleagues, can drop him at home.

Alternatively, if the company is planning to utilize his services as a consultant, there is no need for an elaborate process. The employee can be offered a fixed consolidated salary subject to TDS.

Normally, when the retirement date falls before the end of a month, for example, on the 15th of March, the actual retirement will be at the end of the month, i.e., on the 31st of March.

In L&T, where I worked for 33 years and retired, one message goes to the HOD one year in advance to facilitate succession planning. Then, six months before the due date, a formal retirement letter, with formats for NOCs from various departments, forms for signing of PF Settlement, permanent address post-retirement, etc., are sent by the HR Department. On the last date, there will be a farewell party in a formal manner. For a Consultant role, there will be a brief break after retirement before commencing the consultant role, which I also underwent for two years.

Scheduled Retirement

Have a succession plan ready—who will take over his duties. Have a plan ready for all his entitlements, such as gratuity, PF, etc. Ensure all forms are filled out and kept ready or forwarded to the concerned agencies dealing with financial benefits. If you plan on retaining him post-retirement on contract, have the terms and conditions discussed and prepared. Essentially, make the exit process smooth and ensure reboarding in case of a contract is equally smooth and well-documented. Farewell parties, etc., are normal if they are part of the company culture.