Understanding Superannuation vs. Retirement
I want to know the difference between superannuation and retirement. If the retirement age is 58 years, then what will be the superannuation age or term? Is it synonymous? Please clarify.
Regards,
Naresh
From India, Pune
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4I want to know the difference between superannuation and retirement. If the retirement age is 58 years, then what will be the superannuation age or term? Is it synonymous? Please clarify.
Regards,
Naresh
From India, Pune
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Dear Naresh,
If your retirement age is 58 years, you normally have to quit the service at this age. This is called superannuation. However, the employer may provide some packages or schemes to allow employees to leave the service before reaching the superannuation age, such as Voluntary Retirement Scheme and Medical VRS. All these options, including superannuation, are considered types of retirement.
Abbas.P.S
From India, Bangalore
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If your retirement age is 58 years, you normally have to quit the service at this age. This is called superannuation. However, the employer may provide some packages or schemes to allow employees to leave the service before reaching the superannuation age, such as Voluntary Retirement Scheme and Medical VRS. All these options, including superannuation, are considered types of retirement.
Abbas.P.S
From India, Bangalore
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Dear Naresh,
As rightly pointed out by Abbas, retirement may be due to:
a) Voluntary separation.
b) Owing to continued ill health.
c) Loss of employment owing to disablement suffered.
d) Resignation from services.
Superannuation will occur:
a) On attaining the age of superannuation. 58 years is usual, but it also varies in some cases and stretches beyond 58 years. Companies typically follow 58 years, and the superannuation age as per the EPF Act is also 58 years.
M.V. KANNAN
From India, Madras
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As rightly pointed out by Abbas, retirement may be due to:
a) Voluntary separation.
b) Owing to continued ill health.
c) Loss of employment owing to disablement suffered.
d) Resignation from services.
Superannuation will occur:
a) On attaining the age of superannuation. 58 years is usual, but it also varies in some cases and stretches beyond 58 years. Companies typically follow 58 years, and the superannuation age as per the EPF Act is also 58 years.
M.V. KANNAN
From India, Madras
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Dear,
The Apex Court in the case of RBI vs Cecil Denis Solomon observed that, "In service jurisprudence, the expressions "superannuation", "voluntary retirement", "compulsory retirement", and "resignation" convey different connotations.
Voluntary Retirement and resignation involve voluntary acts on the part of the employee to leave service. Though both involve voluntary acts, they operate differently. One of the basic distinctions is that, in the case of resignation, it can be tendered at any time, but in the case of voluntary retirement, it can only be sought after rendering the prescribed period of qualifying service. Another fundamental distinction is that in the case of the former, normally retiral benefits are denied, but in the case of the latter, the same is not denied. In the case of the former, permission or notice is not mandated, while in the case of the latter, permission of the employer concerned is a requisite condition.
Though resignation is a bilateral concept and becomes effective on acceptance by the competent authority, yet the general rule can be displaced by express provisions to the contrary. In PNB vs P.K. Mittal's case interpreting Regulation 20(2) of the Punjab National Bank Regulations, the Apex Court held that "resignation would automatically take effect from the date specified in the notice as there was no provision for any acceptance or rejection of resignation by the employer."
With Regards,
Advocates & Notaries & Legal Consultants [HR]
E-mail: rajanassociates@eth.net
Mobile: 9025792684.
From India, Bangalore
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The Apex Court in the case of RBI vs Cecil Denis Solomon observed that, "In service jurisprudence, the expressions "superannuation", "voluntary retirement", "compulsory retirement", and "resignation" convey different connotations.
Voluntary Retirement and resignation involve voluntary acts on the part of the employee to leave service. Though both involve voluntary acts, they operate differently. One of the basic distinctions is that, in the case of resignation, it can be tendered at any time, but in the case of voluntary retirement, it can only be sought after rendering the prescribed period of qualifying service. Another fundamental distinction is that in the case of the former, normally retiral benefits are denied, but in the case of the latter, the same is not denied. In the case of the former, permission or notice is not mandated, while in the case of the latter, permission of the employer concerned is a requisite condition.
Though resignation is a bilateral concept and becomes effective on acceptance by the competent authority, yet the general rule can be displaced by express provisions to the contrary. In PNB vs P.K. Mittal's case interpreting Regulation 20(2) of the Punjab National Bank Regulations, the Apex Court held that "resignation would automatically take effect from the date specified in the notice as there was no provision for any acceptance or rejection of resignation by the employer."
With Regards,
Advocates & Notaries & Legal Consultants [HR]
E-mail: rajanassociates@eth.net
Mobile: 9025792684.
From India, Bangalore
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Thank you all for sharing knowledge and guidance.
Superannuation means attaining the age of 58 years or varies as per the company's policy, i.e., 60 or 62 years or so. However, retirement can occur before this age, as in the case of VRS. Superannuation includes retirement. (Is this line correct?)
Also, please clarify: Can we include resignation, and/or any other separation as "retirement"?
Regards,
Naresh
From India, Pune
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Superannuation means attaining the age of 58 years or varies as per the company's policy, i.e., 60 or 62 years or so. However, retirement can occur before this age, as in the case of VRS. Superannuation includes retirement. (Is this line correct?)
Also, please clarify: Can we include resignation, and/or any other separation as "retirement"?
Regards,
Naresh
From India, Pune
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Dear Rajan Asociates, What is the conclusion of your above posting. Whether we have to understand that VRS is a form of retirement, but resignation is not so? Abbas.P.S
From India, Bangalore
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From India, Bangalore
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Yes. VRS stands for Voluntary Retirement Scheme. Voluntary 'retirement', as the term implies is a form of retirement. But resignation is not retirement.
From India, Madras
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From India, Madras
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Dear Abbas,
Resignation, dismissal, termination, or removal from service do not fall within the purview of retirement. Retirement is a general term and may be applied to various forms of retirement, such as retirement on superannuation (upon reaching the designated retirement age, typically 58 or 60 years as determined by the organization), or for voluntary retirement, or compulsory retirement (both occurring at any time before reaching the age of superannuation), etc.
Dear Rajan Associates,
What is the conclusion of your above posting? Are we to understand that VRS is a form of retirement, but resignation is not?
Abbas.P.S
From India, Delhi
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Resignation, dismissal, termination, or removal from service do not fall within the purview of retirement. Retirement is a general term and may be applied to various forms of retirement, such as retirement on superannuation (upon reaching the designated retirement age, typically 58 or 60 years as determined by the organization), or for voluntary retirement, or compulsory retirement (both occurring at any time before reaching the age of superannuation), etc.
Dear Rajan Associates,
What is the conclusion of your above posting? Are we to understand that VRS is a form of retirement, but resignation is not?
Abbas.P.S
From India, Delhi
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Voluntary Retirement Scheme.pdf
Retirement on Superannuation - when - Court judgment.doc