Voluntary Retirement Scheme in Mauritius

Voluntary Retirement
Scheme

Presented by: M.Y.I.Goomany

Learning Objectives
 Understand VRS

 Exit policy & its Effect
 Understand the procedure for VRS
 Merits and Demerits of VRS
 VRS in Mauritius

VRS, others view
 Vendor Repair Specialist

 Vertical Rescue Solution
 Virtual Reality System
 Vision Rehabilitation System
 Virtual Race System

What is a VRS?
 A voluntary retirement scheme (VRS) package is offered to

employees as an incentive to retire earlier than their normal retirement age. The VRS package usually contains generous retirement benefits for certain employees.

When a man retires, his wife gets twice the

husband but only half the income
I'm retired - goodbye tension, hello pension

Effect of Excess Manpower
 High

Labour cost leading to high cost of production  Reduce competitive ability
 Reduce efficiency
 Threat for new technology
 Communication problem

Reasons for proposing VRS
 Recession

 Intense competition
 Change in technology, production process, innovation, new

product line
 Realignment of business
 Take overs or mergers
 Business Process Re-engineering

Procedures for VRS
The Employer has to issue a circular communicating his decision to offer VRS, mentioning:
 The reasons for downsizing
 Eligibility (age, service period)
 The benefits offered
 The right to accept or reject
 Deadlines

Steps to be taken for introducing and implementing VRS
 Approval from government(private sector)

 Identify targeted department/employees
 Involve union
 Motivate the manager for counseling
 Counseling employees
 Accept or reject applications
 For accepted applications, show worksheet

The challenges in implementing VRS
 Internal discussion among all staff

 Planning of post downsizing
 Ensure participation of all employees in decision
 Should match the strategic plan of the organisation
 Transparency
 Provide