In Brief
IFCI, a government financial corporation, offered a Voluntary Retirement Scheme (VRS) in 2008 to thirty-one employees. After accepting the scheme with its stipulated benefits, the employees later sought enhanced pension calculations based on pay-scale revisions that occurred after their retirement. The Supreme Court held that a VRS is a self-contained, complete package that must be strictly adhered to. Clause 9.12 of the VRS-2008 explicitly prohibited revision of benefits due to pay revision. Pension must be calculated on emoluments in the last ten months of employment—the date of termination for VRS optees. Employees who voluntarily retire cannot later claim benefits from post-retirement pay revisions. The Court rejected comparisons with the earlier VRS-2001 or with serving employees, emphasizing that voluntary retirement schemes with clear terms cannot be circumvented through recharacterization of pension as a continuing obligation.
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