The Centre on Friday announced a special voluntary retirement scheme for employees of four public sector general insurance companies to cut the excess flab.

The special VRS for `right-sizing' manpower would be offered to officers and employees of New India Assurance, National Insurance, United India Insurance and Oriental Insurance, an official release said in New Delhi.

All permanent full-time employees who have attained the age of 40 years and completed 10 years of qualifying service are eligible to seek the special VRS, the release said.

As per the package, the employees would be given 60 days of salary for each completed year of service or salary for the number of months of remaining service.

As much as 50 per cent of the ex-gratia amount would be paid in cash and the balance could be either in cash or in instalments as decided by the board of the companies.

Vacancy caused due to special VRS would not be filled up and would be considered to have been abolished, except for the post of assistant general manager and above.

The package is based on the recommendations of various committees and proposals submitted by the General Insurers (Public Sector) Association.

The introduction of this scheme and exit of employees would necessitate rationalisation of operating officers of the companies and redeployment of employees to ensure that the companies' working was not adversely affected.