Definition of the word: Outmoded
Outmoded - A device, person or idea that has outlived its financial or political usefulness and has been replaced by something newer and more cost-beneficial to the relevant incorporated class. If a perfectly functional device, such as a TZ-4000, is replaced in production with an identical TZ-4001, the former is outmoded, even if the new model costs ninety-times a much and is only different in that it displays the new and improved logo and perhaps incorporates a few new bugs and design flaws.
An employee may become outmoded if a younger, cheaper employee can be obtained. This employee represents an upgrade in profitability to the corporation, therefore the would-be retiree is no longer sufficiently "current" to be retained. This ideally takes place mere minutes before any promised long-term, good-faith benefits would fully vest to the outmoded liability, or employee if you prefer.
For an example of this word used in context, read this page.