This is for Faction PCs who die in the field, and decide to retire the PC due to PvP, or just frustration with another quest death. This 'npc' for lack of a better word will remove the PC from the faction and allow an automatic adjustment to the faction XP wage. I am uncertain how the XP wage works in regards to dead or retired faction members.
An idea of mine, you can toss it around, murder it, or implement as you so choose!
I'm sure there's been implementation of some sort of script where PCs are automatically taken out of the equation at some point. For example, after not logging in for a while.