@rtrouton has a great post on Self-Service OS upgrades, and in fact we have a very similar workflow. Unfortunately though, it can't be fully automated with FileVault.
Specifically we have trouble as described by the Note on installing OS X on FileVault-encrypted volumes at the bottom of the createOSXinstallPkg github page:
Installing Lion, Mountain Lion, Mavericks or Yosemite requires a reboot after the install is set up, but before the actual OS X Installer runs. When installing to a FileVault-encrypted volume, after the initial reboot, the pre-boot unlock screen appears. Someone will have to manually unlock the FileVault-encrypted volume before the actual OS X installation can occur. Once the disk is unlocked, installation should proceed normally. Apple's Install OS X.app does some undocumented (and probably non-third-party-supported) magic to cause an authenticated reboot; this bypasses the pre-boot unlock screen.
The note mentions that someone will have to unlock the encrypted volume before the OS X installation, but in our environment, and I assume most others, a user has to authenticate two times: once after the Self Service policy runs, just before the OS is installed, and once again after that, but before our post-upgrade policies and scripts run.
In my experience, using an authenticated restart in the Self Service policy is not an option, presumably because the installer environment is a different animal, and not aware of such restarts.
It would be much nicer if a user could run the policy and just walk away for a couple hours, or overnight, and come back to a fully upgraded machine at the login window.
It's hard to tell from the post whether or not Rich's FileVaulted machines also experience this, but I assume so. Has anyone found a way around it?