PFRDA's Swasthya Scheme: Redefining Pensions with Health Covers

The Pension Fund Regulatory and Development Authority (PFRDA) is making strides in expanding pension benefits by introducing schemes that combine pension plans with health coverage. Chairman S Ramann announced that funds such as those managed by ICICI, Axis, and Tatas are piloting these innovative offerings.

The Swasthya scheme, launched earlier this year, aims to educate investors on the dual importance of saving for retirement and covering healthcare expenses. The scheme allows up to 30% of pension funds to be earmarked for medical expenses, potentially enhanced by health insurance partnerships for additional coverage above this threshold.

Efforts are also being made to integrate alternative investment channels like project finance and real estate, with a target to initiate the first pension fund alternative investment before March. Ramann mentioned that PFRDA is working with entities like the National Payments Corporation of India to increase investor participation, addressing the currently low coverage rate of the National Pension System.