Relief news has emerged for employees and pensioners. Now after retirement, there is a preparation to get not only monthly pension but also the facility of health security.
Medical expenses often become the biggest concern as we age. Keeping this need in mind, pension regulator Pension Fund Regulatory and Development Authority has started a new initiative.
Health security with pension
Authority Chairman S. According to Raman, work is being done on such pension schemes which will include health insurance facility along with regular income. The objective is that the elderly do not have to worry about getting treatment separately and there should be a secure arrangement for medical expenses in advance.
Three big pension funds are preparing
To implement this new system, the country’s leading pension funds ICICI Prudential Pension Fund, Axis Pension Fund and Tata Pension Management are rapidly preparing plans. These institutions will either enter into agreements directly with hospitals or will collaborate with insurance companies to bring a product that can provide the benefits of both savings and health protection. It is likely that ICICI Group will be the first to launch its plan.
Special arrangement of ‘Health’ platform
The regulator has recently introduced a special regime called ‘Health’. Under this, pensioners will be able to reserve a part of their total amount especially for treatment. This amount can be spent only on medical needs. The objective is to reduce the financial burden in case of illness and not have to depend on anyone.
How will common people get benefits?
Since a large number of people are connected to the National Pension System, the plan is to leverage the collective power to provide affordable additional insurance cover. Treatment rates can also be controlled by entering into agreements with hospitals. Another important initiative is that the payment process should be completed immediately as soon as the patient is discharged from the hospital, so that there is no hindrance in the treatment.
Expansion of investment for better profits
The scope of investment of the pension fund is also being expanded. Now the funds will not be limited to traditional instruments only, but there are plans to invest in gold, silver, real estate and infrastructure projects as well. This will increase the chances of getting better returns in the long run.
Easy connection of pension with digital facility
The regulatory body is also in talks with the National Payment Corporation of India, so that people can easily connect with pension schemes through mobile and digital medium. Apart from this, some banks and bank groups have also expressed their desire to enter the pension fund sector, which include Axis Bank, Union Bank of India, Indian Bank and Star Union Dai-ichi Life Insurance. If this scheme is successful, then in the coming time, pension can become not only a source of income but the basis of complete social security.