ICICI, Axis to Tata: Three pension funds mulling health-linked NPS plans, says PFRDA chief S Ramann

Speaking to reporters, Ramann explained that the health covers “may come either through tie-ups with health insurance companies or also with healthcare providers.” He elaborated on the new pension scheme under the Swasthya platform, stating, “Our aim is to try and get people to understand that they have to protect themselves. We want them to save money in a medical pension scheme. And it is dedicated for payment to medical purposes only.”

Ramann told PTI that aggregation of investors is among the biggest advantages of NPS, as it enables pension funds to “negotiate better deals while making some health covers available for investors.” This may include cheaper top-ups from insurance companies and discounted hospital treatments due to higher volumes, he added.

On broader investment plans, Ramann said efforts are underway “to study how double-digit returns can be sustained over longer periods of time,” including allocations in project finance, real estate, and alternative avenues like gold and silver ETFs. Exposure to alternative assets will not exceed 5 per cent, while ETFs will remain under 1 per cent, he noted.

He also highlighted growing interest from banks, including Axis Bank and a consortium of Union Bank of India, Indian Bank, and Star Daichi, in entering the pension fund business.