Non-banking financial services consultancy, Liaison Group has unveiled a new post retirement pension medical scheme which will allow clients to enjoy medical cover in their retirement.
The product dubbed the Suluhu Umbrella Scheme is the first one in the Kenyan market to allow members to access their medical cover through their pension and income draw down in one platform.
Speaking on Thursday during the launch, Liaison Group Managing Director Tom Mulwa said Suluhu Umbrella Scheme ensures that one is not just guaranteed a stable income in retirement, but also has a reliable medical cover.
“We have designed the scheme with inbuilt flexibility to allow members to convert their current plans into retirement on the same terms,” said Mulwa.
Retirement Benefits Authority (RBA) CEO Nzomo Mutuku said the product demonstrates the kind of innovation they would like to see in local pension industry.
“As a regulator, we are committed to our resolve to ensure a supportive environment for such innovative products,” said Mutuku.
He added that, early this year, the RBA released Prudential Guidelines on the Management of Post-Retirement Medical Funds, to guide members, trustees and service providers on the conceptualization and running of Post-Retirement Medical Funds (PRMFs).
The guidelines have already been exposed to discussion by key stakeholders and the public and now await gazettement.
Under the scheme, a member can contribute both for retirement and a medical plan, and on attaining the retirement age, the funds for retirement will be utilized to secure a retirement benefit while the medical fund caters for their medical cover fully on retirement.
A trend analysis report shows that health expenditure had grown to Ksh 73.2 billion by 2016 while the percentage of admissions for people over 65 years stood at 34 per cent in 2013 compared to 25% a decade ago.