PFRDA is planning pension schemes with health coverage under the Swasthya initiative

Health coverage can come through partnerships with health insurers or also with healthcare providers, Ramann told reporters here.

Explaining the new Swasthya idea for the pension scheme, under which the offering is being planned, Ramann said, “Our aim is to make people understand that they need to protect themselves. We want them to save money in a medical pension scheme. And that is only for medical purpose payments.” It may be noted that the PFRDA had launched the Swasthya platform in January this year with this intention. Under the scheme, up to 30 percent of an investor’s money can be set aside to cover medical expenses during the life of a retirement plan.

Ramann said the pooling of investors is one of the biggest benefits NPS offers, allowing pension funds to make better deals while making some health coverage available to investors.

This could also include cheaper top-ups from health insurers, which will be more than the 30 percent amount set aside, he said, adding that hospitals will also be able to give better deals on treatments due to high volumes.

Healthcare facilities also receive their money immediately after a patient is treated, which is unlike a central government healthcare program where it takes months for payments to be released.

Ramann mentioned the ICICI, Axis and Tatas-sponsored pension funds as those currently conducting “experiments” to launch such coverage, adding that he expects ICICI to come up with a final product for customers soon.

The PFRDA chief also said efforts are being made to study how to sustain double-digit returns over longer periods, adding that investments will also be made in asset classes such as project finance and real estate.

He expects the pension fund’s first investment in an alternative investment fund to take place before the end of March, adding that this is part of the mandate to invest up to 5 percent in alternative options.

Investments in gold and silver exchange-traded funds will be part of that and will not exceed 1 percent, he said.

At least four banks, or a consortium of banks, have shown interest in entering the pension fund business after the PFRDA allowed such a move, he said, adding that this also includes Axis Bank and a consortium of Union Bank of India, Indian Bank and Star Daichi.

Admitting that the NPS coverage is woefully low with just 1 crore people, Ramann said the PFRDA is in talks with the National Payments Corporation of India for help in acquiring investors.

The NPCI-managed unified payment interface is used by more than 800 million people who have done KYC with a bank and have acquisition capabilities through third-party application providers, he said, emphasizing that this can help ensure digital onboarding.

Published on February 14, 2026