Kenya. RBA forms new entity to handle post retirement medical schemes
The Retirement Benefits Authority (RBA) has formed a stand-alone body to handle post-retirement medical funds.
Dubbed Post-Retirement Medical Funds (PRMFs) Regulations, the entity will register and regulate retirement medical schemes without the need to be entrenched in pension funds.
This regulatory move is aimed at enabling more people to access quality healthcare services after retirement.
Previously, such funds were operated by pension schemes as a special fund since their introduction in 2018.
This means that members whose pension schemes did not wish to explore the medical insurance space were locked out from saving for their healthcare insurance during their working years.
The pension regulator will oversee the accumulation of contributions and management of the funds while the Insurance Regulatory Authority (IRA) will oversee the payments through medical services providers.
The PRMFs shall be required to appoint a corporate trustee to manage the fund and may seek actuarial expertise in design and funding.
In addition, the funds shall be required to have registered within the country.
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