Medical scheme for retirees launched to ease burden of health expenses

Post-retirement medical fund has been launched to cater for medical expenses of retirees who cease enjoying benefits of the employer medical fund.

The Salama Post-Retirement Medical Fund allows members to save while in employment and have their medical expenses paid from the fund upon retirement. The fund, which has been set-up as a multi-employer post-retirement medical fund, is the first of its kind in Kenya.

The Salama Post-Retirement Medical Fund Board of Trustees Chairman, Prof. Patrick Weke said a multi-employer post-retirement medical fund is a relatively a new concept in the country with only two other individual funds being operational within the security organs.

“A post-retirement medical fund benefit addresses an important need for elderly members of society as they face increased healthcare costs but reduced acceptance by insurance companies. The introduction of the Salama Fund therefore comes as a relief to millions of Kenyans who are planning on their post-employment life,” he added.

The Fund will allow members to make contributions that will be invested and upon retirement, a member will then be able to have their medical costs paid, including their in-patient and out-patient bills.

Pinebridge Investments East Africa have been appointed to serve as the investment Fund Managers while KCB Bank have been appointed as the custodians to hold title of the assets of the Fund.

Actuarial consulting firm, Actuarial Services (East Africa) Ltd will provide actuarial services. “Salama Fund will allow for flexible benefits tailored to the needs of each employer and the Actuaries will be tasked with determining the contributions each employer will make to the fund based on the targeted level of medical benefits,” Prof. Weke added.

An online portal, Hazina Administration System, has been adopted by the Trustees to help facilitate easy access to the Fund’s services that include checking balance of contributions made or making a review of monthly contributions.

With limited expertise in the operation and management of post-retirement medical funds in the country, Salama Fund will also be able to provide assistance and know-how to institutions seeking to  establish their own post-retirement medical schemes for their employees.

“For an organisation joining Salama Fund, they will benefit from the experiences of some of the Trustees and advisors and with time, probably be able to set out on their own once they have built the know-how,” said Prof. Weke.

• Fund allows members to save while in employment and have their medical expenses paid from the fund upon retirement
• Dubbed Salama Post-Retirement Medical Fund, it has been set-up as a multi-employer Fund
• Trustees have also adopted online and real-time HAZINA Administration System