New Delhi: The Pension Fund Regulatory and Development Authority (PFRDA) has launched ‘NPS Swasthya’. The pension regulator launched the second Proof of Concept (PoC) of NPS Swasthya, which marks a significant step towards integrating retirement planning with healthcare-focused financial solutions. The goal is to prepare individuals for healthcare expenses while simultaneously saving for retirement, thereby reducing financial pressure in old age.
The PFRDA’s mandate is to protect the interests of subscribers and to promote the orderly growth of the pension system. With the objective of examining the feasibility of integrating a health-related benefit mechanism into the existing NPS architecture, and to assess the associated operational, technical, and regulatory aspects, the authority launched the NPS Health Pension Scheme as a Proof of Concept (PoC’) on a limited and controlled basis under the Regulatory Sandbox framework, subject to the conditions specified herein.
What is the NPS Swasthya pension scheme?
‘NPS Swasthya’ is a new model that integrates retirement planning and health coverage. Several organisations have been roped in for the scheme
Medi Assist Healthcare Services – Technology Partner
CAMS KRA – KYC and Onboarding
Tata Pension Fund and Axis Pension Fund – Fund Managers
Aditya Birla Health Insurance – Health Top-up Cover
Who is eligible for the NPS Swasthya scheme?
Any Indian citizen is eligible to join the NPS Health Pension Scheme. If not already available, then opening a Common Scheme account along with the NPS Health Pension Scheme will be mandatory.
Under the scheme, all charges and fees will be regulated by the concerned authority and will be communicated transparently. Such charges will also include fees payable to HBA.
Subscribers shall be permitted to contribute any amount to the NPS Swasthya Pension Scheme, in accordance with the extant guidelines applicable to the Non-Government Sector under NPS.
NPS Swasthya withdrawal
The NPS Swasthya provides immediate withdrawal facility for health expenses. Funds in NPS are locked until retirement, but this scheme offers significant relief. Subscribers are allowed to withdraw up to 25% of their contributions for medical needs. Withdrawals will be possible through the ‘Net Eligible Balance’. There shall be no restriction on the number of partial withdrawals and no minimum waiting period shall apply, provided that the first partial withdrawal shall be permitted only after accumulation of a minimum corpus of Rs 50,000 under the Scheme. Withdrawals can be done through the MAven App.
PFRDA launched NPS Swasthya as costs related to health is increasing in India. Health spending is projected to increase by 11.5% to 14% in 2026. This rate iof increase could impact the retirement savings of millions of people could be impacted.