PFRDA introduces NPS Swasthya Pension Scheme

• 30 Jan 2026
• 60 Views

To make healthcare support simple, safe and transparent for the citizens of India, the NPS Swasthya Pension Scheme has been launched by the Pension Fund Regulatory and Development Authority. As per PFRDA-released circular dated 27.01.2026, "The NPS Swasthya Pension Scheme shall be introduced as a specific sector scheme under the NPS, intended exclusively to provide financial support for out-patient and in-patient medical expenses, within the framework of the Multiple Scheme Framework (‘MSF’). The Scheme shall be a contributory pension scheme, governed by the provisions of section 12(1)(a) and section 20 of the PFRDA Act and shall be offered to citizens of India on a voluntary basis."

The NPS Swasthya Pension Scheme will be launched by pension funds only after having received prior approval from the regulator. This initiative will serve as a proof of concept and will operate for a limited time period in a controlled environment under the Regulatory Sandbox Framework. For the execution of this proof of concept (PoC), the pension funds may team up with fintech firms and similar entities. For this PoC, certain provisions of the PFRDA (Exits and Withdrawals under NPS) Regulations, 2015, have been relaxed under the Regulatory Sandbox Framework. 

The scheme shall adhere to the terms outlined in the circular of PFRDA. It is the responsibility of the pension funds to make sure all systems, intermediaries and service providers like the Central Recordkeeping Agency and Health Benefit Administrator/Third Party Administrator are fully prepared before the launch takes place. Furthermore, it is the duty of the pension funds to disclose all relevant information about the scheme, including its benefits, fees, claims processes, grievance resolution and exit provisions, in a transparent manner. 

They may also offer additional value added features to subscribers upon consultation with the HBA. Initially, the scheme will be launched as a proof of concept by the pension funds in collaboration with the CRA and HBA/TPA for a limited duration and with a restricted number of subscriber registrations. 

Once the PoC period is done with, if the viability/feasibility of the scheme cannot be established, subscribers onboarded during this period will have the option to transfer their accumulated corpus from the NPS Swasthya Pension Scheme Account to the Common Scheme Account and subsequently exercise their exit in accordance with the existing PFRDA (Exits and Withdrawals under the NPS) Regulations, 2015.

To know more about NPS Swasthya Pension Scheme, you can check out the official PFRDA circular.