Archive · 29 Jan 2026
PFRDA Launches NPS Swasthya Pension Scheme
The Pension Fund Regulatory and Development Authority (PFRDA) has started a new health-linked pension product called the NPS Swasthya Pension Scheme.
This scheme is a trial to see if health benefits can be added to the existing National Pension System (NPS).
It will help people pay for medical expenses, including OPD and hospitalisation, by allowing them to withdraw part of their pension savings.
The scheme is voluntary and open to all Indian citizens who have a Common Scheme Account.
Subscribers can withdraw up to 25% of their own contributions for medical needs, and in serious cases, they can withdraw all their savings to pay for treatment.
The trial will help understand how to combine healthcare financing with retirement savings in India.
Dr. Tapan Singhel, MD and CEO of Bajaj General Insurance, who is also a member of the PFRDA Advisory Committee and Chairman of GIC, has shared his perspective on this development.
The sandbox initiative was the brainchild of Dr. Singhel and reflects his long-standing focus on integrating healthcare needs with retirement planning.
PFRDA introduced the NPS Swasthya Pension Scheme as a proof of concept under its Regulatory Sandbox Framework.
The scheme aims to integrate health-related benefits with the existing National Pension System (NPS).
Subscribers can make partial withdrawals of up to 25% of their own contributions for medical expenses, including OPD and hospitalisation.
The scheme is voluntary and open to all Indian citizens with a Common Scheme Account.
The pilot will provide insights into combining healthcare financing with retirement savings in India's pension system.
- Who
- Pension Fund Regulatory and Development Authority (PFRDA)
- What
- Launch of NPS Swasthya Pension Scheme
- When
- January 27, 2026
- Where
- India
- Why
- To test the feasibility of integrating health-related benefits with the existing National Pension System (NPS)
- Scheme Name
- NPS Swasthya Pension Scheme
- Launch Date
- January 27, 2026
- Eligibility
- Indian citizens with a Common Scheme Account
- Partial Withdrawal Limit
- 25% of own contributions
- Minimum Corpus for Withdrawal
- ₹50,000
- Premature Exit Condition
- Expenses exceed 70% of available corpus
- Contribution Transfer Limit
- 30% of self or employee contributions for subscribers above 40
- Healthcare Expenses Covered
- OPD and hospitalisation
Sources
NPS Swasthya Pension Scheme: PFRDA launches scheme on pilot basis under regulatory sandbox
PFRDA Launches NPS Swasthya Pension Scheme To Cover Medical Expenses: Check Eligibility, Claims & Key Details
PFRDA Introduces Pilot ‘NPS Swasthya Pension Scheme’ for Healthcare Expenses
Pension Fund Regulatory Authority launches Swasthya Pension Scheme
