NPS introduces health-focused pension plan: How to avail benefits
PFRDA approved the NPS Swasthya Pension Scheme as a Proof of Concept under its Regulatory Sandbox Framework—a new way for Indians to use their pension savings for medical expenses.
Open to anyone with a Common Scheme Account, this voluntary plan lets you save specifically for both outpatient and hospital bills.
How it works
If you're over 40 (and not a government employee), you can move up to 30% of your own contributions into this health-focused account.
Once your balance hits ₹50,000, you can withdraw up to 25% of what you've put in—whenever you need it—for medical costs.
There's no cap on how many times you do this.
Key details
Claims are paid straight to hospitals or TPAs, and any leftover money goes back into your account.
The scheme is being introduced as a Proof of Concept under PFRDA's Regulatory Sandbox Framework, and subscribers onboarded during the PoC will be provided an option to transfer their accumulated corpus from the NPS Swasthya Pension Scheme Account to the Common Scheme Account.