Understanding the NPS Swasthya Pension Scheme

On January 27, 2026, the Pension Fund Regulatory and Development Authority (PFRDA) introduced a groundbreaking initiative: the NPS Swasthya Pension Scheme. Launched as a "Proof of Concept" (PoC), this scheme is designed to integrate health benefits directly into your pension plan.

What is a Proof of Concept? It means the scheme is being tested in a controlled environment for a limited time to see how well it works before a full-scale rollout.

1. What is the NPS Swasthya Pension Scheme?

This is a specific sector scheme under the National Pension System (NPS). Its primary goal is to provide financial help for both out-patient (OPD) and in-patient (Hospitalization) medical expenses. It is a voluntary, contributory scheme available to all Indian citizens.

2. Eligibility & Account Setup

• Who can join? Any citizen of India.
• Account Requirement: You must have a "Common Scheme Account" (Standard NPS account) to open a Swasthya Pension Account. If you don't have one, it will be opened for you.

3. Funding Your Health Pension

There are two main ways to build your health corpus:

Method	Details
Direct Contribution	You can contribute any amount at any time, similar to standard NPS rules.
Transfer from NPS	If you are over 40 years old, you can transfer up to 30% of your existing NPS contributions into this health account. (Note: This excludes government sector subscribers).

4. How Withdrawals Work

The scheme offers flexible withdrawal rules specifically for medical needs:

Partial Withdrawals

• You can withdraw up to 25% of your own contributions.
• Waiting Period: None! You don't have to wait years to access the money.
• Minimum Balance: You must have at least ₹50,000 in the account before your first withdrawal.

Emergency/Critical Treatment

If a single medical bill exceeds 70% of your total health account balance, you are allowed to withdraw 100% of the money as a lump sum to pay the bills, regardless of your account size.

5. Claim Process & Safety

• Direct Payments: To ensure the money is used correctly, withdrawals are sent directly to the Health Benefit Administrator (HBA) or the hospital.
• Leftover Funds: If there is any money left after paying the medical bill, it is moved back to your Common NPS Account.
• Data Privacy: Your data is protected under the Digital Personal Data Protection Act, 2023. Your digital consent is required before the scheme is activated.

6. What happens if the pilot project ends?

Since this is a test (Proof of Concept), if the PFRDA decides not to continue the scheme after the trial period, your saved money won't be lost. You will have the option to move your entire health corpus back into your main NPS account.

For more technical details, fee structures, and the official legal text, you can download the full circular below:

Download Official PFRDA Circular (PDF)

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