NPS Swasthya Pension Scheme

Summary of Proof of Concept (PoC 2) - April 2026

Overview

The Pension Fund Regulatory and Development Authority (PFRDA) has introduced a modified Proof of Concept (PoC 2) for the NPS Swasthya Pension Scheme. This update follows feedback from the initial PoC launched in January 2026, aiming to provide greater flexibility for subscribers and test the scheme under diverse scenarios.

Key Update: The "ICICI PF NPS Swasthya Equity Plus" scheme is currently operational under the initial PoC phase.

Revised Provisions under PoC 2

1. Mandatory Health Insurance

• Health insurance benefits are now mandatory for subscribers under PoC 2.
• Insurance coverage and claims are governed by the specific terms of the insurer and IRDAI regulations.
• Subscribers must receive transparent disclosures regarding policy coverage, exclusions, and grievance mechanisms.
• Premiums for insurance top-ups will be deducted directly from the subscriber's NPS Swasthya account as a partial withdrawal.

2. Onboarding & Contributions

• The minimum initial contribution to join the scheme is ₹25,000.
• Eligibility for scheme benefits begins immediately upon this initial contribution.

3. Medical Expense & Withdrawal Rules

• Premature Exit: In cases of inpatient treatment where costs exceed the subscriber's partial withdrawal limit, a 100% lump sum premature exit is permitted.
• This exit is allowed regardless of the total corpus size, provided it is used solely for medical expenses.
• Funds from such an exit are paid directly to the Health Benefit Administrator (HBA), TPA, or Health Tech Company.
• Any remaining balance after settling medical bills will be transferred back to the subscriber’s Common Scheme Account.

Implementation

Pension Funds may launch these PoC 2 schemes with prior PFRDA approval, collaborating with a Central Recordkeeping Agency (CRA) and a Health Benefit Administrator. These schemes will have a limited duration and restricted enrollment to ensure controlled testing.

For more detailed information, you can download the official circular below:

Download Official Circular (PDF)

⚠️ Disclaimer

Educational Purpose Only: The information provided in this article is for general informational and educational purposes only.

Accuracy & Mistakes: While every effort has been made to ensure accuracy, human errors or omissions may occur.

No Liability: Under no circumstances shall the author or this website be held liable for any loss arising from the use of this information.

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