PFRDA to Launch NPS Swasthya Pension Scheme Within 60-70 Days

Pension Fund Regulatory and Development Authority (PFRDA) Chairman S. Ramann on Tuesday said the proposed NPS Swasthya Pension Scheme will roll out in the next 60-70 days, introducing a product that combines retirement savings with health insurance to help subscribers meet the cost of major medical emergencies. Speaking at a PFRDA event, Ramann said the scheme has already received the regulator’s board approval and is now undergoing backend integration before its launch. “It was recently approved at the board meeting, and we should be able to roll it out in about 60 to 70 days because it requires full integration at the back end,” he said. Pension funds will partner with insurance companies to offer the cover. Explaining the design of the product, Ramann said the objective is to protect subscribers against catastrophic illnesses, which typically cost between Rs 5 lakh and Rs 7 lakh. “The whole aim is that catastrophic illness and critical illness problems in our country, which typically cost about Rs 5-7 lakh, can be better tackled,” he said. “Once a specified amount is paid from the pension account directly to the hospital or medical service provider, the top-up insurance will then come in and pay out the remaining.” He said subscribers would accumulate savings in the dedicated medical pension account, with contributions ranging from about Rs 3,000 to Rs 1 lakh depending on the chosen structure, while the insurance component would cover expenses beyond the individual’s co-payment. Ramann said the proof of concept for the scheme had been carried out with a single insurer, and the platform is now being opened to more health benefit administrators and insurance companies. Pension funds will decide their partnerships before integrating them with the Central Recordkeeping Agency (CRA). Aditya Birla Health Insurance Co. Ltd. has been empanelled as the first service provider, while other insurers are expected to join. The scheme will be available to all categories of NPS subscribers, with fees governed by the Multiple Scheme Framework (MSF) and disclosed transparently. Ramann also said the NPS has continued to expand despite market volatility, with subscriber accounts recording strong growth and contributions rising robustly. The NPS corpus has reached around Rs 17 lakh crore. He added that PFRDA is working to strengthen distribution through the NPCI platform, enabling seamless onboarding and contributions via UPI.