NPS Swasthya Pension Scheme (NSPS), Features, Latest News

NPS Swasthya Pension Scheme (NSPS) is a new initiative launched by the Pension Fund Regulatory and Development Authority (PFRDA) to integrate health-related financial benefits with the existing National Pension System (NPS) framework.

NPS Swasthya Pension Scheme (NSPS) Latest News

The Pension Fund Regulatory and Development Authority (PFRDA) recently rolled out the NPS Swasthya Pension Scheme (NSPS) on a pilot basis.

About NPS Swasthya Pension Scheme (NSPS)

It is a new initiative launched by the Pension Fund Regulatory and Development Authority (PFRDA) as a Proof of Concept (PoC) under its Regulatory Sandbox Framework. 
The initiative aims to integrate health-related financial benefits with the existing National Pension System (NPS) framework.
The scheme, launched for a limited and controlled period, is designed to provide financial support for out-patient and in-patient medical expenses. 
The scheme will function as a sector-specific contributory pension scheme within the Multiple Scheme Framework (MSF) of NPS and will be offered to Indian citizens on a voluntary basis.
It will be launched by Pension Funds after obtaining prior approval from PFRDA. 
As it is being implemented as a pilot project, only a restricted number of subscribers will be enrolled during the PoC phase.
To facilitate the pilot, certain provisions of the PFRDA (Exits and Withdrawals under NPS) Regulations, 2015, have been relaxed. 
Pension Funds may also collaborate with FinTech firms and health service administrators to implement the scheme.

NPS Swasthya Pension Scheme (NSPS) Features

Any Indian citizen is eligible to join the scheme, but a Common Scheme Account under NPS is mandatory.
Subscribers can contribute any amount, in line with existing NPS guidelines applicable to the non-government sector.
Subscribers aged above 40 years (excluding government sector subscribers) may transfer up to 30% of their contributions from the Common Scheme Account to the Swasthya Pension Scheme.
Partial withdrawals are permitted for medical expenses up to 25% of the subscriber’s own contributions, with no limit on the number of withdrawals, subject to a minimum accumulated corpus of ₹50,000.
In cases of critical inpatient treatment, where medical expenses exceed 70% of the available corpus, subscribers may opt for 100% premature withdrawal solely to meet such medical costs.
Claim Settlement and Safeguards:

Amounts withdrawn under the scheme will be paid directly to the Health Benefit Administrator (HBA), Third Party Administrator (TPA), or hospital, based on valid claims and supporting bills. 
Any surplus remaining after settlement of medical expenses will be transferred back to the subscriber’s Common Scheme Account.

Source: BS

NPS Swasthya Pension Scheme (NSPS) FAQs

Q1. Which authority launched the NPS Swasthya Pension Scheme?+

Ans. The Pension Fund Regulatory and Development Authority (PFRDA).

Q2. What is the main objective of the NPS Swasthya Pension Scheme?+

Ans. To integrate medical expense support with the existing NPS framework.

Q3. What types of medical expenses are covered under the scheme?+

Ans. Out-patient and in-patient medical expenses.

Q4. Is participation in the NPS Swasthya Pension Scheme mandatory?+

Ans. No, it is offered on a voluntary basis.

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