Health Insurance benefit offered under NPS Swasthya Proof of Concept (PoC 2) shall be mandatory and be governed by the terms and conditions of the respective insurance company and applicable IRDAI regulations, PFRDA said in a circular dated April 7, 2026, highlighting revised guidelines for NPS Swasthya Pension Scheme’s PoC 2.
The Pension Fund Regulatory and Development Authority (PFRDA) also issued other revised provisions for the NPS Swasthya Pension Scheme launched in January 2026 as a proof of concept (PoC).
NPS Swasthya Pension Scheme was introduced in January 2026 as a specific sector scheme under the NPS. The scheme intends exclusively to provide financial support for out-patient and in-patient medical expenses, within the framework of the Multiple Scheme Framework (‘MSF’).
It’s a contributory pension scheme offered to the citizens of India on a voluntary basis.
Revised guidelines for NPS Swasthya Pension Scheme PoC 2
Health benefits under NPS Swasthya Pension Scheme are mandatory
Health insurance benefits offered under NPS Swasthya PoC 2 are mandatory and will be governed by the terms and conditions of the respective insurance company and applicable IRDAI regulations.
According to the circular, complete and transparent disclosures of policy terms, including coverage, exclusions, claim process and grievance redressal mechanism, shall be provided to subscribers. The premium for such insurance top up shall be deducted as a partial withdrawal from the subscriber’s NPS Swasthya Scheme account, as per the circular.
NPS Swasthya onboarding feeThe minimum initial contribution for onboarding will be Rs 25,000, as per the circular.
“A subscriber shall become eligible to avail benefits under NPS Swasthya Pension Scheme upon such contribution,” says the circular.
Premature exit from NPS Swasthya Pension SchemeThe circular says, in case of inpatient medical treatment where medical expenses in a single instance exceed the subscriber’s eligible limit for partial withdrawal, the subscriber shall be permitted to undertake a premature exit of 100% lump sum, irrespective of the corpus size, solely for meeting such medical expenses. The proceeds arising from such premature exit will be remitted directly to the concerned Health Benefit Administrator (HBA)/third party.
“Administrator (TPA)/Health Tech Company (HTC) as the case may be, based on the valid claim and corresponding invoice. Any excess amount, after the settlement of medical expenses, shall be transferred to the subscriber’s Common Scheme Account,” as per the circular.
Frequently Asked Questions (FAQs) about NPS Swasthya Pension Scheme
Who is eligible to subscribe NPS Swasthya Pension Scheme?
Any citizen of India is eligible to join NPS Swasthya Pension Scheme. A Common Scheme Account is mandatorily opened along with the NPS Swasthya Pension Scheme account, if it is not already available.
What will be the subscriber’s contribution under NPS Swasthya Pension Scheme?
Subscribers will be permitted to contribute any amount to the NPS Swasthya Pension Scheme, in accordance with the extant guidelines applicable to the non-government sector under NPS. Contributions under the scheme shall be invested by PFs in accordance with investment guidelines prescribed under the MSF.
What are the fess and charges to subscribe NPS Swasthya Pension Scheme?
Fees and charges applicable under the Scheme shall be governed by the MSF and shall be disclosed transparently. Such charges shall include charges payable to the HBA.
Transfer of contributions from common scheme account
Subscribers (excluding Subscribers under the government sector and government-owned corporates), aged above 40 years shall be permitted to transfer up to 30% of their self and/or employee contributions from the Common Scheme Account to the NPS Swasthya Pension Scheme Account.
When can subscribers withdraw up to 25% for medical needs without a waiting period?
As per a PFRDA circular dated January 27, 2026, “NPS Swasthya subscribers will be able to make partial withdrawals to cover outpatient or inpatient medical expenses as they arise. At any time, the subscriber will be able to withdraw up to 25% of their own payments to the scheme. There will also be no limit on the number of partial withdrawals, and no minimum waiting period would apply, as long as the first partial withdrawal is made after accumulating a minimum corpus of Rs 50,000 under the scheme.”
How are claims settled under NPS Swasthya Pension Scheme?
Amounts withdrawn or exited will be remitted directly to the concerned HBA/TPA, as applicable, based on valid claims and supporting invoices. Any surplus amount remaining after the settlement of medical expenses will be transferred to the subscriber’s common scheme account.