NPS Swasthya Scheme: Now, you will be able to avail the benefits of health cover even after retirement. The PFRDA has launched the NPS Swasthya Scheme. This means that NPS will serve not merely as a means of pension, but also as a shield for health protection.
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NPS Swasthya Scheme: There will be no need to worry about medical treatment even after retirement. The pension fund regulator, PFRDA (Pension Fund Regulatory and Development Authority), has launched the second ‘Proof of Concept’ (POC) for a new scheme—NPS Swasthya—aimed at integrating retirement planning with healthcare funding. The objective of this initiative is to provide subscribers with access to funds for medical treatment alongside their pension during their old age.
What is NPS Swasthya?
NPS Swasthya is a multi-partner framework designed to provide both financial and health security. Several leading organizations are collaborating within this framework:
Technology Partner: Medi Assist Healthcare
KYC: CAMS KRA
Fund Managers: Tata Pension Fund and Axis Pension Fund
Health Cover: Aditya Birla Health Insurance (for top-up cover)
Claim Management: Medi Assist TPA
Who can avail the benefits of this scheme?
Any citizen of India can enroll in this scheme.
It is mandatory to hold a Common Scheme Account in conjunction with NPS Swasthya.
Why Was This Needed?
According to the PFRDA, the burden of post-retirement healthcare expenses in India is rising rapidly. It is estimated that by 2026, healthcare costs will increase by 11.5% to 14%—a rate significantly higher than the prevailing inflation rate. This poses a major threat to the long-term financial security of millions of people.
What Benefits Will Be Available?
While funds in traditional NPS schemes typically remain locked in until retirement, ‘NPS Swasthya’ offers a special concession to subscribers.
Subscribers can withdraw up to 25% of their total contributions to cover medical expenses.
To facilitate this, the ‘MAven App’—developed by Medi Assist—can be utilized.
This app is integrated with the CAMS Central Recordkeeping Agency (CRA) system, thereby making access to funds both easier and faster.
Facility for Full Withdrawal
If expenses incurred due to a serious illness or hospitalization exceed the partial withdrawal limit, the subscriber is permitted to withdraw 100% of the amount as a lump sum.
This amount will be transferred directly to the Health Benefit Administrator (HBA), TPA, or a Health Tech company.
Any remaining balance after the treatment is completed will be transferred back to the subscriber’s common account.
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