NPS Swasthya Pension Scheme: PFRDA Sandbox Pilot Explained
Why in the news
PFRDA cleared NPS Swasthya Pension Scheme as a sandbox proof of concept, a first bid to combine health benefits with pensions.
Key facts
- A sector-specific, voluntary, contributory pension scheme under the National Pension System.
- Meant to fund outpatient and inpatient medical expenses.
- Works under the Multiple Scheme Framework (MSF) and is governed by the PFRDA Act, 2013.
Objectives
- Test feasibility of linking pensions with health spending and curb out-of-pocket medical costs.
Pilot features
| Feature | Rule |
|---|---|
| Sandbox basis | Limited and controlled; pension funds need prior PFRDA approval and may partner fintechs, HBAs and TPAs |
| Partial withdrawal | For medical expenses; up to 25% of own contributions each time; no limit on number; minimum corpus ₹50,000 before the first |
| Premature exit | 100% lump sum if inpatient expenses exceed 70% of corpus in one instance |
| Transfer from NPS | Subscribers above 40 (not government employees) may move up to 30% of contributions from Tier-I |
| Exit safeguard | If PoC proves unviable, corpus can go back to regular NPS and exit under existing rules |
Exam angle
- Numbers to recall: 25%, 70%, 30%, age 40, ₹50,000.