What is NPS Swasthya Scheme: Everything You Need to Know
Pension Fund Regulatory and Development Authority has revamped its special pension scheme with medical benefits into a simpler, more user-friendly version called NPS Swasthya, proof of concept (PoC 2) for wider public use. In a circular dated April 7, 2026, PFRDA issued revised guidelines for the PoC 2 version of the NPS Swasthya Pension Scheme.
Launched in January 2026 under NPS, the NPS Swasthya Pension Scheme is a sector-specific plan aimed at covering outpatient and inpatient medical expenses within the Multiple Scheme Framework (MSF).
NPS Swasthya: Easier Pension with Medical Benefits
It’s a pension plan that builds future savings while also supporting hospital expenses, currently being tested on a limited scale before a full rollout.
Mandatory Health Cover Introduced
Under the updated rules, having health insurance is mandatory with this scheme, with premiums deducted from your pension savings to ensure financial support during illness.
Minimum investment
You need a minimum investment of ₹25,000 to join the scheme and access its benefits.
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%, irrespective of corpus size, solely for meeting such medical expenses. The withdrawal arising from such premature exit shall be credited directly to the concerned Hospital. Any excess amount, after settlement of the medical expenses, shall be transferred to the subscriber’s Common Scheme Account.
Currently, the scheme is being tested on a limited group. Overall, the updated version makes it more practical by combining retirement savings with medical security.
If implemented widely, NPS Swasthya has the potential to strengthen both retirement readiness and healthcare protection.
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