News: PFRDA launches NPS Swasthya Pension Scheme (NSPS) on Pilot Basis under its Regulatory Sandbox Framework to integrate healthcare financing with pension savings under the National Pension System (NPS).
About NPS Swasthya Pension Scheme (NSPS)
- Nature: Sector-specific contributory scheme under the Multiple Scheme Framework (MSF) of NPS
- Coverage: Designed to meet out-patient (OPD) and in-patient medical expenses
- Eligibility: Open to all Indian citizens on a voluntary basis
- Implementation: Launched by Pension Funds (PFs) with prior PFRDA approval
- Pilot Mode: Limited duration with restricted number of subscribers (Proof of Concept – PoC)
Key Features of National Pension System (NPS)
- Mandatory Requirement: Subscriber must have a Common Scheme Account under NPS
- Contributions:
- Subscribers can contribute any amount as per existing NPS (non-government) norms
- Subscribers above 40 years (excluding government employees) may transfer up to 30% of their corpus from the Common Scheme Account to NSPS
- Withdrawals for Medical Needs:
- Partial withdrawal up to 25% of own contributions for medical expenses
- No cap on number of withdrawals, subject to a minimum corpus of ₹50,000
- In critical in-patient cases, if expenses exceed 70% of corpus, 100% premature withdrawal is permitted
- Relaxed Norms: Certain provisions of PFRDA (Exits and Withdrawals under NPS) Regulations, 2015 have been relaxed for the pilot
- Claim Settlement & Safeguards
- Withdrawn amounts are paid directly to Health Benefit Administrators (HBA), TPAs, or hospitals against valid claims
- Unutilised balance, if any, is transferred back to the subscriber’s Common Scheme Account
- Institutional Collaboration
- Pension Funds may collaborate with FinTech companies and health service administrators for effective implementation
