ICICI Pension Funds Unveils ‘NPS Swasthya Equity Plus’ in PFRDA Regulatory Sandbox

ICICI Pension Fund Management Company on February 20 rolled out ‘ICICI PF NPS Swasthya Equity Plus’ under the Pension Fund Regulatory and Development Authority’s (PFRDA) regulatory sandbox. The scheme is being tested as a pilot within the National Pension System (NPS) framework and is not part of the regular NPS offerings. 

As per news reports, the product links long-term retirement savings with limited access to funds for medical expenses. It has been developed in partnership with Apollo HealthCo Limited and KFin Technologies Limited. 

Withdrawal Structure 

Subscribers can withdraw up to 25% of their own contributions for medical expenses incurred across the Apollo network through the Apollo 24|7 platform.  

There is no cap on the number of partial withdrawals, unlike the 4-withdrawal limit under a standard NPS account. However, the first withdrawal is permitted only after a minimum accumulation of ₹50,000. 

In cases where medical expenses exceed 70% of the accumulated corpus, subscribers can opt for an emergency exit and withdraw up to 100% of the total corpus. Payments are processed directly to the healthcare provider after OTP authentication.  

KFin Technologies will serve as the Central Recordkeeping Agency. Subscribers must maintain a regular NPS account alongside this scheme. 

Investment Allocation and Costs 

The scheme will follow an equity-heavy allocation during the pilot phase. Between 70% and 100% of the corpus can be invested in equities, up to 30% in debt instruments and up to 10% in money market instruments. 

Total charges are capped at 0.30% of assets under management per annum, as prescribed by PFRDA. Being market-linked, returns will depend on net asset value movements and are not guaranteed. 

Scope Under Sandbox 

During the sandbox phase, physical services are available in Bengaluru and Hyderabad within the Apollo network. Digital access via Apollo 24|7 is available nationwide for pharmacy and diagnostic services. 

PFRDA has indicated that the scheme is intended to complement health insurance. Insurance penetration in the medical segment stands at about 38%, while households spend an estimated 15-20% of income on healthcare, much of it out of pocket. 

Read More: PFRDA Aims to Boost NPS Returns via Higher Equity Exposure and New Asset Classes! 

Conclusion  

Launched as a proof of concept, the scheme allows structured medical withdrawals while retaining a retirement focus. Its continuation will depend on outcomes from the sandbox phase. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.   
 
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