PFRDA Launches Second Phase of NPS Swasthya Initiative

The Pension Fund Regulatory and Development Authority (PFRDA) has rolled out the second Proof of Concept (PoC) for “NPS Swasthya,” an initiative aimed at integrating healthcare funding with retirement planning.

The launch comes amid rapid expansion of India’s pension ecosystem. The combined subscriber base of the National Pension System (NPS) and Atal Pension Yojana has reached 9.64 crore, with total assets under management standing at ₹16.55 lakh crore as of March 29, 2026.

Multi-Partner Framework for Financial and Health Security

According to the regulator, NPS Swasthya is designed as a collaborative, multi-stakeholder model to offer comprehensive financial and healthcare security.

Under this framework:

• Medi Assist Healthcare Services serves as the core technology partner, providing the digital infrastructure.
• CAMS KRA supports subscriber onboarding and KYC processes.
• Tata Pension Fund and Axis Pension Fund act as the designated pension fund managers.

Insurance and Claims Integration

The initiative also integrates insurance and claims services:

• Aditya Birla Health Insurance provides a top-up health insurance cover.
• Medi Assist TPA manages claims administration, ensuring a seamless healthcare financing experience.

Addressing Rising Healthcare Costs

PFRDA highlighted that the initiative comes in response to rising healthcare expenses, which are projected to increase by 11.5% to 14% in 2026. These rising costs are significantly outpacing inflation, posing a growing risk to long-term financial security for individuals.

Also Read: Cabinet Approves Revised Cost for HRRL Project to ₹79,459 Crore

Flexible Access to Retirement Savings for Medical Needs

Traditionally, NPS funds remain locked in until retirement. However, NPS Swasthya introduces flexibility by allowing subscribers to access up to 25% of their contributions as a “Net Eligible Balance” for medical expenses.

Subscribers can withdraw these funds instantly through the MAven App, developed by Medi Assist, which is integrated with the CAMS Central Recordkeeping Agency (CRA) system for seamless processing.

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