PFRDA and Industry Partners
Introduce "NPS Swasthya" to Integrate Retirement Savings and
Healthcare Accessibility
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| Sivasubramanian Ramann, Chairperson, Pension Fund Regulatory and Development Authority |
BENGALURU, INDIA —
April 8, 2026 - The Pension Fund Regulatory and Development Authority (PFRDA)
launched the second POC(under regulatory sandbox) of NPS Swasthya, an
initiative intended to provide for healthcare funding alongwith retirement
planning. NPS Swasthya is a multi-partner initiative structured to provide
comprehensive financial and health security. The Pension Fund Regulatory and
Development Authority (PFRDA) serves as the regulatory authority. Medi Assist
Healthcare Services acts as the core technology partner, providing digital
infrastructure. CAMS KRA supports subscriber onboarding and KYC enablement.
Tata Pension Fund and Axis Pension Fund serve as the designated pension fund
managers. Aditya Birla Health Insurance provides the integrated top-up
insurance cover, and Medi Assist TPA manages claims administration.
The initiative
addresses a growing gap in India’s retirement landscape, where healthcare costs
are projected to rise by 11.5%–14% in 2026, significantly outpacing inflation
and putting long-term financial security under pressure for millions. This
comes at a time when the pension ecosystem is rapidly scaling, with National
Pension System (NPS) and Atal Pension Yojana (APY) having a cumulative
subscriber base of 9.64 crore and combined assets under management pegged at
INR 16,55,655 crore (as of 29 March 2026).
National Pension
System (NPS) funds have traditionally remained locked until the subscriber
reaches retirement age. NPS Swasthya is designed to provide subscribers access
to a "Net Eligible Balance" up to 25% of their contributions.
Subscribers can access these retirement units for immediate medical expenses
through the MAven App, developed by Medi Assist Healthcare Services, which
features direct integration with the CAMS Central Recordkeeping Agency (CRA)
API.
Key Highlights
- NPS Swasthya funds
managed by Tata Pension Fund and Axis Pension Fund.
NPS Swasthya is being launched under the Multiple
Scheme Framework (MSF) of the National Pension System, which enables
subscribers to allocate their investments across multiple schemes offered by
different pension fund managers. This framework enhances flexibility and
choice, allowing investors to tailor their retirement portfolio to their
evolving needs while seamlessly integrating features such as healthcare
preparedness within the broader NPS structure.
- Health
Coverage Integration: The program combines NPS savings, standard health benefits, and a
Group Health Super Top-Up insurance plan from Aditya Birla Health
Insurance.
- Integrated
Technology Platform: The technology architecture powering NPS Swasthya combines the
strengths of CAMS and Medi Assist to deliver a seamless subscriber
experience. The CAMS platform will enable subscribers to easily select
suitable schemes, complete enrolment, and make informed decisions on the
level of health coverage and sum insured required, including options for
top-up policies. Complementing this, the Maven platform by Medi Assist
Healthcare Services will facilitate instant verification through
CRA-authenticated secure OTPs and enable fully digital withdrawals for
healthcare expenses. The platform will also enable automatic registration
and processing of claims in the top-up policies.
- Network
Access: Medi Assist
offers access to a network of more than 15,500 hospitals across 1,264
cities to process cashless payments for inpatient (IPD) and facilitates
outpatient (OPD) services as a technology aggregator.
- Investment
Continuity: Unused
contributions continue to accumulate market-linked returns while remaining
accessible for medical emergencies.
Speaking at the occasion,
here’s what the leaders had to add :
“Currently 10% of Indian
Population falls in the category of senior citizens and this demographic is
expected to climb to over 20% by the year 2045-50. The fact of the matter is
that several elderly remain outside the medical insurance net, making them
extremely vulnerable to expenses beyond their reach. The idea of retiring with
dignity cannot be alienated from a strong sense of medical security for the
elderly. It is not often that we find two regulatory systems coming together to
create something for the customers’ benefit. The entire premise of NPS Swasthya
Pension Scheme rests on the feasibility of integrating health-related benefit
mechanisms with the existing NPS architecture and to assess the associated
operational, technological and regulatory aspects. While the first proof of
concept launched in January 2026 was for outpatient services, the second proof
of concept launched today is about inpatient and hospitalization bills. When
put together, we can actually appreciate the consolidated service from the
Swasthya Account. NPS Swasthya Pension Scheme not only grows the subscriber’s
corpus at a rate that is comparable to other popular instruments available in
the market, but also provides financial support for out-patient and in-patient
medical expenses in case of medical emergencies. - Shri Sivasubramanian Ramann, Chairperson, Pension Fund Regulatory and
Development Authority
It is gratifying to see the potential fusion between a pension account and the concept of a top-up medical insurance clubbed for the larger good of the elderly who otherwise remained outside the ambit of medical insurance in the sunset phase of their life.”"NPS Swasthya reflects our commitment to evolving retirement solutions that address the realities of longer life and rising healthcare costs. It enables investors to build a robust retirement corpus while staying financially prepared for medical needs, bringing greater balance and resilience to long-term financial planning."
- Kurian Jose, CEO, Tata Pension Fund Management.
Subrat Mohanty, Executive Director, Axis Bank, said: “India is witnessing
a steady rise in awareness around healthcare and financial planning. As
awareness and long‑term financial planning continue to grow, customers are
increasingly looking for solutions that deliver flexibility alongside
protection. Axis NPS Swasthya Top Up Plus Fund addresses this need by
seamlessly integrating healthcare coverage with retirement planning, ensuring
investments remain market‑linked and continue to generate returns if not
utilised for medical expenses without compromising long‑term retirement goals.”
Sumit Shukla, MD & CEO, Axis Pension Fund, said: “NPS Swasthya is unique since it offers a very different
health and hospital proposition. A hospitalisation cover of up to ₹30 lakh at a
cost of under ₹10 per day, making healthcare preparedness more accessible
within the NPS framework. With this launch, we are strengthening the relevance
and adaptability of long-term savings and appreciate PFRDA’s progressive
approach in enabling health-linked solutions with NPS.”
Satish Gidugu, CEO, Medi
Assist Healthcare Services, said, "At Medi Assist, we believe that technology is the
ultimate equaliser in healthcare. By powering the NPS Swasthya ecosystem
through our MAven platform, we are transforming a long-term retirement asset
into a real-time health resource. We are proud to work alongside PFRDA to
ensure that as India's pension assets grow, so does the health security of
every individual contributing to that growth."
The NPS Swasthya Scheme is
available to Indian citizens aged 18–85. Enrollment is subject to a "Good
Health Declaration," ensuring a streamlined onboarding process for members
without major pre-existing conditions like heart disease or diabetes.
Through this partnership,
PFRDA and industry partners are setting a new standard for social security in
India - where technology enables not just a healthier, more secure retirement,
but also advances the vision of Viksit Bharat 2047 and health insurance for
all.
