PFRDA Introduces Pilot ‘NPS Swasthya Pension Scheme’ for Healthcare Expenses

The Pension Fund Regulatory and Development Authority (PFRDA) has issued a circular announcing a pilot under its Regulatory Sandbox for a new option titled “NPS Swasthya Pension Scheme.” The initiative allows NPS subscribers to use a portion of their corpus specifically for medical expenses, including OPD and hospitalisation.

Dr. Tapan Singhel, MD and CEO of Bajaj General Insurance, who is also a member of the PFRDA Advisory Committee and Chairman of GIC, has shared his perspective on this development. The sandbox initiative was the brainchild of Dr. Singhel and reflects his long-standing focus on integrating healthcare needs with retirement planning.

His quote in case you decide to carry the news :) :

“Over the last few years, as a Member of the Pension Advisory Committee at PFRDA and Chairman of the CII National Committee on Insurance and Pensions, I have been consistently advocating that retirement planning in India must reflect healthcare realities. The NPS Swasthya Pension Scheme, introduced as a Proof of Concept under PFRDA’s Regulatory Sandbox, is a timely step that reflects a government that listens and a progressive regulator willing to innovate responsibly, with the right safeguards before scale. I am particularly impressed by the speed of execution led by Mr S Ramann and Mr Randip Singh Jagpal in taking this from intent to action.”