PFRDA Launches ‘NPS Swasthya Pension Scheme’ under Regulatory Sandbox

Current Context: The NPS Swasthya Pension Scheme was launched by PFRDA on January 27, 2026 as a pilot under its Regulatory Sandbox framework.

• It aims to bridge the gap between retirement savings and healthcare costs, which often erode pensioners’ corpus.
• The scheme functions as a dual-purpose account under the Multiple Scheme Framework, earmarked for both OPD and hospitalization expenses.
• Subscribers above 40 years (non-govt employees) can transfer up to 30% of contributions from their regular NPS account into this Swasthya account.
• Withdrawals of up to 25% of own contributions are allowed for medical needs, with unlimited frequency and no waiting period, provided a minimum corpus of ₹50,000 is maintained.
• For critical illness, if a single hospitalization exceeds 70% of the corpus, subscribers can opt for a 100% premature exit, with payments settled directly to hospitals or TPAs to prevent misuse.

Question:

Q.1 What is the maximum percentage of contributions that can be transferred from a regular NPS account to the NPS Swasthya Pension Scheme account?
a) 20%
b) 25%
c) 30%
d) 40%

Answer: d) Subscribers can transfer up to 30% of their contributions, protecting the retirement corpus.