The Pension Fund Regulatory and Development Authority (PFRDA) is set to launch NPS Swasthya Pension Scheme, a new initiative that combines pension savings with health insurance benefits. PFRDA Chairman S. Ramann announced that the scheme is expected to be rolled out within the next 60 to 70 days.

Speaking at a PFRDA event, he said, "NPS Swasthya is basically bundling the concept of a dedicated pension account to be paid for medical purposes. There will be a top-up health insurance, which is going to be obtained by the pension fund on behalf of the NPS subscribers.

The pension funds will tie up with the insurance companies to provide top-up health insurance.

"It was recently approved at the board meeting, and we should be able to roll it out in about 60 to 70 days, because it requires full integration at the back end," he added.

Aditya Birla Health Insurance to Be First Service Provider

Aditya Birla Health Insurance Co. Ltd. has been selected as the first service provider for the scheme. More insurance companies are expected to join the programme in the coming months.

Initially, the scheme will be introduced as a proof of concept by one pension fund in collaboration with the Central Recordkeeping Agency (CRA) and a Health Benefit Administrator (HBA)/Third Party Administrator (TPA), in line with a PFRDA circular issued in January.

Who Can Enrol?

The NPS Swasthya Pension Scheme will be open to all categories of NPS subscribers, making it accessible to both government and private-sector account holders enrolled under the National Pension System.

Fees and Charges

PFRDA said all fees and charges under the scheme will be governed by the Multiple Scheme Framework (MSF) and disclosed transparently. These charges will also include payments made to the Health Benefit Administrator (HBA) responsible for managing healthcare services under the scheme.