PFRDA And Industry Partners Introduce NPS Swasthya To Integrate Retirement Savings And Healthcare Accessibility

(MENAFN- ForPressRelease) 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 inpatient 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.

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