The Pension Fund Regulatory and Development Authority (PFRDA), on April 7, 2026, issued Circular introducing a modified Proof of Concept (PoC–2) for the NPS Swasthya Pension Scheme under its Regulatory Sandbox Framework. This follows the earlier PoC launched in January 2026 and incorporates changes based on stakeholder feedback and operational experience, aimed at enhancing flexibility and testing the scheme under varied conditions.
Under PoC–2, several key modifications have been introduced. Health insurance coverage has been made mandatory, with premiums deducted through partial withdrawal from the subscriber’s NPS account, and governed by applicable Insurance Regulatory and Development Authority of India (IRDAI) regulations. The minimum initial contribution for onboarding has been fixed at ₹25,000. Additionally, in cases of high medical expenses exceeding withdrawal limits, subscribers are allowed 100% premature exit, with funds directly paid to the Health Benefit Administrator (HBA)/TPA/Health Tech Company, ensuring seamless claim settlement.
The circular also clarifies that pension funds may launch PoC–2 schemes with prior approval of the Authority, in collaboration with a Central Recordkeeping Agency (CRA) and relevant healthcare administrators, for a limited duration and restricted subscriber base. The revised provisions are effective immediately for new PoC–2 schemes, while earlier PoC schemes will continue under existing conditions. The circular has been issued in exercise of powers under the Pension Fund Regulatory and Development Authority Act, 2013.
[Circular No. PFRDA/2026/22/SUP-CRA/03]
