Pension – PFRDA Calls NPS Swasthya Equity Plus a Pilot Initiative
Pension – The Pension Fund Regulatory and Development Authority has described the newly introduced Swasthya Equity Plus option under the National Pension System as a pilot project being tested within its regulatory sandbox framework.
PFRDA Views Scheme as Targeted Trial
Speaking at a press briefing in Mumbai after the product launch, PFRDA Chairperson Sivasubramanian Ramann said the initiative is being rolled out as an experiment aimed at a specific segment of consumers. According to him, the regulator intends to assess whether there is meaningful demand for such a hybrid pension product before considering wider expansion.
He noted that sandbox initiatives are typically introduced when there appears to be a viable user base, but require close monitoring of participation trends and feedback. The authority is currently tracking early enrollment data to evaluate how subscribers respond to the offering.
Drawing a comparison with the government’s flagship healthcare programme Ayushman Bharat, Ramann said large-scale schemes often begin as experiments before maturing into nationwide frameworks. While Ayushman Bharat has now evolved into a full-scale national programme, he indicated that the Swasthya Equity Plus plan is still in its early evaluation phase, and its future will depend on public uptake.
Blending Retirement Planning With Health Support
Ramann explained that the philosophy behind the new pension option is to create what he termed a “pension-smart” account structure. The idea is to encourage disciplined retirement savings while offering limited access to funds for medical needs.
However, he was careful to clarify that the scheme is not designed to replace health insurance. Insurance, he said, remains the primary and most effective tool to manage medical expenses. The Swasthya Equity Plus plan should instead be seen as a supplementary feature that may provide partial support during healthcare emergencies.
The chairperson added that recent initiatives, including NPS Vatsalya and this health-oriented structure under the sandbox model, reflect efforts to broaden financial preparedness among citizens through innovation within the pension ecosystem.
Structure and Investment Allocation
Under the Swasthya Equity Plus framework, between 70 percent and 100 percent of the accumulated corpus may be invested in equities. Up to 30 percent can be allocated to debt instruments, while money market instruments can account for as much as 10 percent. The design reflects a long-term horizon, with the scheme positioned as a retirement-focused vehicle spanning roughly 15 years or more.
Despite its retirement orientation, subscribers are permitted to withdraw up to 25 percent of their own contributions for healthcare-related expenses. These include outpatient treatment, diagnostics, hospitalisation, and pharmacy purchases.
Withdrawal Flexibility and Pilot Rollout
Sumit Mohindra, Chief Executive Officer of ICICI Pension Fund Management Limited, told ANI that the product is being introduced as a proof of concept under the PFRDA’s sandbox guidelines. He clarified that the minimum required contribution of Rs 50,000 is cumulative rather than a lump-sum deposit. Of this, 25 percent — amounting to Rs 12,500 — has been considered a practical buffer for emergency health requirements during the testing phase. He indicated that the threshold may be revised once sufficient data is gathered.
In a departure from traditional NPS rules, the Swasthya Equity Plus plan allows unlimited withdrawals within the 25 percent cap. By contrast, the regular NPS structure restricts partial withdrawals to four instances during the entire tenure.
The pilot phase has been launched physically in Bengaluru and Hyderabad. However, digital access is available nationwide on a 24-hour basis. Healthcare withdrawals are processed through the Apollo 24/7 platform and selected Apollo Hospitals and Apollo Pharmacy outlets. Transactions are verified via one-time password authentication, and funds are transferred directly to the Apollo network through KFintech.
Prospective subscribers can enroll through the ICICI Pension Fund website or the Apollo 24/7 mobile application. As per PFRDA regulations, opening and maintaining a standard NPS account remains mandatory alongside the Swasthya Equity Plus account.