NPS Swasthya to cover your medical costs

New Delhi: Pension Fund Regulatory and Development Authority (PFRDA) Tuesday launched the new 'NPS Swasthya Pension Scheme' to assist subscribers in covering both the outpatient and in-patient medical expenses through their pension savings.

The scheme will be contributory in nature under the Multiple Scheme Framework (MSF) and will be offered to Indian citizens on a voluntary basis. The scheme is initially being tested as a pilot project under the regulatory sandbox framework. "The scheme shall be launched by pension funds (PF), for a limited duration. PFs may also collaborate with FinTechs and other such entities," a circular by the pension fund regulator said. Subscribers can contribute any amount to the scheme in accordance with the extant guidelines, while PFs can invest the contributions in accordance with the investment guidelines prescribed under the MSF.