NPS: Big news for NPS investors. Now, individuals who invest in the National Pension System (NPS) will enjoy the advantage of healthcare benefits alongside their retirement funds. In fact, the Pension Fund Regulatory and Development Authority (PFRDA) has initiated the second pilot phase of the healthcare program ‘NPS Swasthya’ in conjunction with the retirement scheme. This initiative aims to merge retirement planning with healthcare financing.
The pension fund regulator, PFRDA, stated that the National Pension System (NPS) Swasthya operates as a multi-partner framework designed to ensure both financial and health security.
As part of this initiative, Medi Assist Healthcare Services will act as the main technology partner. CAMS KRA will help with customer registration and KYC processes. Tata Pension Fund and Axis Pension Fund have been appointed as the designated pension fund managers. Furthermore, Aditya Birla Health Insurance will offer additional coverage, while Medi Assist TPA will handle claims.
According to the Public Financial Conduct Authority (PFRDA), this initiative aims to fill a significant gap in India’s retirement sector. Healthcare costs are expected to rise by 11.5% to 14% by 2026, which could threaten the long-term financial stability of many individuals. However, this initiative is being launched at a time when the pension ecosystem is expanding rapidly. As of March 29, 2026, the combined NPS and Atal Pension Yojana (APY) have reached a total of 96.4 million subscribers and manage assets totaling Rs 16.55 lakh crore.
Responsibility for managing the investment amount
In the meantime, PPFAS Asset Management has received authorization from the Pension Fund Regulatory and Development Authority (PFRDA) to serve as a pension fund sponsor under the National Pension System (NPS). The company announced on Wednesday that it will soon start managing the retirement savings of individuals who invest through the NPS. To facilitate this, it will establish a separate pension fund company that will oversee the schemes and enhance these savings over time.
“This is a huge responsibility, and we are committed to meeting it with care, discipline, and a long-term perspective,” said Neil Parag Parikh, CEO of PPFAS Asset Management. “Our focus will be on delivering consistent performance while protecting investor interests.” The company said it will complete the necessary formalities, including registering the pension fund and establishing an operational structure, before commencing full-scale operations.