fixed medical allowance
The Central Government has made the process of getting Fixed Medical Allowance (FMA) very easy for pensioners associated with the National Pension System (NPS). Now pensioners will not need to deposit bills for medical expenses, rather the money will be transferred directly to their bank account.
The process is completely automatic
According to the Office Memorandum of the Finance Ministry dated 16 April 2026, FMA payment to eligible NPS pensioners and family pensioners will now be done automatically. The pension paying banks will deposit this amount directly into the account through their Central Pension Processing Center (CPPC). The government has made it clear that now there will be no need to file any claim or go through any paper process, which will provide great relief especially to the elderly pensioners.
Money will come into the account every quarter
In this new system, first of all the Central Pension Accounting Office (CPAO) will check the eligibility of the pensioner. After this, Special Seal Authority (SSA) will be issued to the bank. After receiving SSA, the CPPC of the bank will transfer the FMA amount directly to the pensioner’s account every three months (quarter) as per the fixed rate. This means that now money will be received at regular intervals without any hassle.
It is necessary to give life certificate
However, to continue availing this facility, it will be mandatory for pensioners to submit life certificate in November every year. This certificate can be given through both digital and physical modes. If a pensioner does not submit the life certificate on time, his payment may stop from December.
Option to switch to CGHS facility
The government has also given the option to pensioners that if they wish, they can leave FMA and take OPD facility of CGHS (Central Government Health Scheme). In this situation the rules already in force will be followed.
Rules for changing bank and transfer
If the pensioner changes his/her bank or branch, the FMA transfer process will be completed as per the existing guidelines of CPAO, so that there is no interruption in payment.
The family also benefits after death
Even after the death of the pensioner, this facility will continue to be available to the eligible family members. If the name of the family member is already in the records, then they can start FMA directly by submitting the death certificate to the bank. If the name is not registered, then they will have to take new permission through the concerned department.
Why is this decision important?
This step of the government is being considered as a big improvement in the direction of reducing paperwork, speeding up the payment process and providing an easier experience to pensioners. This system will prove to be very beneficial especially for the elderly.
