Govt Makes Medical Allowance Automatic for NPS Pensioners

The Ministry of Finance has made the payment process for Fixed Medical Allowance (FMA) easier for retirees under the National Pension System. Eligible pensioners and family pensioners will now receive the allowance directly in their bank accounts without submitting any medical bills.

Automatic Payment Through Banks

The new rules say that pension disbursing banks will handle payments through their Central Pension Processing Centres (CPPCs).

Once eligibility is verified by the Central Pension Accounting Office, banks will automatically credit the allowance to the pensioner’s account.

This removes the need for a complicated claim process and paperwork.

Quarterly Credit Without Paperwork

The allowance will be credited every quarter at the rate decided by the government. Pensioners do not need to apply or submit bills to receive the benefit.

This change ensures faster and smoother payments.

Life Certificate Still Required

Pensioners must submit a life certificate every year in November. If it is not submitted, the allowance may stop from December onward.

Option to Switch to CGHS OPD

Pensioners can choose to switch from FMA to the Central Government Health Scheme outpatient facility if they prefer. Existing rules will apply in such cases.

Rules for Bank Change and Family Pensioners

• If a pensioner changes bank or branch, the transfer will follow existing government guidelines.
• After the pensioner’s death, eligible family members can continue receiving FMA.
  • If their name is already recorded, they can apply directly with a death certificate.
  • Otherwise, fresh authorisation will be required.

Government Will Reimburse Banks

Banks will first pay the allowance to pensioners and later get reimbursed by the government under the existing system.

Read More: PFRDA Broadens Reach of NPS by Expanding Pool of Pension Agents.

Conclusion

The new system makes FMA payments faster, automatic and hassle-free. It reduces paperwork and ensures that NPS pensioners receive their medical allowance smoothly and on time.

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