Government of India Streamlines Fixed Medical Allowance (FMA) for NPS Retirees

 Government of India Streamlines Fixed Medical Allowance (FMA) for NPS Retirees

NEW DELHI — The Ministry of Personnel, Public Grievances and Pensions has issued a comprehensive update regarding the administration of the Fixed Medical Allowance (FMA) for Central Government employees covered under the National Pension System (NPS). The Office Memorandum (OM), dated February 7, 2025, introduces revised forms and clarifies the operational procedures for retirees residing outside the coverage of the Central Government Health Scheme (CGHS).

Updated Regulatory Framework and Forms

The Department of Pension & Pensioners' Welfare has revised all standard forms and formats to integrate Permanent Retirement Account Number (PRAN) details. This revision follows recommendations from the Controller General of Accounts (CGA) to ensure better tracking and accountability for NPS beneficiaries.

The following updated documentation is now required for processing claims:

• FMA Form N-1: The primary application used by retiring employees or family members to select their preferred medical facility options.

• FMA Form N-2: A nomination form designated for the payment of arrears of the Fixed Medical Allowance in the event of the beneficiary's death.

• Form 2: A comprehensive family detail document required under the CCS (Implementation of NPS) Rules, 2021.

• Format N-1 (Bank Undertaking): A formal agreement with the disbursing bank to facilitate the recovery of any overpayments.

Financial Provisions and Disbursement Schedule

The government has clarified that the rate of FMA for NPS retirees is maintained at Rs 1,000/- per month, matching the rate provided to those under the old pension scheme.

Key disbursement details include:

• Quarterly Payments: The allowance is credited to the beneficiary's account on a quarterly basis through their respective bank.

• December Cycle: FMA for the period of September through November is scheduled for release in the first week of December.

• Life Certificate Requirement: Continued release of the allowance from December onwards is strictly contingent upon the submission of a valid Life Certificate by the beneficiary.

• Accounting Codes: Specific Heads of Account (under code 2071) have been designated for Civil, AIS, and Death/Disability related NPS ordinary pensions to ensure accurate financial reporting.

Eligibility and Residential Criteria

The FMA is specifically available to NPS retirees who are eligible for CGHS but reside in non-CGHS areas. Under Form N-1, applicants must explicitly choose their medical coverage model, such as:

• Availing Fixed Medical Allowance (FMA) for Out-patient Department (OPD) treatment while optionally paying for CGHS In-patient Department (IPD) facility.

• Opting out of CGHS entirely in favor of the FMA.

• Beneficiaries residing in a CGHS-covered area are reminded they are ineligible for FMA, even if they choose not to use CGHS facilities.

Administrative Directives

The Undersigned has directed all Central Government Ministries and Departments to adopt these revised formats immediately. Retirees must also provide an undertaking to inform their bank and the government of any change in residential status—specifically if they move from a non-CGHS area to a CGHS-covered area—which would terminate their eligibility for the allowance.