Grant of Fixed Medical Allowance (FMA) to Central Government Employees Under NPS: Key Highlights

The Government of India, through the Ministry of Personnel, Public Grievances, and Pensions, Department of Pension & Pensioners’ Welfare, has issued a crucial Office Memorandum (OM) dated 7th February 2025. This memorandum outlines the extension of the Fixed Medical Allowance (FMA) benefit to Central Government civil employees covered under the National Pension System (NPS) upon retirement.

Eligibility and Key Provisions

• Eligible Beneficiaries: Central Government civil employees covered under NPS, who are eligible for CGHS facilities but reside outside CGHS areas (as per applicable rates) or those who do not avail of any CGHS facility (except IPD).
• Allowance Rate: The FMA rate is set at Rs. 1000/- per month, aligning with the rate provided to retirees under the old pension scheme.
• Payment Mode: The allowance will be disbursed quarterly via the respective banks as per the OM dated 06.12.2023.

Revised Forms and Head of Accounts

The OM includes revised forms and formats for claiming the FMA, now incorporating PRAN details. The prescribed forms, updated as per the Controller General of Accounts’ note dated 18.12.2024, are enclosed with the memorandum.

Revised Head of Account:

Code	Description
2071	Pensions and Other Retirement Benefits
2071.01	Civil
2071.01.101	Superannuation and Retirement Allowances
2071.01.101.01	Ordinary Pensions
2071.01.101.01.00.04	Superannuation and Retirement Allowances
2071.01.101.04	Ordinary Pensions (AIS)
2071.01.101.04.00.04	Superannuation and Retirement Allowances, Ordinary Pension (AIS)
2071.01.101.05	Additional Relief on Death/Disability of Govt Servants under NPS (Invalid Pension)
2071.01.101.05.00.04	Additional Relief on Death/Disability of Govt Servants under NPS (Invalid Pension)
2071.01.105.02.00.04	Family Pension

Important Clarifications

1. FMA Rate: Uniform at Rs. 1000/- per month for both NPS and old pension scheme retirees.
2. Quarterly Disbursement: FMA will be released quarterly into the pensioners’ bank accounts.
3. Submission of Life Certificate: Mandatory submission of a life certificate for the release of FMA from December onwards.
4. Backdated Release: FMA for September to November will be disbursed in the first week of December.

Administrative Instructions

The memorandum has been circulated to all Central Government Ministries/Departments, Department of Expenditure, C&AG, Ministry of Railways, Department of Personnel and Training, Department of Financial Services, CGA, and others for immediate implementation.

This decision is expected to provide much-needed financial relief to NPS retirees residing outside CGHS coverage areas, ensuring equitable healthcare support across pension schemes.

View original OM