Fixed Medical Allowance (FMA) Now Payable to NPS Pensioners via Banks — CPAO Issues Key Guidelines

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Article: Fixed Medical Allowance for NPS Pensioners — CPAO Office Memorandum dated 16 April 2026

Government Policy Update · April 16, 2026

Fixed Medical Allowance (FMA) Now Payable to NPS Pensioners via Banks — CPAO Issues Key Guidelines

📄 Source: CPAO/IT&Tech/FMA to NPS/101/5894/2026-27/65 🏛️ Ministry of Finance, Dept. of Expenditure
The Central Pension Accounting Office (CPAO) has issued a landmark Office Memorandum finalizing the procedure for disbursement of Fixed Medical Allowance (FMA) to all eligible pensioners and family pensioners covered under the National Pension System (NPS).
NPS
Beneficiaries covered under National Pension System
CPPC
Central Pension Processing Centres to disburse payments
Quarterly
Payment frequency to eligible retirees’ bank accounts
Nov
Annual deadline for life certificate submission

What is Fixed Medical Allowance (FMA)?

Fixed Medical Allowance is a fixed monthly sum granted by the Central Government to pensioners and family pensioners who are not availing the Central Government Health Scheme (CGHS) OPD facility. It is designed to help retirees manage routine outpatient medical expenses without submitting bills.

Until now, the procedure for extending FMA to NPS retirees had not been fully established. This memorandum — referencing earlier DoP&PW OMs from 6 December 2023 and 7 February 2025 — finalizes and operationalizes the payment mechanism.

How FMA will be disbursed — Step-by-step process

  • 1
    After necessary checks, CPAO prepares a Special Seal Authority (SSA) and sends it along with all forms received from the Pay & Accounts Officer to the relevant CPPC of the authorized bank.
  • 2
    The CPPC of the authorized bank credits the FMA amount at the rate notified by DoP&PW directly into the beneficiary’s bank account on a quarterly basis.
  • 3
    No bill submission is required by the beneficiary. Payment is fully automatic based on the Special Seal Authority issued by CPAO.
  • 4
    If a beneficiary switches from FMA to the CGHS (OPD) facility, the DoP&PW O.M. dated 23 March 2022 will be followed for the transition.
  • 5
    For transfers of accounts between branches or banks, the CPAO Scheme Booklet procedure for Central Government Civil Pensioners will apply.

Life certificate: an annual requirement

Important deadline: Every FMA beneficiary must submit a life certificate — digital or physical — every year in November at their bank. FMA for September to November will be released in the first week of December. Payments from December onwards depend on submission of the certificate due in the preceding November.

What happens on the death of an FMA beneficiary?

If a spouse or eligible family member is named in the FMA payment authority, they can directly apply to the bank with the death certificate to continue receiving FMA. If the family member is not named in the FMA authority, they must apply to the Head of Office for a fresh FMA authority to be issued.

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Post-payment responsibilities for CPPCs

For banks: After making FMA payments, CPPCs must follow the procedure in the CPAO Scheme Booklet for reimbursement, accounting, and report submission. The FMA amounts disbursed to retired NPS employees and their families will be reimbursed by the Government to banks under the existing system.

Who issued this order and to whom is it addressed?

The memorandum was issued by Ajay Chaudhary, Sr. Accounts Officer (IT & Tech) at CPAO, with the approval of the competent authority. It is addressed to:

  • ·
    Heads of CPPCs of all Authorized Banks (as per list)
  • ·
    Heads of GBD of all Authorized Banks (as per list)

Copies have also been sent to PS to CC(P), PA to CA, Sr. Accounts Officer (TA-III Section, O/o CGA), and NIC (CPAO).

Key takeaways for NPS pensioners

  • ✓
    FMA will now be credited automatically into your bank account every quarter — no paperwork needed from your side.
  • ✓
    Ensure your bank account details are updated with your Pay & Accounts Officer for smooth disbursement.
  • ✓
    Submit your life certificate every November without fail to avoid disruption in FMA payments.
  • ✓
    Detailed integration instructions between CPAO and banks will be issued in due course.

Frequently asked questions

Can NPS pensioners get both FMA and CGHS OPD facility simultaneously?
No. FMA is for those not availing CGHS OPD. If a beneficiary opts to switch to CGHS OPD, they must notify through the proper channel and the DoP&PW O.M. of 23 March 2022 will govern the transition.
Is there a fixed amount for FMA?
The amount is as notified by the Department of Pension & Pensioners’ Welfare (DoP&PW) from time to time. The OM does not specify a figure — the CPPC will credit the currently applicable rate.
What if the bank account is shifted to a different branch?
The procedure in the CPAO Scheme Booklet issued for payment of pensions to Central Government Civil Pensioners shall be followed for account transfers.
When will detailed operational instructions be available?
The memorandum states that detailed instructions for integration between CPAO and banks for FMA payment to NPS retirees will be issued in due course.
FMA NPS Pension CPAO Central Government Pensioners Fixed Medical Allowance 2026 DoP&PW CPPC Banks Life Certificate Ministry of Finance
Source: Office Memorandum No. CPAO/IT&Tech/FMA to NPS/101/5894/2026-27/65, dated 16 April 2026 — Central Pension Accounting Office, Ministry of Finance, Department of Expenditure, Government of India.
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