NPS pensioners to get fixed medical allowance directly in their accounts without submitting bills

Pensioners and family pensioners receiving pension under the National Pension System (NPS) will receive Fixed Medical Allowance (FMA) directly in their accounts at pension disbursing banks (PDB), according to an office memorandum (OM) by the Department of Expenditure, Ministry of Finance. The FMA will be transferred automatically, meaning no bill or claim is needed to access the funds, as stated in the order dated April 16, 2026, which outlines the FMA payment process for NPS retirees.

The FMA will be credited quarterly to a NPS retiree’s account at rates notified by the Department of Pension & Pensioners’ Welfare (DoP&PW).

The Ministry’s order emphasised that the submission of an annual life certificate in November is mandatory for NPS pensioners to continue receiving their FMA.


When will NPS retirees receive FMA in their bank accounts?

The payment of FMA for the period September-November will be made in the first week of December and the release of FMA from December onwards will be subject to the submission of the life certificate by the NPS beneficiary due in preceding November, according to the office memorandum.

Will spouse/family members keep getting FMA if the beneficiary pensioner dies?

Describing the conditions in case of the death of a beneficiary, the order says if the name of the spouse or a family member eligible for FMA is mentioned in the deceased’s FMA payment authority, they will have to apply to the Pension Disbursing Bank (PDB) along with the death certificate of the deceased.

In another condition, if the name of the family member eligible for FMA is not mentioned in the deceased’s FMA authority, the eligible member of the family has to apply to the Head of the Office for issue of fresh FMA authority.

How can NPS retirees apply for FMA?

The government has issued a detailed procedure for NPS retirees to apply for FMA. The procedure is as follows-

The payment of FMA to eligible NPS pensioners will be disbursed by PDBs through their Central Pension Processing Centres (CPPCs).

After carrying out necessary checks, CPAO will prepare a Special Seal Authority (SSA) and send it along with all forms received from a Pay & Accounts Officer to the concerned CPPC of the authorised bank.

After receiving SSA, the CPPC of the authorised bank will credit the amount of FMA at the rate notified by DoP&PW to the bank account of a beneficiary’s account on a quarterly basis.

The amount of FMA disbursed to retired NPS employees and their families will be reimbursed by the government to banks as per the existing system.

What if the NPS pensioner changes their bank or bank branch?

According to the order, in case of a transfer of account from one branch or bank to another, the procedure laid down in the scheme booklet issued by CPAO for the payment of pensions to central government civil pensioners by authorised banks will be followed, says the order.