The Ministry of Finance has simplified Fixed Medical Allowance (FMA) payments for National Pension Scheme (NPS) pensioners. Now, the process has been made automatic and bank-driven, eliminating paperwork such as bill submission.
According to an Office Memorandum dated April 16, eligible pensioners will now receive the allowance directly in their bank accounts without submitting any medical bills or claims.
Under the new system, the FMA will be disbursed through pension disbursing banks via their Central Pension Processing Centres (CPPCs). These centres will handle the payment process based on instructions issued by the Central Pension Accounting Office (CPAO) and relevant government orders.
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"The payment of FMA will be automatic and no bill is required to be submitted by the beneficiary. The CPPC will strictly follow the instructions mentioned in the Special Seal Authority issued by the CPAO for payment of FMA and any other orders issued by the Government on the subject," it said.
This change is aimed at reducing paperwork and ensuring timely and hassle-free credit of medical allowance to eligible pensioners on a quarterly basis.
Process Made Easier
The CPAO will first check and confirm eligibility of pensioners. After verification, it will issue a Special Seal Authority (SSA) to the bank. Based on this approval, the CPPC of the authorised bank will credit the FMA directly into the pensioner's bank account.
The allowance will be paid every quarter at rates notified by the Department of Pension and Pensioners' Welfare (DoP&PW). The finance ministry has clarified that the process will be fully automatic and pensioners will not need to submit any bills or documents for payment.
What Pensioners Need To Submit?
However, pensioners must submit a life certificate every year in November to continue receiving the allowance. This can be done digitally or in physical form. If the certificate is not submitted on time, pensioners may face issues with getting the benefits.
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After a pensioner's death, their family can continue receiving FMA benefits. If the eligible family member is already recorded, they can directly apply to the bank with a death certificate. Otherwise, a fresh application needs to be made.
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