New Delhi: The Union Finance Ministry has introduced a direct benefit transfer system for the ‘fixed medical allowance’ paid to eligible Central government NPS pensioners. Under the new arrangement, the allowance will be credited automatically to the pensioner’s bank account without requiring bills or receipts.
The move is aimed at cutting delays and reducing the need for pensioners to visit offices for document submission. A centralised verification process is expected to minimise release-related issues and calculation errors.
As per the schedule, the amount for the September–November period will be paid in the first week of December, while the December–February instalment will be credited in the first week of March. The Central Pension Accounting Office will verify eligible beneficiaries and share details with banks, after which banks will release the payment.
To ensure uninterrupted credit, pensioners must submit their annual life certificate every November; failure to do so will lead to stoppage of the allowance from December. After a pensioner’s death, an eligible family member (spouse) can receive the benefit—if the family member’s name is already in the authorisation, submitting the death certificate will suffice; otherwise, fresh authorisation is required.
Pensioners also have the option to discontinue the fixed medical allowance and switch to the CGHS health scheme at any time. Once CGHS is chosen, its rules will apply and the monthly medical allowance will not be paid thereafter.
