Clarification of Fixed Medical Allowance (FMA) – CPAO

GOVERNMENT OF INDIA
MINISTRY OF FINANCE DEPARTMENT OF EXPENDITURE
CENTRAL PENSION ACCOUNTING OFFICE
TRIKOOT-II, BHIKAJI CAMA PLACE,
NEW DELHI-110066

CPAO/ IT&Tech/Revision (7th CPC)/ 19.Vol-III( E)/2019-20/66

05.08.2019

Office Memorandum

Subject:- Clarification of Fixed Medical Allowance (FMA).

Attention is invited to D P&PW OM No. 4/ 02/ 2019-P&PW (D)/42694 dated-1st July, 2 019 wherein it is mentioned that the pensioners may be allowed FMA w.e.f. the date of application for FMA, if FMA otherwise admissible to them.

Instructions issued by the OM ibid is reproduced as under:-

SL No.	Issue	Comments of DoPPW
1	Whether the effective date of payment of FMA in respect of the pensioners who retired before 01.12.1997 is the date of retirement or the date of submission of application.	The order were issued vide this Department’s OM No. 45/57/97-P&PW (C) dated-19.12.1997 wherein FMA was granted. The existing pensioners had to opt for medical allowance and an undertaking was required to be submitted by the claimant. Hence, the orders are being implemented from 01.12.1997. If a person has retired earlier and has opted for the FMA and given undertaking at the time of issue of OM, then the FMA should be paid from 01.12.1997.
		After 19.12.1997, several further orders/ clarifications were issued regarding Fixed Medical Allowance (FMA). Therefore, it is difficult to accept that the pensioner was not aware of the admissibility of the FMA w.e.f.01.12.1997. In view of this, those pensioners who retired before 01.12 .1997 and did not exercised the option for FMA immediately after the issue of OM dated- 19.12.1997 would not be entitled to FMA w.e.f. 01.12.1997. However, they may be allowed FMA w.e.f. the date of application for FMA, if FMA otherwise admissible to them.
2 .	Whether the effective date of payment of FMA in respect of the pensioners who retired after 01.12.1997 is 01.12.1997 i.e. date of implementation of order or the date of submission of the application by the pensioner.	In the OM dated-19.12.1997, it has been mentioned that in case of future retirees, the option shall be obtained by the Head of Office alongwith the pension papers and in case the retiree opts for medical allowance, the FMA is payable from the following month after the date of superannuation. If the retiree opts later on or gives his option later, then the FMA is to be given from the date of application.
		After 19.12.1997, several further orders/clarifications were issued regarding Fixed Medical Allowance (FMA). Therefore, it is difficult to accept that the retiree/ pensioner was not aware of the admissibility of the FM A. In case of retirees/ pensioners who retired after 01.12.1997 did not exercise the option for FMA immediately on retirement, the FMA would not be admissible to them from the date of the month following the month of retirement. However, they may be allowed FMA w.e.f. the date of application for FMA, if FMA otherwise admissible to them.

All Pr. CCAs/CCAs/CAs/ AGs/ Administrators of UTs and Heads of CPPCs of the authorized banks are requested to intimate the concerned to abide by the instructions issued by D P&PW.

This issues with the approval of Chief Controller (Pension).

(Praful Dabral)
Sr. Accounts Officer (IT & Tech)

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