Fixed Medical Allowance to Pensioners Is Admissible From Date of Application Where No Retirement Option Is Exercised

The applicant, a retired Accountant from the office of the Principal Accountant General, Prayagraj, superannuated on 30.06.2007

Upon retirement, he surrendered his CGHS card but did not immediately apply for Fixed Medical Allowance (FMA), claiming a lack of awareness regarding the scheme for pensioners in non-CGHS areas

On 22.11.2019, approximately 12 years after retirement, he submitted an application requesting the grant of medical allowance effective from 01.07.2007

The respondents initially delayed the process due to verification issues regarding the surrender of the CGHS card but eventually granted FMA in 2024, making it effective only from the date of his application (22.11.2019) rather than the date of retirement

The applicant approached the Tribunal seeking a direction for the benefit to be granted retrospectively from 01.07.2007

1. Whether a retired government employee is entitled to Fixed Medical Allowance (FMA) retrospective from the date of retirement if the option for the same was not exercised at the time of superannuation

The Court primarily applied the Office Memorandum (OM) dated 05.08.2019 issued by the Ministry of Finance, Department of Expenditure, Central Pension Accounting Office

The rule establishes a dual-criteria for FMA: (i) if an employee exercises the option at the time of retirement, FMA is payable from the month following superannuation; (ii) if no such option is exercised at retirement, the allowance is admissible only from the date the application is submitted

The Court also noted the limitation principles under Section 21 of the Administrative Tribunals Act, 1985

The Tribunal observed that while the FMA scheme was introduced in 1997, its admissibility is governed by the specific conditions laid out in government policy

The Court found no evidence on record to establish that the applicant had exercised the required option for FMA at the time of his retirement in 2007

Applying the OM dated 05.08.2019 to these facts, the Court reasoned that since the option was exercised belatedly, the respondents were legally justified in granting the allowance from the date of application rather than retrospectively from the date of retirement

The applicant's plea of "lack of knowledge" of the scheme was not considered a sufficient legal ground to override the prescribed policy conditions

The prayer for retrospective benefits effective from 01.07.2007 was denied, and the Original Application was dismissed

All associated Miscellaneous Applications were disposed of with no order as to costs