The Finance Ministry has extended two additional National Pension System (NPS) investment choices—LC-75 High and the Aggressive Life Cycle Fund (formerly BLC)—to employees of Central Autonomous Bodies. The move offers greater flexibility, higher growth potential, and improved retirement planning based on individual risk preferences.
Key Highlights
- Two additional NPS investment options extended to Central Autonomous Body employees.
- LC-75 High offers equity exposure of up to 75% for higher long-term growth.
- Aggressive Life Cycle Fund provides 50% equity exposure with gradual reduction after age 45.
- Finance Ministry directs ministries to inform eligible NPS subscribers about the new options.
The Ministry of Finance has extended two additional investment choices under the National Pension System (NPS) to employees of Central Autonomous Bodies (CABs) covered under the pension scheme. The decision broadens investment flexibility beyond Central Government employees, who were already eligible for these options.
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Under the revised framework, eligible subscribers can now opt for the LC-75 High (formerly Aggressive Life Cycle Fund), which provides equity exposure of up to 75%. The fund is designed for individuals with a higher risk appetite seeking better long-term wealth creation through equity investments.
The second option, the Aggressive Life Cycle Fund (formerly Balanced Life Cycle Fund – BLC), offers equity exposure capped at 50%. Its investment strategy gradually reduces equity allocation after the subscriber reaches 45 years of age, providing a balanced mix of growth and stability as retirement approaches.
The Department of Expenditure, through an Office Memorandum dated July 1, 2026, extended the applicability of the Department of Financial Services notification issued on November 13, 2025, making these investment choices available to employees of Central Autonomous Bodies covered under the NPS.
According to the Finance Ministry, the initiative aims to strengthen subscriber choice, allowing employees to align their pension investments with their risk profile, financial goals, and retirement planning needs. Administrative ministries and departments have been instructed to inform all eligible organisations and ensure that subscribers can take advantage of the enhanced investment options through the Central Recordkeeping Agency (CRA) system.
Conclusion
The extension of these NPS investment options marks another step toward providing greater financial flexibility and customized retirement planning for employees of Central Autonomous Bodies, making the National Pension System more attractive and investor-friendly.
FAQs
1. Which new NPS investment options have been extended ?
The government has extended LC-75 High and the Aggressive Life Cycle Fund to eligible employees of Central Autonomous Bodies.
2. What is the maximum equity exposure under LC-75 High ?
LC-75 High allows equity investment of up to 75%, making it suitable for long-term growth-oriented investors.
3. How does the Aggressive Life Cycle Fund differ ?
It offers up to 50% equity exposure, with equity allocation gradually reducing after the subscriber turns 45 years old.
4. Who can avail these investment options ?
Employees of Central Autonomous Bodies covered under the National Pension System (NPS) are now eligible for these additional investment choices.
