Govt extends additional NPS investment choices to employees of central autonomous bodies
New Delhi, July 7
The Union government has extended two additional investment choices, which include the Aggressive Life Cycle Fund and the Balanced Life Cycle Fund, to employees of Central Autonomous Bodies covered under the National Pension Scheme, according to a Finance Ministry statement issued on Tuesday.
Earlier, these additional investment choices were available only to Central government employees covered under NPS.
These investment options have now been extended to NPS subscribers employed in Central Autonomous Bodies (CABs).
With this extension, eligible employees of Central Autonomous Bodies will now have choice to invest in both the additional investment options.
The Aggressive Life Cycle Fund (LC-75) now named as LC-75-High is an investment option with equity exposure of up to 75 per cent, designed for subscribers seeking higher growth potential over the long term.
The Balanced Life Cycle Fund (BLC) now named as Aggressive Life Cycle Fund is an investment option with equity exposure capped at 50 per cent, with a gradual reduction in equity allocation beginning from the age of 45 years, offering a balanced approach between growth and stability.
"An office memorandum dated July 1, 2026, has been issued by the Department of Expenditure under the Ministry of Finance, extending the applicability of the Department of Financial Services notification dated November 13, 2025, to employees of Central Autonomous Bodies covered under NPS. This notification had earlier introduced the additional investment choices, namely the Aggressive Life Cycle Fund (LC-75) and the Balanced Life Cycle Fund (BLC), for the Central government employees covered under NPS," the statement noted.
"The extension of these investment choices aims to provide greater flexibility for NPS subscribers in Central Autonomous Bodies, enabling them to align their pension investments with their individual risk appetite, financial goals, and retirement planning requirements. These choices further strengthen subscriber choice and enhance the attractiveness of the National Pension System for employees covered under the National Pension Scheme across Central Autonomous Bodies," the statement said.
"The Finance Ministry has directed administrative Ministries and departments to inform the Central Autonomous Bodies under their administrative control about the availability of the aforesaid investment choices and advise them to disseminate this information among eligible NPS subscribers so that they may avail of the facility," the statement added
The aforesaid investment choices would be made available in the Central Recordkeeping Agency system, the statement said.
— IANS
Reader Comments
Great step! As an employee of a central autonomous body, I was always wondering why these options were limited to only central government employees. Hope they also extend the choice to choose fund managers like in the private sector. Bureaucracy moves slowly but surely. 😊
I appreciate the intent, but isn't 75% equity exposure too aggressive for a pension fund? Many of us in our 40s joined NPS thinking it was a safe option. The earlier default lifecycle fund was fine. Now people might lose money if market crashes near retirement. Government should provide better clarity on exit options and minimum guarantees. Just my two paise. 🤔
Good news for autonomous body employees! My husband works in one such organization and we've been watching these NPS changes from a distance. The balanced lifecycle fund with 50% equity cap seems sensible for most. But will the choice be available to existing subscribers too, or only new ones? Need more details on implementation. 👍
Honestly, this is long overdue. Central autonomous bodies have employees who do the same work as central government staff but often get lesser benefits. At least now they have the same investment choices. But the real issue is NPS returns still lag behind the old pension scheme. Wish the government would address the core problem instead of offering Band-Aid solutions. 💭
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