Govt extends 'Aggressive' and 'Balanced' NPS fund choices to employees of Central Autonomous Bodies
New Delhi, July 8
Employees of Central Autonomous Bodies covered under the National Pension System will now have access to two additional investment options that were earlier available only to Central Government staff. The move is aimed at giving more flexibility to align retirement savings with individual risk appetite. Announcing the decision on Tuesday, the Ministry of Finance said the extension applies with immediate effect.
"The Government of India has extended two additional investment choices under the National Pension System (NPS) to employees of Central Autonomous Bodies (CABs) covered under NPS," the Ministry stated.
According to the Department of Expenditure, the applicability of the Department of Financial Services notification dated 13 November 2025 has now been extended to CAB employees as well.
"The Department of Expenditure, Ministry of Finance vide its memorandum has extended applicability of the Department of Financial Services Notification dated 13 November 2025 to employees of Central Autonomous Bodies (CABs) covered under NPS," the press release said.
The two new options are a higher-equity fund and a moderate-risk fund with an auto de-risking feature. Earlier, these were introduced only for Central Government employees.
"The Government 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. These investment options have now also been extended to NPS subscribers employed in CABs," the Ministry noted.
With the extension, eligible CAB employees can now choose between the renamed funds.
"Aggressive Life Cycle Fund (LC-75) now named as LC-75-High, an investment option with equity exposure of up to 75%, designed for subscribers seeking higher growth potential over the long term," the release explained.
The second option has also been rebranded. "Balanced Life Cycle Fund (BLC) now named as Aggressive Life Cycle Fund: An investment option with equity exposure capped at 50%, with a gradual reduction in equity allocation beginning from the age of 45 years, offering a balanced approach between growth and stability."
The Ministry said the aim is to make NPS more adaptable for different categories of subscribers.
"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," it said.
"These choices further strengthen subscriber choice and enhance the attractiveness of the National Pension System for employees covered under NPS across Central Autonomous Bodies."
The Department has asked administrative ministries to inform all CABs under their control. "Administrative Ministries and Departments have been asked to inform the CABs under their administrative control about the availability of the aforesaid investment choices. The aforesaid investment choices shall be made available in the Central Record keeping Agency (CRA) system."
— ANI
Reader Comments
This is a welcome move! As someone who works in a central autonomous body in Mumbai, I've always felt left out when central government employees got better NPS options. The Balanced Life Fund with auto de-risking from age 45 sounds sensible - I'm 42 and this fits my risk profile perfectly.
Good step, but let's be honest - the real issue is the lack of awareness about NPS among CAB employees. I've seen colleagues just sticking to the default option without understanding the implications. The government should conduct workshops or webinars explaining these options. Also, where's the option to switch between funds without penalty? 🤔
As a CAB employee in Delhi, I appreciate the move but I'm cautious. The equity market can be volatile - remember 2008? The auto de-risking feature in the Balanced fund is critical. I wish they had included a conservative option with just 25% equity for risk-averse folks like my wife. Not everyone wants to gamble with retirement savings.
This is exactly what we needed! I've been reading about NPS options for months and felt limited with the old choices. The LC-75 (now LC-75-High) gives me the growth I want for my 25-year horizon. But one concern - will changing to these options be seamless through the CRA system? The portal is not always user-friendly. Hope they've fixed that.
Great news for CAB employees! The aggressive fund with 75% equity sounds risky but with a long investment horizon, it makes sense. I just hope the fund management is transparent - we need clear reporting
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