Major Update: New NPS Investment Options (LC-75 & BLC) Extended to Central Autonomous Bodies Employees
In a significant development for Central Government and Central Autonomous Bodies (CABs) employees, the Ministry of Finance has authorized the extension of newly introduced National Pension System (NPS) investment options to CAB employees. Initially introduced exclusively for Central Government employees, these expanded investment flexibilities aim to provide subscribers with greater control over their retirement corpus under the NPS and Unified Pension Scheme (UPS) frameworks.
Key Highlights of the Order
- Issuing Authority: Department of Expenditure, Ministry of Finance, Government of India.
- Date of OM: July 1, 2026.
- Reference Notification: DFS Gazette Notification No. FX-4/2/2025-PR dated November 13, 2025.
- Beneficiaries: NPS-subscribed employees of Central Autonomous Bodies.
- Implementation: Further adopted by CSIR for all its Labs and Institutes on July 29, 2026.
Detailed Summary: Background and Extension of Benefits
On November 13, 2025, the Department of Financial Services (DFS) released a gazette notification introducing two additional investment choices for government employees subscribed to the NPS and UPS. Following this initial release, the Pension Fund Regulatory and Development Authority (PFRDA) received numerous representations requesting that these benefits be extended to employees working within Central Autonomous Bodies.
After a thorough examination by the Department of Expenditure, approval was granted on July 1, 2026, to officially extend the applicability of the November 2025 DFS notification to CAB employees. The order dictates that administrative departments and ministries can collaborate with the PFRDA or the Central Record Keeping Agency (CRA) if they require technical assistance to implement these provisions.
Subsequently, the Council of Scientific and Industrial Research (CSIR) issued an Office Memorandum on July 29, 2026, forwarding the Ministry of Finance's directives to all CSIR units, laboratories, and headquarters for strict compliance and guidance.
Understanding the New Investment Options
The notification provides CAB employees access to the following two specific investment portfolios:
- Aggressive Life Cycle Fund (LC-75): This option is tailored for subscribers seeking higher growth potential, offering a maximum exposure to the equity market capped at 75%.
- Balanced Life Cycle Fund (BLC): This option provides a balanced approach, with the maximum equity exposure capped at 50%. To protect the corpus as the subscriber nears retirement, the equity component undergoes tapering starting from the age of forty-five years.
Conclusion
The extension of the LC-75 and BLC investment funds marks a positive step toward parity between Central Government employees and those serving in Central Autonomous Bodies. By allowing a maximum equity exposure of up to 75% or a structured balanced approach, employees now possess dynamic tools to grow their pension wealth efficiently. Departments are encouraged to liaise with PFRDA to ensure seamless integration of these new choices for their workforce.
(Source: Council of Scientific and Industrial Research / Ministry of Finance)
Educational Purpose Only: The information provided in this article is for general informational and educational purposes only.
Accuracy & Mistakes: While every effort has been made to ensure accuracy, human errors or omissions may occur.
No Liability: Under no circumstances shall the author or this website be held liable for any loss arising from the use of this information.
Are you a Central Government Employee?
Don’t stay in the dark! Vital updates on Service Rules, Pension policies, and your career are happening right now.
Add as Preferred Source on Google
Follow us to ensure our latest exclusive reports appear first in your Google Search and Discover feed.
Comments
Post a Comment