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Government Extends New NPS Investment Options (LC-75 & BLC) to Central Autonomous Bodies Employees

Government Extends New NPS Investment Options (LC-75 & BLC) to Central Autonomous Bodies Employees

Great news for National Pension System (NPS) subscribers working under Central Autonomous Bodies (CABs)! The Government of India, Ministry of Finance, Department of Expenditure, has officially extended two new investment options—LC-75 and BLC—to CAB employees. This update brings CAB employees on par with other Central Government employees regarding pension fund investment flexibility.

Key Highlights of the Order

  • Issuing Authority: Ministry of Finance, Department of Expenditure.
  • Date of Issue: July 1, 2026.
  • Office Memorandum (OM) No: 1(3)/EV/2020.
  • Primary Benefit: Access to Aggressive (LC-75) and Balanced (BLC) Life Cycle Funds.
  • Beneficiaries: NPS-subscribed employees of Central Autonomous Bodies.

Detailed Summary of the Office Memorandum

Earlier, the Department of Financial Services (DFS) released Notification No.FX-4/2/2025-PR on November 13, 2025, introducing two new investment options for Central Government employees covered under the NPS. Following this, the Pension Fund Regulatory and Development Authority (PFRDA) received numerous representations requesting the same benefits for CAB employees.

After careful examination, the Department of Expenditure has approved the extension of these provisions. Now, CAB staff can restructure their NPS portfolios to maximize their retirement corpus by taking advantage of higher equity exposure early in their careers.

Important Points on the New NPS Investment Options

Eligible Central Government and CAB employees can now choose from the following updated fund categories:

  • Aggressive Life Cycle Fund (LC-75): This option allows subscribers to allocate a maximum of 75% of their investment into equity. It is suited for individuals willing to take higher risks for potentially greater long-term returns.
  • Balanced Life Cycle Fund (BLC): This fund caps maximum equity exposure at 50%. Additionally, it features a tapering mechanism where the equity component gradually decreases once the subscriber reaches the age of forty-five years, ensuring better capital protection closer to retirement.
  • Implementation Support: Administrative Ministries and Departments have been advised to consult the PFRDA or Central Record Keeping Agency (CRA) for any technical support required to roll out these options.

Conclusion

This decision, approved by the Secretary (Expenditure) and officially signed by Under Secretary Kundan Kumar Jha, is a highly anticipated move that empowers Central Autonomous Bodies employees to take charge of their pension investments. By opening up LC-75 and BLC funds, the government ensures uniformity in NPS benefits across different federal wings. We encourage all CAB employees to evaluate their risk appetite and consult their respective HR or CRA portals to update their investment preferences.

⚠️ Disclaimer

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.

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