The Union Finance Ministry has revised the pension rules by extending two additional investment options under the National Pension System (NPS) to employees of Central Autonomous Bodies (CABs).
According to a statement issued by the Finance Ministry on Tuesday (July 7), these employees can now choose the Aggressive Life Cycle Fund (LC-75) and the Balanced Life Cycle Fund (BLC) for their pension investments.
Earlier, these two investment options were available only to central government employees covered under the National Pension System.
With the latest decision, eligible employees working in Central Autonomous Bodies will also be able to invest through these additional fund options.
Features of the New Investment Options
The Aggressive Life Cycle Fund (LC-75), which has now been renamed LC-75-High, allows equity exposure of up to 75 percent.
This option is meant for subscribers who are comfortable with higher risk and are looking for stronger long-term growth potential.
Meanwhile, the Balanced Life Cycle Fund (BLC), which has now been renamed the Aggressive Life Cycle Fund, limits equity exposure to 50 percent.
Under this option, the equity allocation starts reducing gradually once the subscriber reaches the age of 45, offering a balanced mix of growth and stability for retirement savings.
Finance Ministry’s Official Announcement
The Finance Ministry said that the Department of Expenditure issued an Office Memorandum on July 1, 2026, extending the Department of Financial Services’ notification dated November 13, 2025, to employees of Central Autonomous Bodies.
The earlier notification had introduced the LC-75 and Balanced Life Cycle Fund (BLC) investment options for central government employees covered under the National Pension System.
Aim Behind the Decision
According to the Finance Ministry, the expansion of these investment options is intended to provide greater flexibility to NPS subscribers working in Central Autonomous Bodies.
It will allow employees to choose investment plans based on their individual risk appetite, financial goals, and retirement planning requirements.
The ministry added that the move strengthens subscriber choice and makes the National Pension System more attractive for employees of Central Autonomous Bodies covered under the National Pension Scheme.
