Employees of Central Autonomous Bodies under the National Pension System (NPS) will now get two new investment options. These options, which were earlier only for central government employees, will now give them more freedom to invest as per their risk.
New Delhi [भारत]July 8 (ANI): Employees of Central Autonomous Bodies (CABs) under the National Pension System (NPS) will now get the benefit of two additional investment options, which were earlier available only to central government employees.
The move aims to give employees more flexibility in managing retirement savings as per their individual risk appetite. Announcing the decision on Tuesday, the Finance Ministry said that this extension has come into effect with immediate effect. “The Government of India has extended two additional investment options to the employees of Central Autonomous Bodies (CABs) covered under NPS,” the ministry said.
Government implemented two new options
According to the Department of Expenditure, the notification dated November 13, 2025 of the Department of Financial Services has now been extended to CAB employees also. “The Department of Expenditure, Ministry of Finance, through a memorandum, has made the notification of the Department of Financial Services dated November 13, 2025 applicable to the employees of Central Autonomous Bodies (CABs) covered under NPS,” the press release said.
The two new options are a high-equity fund and a moderate-risk fund with an auto de-risking feature. Earlier, these were launched only for Central Government employees. “The government had earlier introduced additional investment options namely Aggressive Life Cycle Fund (LC-75) and Balanced Life Cycle Fund (BLC) for Central Government employees. These investment options have now also been extended to NPS subscribers serving in CABs,” the ministry said.
Know what these two new funds are
With this extension, eligible CAB employees can now choose between these funds, the names of which have also been changed.
Aggressive Life Cycle Fund (LC-75)
“Aggressive Life Cycle Fund (LC-75) has now been renamed as LC-75-High. It is an investment option with equity exposure up to 75%, designed for subscribers seeking high growth potential over the long term,” the release said.
Balanced Life Cycle Fund (BLC)
The name of the second option has also been changed. “Balanced Life Cycle Fund (BLC) has now been renamed as Aggressive Life Cycle Fund. It is an investment option where equity exposure is capped at 50%, and the equity allocation gradually reduces from the age of 45 onwards, providing a balanced approach between growth and stability.”
Why was this decision taken?
The ministry said the aim is to make NPS more friendly to different categories of subscribers. “These investment options have been expanded across Central Autonomous Bodies with the aim of providing greater flexibility to NPS subscribers to align their pension investments with their individual risk appetite, financial goals and retirement planning needs,” it said.
“These options further strengthen subscriber choice and enhance the attractiveness of the National Pension System for employees covered under NPS in Central Autonomous Bodies.” The department has asked administrative ministries to inform all CABs under their control. “Administrative Ministries and Departments under their administrative control have been asked to inform the CABs about the availability of the above investment options. The above investment options will be made available in the Central Recordkeeping Agency (CRA) system.” (ANI)
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