Government Extends Additional NPS Investment Choices to Employees of Central Autonomous Bodies

Union government of India has expanded the investment options under the National Pension System (NPS) by extending the two additional life cycle funds to employees of the Central Autonomous Bodies (CABs) covered under this pension scheme. It was announced by the Ministry of Finance on 7th of July, 2026, it allows the eligible employees to choose between higher-growth and balanced investment strategies based on their risk appetite and retirement goals. This decision is expected to provide the greater flexibility in planning of pension and will make NPS more attractive for employees who are working in autonomous . institutions

What Is the Latest NPS Update?

The Department of Expenditure, under the Ministry of Finance, has extended the applicability of the Department of Financial Services notification which dated 13 November 2025 to employees of the Central Autonomous Bodies (CABs) who are covered under the National Pension System.

Earlier, these additional investment choices were available only to the Central Government employees under NPS.

After the latest decision, eligible employees of Central Autonomous Bodies can now avail the benefits from the same investment options.

This new provision aims to provide subscribers with the greater control over their retirement savings by allowing them to select the investment plans which match their financial objectives.

New Investment Choices Under NPS

The government has extended total two additional life cycle investment options for eligible CAB employees.

1. LC-75 High (Earlier LC-75 Aggressive Life Cycle Fund)

The Aggressive Life Cycle Fund (LC-75) has now been renamed as LC-75 High.

Key Features

• Maximum 75% equity exposure
• Designed for the subscribers with a higher risk appetite
• Suitable for the long-term wealth creation
• Higher growth potential over the investment period
• Appropriate for the younger investors with longer investment horizons

This fund seeks to maximize returns by maintaining a larger allocation to equities while gradually adjusting the investments with age.

2. Aggressive Life Cycle Fund (Earlier Balanced Life Cycle Fund)

The Balanced Life Cycle Fund (BLC) has been renamed as the Aggressive Life Cycle Fund.

Key Features

• Equity exposure capped at around 50%
• Equity allocation begins reducing gradually from the 45 years of age
• Provides a balance between growth and capital protection
• Suitable for the investors seeking moderate risk

This option is designed for the subscribers who prefer a more balanced investment strategy while still benefiting from equity market growth.

Why Has the Government Introduced These Options?

The extension of these investment choices aims to strengthen the retirement planning for employees of Central Autonomous Bodies.

The key objectives include,

• It offers greater investment flexibility
• Allowing subscribers to choose their plans based on individual risk appetite
• Supporting the better long-term retirement planning
• Enhancing subscriber participation in the National Pension System
• Aligning pension investments with the financial goals

Who Can Benefit from the New Investment Choices?

The revised investment options are available to the,

• Employees of Central Autonomous Bodies (CABs)
• Subscribers covered under the National Pension System (NPS)

Administrative Ministries and Departments have been also instructed to inform all Central Autonomous Bodies under their jurisdiction about the availability of the new options.

These investment choices will also be made available through the Central Recordkeeping Agency (CRA) system, it enabling eligible subscribers to exercise their preferred option.

How Will the Decision Benefit Employees?

The latest policy change offers the multiple advantages to eligible NPS subscribers.

• Greater Investment Choice
• Better Retirement Planning
• Improved Long-Term Growth Potential
• Balanced Investment Option
• Enhanced Attractiveness of NPS