Railway Board Issues RBE 21/2026 on New Investment Options under NPS and Unified Pension Scheme

The Ministry of Railways has issued RBE No. 21/2026, informing all Zonal Railways, Production Units, and associated offices about revised investment options available to Railway employees under the National Pension System (NPS) and the Unified Pension Scheme (UPS).

The Railway Board circular communicates the implementation of a Gazette Notification dated November 13, 2025, issued by the Department of Financial Services, Ministry of Finance. The notification introduces additional investment choices aimed at providing greater flexibility to Central Government employees, including Railway personnel, under NPS and UPS.

Key Changes in Investment Options

As per the Gazette Notification, amendments have been made to the existing framework governing pension investments. Two new lifecycle fund options have been introduced:

• Aggressive Life Cycle Fund (LC-75):
  This option allows a maximum equity exposure of up to 75%, enabling higher risk-taking with the potential for increased returns.
• Balanced Life Cycle Fund (BLC):
  This option caps equity exposure at 50%, with a gradual reduction (tapering) in equity allocation beginning at the age of 45 years.

These additions expand the range of lifecycle investment choices already available to subscribers, allowing employees to select options aligned with their risk appetite and retirement planning strategy.

Background of Amendments

The latest notification partially modifies earlier pension-related notifications issued in:

• December 22, 2003
• January 31, 2019
• January 24, 2025

The amendments are intended to enhance investment flexibility and provide diversified options within the NPS and UPS frameworks for government employees.

Instructions for Compliance

The Railway Board has forwarded the notification for “information and compliance” to all concerned authorities, including General Managers, Principal Financial Advisors, and heads of various Railway units and institutions.

The circular has also been shared with staff associations, federations, training institutes, and public sector undertakings under the Railways to ensure wider dissemination and implementation.

---

This move is expected to provide Railway employees with greater flexibility and choice in managing their retirement savings under both NPS and UPS.

View Railways Letter: