Government Extends LC75 and BLC Investment Options under NPS and UPS

In a major step towards expanding retirement planning flexibility, the Government of India has approved the extension of Life Cycle 75 (LC75) and Balanced Life Cycle (BLC) investment options to Central Government employees under both the National Pension System (NPS) and the Unified Pension Scheme (UPS).

The move, announced by the Ministry of Finance, comes in response to long-standing demands from government employees for access to a broader range of investment choices, similar to those available to non-government subscribers.

Broader Range of Investment Choices

Under the revised framework, Central Government employees will now be able to choose among multiple investment options tailored to their risk appetite and retirement goals:

Default Option: A standard investment pattern periodically defined by the Pension Fund Regulatory and Development Authority (PFRDA).
Scheme G: 100% investment in government securities, offering minimal risk and stable returns.
LC-25: Up to 25% equity exposure, gradually tapering from age 35 to 55.
LC-50: Up to 50% equity exposure, tapering over the same age span.
Balanced Life Cycle (BLC): A modified LC-50 structure where equity tapering begins at age 45, allowing longer exposure to equities for higher potential returns.
LC-75: Up to 75% equity exposure, tapering from age 35 to 55 for those seeking aggressive growth.

Key Benefits for Employees

The Ministry highlighted several advantages of this reform:

Greater flexibility and choice: Employees can now align their retirement investments with individual financial goals and comfort levels.
Automatic risk balancing: The “glide path” mechanism gradually reduces equity exposure with age — to 15% under LC75 and 35% under BLC by age 55 — helping protect the retirement corpus from sharp market volatility.
Enhanced diversification: The expanded “Auto Choice” funds enable employees to balance risk and reward effectively, catering to varied investor profiles.
Informed retirement planning: Employees can now structure long-term savings more efficiently, optimizing returns within acceptable risk levels.

A Step Towards Parity and Modernization

Experts see this decision as a move towards parity between government and private-sector subscribers, reflecting the government’s intent to modernize pension investment frameworks. The inclusion of high-equity options like LC75 indicates confidence in India’s long-term market growth and offers younger employees a chance to build a stronger retirement corpus.

The Press Information Bureau (PIB) release emphasized that these changes represent a progressive shift in India’s pension landscape, blending security with flexibility.

(Source: Press Information Bureau, Ministry of Finance, Release ID: 2182253, dated October 24, 2025)

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