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

New NPS options with higher equity exposure and balanced investment strategy now available for eligible CAB employees

In a significant move to provide greater flexibility in retirement planning, the Government of India has extended two additional investment choices under the National Pension System (NPS) to employees of Central Autonomous Bodies (CABs) covered under the pension scheme.

The decision has been taken by the Department of Expenditure, Ministry of Finance, through a memorandum extending the applicability of the Department of Financial Services notification issued on 13 November 2025 to eligible employees of Central Autonomous Bodies.

Two New Investment Choices for CAB Employees

The additional investment options, which were earlier introduced for Central Government employees under NPS, are now available to NPS subscribers working in Central Autonomous Bodies.

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

The Aggressive Life Cycle Fund, now renamed LC-75-High, offers equity exposure of up to 75%. It is designed for subscribers who are comfortable with a higher level of investment risk in pursuit of potentially better long-term returns. The option is intended for individuals with a longer investment horizon and a higher risk appetite.

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

The earlier Balanced Life Cycle Fund (BLC) has been renamed Aggressive Life Cycle Fund. This investment option provides equity exposure of up to 50%, with the equity allocation gradually reducing from the age of 45 years. It is aimed at subscribers seeking a balanced mix of growth potential and investment stability as they move closer to retirement.

Greater Flexibility for Retirement Planning

According to the Government, extending these investment choices to Central Autonomous Body employees will enable NPS subscribers to select investment options that better match their individual financial goals, retirement planning requirements and risk tolerance.

The move also broadens the range of pension investment choices available to eligible employees, allowing them to adopt investment strategies that are more closely aligned with their long-term retirement objectives.

Implementation

Administrative Ministries and Departments have been instructed to inform the Central Autonomous Bodies under their administrative control about the availability of the new investment choices. These options will also be made available through the Central Recordkeeping Agency (CRA) system, enabling eligible NPS subscribers to exercise their preferred investment choice.

GConnect Takeaway

The extension of these additional NPS investment options marks another step towards providing greater flexibility and choice to employees covered under the National Pension System. With both higher-growth and balanced investment strategies now available, eligible employees of Central Autonomous Bodies can choose an investment approach that best suits their retirement planning needs while remaining within the NPS framework.

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