Govt extends ‘Aggressive’ and ‘Balanced’ NPS fund choices to employees of Central Autonomous Bodies

NEW DELHI: Employees of central autonomous bodies covered under the National Pension System will now have access to two additional investment options that were earlier available only to central government staff. The move is aimed at giving more flexibility to align retirement savings with individual risk appetite.

Announcing the decision on Tuesday, the Ministry of Finance said the extension applies with immediate effect. “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 NPS,” the ministry stated.

According to the Department of Expenditure, the applicability of the Department of Financial Services notification dated 13 November 2025 has now been extended to CAB employees as well. “The Department of Expenditure, Ministry of Finance vide its memorandum has extended applicability of the Department of Financial Services Notification dated 13 November 2025 to employees of Central Autonomous Bodies (CABs) covered under NPS,” the press release said.

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

With this extension, eligible employees of Central Autonomous Bodies will now have choice to the following additional investment options under NPS:

✦Aggressive Life Cycle…

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The two new options are a higher-equity fund and a moderate-risk fund with an auto de-risking feature. Earlier, these were introduced only for Central Government employees. “The Government had earlier introduced the Additional Investment Choices, namely the Aggressive Life Cycle Fund (LC-75) and the Balanced Life Cycle Fund (BLC), for the Central Government employees covered under NPS. These investment options have now also been extended to NPS subscribers employed in CABs,” the Ministry noted.

With the extension, eligible CAB employees can now choose between the renamed funds. “Aggressive Life Cycle Fund (LC-75) now named as LC-75-High, an investment option with equity exposure of up to 75%, designed for subscribers seeking higher growth potential over the long term,” the release explained.

The second option has also been rebranded. “Balanced Life Cycle Fund (BLC) now named as Aggressive Life Cycle Fund: An investment option with equity exposure capped at 50%, with a gradual reduction in equity allocation beginning from the age of 45 years, offering a balanced approach between growth and stability.”

The ministry said the aim is to make NPS more adaptable for different categories of subscribers. “The extension of these investment choices aims to provide greater flexibility for NPS subscribers in Central Autonomous Bodies, enabling them to align their pension investments with their individual risk appetite, financial goals, and retirement planning requirements,” it said.

“These choices further strengthen subscriber choice and enhance the attractiveness of the National Pension System for employees covered under NPS across Central Autonomous Bodies.”

The Department has asked administrative ministries to inform all CABs under their control. “Administrative Ministries and Departments have been asked to inform the CABs under their administrative control about the availability of the aforesaid investment choices. The aforesaid investment choices shall be made available in the Central Record keeping Agency (CRA) system.” (ANI)