Employees of Central Autonomous Bodies (CABs) covered under the National Pension System (NPS) will now be able to choose from two additional investment options, a benefit that was previously available only to Central government employees.
According to a Press Information Bureau (PIB) release, the Department of Expenditure has extended the applicability of the Department of Financial Services’ notification issued on 13 November, 2025, to NPS subscribers employed in CABs.
The decision was formalised through an office memorandum issued on 1 July, 2026, and is aimed at giving employees greater flexibility to align their retirement investments with their financial goals and risk appetite.
One of the newly-introduced options is LC-75 High, formerly known as the Aggressive Life Cycle Fund. It allows equity exposure of up to 75 per cent, making it suitable for employees with a higher risk appetite and a longer investment horizon.
The second option is the Aggressive Life Cycle Fund, previously called the Balanced Life Cycle Fund (BLC). Under this option, equity exposure is capped at 50 per cent and is gradually reduced after the subscriber reaches the age of 45, helping lower investment risk as retirement approaches.
These two life cycle funds will be available alongside the existing NPS investment choices, enabling employees to select a portfolio that best matches their long-term retirement planning needs.
The Finance Ministry said the move is intended to strengthen subscriber choice and enhance the attractiveness of the National Pension System for employees of Central Autonomous bodies.
The Ministry has also directed all administrative ministries and departments to inform the autonomous bodies under their jurisdiction about the availability of the new investment options so that eligible employees can exercise their choice.
