NPS latest update: Central Autonomous Body employees can now choose 2 additional NPS investment options

The central government has extended two additional investment options under the National Pension System (NPS) to employees of Central Autonomous Bodies (CABs) covered under the scheme.

The two new choices that were earlier extended only to central government employees covered under the NPS are:

Aggressive Life Cycle Fund (LC-75) now named as LC-75-High


Balanced Life Cycle Fund (BLC) now named as Aggressive Life Cycle Fund

Now, the same options will be available to NPS subscribers from central autonomous bodies as well.

The Department of Expenditure, Ministry of Finance, issued an Office Memorandum (OM) on July 1, 2026, extending the reach of a previous notification from the Department of Financial Services dated November 13, 2025.

This earlier notification had introduced new investment options, specifically the Aggressive Life Cycle Fund (LC-75) and the Balanced Life Cycle Fund (BLC), for central government employees covered under the NPS. These investment options have now been extended to NPS subscribers working in CABs.

Which two additional NPS investment choices will now be available to CAB employees?

Employees of central autonomous bodies covered under the NPS can now opt for the following investment choices:

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

This is an investment option with of up to 75% equity exposure, designed for subscribers seeking higher growth potential over the long term.

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

Under this investment option, the equity exposure is capped at 50%, with gradual reduction in equity allocation beginning from the age of 45 years, offering a balanced approach between growth and stability.

Why has the government introduced these options for CAB employees?

According to the government, these investment options were extended with the aim to provide greater flexibility to NPS subscribers working in Central Autonomous Bodies, allowing them to align their pension investments with their individual risk appetite, financial goals, and retirement planning requirements.

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

What is an Auto Choice in NPS?

For subscribers who prefer not to manage their investments, NPS offers an Auto Choice. This option invests NPS contributions in a life cycle fund, where allocation across asset classes changes with the subscriber's age.

Types of auto choice funds

• Life Cycle 25 – Low (5E/55Y)
• Life Cycle 50 – Moderate (10E/55Y)
• Life Cycle 75 – High (15E/55Y)
• Life Cycle – Aggressive (35E/55Y) (formerly Balanced Life Cycle Fund)