7 July 2026·PIB

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

In this note

1. At a Glance

Government of India extended two additional NPS investment choices — the Aggressive Life Cycle Fund (LC-75) and the Balanced Life Cycle Fund (BLC) — to employees of Central Autonomous Bodies (CABs) covered under the National Pension System (NPS) [1].
These options were earlier available only to Central Government employees; the extension brings CAB employees to parity [1][2].
Implemented via a Department of Expenditure (Ministry of Finance) memorandum extending the Department of Financial Services (DFS) Notification dated 13 November 2025 [1].
Relevant for Prelims (institutional/scheme facts) and Mains GS-II/III (pension governance, financial inclusion, retirement security).

On 7 July 2026, PIB announced that the Department of Expenditure had extended the DFS notification (13 November 2025) on additional NPS investment choices to CAB employees [1].
This follows the original government approval extending LC-75 and BLC to Central Government employees under NPS and the Unified Pension Scheme (UPS) [2].

NPS originally offered subscribers a limited default/auto-choice investment pattern with schemes like Scheme G (100% government securities), LC-25 (25% equity) and LC-50 (50% equity) [2].
Government subsequently introduced two new Life Cycle Funds: LC-75 (up to 75% equity exposure) and Balanced Life Cycle Fund (BLC) (equity capped at 50%, tapering from age 45), to give subscribers greater choice aligned to risk appetite [1][2].
These were first approved for Central Government employees under NPS and UPS [2].
The DFS Notification dated 13 November 2025 formalised these additional choices [1].
The Department of Expenditure memorandum (2026) now extends the same applicability to CAB employees covered under NPS [1].

Item	Detail
Scheme	National Pension System (NPS)
New funds	Aggressive Life Cycle Fund (LC-75), Balanced Life Cycle Fund (BLC)
LC-75 equity exposure	Up to 75%, for higher long-term growth [1]
BLC equity exposure	Capped at 50%, tapering gradually from age 45 [1]
Nodal notifying department	Department of Expenditure, Ministry of Finance [1]
Underlying notification	DFS Notification, 13 November 2025 [1]
Beneficiaries (latest)	Employees of Central Autonomous Bodies (CABs) covered under NPS [1]
Beneficiaries (earlier)	Central Government employees under NPS and UPS [2]
Access mechanism	Central Record Keeping Agency (CRA) system [1]
Regulator	Pension Fund Regulatory and Development Authority (PFRDA)

Economic

Expands equity-linked retirement savings options, potentially improving long-term corpus growth for government-linked employees [1].
Aligns CAB employee benefits with Central Government employees, reducing disparity in retirement planning tools [1].

Administrative

Implementation routed through administrative ministries/departments that oversee respective CABs, requiring cascading circulars to each autonomous body [1].
Uses existing CRA/NPS architecture, minimizing new administrative machinery [1].

Governance/Ethical

Reflects incremental parity-building between Central Government employees and quasi-government (CAB) staff on service/retirement benefits.

Social

Affects a wide but specific workforce segment — CAB employees (e.g., staff of autonomous institutes, councils, statutory bodies funded by the Centre) — improving retirement security choices.

13 November 2025: DFS notification introducing/approving LC-75 and BLC investment choices [1].
2025 (prior): Government approved extension of LC-75 and BLC to Central Government employees under NPS and UPS [2].
7 July 2026: Department of Expenditure memorandum extends same choices to CAB employees; PIB release issued [1].

NPS additional investment choices extended to CAB employees via PIB release dated 7 July 2026 [1].
LC-75 = Aggressive Life Cycle Fund, offering equity exposure of up to 75% [1].
BLC = Balanced Life Cycle Fund, equity capped at 50%, tapering from age 45 [1].
Underlying notification issued by Department of Financial Services on 13 November 2025 [1].
Extension order issued by Department of Expenditure, Ministry of Finance (not DFS) [1].
LC-75 and BLC were first approved for Central Government employees under NPS and UPS before extension to CABs [2].
NPS default life-cycle options historically included LC-25 and LC-50, apart from Scheme G (100% G-secs) [2].
New choices operate through the Central Record Keeping Agency (CRA) system [1].
CAB = Central Autonomous Body — entity funded/controlled by Central Government but functioning with operational autonomy.
PFRDA is the regulator overseeing NPS investment fund structuring [2].

GS-II: Government policies and interventions for development; welfare schemes for vulnerable/employee sections; issues relating to governance and transparency.
GS-III: Indian Economy — mobilisation of resources, pension reforms, financial inclusion.
Sample Question Stems: 1. "Discuss the evolution of the National Pension System (NPS) in India, highlighting recent reforms aimed at expanding subscriber choice." (GS-III) 2. "Examine how extension of pension investment flexibility to Central Autonomous Bodies reflects broader trends in India's pension governance architecture." (GS-II) 3. "Critically evaluate the trade-offs between equity-linked and government-securities-based pension investment options for public sector employees." (GS-III)

Unified Pension Scheme (UPS) — parallel/alternative pension architecture for Central Government employees.
PFRDA and its regulatory functions — governs NPS fund managers and investment norms.
Old Pension Scheme (OPS) vs NPS debate — broader political-economy context of pension reform.
Atal Pension Yojana — NPS-linked scheme for unorganised sector workers.
Central Autonomous Bodies (CABs) — structure, examples, governance relationship with parent ministries.
National Pension System Trust (NPS Trust) — institutional custodian of NPS assets.
Financial inclusion and retirement security schemes — comparative policy landscape.

Confusing Department of Expenditure (which issued the CAB extension memorandum) with Department of Financial Services (which issued the original 13 November 2025 notification) — they are distinct DFS/DoE wings of the Ministry of Finance [1].
Mixing up LC-75 (up to 75% equity) with LC-50/LC-25, which are older, lower-equity default options [2].
Assuming BLC and LC-75 apply to all NPS subscribers — they are currently limited to Central Government employees and now CAB employees, not the general "All Citizen Model" NPS subscribers [1][2].
Conflating NPS and UPS — UPS is a separate, newer pension architecture; LC-75/BLC extension applies "under NPS and UPS Scheme" contexts for government employees [2].
Missing that CABs are Centrally funded but operationally autonomous bodies — distinct from state autonomous bodies or fully private entities.