The Union government has broadened investment choices for employees of Central Autonomous Bodies under the National Pension Scheme (NPS). Previously exclusive to Central government employees, the Aggressive Life Cycle Fund (LC-75) and the Balanced Life Cycle Fund (BLC) are now accessible to NPS subscribers in Central Autonomous Bodies. This expansion allows eligible employees to invest in both options.
The Aggressive Life Cycle Fund (LC-75), now named LC-75-High, offers up to 75% equity exposure for long-term growth-oriented subscribers. On the other hand, the Balanced Life Cycle Fund (BLC), renamed Aggressive Life Cycle Fund, limits equity exposure to 50%, gradually reducing allocation from age 45 to balance growth and stability. The Department of Expenditure under the Ministry of Finance has extended these choices through a recent office memorandum.
The move aims to enhance flexibility for NPS subscribers in Central Autonomous Bodies, aligning pension investments with individual risk tolerance, financial objectives, and retirement plans. This initiative strengthens subscriber options and boosts the appeal of the National Pension System for employees in Central Autonomous Bodies. Administrative Ministries and departments have been instructed to inform eligible NPS subscribers about these investment choices for better retirement planning.
The investment options will be integrated into the Central Recordkeeping Agency system, ensuring seamless access for subscribers.
