The Ministry of Finance has extended two additional investment choices under the National Pension System (NPS) to employees of Central Autonomous Bodies (CABs), effective immediately. The move, announced on Tuesday, grants CAB employees access to the Aggressive Life Cycle Fund (LC-75-High) and the Balanced Life Cycle Fund, which were previously available only to Central Government staff.
Details of the New Investment Options
According to a press release from the Department of Expenditure, the extension follows a Department of Financial Services notification dated 13 November 2025. The Aggressive Life Cycle Fund, now renamed LC-75-High, allows equity exposure of up to 75%, targeting subscribers with a higher risk appetite seeking greater long-term growth potential. The Balanced Life Cycle Fund, renamed Aggressive Life Cycle Fund, caps equity exposure at 50% and features a gradual reduction in equity allocation starting from age 45, providing a balanced approach between growth and stability.
Background and Purpose
These options were first introduced for Central Government employees to offer more flexibility in retirement savings. The Ministry stated that the extension 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.” The government believes this will strengthen subscriber choice and enhance the attractiveness of NPS for CAB employees.
Implementation and Next Steps
Administrative ministries and departments have been directed to inform all CABs under their control about the availability of these investment choices. The options will be made available in the Central Record keeping Agency (CRA) system, allowing eligible employees to select their preferred fund. The Ministry of Finance emphasized that the extension applies with immediate effect, ensuring that CAB employees can now benefit from the same investment flexibility as their Central Government counterparts.
