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The Union Ministry of Finance has amended pension rules. According to a statement issued by the Ministry on Tuesday (July 7), the Central Government has introduced two additional investment options for employees of Central Autonomous Bodies (CABs) covered under the National Pension System (NPS). These include the 'Aggressive Life Cycle Fund (LC-75)' and the 'Balanced Life Cycle Fund (BLC).' Previously, these additional investment options were available only to Central Government employees covered under the NPS.

Now, these investment options have been extended to NPS subscribers working in Central Autonomous Bodies (CABs) as well. With this expansion, eligible employees of Central Autonomous Bodies will have the choice to invest in both of these additional investment options.

**Key features of the new funds**
The 'Aggressive Life Cycle Fund (LC-75)'—now renamed 'LC-75-High'—is an investment option that offers an equity exposure of up to 75 percent. It is designed for subscribers seeking the potential for higher growth over the long term.

The 'Balanced Life Cycle Fund (BLC)'—now renamed 'Aggressive Life Cycle Fund'—is an investment option with an equity exposure limit capped at 50 percent. In this fund, the equity allocation is gradually reduced starting from the age of 45, offering a balanced approach between growth and stability.

**Details provided by the Ministry of Finance**
The Department of Expenditure under the Ministry of Finance issued an Office Memorandum regarding this on July 1, 2026. Through this measure, the Department of Financial Services' notification dated November 13, 2025—which introduced additional investment options like LC-75 and Balanced Life Cycle Fund (BLC) for Central Government employees covered under the NPS—has now been extended to employees of Central Autonomous Bodies covered under the NPS.

The objective behind expanding these investment options is to offer greater flexibility to NPS subscribers within Central Autonomous Bodies, enabling them to tailor their pension investments according to their individual risk appetite, financial goals, and retirement planning needs. These options enhance subscriber choice and make the National Pension System more attractive for employees of Central Autonomous Bodies covered under the scheme.

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