In a major step to enhance retirement planning flexibility, the Government of India has approved the extension of Life Cycle 75 (LC75) and Balanced Life Cycle (BLC) investment options to central government employees under the National Pension System (NPS) and the Unified Pension Scheme (UPS). The decision, approved in October 2025, aligns government subscribers’ investment choices with those available to the private sector.
What This Means
Until now, central government employees had limited investment options under NPS. With the inclusion of LC75 and BLC, employees can now select from a broader range of life-cycle-based portfolios according to their risk appetite and retirement goals.
Investment Choices Now Available
- Default Option – As per PFRDA-defined investment pattern.
- Scheme G – 100% in government securities (low risk, stable returns).
- LC-25 – Up to 25% equity allocation.
- LC-50 – Up to 50% equity allocation.
- BLC (Balanced Life Cycle) – Modified LC-50, tapering equity from age 45 for longer participation.
- LC-75 – Aggressive option, up to 75% equity, tapering from age 35 to 55.
Glide-Path Mechanism
Both LC75 and BLC follow a glide-path approach, meaning the equity share reduces with age. This design helps balance higher growth potential early in one’s career with greater capital protection near retirement.
Benefits
- More flexibility to align investment with personal financial goals.
- Higher equity exposure for younger investors seeking long-term growth (LC75).
- Extended equity participation through mid-career (BLC).
- Improved engagement in pension planning and better retirement outcomes.
