The Government of India has approved the extension of Life Cycle 75 (LC-75) and Balanced Life Cycle (BLC) investment options to Central Government employees under the National Pension System (NPS) and the Unified Pension Scheme (UPS). Announced by the Ministry of Finance on October 24, 2025, this move provides greater flexibility in pension investment for government staff.
Under the new framework, employees can choose between multiple investment patterns based on their risk appetite.
Under NPS and UPS, the Central Government employees can now choose from a range of investment options:
- Default option: A ‘default pattern’ of investment defined by Pension Fund Regulatory and Development Authority (PFRDA) from time to time.
- Scheme G: 100% investment in Government securities for low-risk, fixed returns.
- LC-25: Maximum equity allocation of 25%, tapering gradually from age 35 to 55.
- LC-50: Maximum equity allocation of 50%, tapering gradually from age 35 to 55.
- BLC (Balanced Life Cycle): Modified version of LC50, with equity allocation tapering from age 45, enabling employees to remain invested in equities for a longer period if desired.
- LC75: Maximum equity allocation of 75%, tapering gradually from age 35 to 55.
The BLC allows employees to maintain higher equity exposure for longer, gradually reducing it as they approach retirement.
This reform aligns Central Government employees with non-government NPS subscribers, ensuring parity in investment opportunities. The LC-75 model suits those comfortable with higher equity exposure, while BLC offers a moderate approach with a systematic glide path protecting savings from market volatility.
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