Govt Approves LC75 and Balanced Life Cycle Options for Central Govt Employees under NPS and UPS — More Investment Flexibility in Retirement Planning

Govt Approves LC75 and Balanced Life Cycle Options for Central Govt Employees under NPS and UPS — More Investment Flexibility in Retirement Planning

Ministry of Finance has approved the extension of Life Cycle 75 (LC75) and Balanced Life Cycle (BLC) investment options under both the National Pension System (NPS) and the Unified Pension Scheme (UPS).

The decision is announced on 24 October 2025, aligns with employees’ long-standing demand for a wider range of investment choices similar to those available to non-government subscribers.

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The new options are designed to give government employees greater control and flexibility in managing their retirement savings according to their risk appetite and financial goals. With this move, employees can now choose from multiple investment patterns, including:

• LC-75 (Life Cycle 75) – Allows up to 75% equity exposure, gradually tapering from age 35 to 55, suitable for those seeking higher returns through long-term equity investments.
• LC-50 and LC-25 – Moderate and conservative options with maximum equity exposures of 50% and 25%, respectively.
• BLC (Balanced Life Cycle) – A modified version of LC50 that allows investors to stay longer in equities, tapering from age 45 instead of 35, balancing growth and safety.
• Scheme G – 100% investment in Government securities for those preferring low-risk, stable returns.

Under the auto choice (glide path) mechanism, equity allocation automatically decreases as the employee ages — reducing potential market risk closer to retirement.

For example, in LC75, equity exposure falls to 15% by age 55, while in BLC it tapers to 35% by the same age.

According to the Ministry, the Auto Choice options are being promoted to informed retirement planning among Central Government employees. By including LC75 and BLC in both NPS and UPS, the government has ensured that employees have the same diversified investment opportunities as other pension subscribers.