Govt Permits Wider Choices Of NPS Schemes For Autonomous Bodies: Who Will Benefit

The government of India has extended the additional choices of investing under the National Pension System (NPS) to the employees of Central Autonomous Bodies (CABs). The Ministry of Finance issued a notification on July 7, 2026, which permits CAB employees to select an NPS investment option of their choice from a wider pool of choices, so far available to non-government sector subscribers. With more investment options available, the eligible employees will now have greater control over their retirement planning and long-term financial security.

The New Investment Options

With the extension of the NPS investment options to the CAB employees, they are now eligible to opt for the LC-75-High and Aggressive Life Cycle Fund, too. Besides the existing options, these two schemes have also become part of the offering open to all CAB employees. Let’s check in detail.

LC-75-High: This option was formerly known as the Aggressive Life Cycle Fund, but the Pension Fund Regulatory and Development Authority (PFRDA) changed the name of the scheme in October 2025, following the launch of the Multiple Scheme Framework, to make the nomenclature indicative of the investment patterns so that subscribers could easily understand the allocation pattern of the scheme.

This option has been designed for those who seek aggressive long-term growth and are willing to invest up to 75 per cent of their corpus into equity. Under this, a person can invest up to 75 per cent up to the age of 35 years, and this exposure is tapered every year and capped at 15 per cent at the age of 55 years and above.

Now, this is available for CAB employees, too.

Aggressive Life Cycle Fund: This fund was previously known as the Balanced Life Cycle Fund. Under the name change exercise in 2025, this fund's name was also changed, based on the risk profile of the scheme. This product offers a more measured approach with equity exposure capped at 50 per cent, up to the age of 45 years. The equity allocation gradually reduces once the subscribers reach 45 years of age, and then a maximum of 35 per cent equity exposure is permitted.

Now, this option is also available for CAB employees. As per the notification, these two schemes will be integrated into the central recordkeeping agency (CRA) system. The government has directed the administrative ministries to inform the respective CABs about these updates.

CAB employees can now have the option to invest in NPS schemes with higher equity exposure, depending on their risk tolerance.

What are CABs, And Who Will Benefit?

The central autonomous bodies, or the CABs, are a critical part of the government structure. These organisations are set up by the government to perform certain public services, such as research, education, regulatory functions, etc. However, they are structured as independent organisations whose administration remains outside the hierarchy of a ministry. While the government provides them funding through a grant-in-aid, they are responsible for managing their own day-to-day administration.

They are typically constituted as registered societies, trusts, or otherwise. All India Institute of Medical Sciences (AIIMS), National Council of Research and Training (NCERT), Securities and Exchange Board of India (SEBI), National School of Drama (NSD), and Food Safety and Standards Authority of India (FSSAI) are some of the examples of autonomous bodies in India. Employees of such central autonomous bodies will benefit from more investment options.

FAQs