Ministry of Finance has introduced amendments to earlier notifications governing investment options for Central Government employees under the National Pension System (NPS) and Unified Pension Scheme (UPS). The changes aim to widen available investment choices and provide flexibility in accordance with employees’ risk preferences. Specifically, two new life cycle fund options have been added under para 1(vii)(c) of the principal notification. The first is the Aggressive Life Cycle Fund (LC-75), which permits a maximum equity exposure of up to 75%, offering higher growth potential for subscribers willing to take greater market risk. The second is the Balanced Life Cycle Fund (BLC), which allows equity exposure of up to 50%, with a tapering mechanism starting from age forty-five, ensuring gradual risk reduction as retirement approaches. These amendments enhance the pension investment framework by enabling more diversified and risk-aligned retirement planning for government employees.
MINISTRY OF FINANCE
(Department of Financial Services)
Notification No:-F. No. FX-4/2/2025-PR |Dated: 13th November, 2025
F. No. FX-4/2/2025-PR.—In partial modification of the Ministry of Finance’s (Department of Economic Affairs) Notification No. 5/7/2003-ECB&PR dated 22nd December, 2003 as amended vide Ministry of Finance’s (Department of Financial Services) Notification No. 1/3/2016-PR dated 31st January, 2019, and the Ministry of Finance’s (Department of Financial Services) Notification No. 1/3/2024-PR dated 24th January, 2025, the Central Government, in order to allow more investment options to Central Government employees under National Pension System and Unified Pension Scheme, hereby makes the following amendments in the said notification, namely:–
2. Under para 1(vii)(c) of the said notification, after sub-clauses (A) and (B), the following sub-clauses shall be inserted, namely:–
(C) Aggressive Life Cycle Fund with maximum exposure to equity capped at 75% – LC-75.
(D) Balanced Life Cycle Fund with maximum exposure to equity capped at 50%, with tapering of equity component commencing from the age of forty-five years – BLC
MANOJ MUTTATHIL AYYAPPAN., Jt. Secy.
Note: The principal notification was published in the Gazette of India, Extraordinary, Part I, Section 1, vide Notification No. F. No. 5/7/2003-ECB&PR dated 22nd December, 2003, and was subsequently amended vide Notifications No. 1/3/2016-PR dated 31st January, 2019 and Notification No. 1/3/2024-PR dated 24th January, 2025.
