The Government of India has approved the extension of two additional investment options, Life Cycle 75 (LC75) and Balanced Life Cycle (BLC), for Central Government employees subscribing to the National Pension System (NPS) and the Unified Pension Scheme (UPS). This decision responds to employee demand for greater flexibility in managing their retirement corpus, bringing their options closer to those available to non-government subscribers. The new choices expand the existing framework, which already included a Default option, the low-risk Scheme G, LC-25, and LC-50. LC75 provides a maximum equity allocation of 75% in the early years, while the BLC is a modified LC-50 that tapers the equity allocation later (starting at age 45), allowing employees to remain invested in growth assets longer. Both new options use a “glide path” mechanism where the equity component automatically and gradually reduces as the employee approaches retirement (age 55), providing protection against market volatility and enabling retirement planning aligned with individual risk preferences.
Ministry of Finance
Government approves extension of Life Cycle 75 (LC 75) and Balanced Life Cycle (BLC) options to Central Government Employees under NPS and UPS Scheme
Posted On: 24 OCT 2025 6:35PM by PIB Delhi
The Government of India has approved the extension of LC75 and BLC investment options to Central Government Employees under both the National Pension System (NPS) and the Unified Pension Scheme (UPS). This is in line with the continued demand from Central Government employees for a broader range of investment options similar to those available to non-government subscribers. These options are designed to enhance flexibility in retirement planning and allow employees to manage their retirement corpus according to individual preferences.
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. (refer to Annex)
- LC-50: Maximum equity allocation of 50%, tapering gradually from age 35 to 55. (refer to Annex)
- 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. (refer to Annex)
- LC75: Maximum equity allocation of 75%, tapering gradually from age 35 to 55. (refer to Annex)
The decision will offer key benefits such as:
- Greater flexibility and choice: Employees can select options that best suit their retirement goals and risk preferences.
- Glide path mechanism: Equity allocation automatically reduces with age — 15% for LC75 and 35% for BLC by age 55 — ensuring protection against large market fluctuations as retirement approaches.
- Broadened Auto Choice options: These funds provide more diversified choices for retirement planning, reflecting employees’ varied risk-return preferences.
- Support for informed planning: Employees can use these options to structure their retirement savings according to their individual risk-return preferences.
Annex
Asset Allocation in Life Cycle Funds
| Age | LC75 | LC50 | Balanced LC50 | LC25 |
| Up to 35 Years | E: 75%, C: 10%, G: 15% | E: 50%, C: 30%, G: 20% | E: 50%, C: 30%, G: 20% | E: 25%, C: 45%, G: 30% |
| 36 Years | E: 71%, C: 11%, G: 18% | E: 48%, C: 29%, G: 23% | E: 50%, C: 30%, G: 20% | E: 24%, C: 43%, G: 33% |
| 37 Years | E: 67%, C: 12%, G: 21% | E: 46%, C: 28%, G: 26% | E: 50%, C: 30%, G: 20% | E: 23%, C: 41%, G: 36% |
| 38 Years | E: 63%, C: 13%, G: 24% | E: 44%, C: 27%, G: 29% | E: 50%, C: 30%, G: 20% | E: 22%, C: 39%, G: 39% |
| 39 Years | E: 59%, C: 14%, G: 27% | E: 42%, C: 26%, G: 32% | E: 50%, C: 30%, G: 20% | E: 21%, C: 37%, G: 42% |
| 40 Years | E: 55%, C: 15%, G: 30% | E: 40%, C: 25%, G: 35% | E: 50%, C: 30%, G: 20% | E: 20%, C: 35%, G: 45% |
| 41 Years | E: 51%, C: 16%, G: 33% | E: 38%, C: 24%, G: 38% | E: 50%, C: 30%, G: 20% | E: 19%, C: 33%, G: 48% |
| 42 Years | E: 47%, C: 17%, G: 36% | E: 36%, C: 23%, G: 41% | E: 50%, C: 30%, G: 20% | E: 18%, C: 31%, G: 51% |
| 43 Years | E: 43%, C: 18%, G: 39% | E: 34%, C: 22%, G: 44% | E: 50%, C: 30%, G: 20% | E: 17%, C: 29%, G: 54% |
| 44 Years | E: 39%, C: 19%, G: 42% | E: 32%, C: 21%, G: 47% | E: 50%, C: 30%, G: 20% | E: 16%, C: 27%, G: 57% |
| 45 Years | E: 35%, C: 20%, G: 45% | E: 30%, C: 20%, G: 50% | E: 50%, C: 30%, G: 20% | E: 15%, C: 25%, G: 60% |
| 46 Years | E: 32%, C: 20%, G: 48% | E: 28%, C: 19%, G: 53% | E: 48%, C: 28%, G: 24% | E: 14%, C: 23%, G: 63% |
| 47 Years | E: 29%, C: 20%, G: 51% | E: 26%, C: 18%, G: 56% | E: 46%, C: 26%, G: 28% | E: 13%, C: 21%, G: 66% |
| 48 Years | E: 26%, C: 20%, G: 54% | E: 24%, C: 17%, G: 59% | E: 44%, C: 24%, G: 32% | E: 12%, C: 19%, G: 69% |
| 49 Years | E: 23%, C: 20%, G: 57% | E: 22%, C: 16%, G: 62% | E: 42%, C: 22%, G: 36% | E: 11%, C: 17%, G: 72% |
| 50 Years | E: 20%, C: 20%, G: 60% | E: 20%, C: 15%, G: 65% | E: 40%, C: 20%, G: 40% | E: 10%, C: 15%, G: 75% |
| 51 Years | E: 19%, C: 18%, G: 63% | E: 18%, C: 14%, G: 68% | E: 39%, C: 18%, G: 43% | E: 9%, C: 13%, G: 78% |
| 52 Years | E: 18%, C: 16%, G: 66% | E: 16%, C: 13%, G: 71% | E: 38%, C: 16%, G: 46% | E: 8%, C: 11%, G: 81% |
| 53 Years | E: 17%, C: 14%, G: 69% | E: 14%, C: 12%, G: 74% | E: 37%, C: 14%, G: 49% | E: 7%, C: 9%, G: 84% |
| 54 Years | E: 16%, C: 12%, G: 72% | E: 12%, C: 11%, G: 77% | E: 36%, C: 12%, G: 52% | E: 6%, C: 7%, G: 87% |
| 55 Years | E: 15%, C: 10%, G: 75% | E: 10%, C: 10%, G: 80% | E: 35%, C: 10%, G: 55% | E: 5%, C: 5%, G: 90% |
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