Govt expands NPS, UPS options for central employees: LC75 and BLC

New LC75 and BLC schemes offer central government employees flexible equity exposure and greater control over their retirement investments

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In a move aimed at giving central government employees greater flexibility in retirement planning, the government has approved the extension of LC (Life Cycle) 75 and BLC (Balanced Life Cycle) investment options under both the National Pension System (NPS) and the Unified Pension Scheme (UPS). The decision comes amid rising demand from employees for a broader range of investment choices, similar to those available to non-government subscribers, according to a press statement.

 

Expanded pension options for central employees 

Under the revised framework, employees can now choose from multiple options, including the default option defined by the Pension Fund Regulatory and Development Authority (PFRDA); Scheme G, with 100 per cent investment in government securities for low-risk fixed returns; LC-25, with a maximum 25 per cent equity allocation tapering from age 35 to 55; LC-50, with up to 50 per cent equity allocation tapering from age 35 to 55; BLC, allowing longer equity exposure until age 45; and LC-75, with up to 75 per cent equity allocation tapering from age 35 to 55.

 

More control and protection through glide path mechanism 

The move is expected to offer employees more choice and control over their retirement savings. The glide path mechanism ensures that equity exposure gradually reduces with age — 15 per cent for LC-75 and 35 per cent for BLC by age 55 — protecting investors from market volatility as they approach retirement.

 

Officials said the expanded options will help employees align their investments with individual risk-return preferences, making retirement planning more structured and informed.