NPS Update 2026: Central Autonomous Body Employees Can Now Invest Up to 75% in Equities

The Government of India has introduced 2 new investment choices under the National Pension System (NPS) for employees of Central Autonomous Bodies (CABs). The move gives eligible subscribers greater flexibility to choose an investment strategy based on their financial goals and risk appetite.

Earlier, these options were available only to Central government employees covered under NPS. They will now also be accessible to eligible CAB employees through the Central Recordkeeping Agency (CRA) platform.

What Are the New Investment Options?

CAB employees can now choose between the following 2 life cycle funds:

1. LC-75 High

The LC-75 High option allows investors to allocate up to 75% of their pension corpus to equities. It is designed for subscribers who are comfortable taking higher market risk in exchange for the potential for better long-term returns.

2. Aggressive Life Cycle Fund

The Aggressive Life Cycle Fund limits equity exposure to 50%. Once the subscriber reaches the age of 45, the equity allocation gradually decreases, helping reduce investment risk as retirement approaches.

What Does This Mean for Employees?

With the introduction of these options, employees of Central Autonomous Bodies now have the same investment flexibility as Central government employees under the NPS.

Instead of relying only on the existing investment choices, subscribers can now select a fund that better matches their:

• Risk appetite
• Age
• Retirement goals
• Long-term investment strategy 

Why Has the Government Introduced This Change?

The government said the objective is to provide greater investment flexibility and improve retirement planning for NPS subscribers.

By offering multiple life cycle fund options, employees can choose an investment approach that aligns with their personal financial needs while strengthening the overall appeal of the National Pension System.

Implementation

The new investment choices will be available through the Central Recordkeeping Agency (CRA) platform. The government has also directed ministries and departments to inform the Central Autonomous Bodies under their administrative control about these new options.

Read More: PFRDA Launches AI-Powered ‘Pension Sahayak’ Portal to Streamline NPS Grievance Redressal.

Conclusion

The expansion of NPS investment choices gives employees of Central Autonomous Bodies more control over how their retirement savings are invested. Those seeking higher growth can opt for the LC-75 High fund with up to 75% equity exposure, while investors looking for a more balanced approach can choose the Aggressive Life Cycle Fund. 

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