Central government employees can now choose up to 75% equity allocation under NPS and UPS with the newly approved LC75 and Balanced Life Cycle options.
A Major Shift in Pension Investment Choice
In a significant development for retirement planning, the central government has extended LC75 and Balanced Life Cycle (BLC) fund options under the National Pension System (NPS) and Unified Pension Scheme (UPS) to its employees.
- Previously, these options were only available to non-government subscribers.
- The move responds to long-standing employee demands for greater flexibility and choice in pension investments.
- It enables customized risk-return planning aligned with employee age and investment goals.
What Are LC75 and BLC Options?
These are auto-choice (life cycle) investment models, where equity allocation automatically tapers down with age to minimize risk nearing retirement.
LC75 (Life Cycle 75):
- Up to 75% in equities until age 35.
- Equity share reduces gradually to 15% by age 55.
- Suited for employees with higher risk appetite and longer investment horizon.
BLC (Balanced Life Cycle):
- A variation of LC50, but equity tapering begins at age 45.
- Provides extended exposure to equities, ideal for those seeking a balanced growth strategy.
- Equity reduces to 35% by age 55.
Other Available Investment Options for Central Govt Employees
- Default Scheme: PFRDA-defined default investment pattern.
- Scheme G: 100% in Government Securities (low-risk, fixed returns).
- LC25: Max 25% equity, tapering from age 35 to 55.
- LC50: Max 50% equity, tapering from age 35 to 55.
- BLC: Modified LC50, equity tapering begins at age 45.
- LC75: Aggressive option with highest equity allocation.
Key Benefits for Employees
- âś… More control over retirement corpus and risk exposure
- âś… Automatic rebalancing of equity as retirement nears
- âś… Customizable options aligned with different financial goals
- âś… Broader range of auto-choice models than ever before
- âś… Potential for higher returns with equity-driven plans early in the career
What Is a Glide Path?
The glide path is the rate at which equity allocation reduces with age. It helps manage market volatility risks as retirement approaches.
For instance:
- In LC75, equity allocation drops from 75% at age 35 to 15% by 55.
- In BLC, equity remains higher for longer, only beginning its taper at age 45.
This allows employees to choose a plan suited to their risk appetite and retirement timeline.
Why the Name Change?
The PFRDA reviewed the naming of life cycle funds and found inconsistencies.
- Surprisingly, BLC had higher equity exposure at ages 45 and 55 than LC75—despite LC75 being labeled “aggressive.”
- To correct this and reflect accurate risk-return profiles, the nomenclature is being standardized and clarified.
This ensures employees make informed decisions based on transparent fund characteristics.
Central government employees can now choose LC75 and BLC investment options under NPS and UPS, enabling equity allocation up to 75%. These flexible, auto-adjusting models offer personalized risk-return paths, supporting smarter, age-based retirement planning.
| 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% |
