Major Policy Extension
Govt Extends LC75 and BLC Options for Central Government Employees: The Government of India has approved the extension of Life Cycle 75 (LC75) and Balanced Life Cycle (BLC) investment options to Central Government employees under the National Pension System (NPS) and Unified Pension Scheme (UPS).
This policy aims to enhance the flexibility and equity participation available to government subscribers, bringing them on par with non-government NPS members.
Static GK fact: The National Pension System (NPS) was launched in 2004 for government employees and is regulated by the Pension Fund Regulatory and Development Authority (PFRDA).
New Investment Choices
Previously, government employees were limited to fewer investment paths. The new options—LC75 and BLC—expand the investment universe under NPS.
- LC75 (Aggressive Life Cycle) allows up to 75% equity exposure, gradually tapering from age 35 to 55.
- BLC (Balanced Life Cycle) is a variant of LC-50, where equity tapering starts at age 45, allowing employees to stay invested in equities for a longer period.
These are in addition to existing options like the Default Scheme, Scheme G (100% government securities), LC-25, and LC-50.
Static GK Tip: The PFRDA currently allows NPS subscribers to choose between Active Choice and Auto Choice models based on their risk preference.
Understanding the Glide Path
Both LC75 and BLC use a glide-path mechanism—a strategy where equity allocation reduces with age. This helps protect the retirement corpus from market volatility while ensuring higher returns during early career years.
For example, under LC75, equity exposure starts high and automatically declines as the employee nears retirement, offering a balance between growth and stability.
Benefits for Government Employees
The inclusion of LC75 and BLC brings several advantages:
- Employees gain greater control over their investment strategies.
- Early-career employees can pursue higher equity participation through LC75.
- Those with a long-term growth outlook can use BLC to stay invested in equities longer.
- Enhanced flexibility ensures better risk-return alignment with personal financial goals.
From a broader perspective, this reform aligns public pension management with global best practices, promoting financial literacy and active participation in retirement planning.
Static GK fact: As of 2025, the NPS corpus has surpassed ₹10 lakh crore, serving over 1.5 crore subscribers across India.
Systemic Impact
This policy update reflects the government’s focus on empowering employees to make informed investment choices.
By offering more auto-choice options, it simplifies decision-making for subscribers who prefer predefined investment paths based on age or risk profile.
Overall, the move is expected to improve retirement readiness, strengthen confidence in pension reforms, and boost long-term financial inclusion.
Static Usthadian Current Affairs Table
Govt Extends LC75 and BLC Options for Central Government Employees:
| Topic | Detail |
| Policy Approved By | Government of India, October 2025 |
| Regulator | Pension Fund Regulatory and Development Authority (PFRDA) |
| New Options | Life Cycle 75 (LC75) and Balanced Life Cycle (BLC) |
| Maximum Equity Exposure in LC75 | 75% |
| Equity Tapering Age (LC75) | From 35 to 55 years |
| Equity Tapering Age (BLC) | Starts from 45 years |
| Default Investment Option | Government-defined pattern via PFRDA |
| Low-risk Option | Scheme G (100% government securities) |
| Purpose of Extension | Enhance flexibility and equity exposure under NPS and UPS |
| NPS Launch Year | 2004 |
