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Central government approves LC75 and BLC investment options for employees under NPS and UPS.
NPS and UPS Get High-Equity Boost: LC75 Allows 75% Equity Exposure for Central Staff
To provide greater flexibility and reduce restrictions on equity exposure, the Central government has approved the extension of LC75 (Lifecycle Fund 75) and BLC (Balance Lifecycle Fund) investment options to Central Government Employees in the National Pension Scheme (NPS) and the Unified Pension Scheme (UPS).
While LC75 is a high equity investment option under NPS, allowing investment up to 75 per cent of one’s pension contribution in equity funds, BLC investment option keeps a balanced mix of equity, corporate bonds and government securities throughout one’s career.
This extension will allow flexibility and broad options to central staff to allocate their retirement fund under NPS and UPS in high-return assets like equity.
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.
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.
LC-50: Maximum equity allocation of 50%, tapering gradually from age 35 to 55.
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.
LC75: Maximum equity allocation of 75%, tapering gradually from age 35 to 55.
What Is UPS?
The Indian government has introduced an option for the central government employees to choose the Unified Pension Scheme (UPS) under the National Pension System (NPS). UPS allows them to receive an assured payout after their retirement. The UPS has become operational from April 01, 2025.
Basically, UPS is a fund-based payout system which relies on the regular and timely accumulation and investment of applicable contributions (from both the employee and the employer (the Central Government) for grant of monthly payout to the retiree.
Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst…Read More
Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst… Read More
October 25, 2025, 11:11 IST
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