🏦 Government Approves LC75 and BLC Pension Fund Options for Central Government Employees under NPS/UPS 💼

LC75 Pension Fund NPS Government Employees: What Changed?

The LC75 Pension Fund marks a big shift in retirement planning for central government employees. The government has approved LC75 and Balanced Life Cycle (BLC) options under NPS and UPS, enabling higher growth potential with age-based auto rebalancing.

Key Features

• High Equity (up to 75%) for long-term growth
• Automatic Rebalancing with age (glide path)
• Diversified: equities, corporate bonds, G-secs
• Wealth Creation focus for 20+ year horizon
• Managed by PFRDA-registered fund managers

All Available Investment Choices

1. LC75 (Life Cycle 75) – aggressive, 75% equity for younger employees
2. BLC (Balanced Life Cycle) – moderate, balanced risk
3. LC50 – conservative balanced, 50% equity cap
4. LC25 – ultra-conservative, near retirement
5. Scheme G – government securities, highest safety
6. Default Option – standard allocation

LC75 Asset Allocation by Age

Who Should Choose LC75?

• Young Professionals (25–35): higher risk, higher growth potential
• Mid-Career (35–45): want growth with some stability
• Risk-Tolerant Investors: comfortable with volatility for long-term gains

How LC75 Differs

LC75 allows up to 75% equity vs LC50 (50%) and LC25 (25%)—the most growth-oriented option approved for government employees.

Benefits

• Customized planning by risk appetite
• Enhanced returns potential with higher equity
• Flexibility to switch funds
• Risk reduces as you approach retirement (glide path)
• Transparency with regular performance updates

Official Announcement

“According to the Press Information Bureau (PIB)) release dated October 24, 2025, the new LC75 & BLC options will be implemented immediately for all central government employees enrolled in NPS/UPS.”

FAQs

1. What is LC75? An aggressive NPS option allowing up to 75% equity with auto glide path.
2. Who is eligible? All central govt employees under NPS/UPS.
3. Can I switch later? Yes. Use your NPS portal’s change fund option.
4. How does glide path work? Equity gradually reduces (e.g., 75% at 30 → ~55% by 50).
5. Is LC75 safe? Higher risk than LC50/LC25; suited for long-term investors.
6. LC75 vs LC50 vs LC25? 75% vs 50% vs 25% equity caps respectively.
7. How to opt? Through your NPS account or Pension Fund Manager.
8. Will returns be higher? Potentially yes over long-term; no guarantees.

Key Takeaway

“The approval of LC75 and BLC reflects a modern, flexible approach to retirement planning for public servants.”