NPS Update: Employees of Central Autonomous Bodies (CABs) will get new investment options, better returns.

The central government has added two new investment options under the NPS, which will be available exclusively to employees of central autonomous bodies (CABs).

The Department of Expenditure of the Ministry of Finance has issued a memo in this regard, according to which the notification of the Department of Financial Services dated 13 November 2025 will now be applicable to the employees of CAB as well. That is, now the employees of CABs will also get the same new investment options, which were earlier available to other central employees.

These new options will soon be made available on the system of CRA (Central Recordkeeping Agency). After this, eligible NPS employees will be able to choose these options according to their needs and optimize their investment according to their risk capacity. This change is a big relief for the employees of CABs, as they will now be able to have more control over their investments.

Employees will now get a new investment option called LC-75-High, which was previously known as Aggressive Life Cycle Fund (LC-75). In this option, up to 75 per cent can be invested in equity, which is quite high. It is suitable for employees who want higher returns in the long run and are willing to take risks.

However, the thing to keep in mind is that the higher the investment in equity, the higher the risk. Therefore, this option is better for employees whose retirement is still more than 10-15 years away and they can tolerate the market fluctuations. In this option, the percentage of equity decreases over time, so that the risk automatically decreases with age.

As a second option, the Balanced Life Cycle Fund has been renamed as Aggressive Life Cycle Fund. In this option, up to 50 percent can be invested in equity, which is lower than that of LC-75-High and therefore considered low-risk. One of the features of this option is that after the age of 45, investment in equity keeps decreasing, which also reduces the risk.

This option is suitable for employees who have moderate risk appetite and want to grow their investments in a balanced manner. It can be a good choice for those who want less risk than LC-75-High, but still want to get good returns.

With the introduction of these new options, the employees will get many benefits. First, more flexibility... Employees will now be able to choose investment options according to their risk appetite and financial goals.

Second, the possibility of better returns - A 75% equity investment in the LC-75-High option can lead to better returns in the long run. Third, risk management. Aggressive Life Cycle Fund reduces equity investment after the age of 45, which automatically reduces the risk and preserves the capital in old age.

Moreover, this change brings the employees of CABs at par with other central employees, giving them the same investment opportunities. This is a positive step that will help employees plan better for their retirement.

It's important to understand why NPS is beneficial, especially when you're getting more flexible investment options. NPS is a government guaranteed pension scheme that provides regular income to employees after retirement.

Apart from this, investment in NPS gets an additional ₹50,000 tax deduction under Section 80CCD (1B), which is different from PPF or EPF. This means that by investing in NPS, you can reduce your tax to a great extent.

Another feature of investing in NPS is that you can split your investments into different asset classes (equity, corporate bonds, government bonds, etc.), giving you the opportunity to invest according to your risk appetite. And now when the employees of CABs are getting options like LC-75-High and Aggressive Life Cycle Fund, it becomes even more attractive.

Through these options, employees can increase or decrease the percentage of equity in their investments, leading to better returns in the long run.

These new investment options have been made available by the Department of Expenditure, Ministry of Finance, exclusively for the employees of Central Autonomous Bodies (CABs).

However, employees who are already investing in NPS and are affiliated to the central government or other autonomous bodies already had some options. But now the employees of CABs will also get the same options, which other central employees had.

It is important to note that these options are only for government sector NPS account holders and may be different for private sector NPS account holders.

So, if you are an employee of CABs, you will get an opportunity to choose these new options in your NPS account, which can ensure better returns for your future.

With these two new options, the question arises before the employees as to which option they should choose. The answer depends on your age, income, risk tolerance, and retirement goals.

If you are under 35-40 years of age and have 15-20 years or more to retire, you may want to consider the LC-75-High option, as you have a longer tenure and can tolerate market fluctuations. It can give you the maximum return through 75% equity investment.

If you are a moderate risk-taker or your age is around 45-50 years, then Aggressive Life Cycle Fund can be better for you, as 50% equity is invested in it and it automatically depreciates after the age of 45.

This reduces your risk and also keeps your capital safe. Remember, NPS is a long-term investment, so make your decision thoughtfully.

The Department of Expenditure of the Ministry of Finance has clarified in its memo that the notification of 13 November 2025 will now be applicable to the employees of CABs as well.

This means that these new options to the employees of CABs have already come into effect, as the notification was issued on November 13, 2025. However, the process of making these options available on the system of CRA (Central Recordkeeping Agency) will be completed soon.

Once these options are available on the CRA's system, eligible employees will be able to change their investment options by logging into their NPS portal. The process will be completely online and no paperwork will be required for employees to change their investment options.

This will be a quick and easy process, allowing employees to update their investments quickly.

There are a few things to keep in mind while choosing new investment options in NPS. First, assess your risk tolerance. How much risk can you take?

If you can't accept market fluctuations easily, Aggressive Life Cycle Fund (50% equity) may be a better option. Second, think about your age. If you are 30-40 years old, you can opt for LC-75-High (75% equity), while if you are over 50, the option with lower equity will be safer.

Third, define your financial goals. How much regular income do you want to have after retirement? Based on this, you should choose your investment option. Fourth, review your investments from time to time.

You should review your NPS investment every 2-3 years and change your options as per the need. Remember, NPS is an important part of your retirement planning, so take it seriously.

If you compare NPS with other pension schemes, then it is better in many ways. There is no investment in the old pension scheme (OPS) for government employees and the government gives full pension,

but this scheme is no longer available for new employees. EPF (Employees' Provident Fund) is another popular option, in which both the employer and the employee contribute, but the EPF does not get a regular pension after retirement, but a lump sum amount.

The biggest feature of NPS is that you can customize your investment according to your risk capacity, which is not possible in OPS or EPF. In addition, you get an additional ₹50,000 tax deduction under Section 80CCD (1B) in NPS,

which is not available in other schemes. And now that you're getting options like LC-75-High and Aggressive Life Cycle Fund, you can make your returns even better.

The introduction of new investment options in NPS for employees of Central Autonomous Bodies (CABs) is a welcome step. Options such as LC-75-High and Aggressive Life Cycle Fund provide an opportunity for employees to invest as per their need and risk appetite. While LC-75-High offers the possibility of maximum return with 75% equity investment, Aggressive Life Cycle Fund offers a balanced option with 50% equity investment.

This change not only gives more flexibility to the employees of CABs but also gives them an opportunity to enhance their retirement corpus in a better way.

So, if you are an employee of CABs, review your investment options soon to avail these new options in your NPS account. Remember, a right investment decision today can make your tomorrow secure. Stay tuned to timesbull.com for more such government schemes, investment tips and financial information.