New Delhi: The government has approved the extension of two investment options- Life Cycle and Balanced Life Cycle, for central government employees under the National Pension System (NPS) and the Unified Pension Scheme (UPS), the Finance Ministry announced on Friday.

The decision follows persistent demands from central government employees for a broader range of investment choices similar to those already available to non-government subscribers.

According to the ministry, the move aims to provide employees with greater flexibility in retirement planning, allowing them to manage their pension corpus according to individual preferences and risk appetite.

Under the NPS and UPS, employees can now choose from several investment models:

A default option, which follows an investment pattern defined by the Pension Fund Regulatory and Development Authority (PFRDA).

Scheme G, which invests 100% of funds in government securities, offering low risk and fixed returns.

The Life Cycle (LC-25) option allows a maximum equity allocation of 25%, gradually tapering from age 35 to 55, while LC-50 permits up to 50% equity exposure.

The newly extended Balanced Life Cycle (BLC) option is a modified version of LC-50, with the equity component tapering from the age of 45, enabling employees to remain invested in equities for a longer period. Under LC-75, employees can opt for up to 75% equity allocation, which also tapers gradually from age 35 to 55.

The Finance Ministry said these expanded options are designed to support a more diversified and adaptive approach to retirement savings for government employees.