Introduction of “Balanced Life Cycle Fund” (BLC) under National Pension System (NPS): PFRDA Circular dated 01.10.2024
PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY
CIRCULAR
Circular No. PFRDA/2024/17/PDES/02
01st Oct 2024
To
All stakeholders of National Pension System (NPS)
Subject: Introduction of “Balanced Life Cycle Fund” (BLC) under National Pension System (NPS)
In continuation to circular no. PFRDA/2016/8/PFM/03 dated 04.11.2016, it has been decided to introduce a new life cycle fund for private sector subscribers (Corporate and All Citizen) to provide automatic rebalancing of the asset classes as per age and risk profile of the subscriber.
2. The new life cycle fund shall be called “Balanced Life Cycle Fund” (BLC).
3. The maximum equity allocation under BLC shall be 50% which shall taper down after the age of 45 years as compared to 35 years under existing life cycle funds. The asset class wise distribution at different ages shall be as under:
| Balanced Life Cycle Fund (BLC) | |||
| Age | Asset Class E | Asset Class C | Asset Class G |
| Upto 45 Years | 50% | 30% | 20% |
| 46 Years | 48% | 28% | 24% |
| 47 Years | 46% | 26% | 28% |
| 48 Years | 44% | 24% | 32% |
| 49 Years | 42% | 22% | 36% |
| 50 Years | 40% | 20% | 40% |
| 51 Years | 39% | 18% | 43% |
| 52 Years | 38% | 16% | 46% |
| 53 Years | 37% | 14% | 49% |
| 54 Years | 36% | 12% | 52% |
| 55 Years and beyond | 35% | 10% | 55% |
4. The existing choices under NPS, viz. “Active” and “Auto” Choices, shall remain unchanged and the “Balanced Life Cycle Fund” (BLC) shall be an additional investment choice.
5. The existing “Moderate Life Cycle Fund (LC50)” shall continue to be the default choice.
6. This circular is issued in exercise of the power conferred under Section 14 of Pension Fund Regulatory and Development Authority Act, 2013 to protect the interest of subscribers and to regulate, promote and ensure orderly growth of the National Pension System and the pension schemes to which the Act applies.
Sumit Kumar
(Chief General Manager)
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