Could a revamped GPIF lower the pension deficit?

Pension provision is a significant drain on Japan's fiscal resources in part because the returns generated by the Government Pension Investment Fund (GPIF) have fallen short of those earned by counterparts overseas in recent years. Matching the returns achieved by other large institutional investors could raise investment income by up to 0.8% of GDP. But while a shift towards riskier assets should go some way towards bolstering returns, drastic changes in the way the fund is run would be needed to make a major difference.