Any investment of the reserves (meaning the reserves of the employees' pension account under the pension special account (hereinafter referred to as "special account reserves" in this Chapter) and the part of the reserves of an implementing organization (excluding the Minister of Health, Labour and Welfare: the same applies in paragraph (3) of the following Article) that is specified by Cabinet Order as the part that is equivalent to the part with the employees' pension insurance services (including the payment of the basic pension contributions) (hereinafter referred to as "implementing organization reserves"); the same applies hereinafter in this Chapter), is to be undertaken with particular mindfulness of the fact that the reserves are a part of the insurance premiums collected from insureds covered under employees' pension insurance and that they are a valuable source of future pension benefits payments; all investment of those reserves is to be undertaken with the purpose of contributing to the sound management of employees' pension insurance services for years to come, and is to be undertaken safely, efficiently, from a long term perspective, and for the sole benefit of insureds covered under employees' pension insurance.

①Any investment of special account reserves is to be carried out by the Minister of Health, Labour and Welfare by making a bailment of special account reserves to the Government Pension Investment Fund, IAA, with the objective of making payments based on investment that is in line with the purpose of the preceding Article.

②Notwithstanding of the preceding paragraph, the Minister of Health, Labour and Welfare may deposit the special account reserves with the fiscal loan fund until making a bailment of the special account reserves under the provisions of that paragraph.

③Any investment of implementing organization reserves is carried out by the implementing organization in line with the purposes referred to in the preceding Article; provided, however, that the investment of a part of the implementing organization reserves may be, as specified by Cabinet Order, carried out in line with the purposes of the National Public Officers Mutual Aid Association Act (Act No.128 of 1958), the Local Public Officers, etc. Mutual Aid Association Act (Act No. 152 of 1962), or the Private School Personnel Mutual Aid Association Act (hereinafter referred to as the "Acts on mutual aid"), and to apply the provisions of that Article, the phrase "for the sole benefit of insureds covered under employees' pension insurance" in that Article is deemed to be the phrase "for the benefit of insureds covered under employees' pension insurance".

①The competent ministers are to establish the basic policy that is meant to ensure that the reserves are managed and invested safely and efficiently from a long-term perspective (hereinafter referred to as the "basic policy for reserves").

②The competent ministers are to prescribe the following particulars in the basic policy for reserves:

③When the current budget status and projections report has been prepared or upon otherwise finding that it is necessary to do so, the competent ministers are to review the basic policy for reserves and revise it as needed.

④Before seeking to establish or revise the basic policy for reserves, the Minister of Health, Labour and Welfare is to first prepare a draft of the basic policy for reserves or a draft of its revision and consult with the Minister of Finance, the Minister of Internal Affairs and Communications, and the Minister of Education, Culture, Sports, Science and Technology.

⑤The Minister of Finance, the Minister of Internal Affairs and Communications, and the Minister of Education, Culture, Sports, Science and Technology, on finding it to be necessary to do so, may request the Minister of Health, Labour and Welfare to prepare a draft of a revision to the basic policy for reserves.

⑥Having established or revised the basic policy for reserves, the competent ministers are to promptly make this public.

①The management and investment entities must jointly establish the target asset structure for reserves to be considered when they prescribe the asset structure referred to in paragraph (2), item (iii) of that Article in the management/investment guidelines provided for in the provisions of paragraph (1) of the following Article, so that the target asset structure conforms to the basic policy for reserves.

②When a current budget status and projections report has been prepared or if the management and investment entities find it to be necessary to do so, they must jointly review the target asset structure for the reserves provided for in the preceding paragraph and revise this as needed.

③The management and investment entities, having prescribed or revised the target asset structure for reserves provided for in paragraph (1), must jointly make this public without delay and send this to the competent ministers.

④If a competent minister finds that the target asset structure for reserves provided for in paragraph (1) does not conform to the basic policy for reserves, the minister may order the management and investment entities to revise the target.

⑤Before seeking to issue an order under the provisions of the preceding paragraph, the Minister of Health, Labour and Welfare must first prepare a draft of the content to be revised to conform to the basic policy for reserves, and consult with the Minister of Finance, the Minister of Internal Affairs and Communications, and the Minister of Education, Culture, Sports, Science and Technology.

①A management and investment entity must establish guidelines on management and investment (hereinafter referred to in this Chapter as "management/investment guidelines") for the purpose of carrying out appropriate management and investment (for the Pension Fund Association for Local Government Officials, this includes managing the circumstances of investment of the reserves under its management; the same applies hereinafter in this Chapter) of the reserves under its management (for the Pension Fund Association for Local Government Officials, this includes the implementing organization reserves of the implementing organization whose investment circumstances the Pension Fund Association for Local Government Officials manages; hereinafter in this Chapter referred to as "managed reserves") so as to conform to the basic policy for reserves and in line with the target asset structure for reserves provided for in the provisions of paragraph (1) of the preceding Article.

②The following particulars are to be prescribed in the management/investment guidelines:

③If the basic policy for reserves has been revised or on otherwise finding that it is necessary to do so, a management and investment entity must review the management/investment guidelines and revise these as needed.

④Before seeking to establish or revise management/investment guidelines, a management and investment entity must first obtain approval of the minister with administrative jurisdiction over it (hereinafter referred to in this Chapter and Article 100-3-3, paragraph (2), item (i) and paragraph (3) as "the minister with jurisdiction").

⑤Having established or revised management/investment guidelines, a management and investment entity must make this public without delay.

⑥A management and investment entity must manage and invest managed reserves in accordance with the basic policy for reserves and management/investment guidelines.

⑦The minister with jurisdiction, on finding that the management/investment guidelines of a management and investment entity under the jurisdiction thereof no longer conform to the basic policy for reserves, may order the management and investment entity to revise its management/investment guidelines.

If the minister with jurisdiction finds a management and investment entity under the jurisdiction thereof to be in violation of the provisions of this Act or the provisions of any order based on this Act, or finds that the circumstances of the management or investment of managed reserves by such a management and investment entity do not conform to the basic policy for reserves or to the management and investment entity's management/investment guidelines, the minister may order the management and investment entity to take the necessary measures for improving its business operations or the necessary measures to cause the circumstances of the management and investment of managed reserves to conform to the basic policy for reserves or the management/investment guidelines.

①After completion of the settlement of accounts for each business year, a management and investment entity must prepare, without delay, an outline of its business operations stating the asset amount, asset structure proportion, amount of investment income from managed reserves in the relevant business year, and any other particulars specified by order of the competent ministry, and must disclose this to the public and send it to the minister with jurisdiction.

②Having received the outline of the business operations of a management and investment entity under the jurisdiction thereof, the minister with jurisdiction is to evaluate the circumstances of management and investment (including the conditions of investment under the provisions referred to in the proviso of Article 79-3, paragraph (3)) of managed reserves and other particulars of management and investment of managed reserves specified by order of the competent ministry with regard to that management and investment entity, and is to disclose the results of this to the public, promptly.

③Having received an outline of business operations under the provisions of paragraph (1), the minister with jurisdiction is to send that outline of business operations to the competent ministers accompanied by the result of the evaluation under the provisions of the preceding paragraph.

④When the provisions of paragraph (1) are applied to the Government Pension Investment Fund, IAA, the phrase "After completion of the settlement of accounts" in that paragraph is deemed to be the phrase "After the submission of the Financial Statements prescribed in Article 38, paragraph (1) of the Act on General Rules for Incorporated Administrative Agencies (Act No. 103 of 1999) under the provisions of that paragraph".

①The competent ministers are to prepare and disclose to the public, each fiscal year, a written report stating the asset amount, asset structure proportion, amount of investment income of the reserves, evaluation of the circumstances of the investment of reserves, and other particulars of the management and investment of reserves.

②Before seeking to prepare the written report referred to in the preceding paragraph, the Minister of Health, Labour and Welfare is to first prepare a draft of this and consult with the Minister of Finance, the Minister of Internal Affairs and Communications and the Minister of Education, Culture, Sports, Science and Technology.

③A competent minister, on finding based on the results of the evaluation concerning the written report referred to in paragraph (1) that the circumstances of a management and investment entity's management and investment of managed reserves do not conform to the basic policy for reserves, may request the minister with jurisdiction over that management and investment entity to take the necessary measures to cause the circumstances of the management and investment entity's management and investment of managed reserves to conform to the basic policy for reserves.

④Before seeking to make a request for measures under the provisions of the preceding paragraph, the Minister of Health, Labour and Welfare is to first prepare a draft of the necessary measures to cause the circumstances to conform to the basic policy for reserves, and is to consult with the Minister of Finance, the Minister of Internal Affairs and Communications, and the Minister of Education, Culture, Sports, Science and Technology.

Officials of the Ministry of Health, Labour and Welfare, the Ministry of Finance; the Ministry of Internal Affairs and Communications; and the Minister of Education, Culture, Sports, Science and Technology who are engaged in administrative functions associated with the investment of reserves (limited to those specified by Cabinet Order; hereinafter referred to as an "investment official") must pay the most prudent and meticulous attention and put forth their utmost efforts in the execution of their duties, in accordance with the purpose of the investment of the reserves.

It is prohibited for an investment official to divulge or misappropriate any secret learned in the course of duty.

Upon finding that an investment official has violated the provisions of the preceding Article, the person with the power to appoint that investment official must take disciplinary action against that official based on the provisions of the National Civil Service Act (Act No. 120 of 1947).

Beyond what is provided for in this Act, the Act on the Government Pension Investment Fund, Independent Administrative Agency (Act No. 105 of 2004), the National Public Officers Mutual Aid Association Act, the Pension Fund Association for Local Government Officials, and the Act on the Promotion and Mutual Aid Corporation for Private Schools of Japan (Act No. 48 of 1997) govern the investment of reserves.

Beyond as provided in this Chapter, Cabinet Order provides for the necessary particulars in connection with the investment of reserves.