Japan Public Pensions Posted Record Loss in FY08

According to Nikkei, the investment return on public pensions show about a minus 10% in fiscal year 2008. This is a record loss on a fiscal year basis, wiping out all profits made in the last 8 years. Public pension manage about $1.5 trillion. Corporate pension funds also show about a minus 17%, which is worse than public ones, for they invested in more equities. The Welfare Ministry has set a 4.1% annual return over the long term. If return falls short, the government will have to reconsider steps such as hiking premiums.