(Bloomberg) -- Japan’s public pension fund moved closer tocompleting a long-awaited governance revamp as the health ministryreleased a plan to install a mostly independent managementcommittee to oversee its investments.

The $1.1 trillion Government Pension Investment Fund willestablish a 10-person committee consisting of nine outsidersand GPIF’s president, the ministry said in a proposal Friday inTokyo.

The new body will be responsible for decision-making andsupervising how the pension fund invests its assets, thehealth ministry said.

The aim is to submit a bill to the ordinary session of Japan’sDiet, which usually starts in January.

The world’s biggest pension fund doubled its allocation tostocks and reduced debt in October 2014, following the advice of apanel handpicked by Prime Minister Shinzo Abe on how to modernizethe fund as Japan sought to exit 15 years of deflation.

The other prong of the recommendations--changing how GPIF is runby adding the equivalent of a board of directors and separatinginvestment and oversight--has taken longer to materialize.

“It’s good that change is happening after all thesediscussions,” said Hiroaki Hiwada, a Tokyo-based strategist at ToyoSecurities Co., said by phone. “The revamp of the governancestructure is in tune with the times.”

The management committee will have one representative of labor,one from the business world and at least one full-time member,according to the ministry’s proposal.

They will have five-year terms. GPIF’s chief investment officer,currently Hiromichi Mizuno, can attend meetings but will not be onthe committee, according to the plan.

Much of GPIF’s authority currently resides with the president,Takahiro Mitani. The changes will introduce a more collegial styleof making decisions, as proposed in November 2013 by the panelpicked by Abe.

GPIF posted its worst quarterly loss since at least 2008 in thethree months ended September after a global stock rout eroded $64billion of value from its investments.

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