The pension systems do not guarantee an 8% rate of return. Currently, employer contributions to the pension systems are calculated assuming that pension investments will earn an 8% return over the long term. This is an actuarial tool that is used to estimate an appropriate amount of annual employer contribution to a pension system. This and other actuarial assumptions are reviewed periodically internally as well as by independent auditors to validate their appropriateness. There is no guarantee by the City or any other entity that this level of investment returns will be achieved.