Actual returns vs 8% returns

This is just a quick note inspired by the Comptroller's recent pension report. I will post a full analysis later.

The amount of employer contributions to the 5 city pension funds from 2000 to 2010 is $42.9B. If the funds made 8% each year in this period, the pension assets would be $168.9B, instead of $89.9B.

If the employers had contributed a flat line 4.5% of budget, the contributions would have been $28.1B. With this amount an 8% return would have raised the pension assets to $151.6B.

The Comptroller's 8% estimate assume an employer contribution of $11B over the 11 years producing a pension asset value of $139B. I actually estimated the asset value at $129.7B with this contribution assumption.