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Governing Body: Required Contributions <br />Required contributions are due from the fire department’s governing body if the <br />combined fire state aid and assumed 6% investment earnings on the department’s <br />pension assets do not cover the annual cost of participating in the SVF Plan. <br />When PERA determines whether the governing body owes a required contribution for a <br />given year, we are statutorily required to assume the annual investment earnings will be <br />equal to a 6% rate of return on the department’s pension assets. Therefore, even when <br />the actual rate of return differs from 6%, PERA’s determination of any required <br />contribution assumes a 6% rate of return.