This is an opinion editorial by Mickey Koss, a West Point graduate with a degree in economics. He spent four years in the infantry before transitioning to the Finance Corps.
I’m going to use the California Public Employees Retirement System (CalPERS) as a proxy for your general pension system. According to investopedia, the CalPERS invested roughly a third of their money into bonds with a target annual return for the fund at 7%. Bonds are referred to as fixed income because of their predictable coupon payments. They’re used for income, not capital gains.