Prior Service Vesting Credit
In 2023, the Minnesota Legislature created “vesting service credit” which changed how PERA determines the vesting percentages for SVF member benefits. PERA may count non‐concurrent volunteer firefighting service earned at any fire department in Minnesota, regardless of whether that department participates in the SVF plan.
When all service rendered by a volunteer firefighter is with SVF‐participating departments, vesting service credit is automatically applied. There is no action required of the member.
If any prior service was rendered to a non‐SVF fire department, the member is responsible to submit an SVF Prior Volunteer Firefighter Service form to PERA. The form must be completed and signed by the member, the prior department’s Fire Chief and Governing Body Representative.
Benefit Calculation Examples with Prior Service Vesting Credit
The same benefit formula is used when prior service vesting credit applies. However, prior volunteer firefighting service is only factored in the “Vesting Percentage” portion of the SVF benefit calculation. As a result, when a firefighter is eligible for benefits from more than one SVF department, benefits are calculated separately for each department.
Retirement Benefit Amount = Years of Service x Benefit Level x Vesting Percentage
- Years of Service: The service credit years of the fire department paying the benefit.
- Only non‐concurrent service is counted.
- If there is overlapping service, the member may receive up to 12 months per year.
- Benefit Level: The annual benefit level of the fire department paying the benefit at the time the firefighter separated.
- Vesting Percentage: The combined total service credit of the department paying the benefit AND service credit earned at a prior department.
- Vesting can retroactively include certified past service credit from a prior department.
- Vesting cannot prospectively include future service at a department served after separation from the department paying the benefit.
For the examples below, Vesting Schedule 1 applies:
| Years of Service | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16 | 17 | 18 | 19 | 20 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| % Vested | 40% | 44% | 48% | 52% | 56% | 60% | 64% | 68% | 72% | 76% | 80% | 84% | 88% | 92% | 96% | 100% |
A firefighter volunteered at two fire departments during their career:
- 3 years at the Green Department (not SVF)
- 10 years at the Red Department (SVF); $1,000 benefit level
The Red Fire Department participates in the SVF Plan and follows Vesting Schedule 1. The Green Fire Department does not participate in the SVF Plan. The firefighter must submit a completed SVF Prior Volunteer Firefighter Service Form to certify their prior service with the Green Department.
Red Benefit
For vesting purposes, PERA uses the 3 years of Green service and the 10 years of Red service. The Red benefit is 72% vested with 13 years of combined service.
Red benefit calculation:
= 10 years (Red service) x $1,000 (Red benefit level) x 72% vesting percentage (Green and Red service combined)
= $7,200 one-time, lump-sum benefit
Green Benefit
Since the Green Department is not participating in the SVF Plan, PERA does not calculate this benefit.
A firefighter volunteered at two SVF fire departments during their career:
- 10 years at the Red Department from 2005-2015; $1,000 benefit level
- 10 years at the Blue Department from 2016-2025; $500 benefit level
Both plans participate in the SVF Plan and follow Vesting Schedule 1. PERA will automatically apply prior service toward vesting.
Red Benefit
For vesting purposes, PERA cannot use the Blue's service in the Red benefit formula because Blue's service occurred after Red's service. The Red benefit is 60% vested with 10 years of Red service.
Red benefit calculation:
= 10 years (Red service) x $1,000 (Red benefit level) x 60% vesting percentage (Red service only)
= $6,000 one-time, lump-sum benefit
Blue Benefit
For vesting purposes, PERA uses the 10 years of Red service and the 10 years of Blue service. The Blue benefit is 100% vested with 20 years of combined service.
Blue benefit calculation:
= 10 years (Blue service) x $500 (Blue benefit level) x 100% vesting percentage (Red and Blue service combined)
= $5,000 one-time, lump-sum benefit
A firefighter volunteered at two SVF fire departments during their career:
- 11 years at the Blue Department from 2011-2021; $500 benefit level
- 5 years at the Yellow Department from 2021-2025; $700 benefit level
Both plans participate in the SVF Plan and follow Vesting Schedule 1. PERA will automatically apply prior service toward vesting.
Blue Benefit
For vesting purposes, PERA cannot use the Yellow's service in the Blue benefit formula because Yellow's service occurred after Blue's service.
Blue benefit calculation:
= 11 years (Blue service) x $500 (Blue benefit level) x 64% vesting percentage (Blue service only)
= $3,520 one-time, lump-sum benefit
Yellow Benefit
The Yellow’s benefit formula uses Blue and Yellow service combined for vesting purposes. However, since the firefighter worked at both fire departments during the same 12 month period in 2021, they cannot receive double vesting credit for that time. While the member has 16 years of combined service from both departments, they will receive 15 years of service for vesting purposes after overlap (receive a total of 12 months vesting credit for 2021). The Yellow benefit is 80% vested with 15 years of combined service after overlap.
Yellow benefit calculation:
= 5 years (Yellow service) x $700 (Yellow benefit level) x 80% vesting percentage (Yellow and Blue combined service after overlap)
= $2,800 one-time, lump-sum benefit