Retirement Benefits

The SVF Plan is a Defined Benefit Plan (DBP), however, unlike other DBPs PERA administers, the retirement benefit is a one- time, lump-sum amount. A volunteer firefighter’s SVF Plan retirement benefit is based on their certified years of service, vesting status, and the benefit level in effect for their fire department at the time they separate from service. A fire department’s SVF Plan benefit level is the dollar amount corresponding to each year of a volunteer firefighter’s certified service.

The SVF Plan currently offers benefit levels ranging from $500 to $15,000 per year of credited service. This range is subject to statutory change. Benefit levels are set in $100 increments.

The fire department’s governing body sets the benefit level in the SVF Plan for their volunteer firefighters. The governing body can elect to approve an increase in the fire department’s benefit level once per year. Benefit level increases approved in a given year are effective on January 1 of the next year.

At any time, either the fire chief or governing body representative(s) may request that PERA provide a cost analysis showing the estimated cost of increasing the fire department’s benefit level under the SVF Plan. PERA’s cost analysis is intended to help the fire chief and governing body determine whether and the extent to which a benefit level increase is appropriate for their fire department. For step-by-step instructions on how to increase a fire department’s benefit level, see Increasing the SVF Plan Benefit Level.

To be eligible to collect a Statewide Volunteer Firefighter (SVF) Plan retirement benefit, a volunteer firefighter must:

1. Separate from active service. A firefighter must be separated from active service for at least 30 days.
2. Be at least 50 years old. If a firefighter is not age 50, the retirement benefit will be deferred without interest until the member applies for their benefit after turning 50.
3. Meet vesting requirements. A firefighter must have served the minimum number of years to vest their retirement benefit, according to the fire department’s vesting schedule.

To apply for retirement benefits, a volunteer firefighter must complete and submit the SVF Plan Retirement Benefit Application form to PERA. Follow the instructions on the application form. 

The succession of SVF Plan survivor beneficiaries is set in state statute.  

A survivor is the:

1. spouse of the member, or if none,
2. the minor child or children of the member, or if none,
3. the estate of the member

The survivor benefit amount is equal to the retirement benefit that would have been payable to the firefighter at age 50 based on their service credit earned as of the date of death.

No beneficiary form is required.  

Reporting Deaths  

To report a death, Fire Chiefs should email PERA’s SVF Team at PERASVF@mnpera.org. All others should contact Member Services at 651-296-7460 or 1-800-652-9026.

PERA reviews each application to ensure it is complete. If all information is provided, the valid application is forwarded for processing. A letter is mailed to the member to confirm that PERA received the application.

If the application is incomplete, PERA will contact the fire chief or member by mail, email or phone to request additional information. Once an application is valid, processing can take up to approximately 120 days.

Payments

Once the benefit payment is approved, the State of Minnesota Management & Budget Department (MMB) will mail a check to the member via the U.S. Postal Service.

If the member requested any benefit amount to be directly rolled over to another fund, the check will be made payable to the designated qualified plan/IRA. MMB will mail the check to the member in 8 1/2 x 11 self-sealed mailer. The member is responsible for sending the check to the financial institution receiving the rollover.

Fire departments receive estimates on all active members yearly through the Annual Funding Report. PERA does not provide estimates for active SVF Plan members. Please see below regarding options:

• Active members should connect with their Fire Chief.
• Deferred members should call Member Services at 651-296-7460 or 1-800-652-9026 to request an estimate. Limited to one estimate every two years.

Unless the SVF Plan member or survivor elects different tax treatment on their benefit application form, PERA automatically withholds applicable federal and Minnesota state income taxes from the gross, lump-sum amount of the SVF Plan benefit.

PERA does not withhold income tax for any state other than Minnesota. The SVF Plan member or survivor may elect to roll their benefit over to another tax-qualified retirement account with no federal or Minnesota state taxes withheld. For additional details on how your SVF Plan retirement benefit or survivor benefit will be taxed (including the applicable tax rates), see the SVF Plan Retirement Benefit Application or SVF Plan Survivor Benefit Application.

For firefighters who defer their retirement benefit AFTER the fire department joins the SVF Plan: No interest is earned on benefits deferred under the SVF Plan. When the firefighter eventually collects their deferred retirement benefit, the lump-sum amount is calculated as:

[Years of Service x Benefit $ Level effective at time of deferral x Vested % = $ Retirement Benefit]

For firefighters who defer their retirement benefit BEFORE the fire department joins the SVF Plan: If a firefighter deferred their benefit prior to the fire department joining the SVF Plan, the rules of the relief association will apply to the calculation of their benefit. In other words, PERA will calculate the firefighter’s retirement benefit according to the relief association’s vesting requirements, benefit level, interest earnings, and retirement age applicable at the time the firefighter deferred.

In addition to a lump-sum retirement benefit, the SVF Plan provides volunteer firefighters with a one-time cash supplemental benefit, equivalent to that outlined in Minnesota Statutes 424A.10. PERA applies for reimbursement of these supplemental benefits from the Minnesota Department of Revenue and deposits the reimbursement into the fire department’s SVF Plan account.

The SVF Plan is designed to pay a lump-sum retirement benefit, rather than to pay annuities on a monthly basis. However, PERA can administer the pension for fire departments that currently pay monthly benefits to their volunteer firefighters. Eligibility for monthly benefits is based on the fire department’s pension plan document. The application for monthly benefits is available from the department’s fire chief rather than PERA. Firefighters work directly with the department’s fire chief to apply for monthly benefits.

The SVF Plan does not currently provide disability benefits.