Statewide Volunteer Firefighter (SVF) Plan
Statewide Volunteer Firefighter (SVF) Plan
Recorded Webinar: Understanding SVF Benefit Level Increases
A fire department’s SVF Plan benefit level is the dollar amount corresponding to each year of a volunteer firefighter’s certified service. The fire department’s governing body has the authority to approve benefit level increases for the fire department and may elect to do so once per year. This webinar provides information on how to assess a Plan’s current financial status and important considerations when considering benefit level increases.
What does it cover?
-SVF Plan financial status and funding ratio
-Determining 2025 required contributions
-Benefit level increase request requirements
-Important questions to consider with benefit level increases
Recommended for: SVF Plan Participants
Length: 39 minutes
Recorded Webinar: How to Join the SVF Plan
Participation in the Statewide Volunteer Firefighter (SVF) Plan is voluntary and open to fire departments with an existing volunteer firefighter pension plan. This webinar provides an overview of the SVF plan, the SVF incentive program, and how to join.
What does it cover?
– Overview of the SVF plan
– A description of the State Board of Investment (SBI) asset allocation
– SVF benefit level options and increases to benefit levels
– What happens if there are changes to the relief association after joining SVF
– Responsibilities for PERA, SBI, the fire chief, and the governing body
– The incentive plan outline and incentive amount to join SVF
– What is the timeline to join SVF by January 1, 2025
Recommended for: Relief associations who would like to learn more about SVF and are considering joining the plan
Length: 30 minutes
In 2009, the Minnesota Legislature created the SVF Plan for volunteer firefighters who serve a municipal fire department or an independent nonprofit firefighting corporation. Minnesota Statutes Chapter 353G governs the SVF Plan. Participation in the SVF Plan is voluntary and open to fire departments as a replacement of their existing volunteer firefighter pension plan. It is also open to departments that do not currently have a pension plan for their volunteer firefighters.
The pension assets and liabilities of each fire department are maintained and accounted for separately from the other fire departments participating in the SVF Plan. The State Board of Investment invests the SVF Plan pension assets for each fire department.
The PERA Board of Trustees and Executive Director administer the SVF Plan. The PERA Board of Trustees receives advice and guidance on SVF Plan administration from the SVF Plan Advisory Board, which consists of Minnesota township, city, fire chief, and volunteer firefighter representatives.
The SVF Plan is a Defined Benefit Plan (DBP), but, unlike other DBPs PERA administers, the retirement benefit is a one-time, lump-sum amount. A volunteer firefighter’s retirement benefit is based on their years of service, vesting status, and the benefit level in effect for their department at the time they separate from service.
Fire state aid, municipal contributions (as applicable), and investment earnings on pension assets fund the SVF Plan. The fire department’s governing body selects a benefit level when it joins the SVF Plan and can elect to increase the department’s benefit level after joining. A fire department’s governing body is the entity sponsoring the fire department: a municipality, nonprofit firefighting corporation, or joint powers entity, as applicable.
Required contributions are due from the governing body only if the combined fire state aid and assumed 6% investment earnings on the fire department’s pension assets do not cover the annual financial requirement (i.e., the annual cost of participating in the SVF Plan). In other words, if fire state aid plus the assumed 6% investment earnings are greater than the annual cost of participating in the SVF Plan, the governing body will not owe a required contribution for the year.
If eligible, the governing body of a fire department in the SVF Plan may elect to transfer out of or terminate their participation in the SVF Plan. Minnesota Statutes 353G.17 and 353G.18 govern the requirements and processes for transferring out of or terminating participation in the SVF Plan.