Defined Contribution Plan (DCP)

Benefit

Benefits are based on annual investment gains or losses. All members–active and deferred–participate in the DCP and share investment risks. There is no mix of old and new benefits models.

• Deferred members do not receive annual contributions (from City or Fire State Aid), while active members do.
• Investment risk and reward are shared by all members, so account values can fluctuate.

SVF plan assets are managed by the State Board of Investment (SBI).

Balance Account

Members have an individual balance, not a separate account. All assets remain pooled in a single SBI-managed account, with members holding a proportional share.

• Members cannot make direct investment choices or contributions.
• Assets remain pooled and invested by SBI.
• Allocations of contributions occurs after the calendar year-end (12/31).
• Partial-year active members receive prorated shares.

PERA provides a year-end reconciliation report after your department submits the Annual Service Credit Certification.

• See Annual Service Credit Certification for more information.
• Submitting the certification promptly allows PERA SVF to completed reconciliation sooner.

Funding for SVF DCP

Funding sources include Fire State Aid, voluntary contributions, forfeiture of funds, and supplemental benefit reimbursement.

Departments Joining the SVF DCP

The department must currently have an existing DCP plan.

Submit the “Request for Defined Contribution Plan”  to PERA. If the department is currently a defined benefit, see Conversion information below.

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

1. Separate from active service. A firefighter must be separated from active service for at least 30 days.
2. SVF DCP can collect benefits at any age.
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.
   • First-Year PERA SVF DCP participants: PERA cannot process any DCP member payouts until PERA SVF receives the year-end reconciliation report (or called the DC Table) from your department.
   • Second-Year and beyond PERA SVF DCP participants: Payments are processed after PERA receives the Annual Service Credit Report.  PERA then provides a year-end reconciliation report (DC Table) will be sent to your Fire Chief and Governing Body Representative.
   • All PERA SVF DCP participants: Members should contact your fire chief or governing body representative to obtain your account balance, as shown on the year-end reconciliation report (DC Table).  

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 amount of the survivor benefit for the defined contribution plan is the amount credited to the individual account of the deceased member on 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.

• SVF DBP may convert to a DCP.  Once converted to a DCP, there is no option to revert back to a DBP.
• Departments must join PERA SVF under their existing plan type.
  • New DB plans may convert to a DCP after one year of PERA administration.
• Investment allocations remain the same when converting from a DBP to a DCP.
  • NOTE: there is no conversion from a DCP to a DBP.
• If your department is interested in conversion, please email PERASVF@mnpera.org.