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 %” 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.
Years of Service x Benefit Level $ x % Vested = Retirement Benefit Amount $
- Years of Service: The service credit years for 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: Annual benefit level of the department paying the benefit at the time the firefighter separated.
- % Vested: the combined total service credit of the department paying the benefit AND service credit earned at a prior department.
- % Vested can retroactively include certified past service credit from a prior department.
- % Vested cannot prospectively include future service at a department served after separation from the department paying the benefit.
For both examples below, the following vesting schedule will be applied.
| 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% |
- Example 1: Prior Service Vesting Credit from a Non-SVF Department
- Example 2: Prior Service Vesting Credit from Multiple SVF Departments
50-year-old member has 3 years of service at the Green Fire Department (not an SVF participant) followed by 10 years at the Red Fire Department.
The Red Fire Department participates in the SVF Plan, and the Green Fire Department does not. The firefighter must submit a completed FORM NAME to certify their prior service with the Green Department.
The volunteer firefighter submits a FORM to verify service with GREEN
The Red Fire Department’s benefit level at the time of separation is $1,000
The Red Fire Department follows Vesting Schedule 1. The firefighter is 72% vested based on 13 years total service (10 years with Red plus 3 years with Green).
Benefit Calculation for Red Fire Department: 10 years of service x $1,000 benefit level x 72% = $7,200 benefit.
50-year-old member has 10 years of service at the Red Fire Department followed by 10 years at the Blue Fire Department.
Both plans participate in the SVF Plan, therefore PERA will automatically apply prior service.
The Red Fire Department’s benefit level at the time of separation is $1,000.
The Blue Fire Department’s benefit level at the time of separation is $500.
Both fire departments follow Vesting Schedule 1.
Benefit Calculation for Red Fire Department: The firefighter is 60% vested based on 10 years of service. The service from Blue Department cannot be applied because it occurred after the service for Red Fire Department. 10 years of service x $1,000 benefit level x 60% vested = $6,000 benefit.
Benefit Calculation for Blue Fire Department: The firefighter is 100% vested based on 20 total years of service. The prior service from Red Department is added to the Blue Department service. 20 years of service x $500 benefit level x 100% vested = $10,000 benefit.