Interested Departments

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 fire department’s relief association (if one exists) and governing body jointly make the decision to join the SVF Plan. The fire department may join the SVF Plan if both its relief association (if one exists) and governing body approve pension coverage under the SVF Plan.

The following is information to consider when deciding whether to join the SVF Plan:

1. The SVF Plan’s assumed investment earnings rate of 6% is higher than the 5% rate set in statute for local relief associations This means the SVF Plan assumes investment earnings will cover more of the fire department’s annual pension cost than a relief association would assume. The SVF Plan’s higher investment earnings assumption reduces the governing body’s required contribution by more than a relief association’s investment earnings assumption.
2. The year a fire department joins the SVF Plan, the relief association (if one exists) must file one last set of financial reports (as required by law) with the Office of the Minnesota State Auditor and pay for one last audit/attestation. Going forward, however, the relief association is no longer obligated to perform the following duties:
   • Assemble/file financial reports with the Office of the Minnesota State Auditor.
   • Pay for an outside audit or attestation of the special fund.
   • Invest the assets of the special fund. Professional portfolio managers with the State Board of Investment (SBI) take over this responsibility.
   • Pay retirement benefits and file the paperwork necessary to receive the Minnesota Department of Revenue’s supplemental benefit reimbursement.
3. In most cases, fire departments join the SVF Plan at a benefit level per year of service that is equal to or higher than the relief association’s current benefit level for their volunteers. With the SVF Plan’s assumed investment earnings rate of 6% (rather than the 5% assumed by relief associations), governing bodies are often able to offer volunteer firefighters a higher benefit level without increasing required contributions to fund the pension.
4. Investment of the fire department’s pension assets and the design of the pension plan are controlled at the state level.
   Future benefit level increases are at the discretion of the fire department’s governing body. Once a benefit level is established, a governing body cannot unilaterally decrease it.
5. The SVF Plan provides a defined benefit, lump-sum retirement benefit and therefore is not designed to pay annuities on a monthly basis.
    

Vesting means that a member has qualified for benefits when they reach the minimum allowable age. The SVF Plan has three different vesting schedules, all of which are graded over time. A volunteer firefighter’s vesting percentage is determined by years of service and represents the extent to which they are entitled to a future retirement benefit under the SVF Plan.

The fire department may not select a vesting schedule that requires more years of service for firefighters to become partially or fully vested compared to the relief association’s vesting schedule. For example, if vesting under the relief association begins at 60% after 10 years of service, the fire department cannot join the SVF Plan under Vesting Schedule 3, where vesting begins at 40% after 10 years of service. These vesting schedule restrictions ensure that firefighters do not move “backwards” in their vested status when the department transitions from the relief association to the SVF Plan.

Departments that join the SVF Plan effective January 1, 2023, or later, select one of three vesting schedules: 

1. Submit an Interest Form: Beginning April 1 and no later than July 15, a Board Representative of the fire department’s relief association, if one exists, and an Authorized Officer of the fire department’s governing body jointly complete, approve, and submit the appropriate interest form to PERA. If the fire department is associated with more than one municipality or is a nonprofit firefighter corporation, the Authorized Officer from each governing body or a member of the joint power board (JPB) must jointly execute the request.
   • Cost Analysis for Defined Benefit Plan (PDF) form: for departments that have an existing DBP
   • Request for Defined Contribution Plan (PDF) form: for departments that have an existing DCP
   • Departments without an existing relief association should submit the form for the plan (DBP or DCP) the department wishes to join
2. Provide Information for the Cost Analysis:  After PERA receives the completed interest form,
   • DBP: PERA will work with the fire department and/or the Office of the Minnesota State Auditor to obtain a copy of the relief association’s bylaws, if applicable, and any information needed to prepare the requested cost analysis. This information includes volunteer firefighter data such as date of birth, years of service, vesting status, and the dates volunteer firefighters joined and, if applicable, left the fire department.
   • DCP: PERA will review the interest form and provide the department with information about the next steps needed to approve participation in the SVF Plan.
     • Skip to step 4. No cost analysis is required for DCP. 
3. Receive the Cost Analysis (DBP only): PERA prepares the cost analysis at no cost. The analysis includes estimated future contributions, if applicable, and is provided to the fire department’s relief association, if one exists, and the governing body.
4. Receive Investment Information from SBI (DBP & DCP): PERA notifies the State Board of Investment (SBI) that the fire department is considering joining the SVF Plan. The SBI provides the fire department with information about the SVF Plan investments and the process for establishing an SVF account with SBI.
5. Approve Participation in the SVF Plan (DBP & DCP): If the relief association, if one exists, and the governing body decide to join PERA SVF, participation must be approved by a resolution.
   • Required Resolutions: Separate resolutions are required from both the relief association, if one exists, and the governing body.
     • Resolution templates are available on the SVF resources page under SVF Resolution Templates. 
   • Submit Signed Resolutions: Email all completed and signed resolutions to PERASVF@mnpera.org by:
     • DBP: Submit by the due date listed on the PERA cost analysis
     • DCP: Submit by October 1
     • If no action is taken by the due date, the fire department's existing pension coverage will continue unchanged. 
   • After Resolutions Submissions: PERA will review the resolutions to ensure all requirements have been met. PERA will contact you if additional information is needed and will notify you once participation has been approved. Soon after approval, PERA will email information outlining next steps and any additional requirements needed to prepare for participation in the plan.
6. Transfer Pension Assets (DBP & DCP): If participation in the SVF Plan is approved through the required resolutions, PERA will notify the SBI. The SBI will work directly with the owner of the pension assets to complete the transfer during the year participation is approved.
   • Once the asset transfer is complete, the relief association’s special fund, if one exists, ceases to exist as a pension fund.
   • Legal title of the assets transfers to SBI, but the assets remain exclusively to fund the retirement benefits for the fire department’s volunteer firefighters.
7. Begin Participation in the SVF Plan (DBP & DCP): Participation in the PERA SVF Plan begins on January 1 of the year following PERA’s approval of the resolution(s).
   • For example, if PERA approves the resolutions on August 31, 2026; participation in the SVF Plan begins on January 1, 2027.

The fire department’s relief association may choose to dissolve after the fire department joins the SVF Plan. Alternatively, the relief association may choose to continue as an organization. If the relief association chooses to continue as an organization, the relief association:

1. Is not authorized to receive any state aid or municipal funds. The Minnesota Department of Revenue sends future fire state aid and the fire department’s governing body sends any contributions directly to PERA to be deposited in the fire department’s SVF account with SBI; and
2. May not pay pensions or benefits that were not authorized as general fund disbursements under the relief association’s articles of incorporation or bylaws in effect immediately prior to the relief association approving pension coverage in the SVF Plan.

PERA does not set, administer, or provide consultation on the regulations applicable to relief associations that choose to continue as organizations after joining the SVF Plan.