Retirement Benefits

PERA SVF offers two types of plans:

SVF-DBP

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.

SVF DCP

The SVF Defined Contribution Plan (DCP) is a benefit payment is a one-time, lump-sum amount. A volunteer firefighter’s SVF plan retirement is based on the prior year’s ending balance, any gains or losses, and vesting percentage. (Note: Active members receive contribution allocations.)

SVF Monthly

Fire departments grandfathered under the SVF Monthly Plan (PERA does not accept new monthly plans) pay annuities monthly. Eligibility for monthly benefits is determined by the department’s pension plan document. Applications for monthly benefits are obtained from the fire chief, not PERA, and firefighters work directly with the fire chief to apply.

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.

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.

If at any time the member was divorced while working as a volunteer firefighter, send us the divorce decree with the application.

• If the volunteer firefighter was awarded the entire SVF benefit: Send in a scan or photocopy of the entire decree
• If the SVF benefit is divided: Send in a certified copy of the decree

Refer to Divorce for more information.

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.

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 does not currently provide disability benefits.