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2 of 58.1.23 <br />60 EMPIRE DRIVE, SUITE 200, ST. PAUL, MN 55103-2088 1.800.652.9026 | 651.296.7460 | mnpera.org <br />STATEWIDE VOLUNTEER FIREFIGHTER (SVF) PLAN <br />SVF PLAN RETIREMENT BENEFIT CALCULATION <br />The SVF Plan retirement benefit is calculated according to the volunteer firefighter’s certified years of service, vesting status, and <br />the benefit level in effect for their fire department at the time they separate from service. Specifically, the retirement benefit is <br />calculated as: <br />[Years of Service x Benefit $ Level x Vested % = $ Retirement Benefit] <br />The terms in the calculation shown above have the following definitions: <br />• Years of Service: Certified service at time of separation from service. The SVF Plan retirement benefit calculation rounds <br />service credits downward to the whole year, meaning, for example, that if a volunteer firefighter serves for 19 years and 11 <br />months, the benefit calculation factors in 19 years of service (no months). <br />• Benefit $ Level: Annual benefit level (in dollars) per year of service in effect at the time of separation from service. <br />• Vested Percentage: The extent to which the SVF Plan member has vested their benefit, expressed as a percentage (out of <br />100%). A SVF Plan member’s vested percentage corresponds to the number of years of certified service they have ren- <br />dered. The member’s vested percentage increases as their certified years of service increase, until 100% vesting is reached <br />per the applicable fire department’s vesting schedule. To determine a SVF Plan member’s years of service for vesting purpos- <br />es, PERA counts their certified, non-concurrent volunteer firefighter service rendered at any fire department in the state of <br />Minnesota (regardless of the fire department’s participation in the SVF Plan). <br />Vested Percentage Determination Example: <br />• A volunteer firefighter serves for 3 years at the Green Fire Department and then subsequently serves for 10 years at the <br />Red Fire Department. The Red Fire Department participates in the SVF Plan, and the Green Fire Department does not. <br />• Upon separating from service with the Red Fire Department, the volunteer firefighter has, for vesting purposes, 13 total <br />years of service: [3 years at Green Fire Department + 10 years at Red Fire Department] = 13 years <br />• The Red Fire Department follows the vesting schedule shown below: <br />• The volunteer firefighter’s vested percentage with the Red Fire Department is 72%, which is the vested percentage corre- <br />sponding to 13 years of service. <br />Retirement Benefit Example 1: Fully Vested <br />• 50-year old volunteer firefighter separates from service after serving 20 years <br />• Fire department’s benefit level at the time the volunteer firefighter separates from service is $1,000 <br />• Fire department’s vesting schedule starts at 40% after 5 years of service, increasing by 4% each subsequent year until 100% <br />vesting is reached after 20 years of service <br />[20 years x $1,000 x 100%] = $20,000 retirement benefit <br />Years of Service 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 <br />Vested %40%44%48%52%56%60%64%68%72%76%80%84%88%92%96%100%