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#09 - Cost anaysis SVF plan
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#09 - Cost anaysis SVF plan
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2/18/2025 8:26:27 PM
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<br /> <br />3. In most cases, fire departments join the SVF Plan at a benefit level per year of service <br />that is equal to or higher than the relief association’s current benefit level for their <br />volunteers. With the SVF Plan’s assumed investment earnings rate of 6% (rather than <br />the 5% assumed by relief associations), governing bodies are often able to offer <br />volunteer firefighters a higher benefit level without increasing required contributions to <br />the pension. <br /> <br />4. The relief association has less control over the investment of the fire department’s <br />pension assets and the design of the pension plan. <br /> <br />5. Future benefit level increases are at the discretion of the fire department’s governing <br />body, not the relief association. Once a benefit level is established, a governing body <br />cannot unilaterally decrease it. <br /> <br />6. The SVF Plan is a defined benefit, lump-sum pension plan and therefore is not designed <br />to pay annuities on a monthly basis. However, PERA can administer the pension plan for <br />fire departments that currently pay monthly benefits to their volunteers. <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br />
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