MONTANA GOVERNMENT Employer Resources

Group Education

Review the checklist for employees wanting to learn about participation in the Montana VEBA HRA. Key steps include:

1. Review the employee education packet, which includes:

   • Overview of Montana VEBA HRA

   • Eligible Expenses List 

   • Employee Questions & Answers Sheet

2. Watch the on-demand Montana VEBA HRA Presentation.

3. Contact your human resources department to discuss VEBA group options.

4. Educational Flyer for Employers is helpful for a benefit meeting or discussion with public entity work unit.

5. Contact the VEBA Coordinator with Health Care & Benefits Division (HCBD) to arrange for group education sessions. 

Group Formation

A group is an association of employees employed by the same employer under an existing organizational structure.   Groups may also be formed from smaller sub-units, such as a recognized organizational division of the employer. Sub-units may be determined by geographical location of a work unit, job positions, or another reasonable classification of employees. A group must have at least 5 eligible employees.  

Groups may be all union members, all non-union members, or a combination of union and non-union members. Employers should contact the union during the group formation stage if the employees elect to form a combined union/non-union member group, and work with the union to execute a memorandum of understanding (MOU). Once the group vote is complete, employers can advise the union of the results.

There are two group formation options:

1. Employees who are eligible to retire or
2. All employees in the work unit

Employees for both group formation options must be eligible to receive leave benefits and group health benefits. The first group is limited to employees eligible to receive retirement benefits from an MPERA administered program, which include PERS, Game Wardens, Sheriff, Police, Fire, Judges, and Correctional Officers. The second group includes all employees in the work unit.

Employees vote on the contribution sources. Those sources are usually one of the following two options:  25% of accrued sick-leave, or 25% of accrued sick-leave and 100% of accrued annual-leave. The employer pays the contribution source as a tax-free contribution to the MT VEBA HRA participant account at the time the employee separates from service.

After a group has been formed, employees become group members in the following ways:

1. When the employee is hired into a Montana VEBA HRA eligible job position in an existing group; or

2.  When the employee becomes eligible to retire (meets criteria for public retirement program based on years of service and age) while in a Montana VEBA HRA eligible job position during the time the group is in effect.

Group Formation Resources

• Checklist for Montana VEBA HRA New Group Formation - Step-by-step instructions for creating a new VEBA HRA Group. 

• Sample Employer Resolution - City & county groups only.

• Memorandum of Understanding (MOU) Template - If the group is a blend of union and non-union employees, a MOU must be executed.

• Employer Adoption Agreement - The Employer must complete this document in order to offer the Montana VEBA HRA to employees. Complete and send to the VEBA Coordinator. Once a fully executed Adoption Agreement is complete, the multiple employer groups may be formed by the public entity.

• New Group Cover Memo & Ballot Template - For voting on formation of potential VEBA group.

• Straw Poll Ballot Template - For use when group does not come to consensus.

• New Group Vote Results Summary Template - To be filled out with voting results and sent to all voting employees and the VEBA Coordinator.

• New Group Policy - If a new group forms, this is to be filled out for the employer to track their groups as well as sent to VEBA Coordinator. 

• Member Roster Template - For State of Montana groups only. Must be kept up to date with current membership.

Annual Group Renewals

Annually, a VEBA HRA group may vote to continue the group as is with same structure and contribution source or vote to change the contribution source (25% sick leave only to 25% sick leave and 100% annual leave, or vice versa). A group may also vote to disband. Continuation or vote to change will be in place one year. Dissolution allows a re-vote at any time.

Checklist for Annual Renewals and Group Maintenance includes key dates and actions that must be taken to maintain a VEBA HRA group. 

• Annual Notice Email Template - Must be provided 30 days prior to the end date of the group voting year.

• Group Dissolution Notice Template - Sent if, at annual renewal, the group has dropped below the administrative rule of minimum of 5 members, the group must disband. 

• Annual Vote Cover Memo & Ballot - Sent after response received from Annual Notice Email. 

• Annual Vote Results Summary Template - Compile results and send to VEBA Coordinator.

• Member Roster Template - Complete and send to VEBA Coordinator.

• Annual Group Policy Template - When a group renews or votes to make group changes, the Annual Group Policy Template must be filled out to represent the upcoming year.

• Membership Notification Letter - Sent when employee becomes members of VEBA HRA group.

Ongoing Maintenance

If during the year the Montana VEBA HRA is in place, a member is hired into a VEBA HRA eligible position, or in a retirement eligible group and meets years of service or age requirements, notify them of their eligibility to a group. Complete the Membership Notification Letter and notify the VEBA Coordinator of the date, group number and Employee ID to be added to the group.

Additionally, due to re-organizations, internal or agency transfers, employee deaths, position changes (full time to seasonal, etc.), notify the VEBA Coordinator of these changes that may affect the Montana VEBA HRA group membership and need updating in SABHRS.

The VEBA Coordinator will send out monthly notification to HR VEBA contacts at State of Montana agencies, city, county K-12 and university units of newly eligible to retire employees in each entity. You are asked to review the list to assure newly eligible to retire employees may move into your existing groups. If they do, please send the Membership Notification Letter to them. Only State of Montana Agencies need to notify the VEBA Coordinator of the new addition to the group. 

Separating Employees

Termination from Employment

1. Termination of employment may be voluntary or involuntary.

2. If the employee transfers to another state agency within state government or to another Montana governmental employer (i.e., a city or county) the employee’s eligibility for the Montana VEBA HRA is based on the new position and if the position is a Montana VEBA HRA eligible position.

3. If the employee takes a new job position that is not a Montana VEBA HRA eligible position or the employee does not meet the individual eligibility criteria to become a group member of an existing group, the employee will not be a Montana VEBA HRA group member in the new job position.

4. If the employee takes a new job position that is a Montana VEBA HRA eligible position and the employee does meet the individual eligibility criteria to become a group member of that existing group, the employee is a Montana VEBA HRA group member in that new job position. The employee can participate in the upcoming annual vote for that group.

Resources

Review this checklist for VEBA Group Members Separating from Service for instructions on what to do when an employee leaves service.

• Enrollment Packet – Provide to the employee. Ask to have the Montana VEBA HRA Enrollment form filled out, signed and dated and returned to you. Once received, please review to see that each section is completed and employee has signed the form. 

• Limited Scope Option Enrollment Form - Used when separating employee is either electing current Marketplace coverage, planning to take another job (actively employed), or are moving to a spouse’s health care coverage. 

• Limited Scope Option VEBA Question & Answer - Learn about the premium tax credit and the Montana VEBA HRA plan.