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VEBA

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Voluntary Employee Beneficiary Association (VEBA)
The federal government allows entities to receive favorable tax treatment on contributions to a trust set up under section 501(c)(9), Internal Revenue Code (IRC).
Contributions to this trust may be made on a pre-tax basis, assets in the trust may be invested and earnings are tax-exempt, and certain qualified benefits may be paid out on a tax-exempt basis. Under Title 2, chapter 18, section 13, MCA, the state also allows favorable tax treatment for a VEBA trust.

What is the purpose of the VEBA?
Voluntary Employee Beneficiary Association (VEBA)

Montana has defined in statute a specific set of benefits which may be paid from a VEBA trust set up for eligible Montana public employees. That purpose is to pay for qualified health care expenditures as defined by the IRS. The goal is to assist eligible public employees in accumulating assets for the purpose of paying for health care expenditures.

What will be the source of funding for this benefit?

State law provides for conversion of sick leave payouts, on a tax-exempt basis, to contributions in a VEBA on behalf of employees. Other sources of contributions such as allocations of salary (flat dollar amount or flat percentage of salary per employee) are not prohibited, but must be determined by an agreement between employees and employers and must meet criteria for maintaining the exempt status of the plan.

Eligibility
Employees of legally constituted departments, boards, or commissions of the state, counties, incorporated cities and towns, or any political subdivision of the state, including school districts or units of the university system are potentially eligible to join the VEBA. Within an employer group, employees defined as potentially eligible to participate in the plan must vote to join the VEBA.

If a majority of employees voting on the question to join elect to participate, then all employees defined and eligible become members. 

VEBA Administration
Administration of the VEBA plan involves enrollment and service to plan members, payment of qualified health care claims funded by individual member VEBA accounts, administration of accounts on behalf of members, investment of trust assets, and management of the trust.
www.montanaveba.org

Log in to your VEBA
Log in at www.rehnonline.com to check your existing VEBA account.

VEBA Forms
VEBA Enrollment form - Sign and turn this form in to Payroll/Benefits office before separation/retirement.
VEBA Direct Deposit Enrollment - Fill out and mail to have your reimbursements go directly to your checking account.
VEBA Account Change - Allows you to change your fund allocations (up to monthly) for the 9 Investment Fund Options.
VEBA Claim form - Use for reimbursement of medical expenses. Follow instructions on form.
Premium Reimbursement
Declaration of Tax Status of Domestic Partner - If applicable, fill in and mail as instructed on form.
Election of Limited VEBA HRA Plan Coverage - Allows members who participate in a High Deductible Health Plan (HDHP) and a Health Savings Account (HSA) to use VEBA contributions only for allowable expenses (dental, orthodontia, and vision expenses). This limitation on the VEBA account will continue until such time as you are no longer on the HDHP and there are funds being contributed to the HSA account. All eligible members of the family will need to limit their reimbursement from the VEBA plan to the same dental and vision expenses until the HDHP coverage is no longer in place.
State Agency Q&A
Qualified Expenses and Premiums
VEBA Montana Plan Summary

COBRA Forms for use with VEBA - If applicable, fill in and mail as instructed on form
COBRA Qualifying Event Notice
Summary of COBRA Premium Reduction Provisions under the American Recovery and Reinvestment Act

Return all VEBA forms to Health Care and Benefits Division PO Box 200130 Helena, MT 59620-0130

For more information on the Montana VEBA HRA
Click on the following link: www.montanaveba.org or check out the current Administrative Rules.