Group Structure Criteria for Groups in K-12 Entities, Cities, Counties, and the Montana University System

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Groups should consider using existing group boundaries.

  • A "Group" means a collection of employees who are employed by the same employer under an existing organizational structure.
  • A "Sub-unit" means, a collection of employees who are employed by the same employer under a recognized organizational division for the purposes of administration of the statutory or otherwise designated duties of the employer. A sub-unit must consist of at least 2 employees.

A department, county, incorporated city or town, school district or unit of the university system may form sub-units. Boards, commissions and other political sub-divisions may not create sub-units. For detailed information regarding Group Structure, please see the Rules of Operation.

Group participation is required due to IRS rules that prohibit individuals from choosing to participate, or not, in the program. Therefore, the following group formation guidelines are intended to eliminate the possibility of an employee moving from one group to another, or choosing to join or not to join a group so they can be included, or not included, in the Montana VEBA HRA Plan. The contributions to the program are no longer tax-free, if individual choice occurs.

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