Montana VEBA HRA Logo
Background

The name of the Plan is the “State of Montana Health Benefit Plan and Trust,” also known as the “Montana Health Reimbursement Account” or “Montana VEBA HRA.” The Montana VEBA HRA was developed as a grass-roots effort for public Employers to offer to their employees in the State of Montana.

In the year, 2000, a legislative committee comprised of representatives from public employers, including representation from State Government, City and County Government, K-12 entities and the Montana University System, met to discuss post-retirement funding issues. These discussions prompted the drafting of legislation for the 2001 session of the Montana State Legislature.

In April of 2001, Senate Bill 51 authorized the enrollment effort of the Montana Voluntary Employees’ Beneficiary Associate (VEBA) and directed the Department of Administration (DOA) at the State of Montana to establish the plan. The Montana VEBA advisory Council was then created with representation from the State of Montana, City and County Government, K-12 and the Montana University System (MUS.)

Legal and VEBA Consulting services were obtained through the RFP process in April of 2001. Work began to procure a favorable Letter of Determination from the IRS. Additionally, we developed the Trust Instrument and the Plan Document. The Trust was procured in April of 2003. We received IRS approval of our Letter of Determination in July, 2003.

The award of contracts for the Administrative, Accounting and Record Keeping, Claims Processing and Education Services was made in August, 2003. The vendors which supply those services for the Montana VEBA HRA are:

  • Washington Trust Bank – Spokane, WA – Trust and Investment Manager
  • VEBA Service Group, LLC – Spokane, WA – Consultant to State of MT (DOA)
  • A.W. Rehn & Associates – Spokane, WA – Accounting/Record-Keeping and Claims Administration services
  • VALIC Financial – Education Services

Currently, the Montana VEBA HRA provides the opportunity to enroll over 50,000 public employees in the state of Montana. There are over 35 groups enrolled with the State of Montana, a number of K-12 entities, counties and cities and 3 University groups currently participating in the Plan. The Trust currently pays approximately $3,500 in benefit claims dollars per month. They pay an average of $5,500 per month for member insurance premiums for public employees in the State of Montana.