(1) For the purposes of election and administration of the Montana VEBA HRA, an employer may form subunits.

(2) An employer may either initiate or facilitate an election to determine whether employees will form a member group for the purpose of participating in the Montana VEBA HRA. When at least 25% of the employees request an election, an employer must facilitate the election within 60 calendar days from the date of the request.

(3) The election may include all the employer's employees or a specified group of employees to determine whether those employees will form a member group for the purpose of participating in the Montana VEBA HRA.

(4) Employees who are members of a collective bargaining unit may decide to either participate with other employees in the formation of a VEBA group or to initiate the election through the bargaining unit. If the employees decide to participate with other employees, a written memorandum of understanding from the union representing the bargaining unit employees must be obtained by the employer.

(5) Employers must make a reasonable effort when conducting an election to maintain the privacy of each individual ballot. Employers also must include provisions for absentee voting for those employees not present during an election.

(6) If a majority of the employees voting on the question vote to become VEBA participants, then all of the employees that were eligible to vote on the question and any employees subsequently hired into the positions covered under the terms and conditions of the election must be formed as a VEBA group and the employees must become VEBA participants.

(7) Members of a VEBA group may hold an annual election to determine whether or not they will continue their participation in the Montana VEBA HRA if at least 25% of the members of the VEBA group request an election.

(a) If a majority of eligible members elect to discontinue their participation, their VEBA group is disbanded until another election is conducted.

(b) Once a VEBA group disbands, an employer shall not make further contributions to members' accounts until the employer's eligible employees form another group. However, distributions from existing members' accounts will continue until the funds in the accounts are exhausted.

(c) Once an election is conducted, an employer is not required to conduct another election for that VEBA group for 12 months from the date of the election.

(8) The effective date of the VEBA group must begin no later than 30 days following completion of the vote and announcement of the election outcome which creates the VEBA group.