2-18-1310. Plan membership election — contract for employer participation. (1) At the request of at least 25% of its employees, an employer may facilitate an election by all the employer’s employees or by a specified group of the employer’s employees to determine whether those employees will form an association for the purpose of participating in the plan. An election among employees on whether to form an association may also be initiated by the employer.

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Terms Used In Montana Code 2-18-1310

  • Common association: means an association of employees established pursuant to 2-18-1310 for the purposes of employer and employee participation in the plan. See Montana Code 2-18-1303
  • Contract: A legal written agreement that becomes binding when signed.
  • Contracting employer: means an employer who, pursuant to 2-18-1310, has contracted with the department to participate in the plan. See Montana Code 2-18-1303
  • Department: means the department of administration established in 2-15-1001. See Montana Code 2-18-1303
  • Employer: means a legally constituted department, board, commission, or any other administrative unit of state government, a county, an incorporated city or town, or any other political subdivision of the state, including a school district, or a unit of the university system. See Montana Code 2-18-1303
  • Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
  • Plan: means the employee welfare benefit plan established under section 501(c)(9) of the Internal Revenue Code, 26 U. See Montana Code 2-18-1303

(2)If a majority of the employees voting on the question vote to become plan members, then, in a manner prescribed by the department:

(a)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 common association for the purpose of plan membership and the employees must become plan members; and

(b)the employer shall enter into a contract with the department to participate in the plan and must become a contracting employer.

(3)A common association shall operate in a manner prescribed by the department unless the association is disbanded in a manner prescribed by the department.

(4)A contracting employer shall provide to the department, or the appropriate administering entity, the information necessary for the plan’s operation. The department, in partnership with a contracting employer, shall provide to plan members the information necessary to actively participate in the plan.