Steps for Joining PERS and 457(b): 

1. File a Prospective PERS Employer Questionnaire:

   The potential PERS employer must file a completed and signed Prospective PERS Employer Questionnaire (staff can provide the questionnaire upon request). This will be reviewed to determine if the employer qualifies as a governmental employer and is eligible to contract for PERS coverage. An adverse staff decision can be appealed to the PERS Board (the Board), pursuant to ARM 2.43.1501 through 2.43.1503. The employer is also provided a copy of the Local Government Contracting Procedure (with attached statutes), a PERS Employer Summary and a PERS Summary for Employees.

2. Fill out the Application Forms:

   If the employer qualifies as a governmental agency, the employer will receive a summary of PERS coverage, an explanation of the procedure, and the forms necessary to apply for PERS coverage.

3. Agency Adopts a Resolution of Intention:

   The legislative body of the agency (school board, board of directors, town council, etc.) must adopt a resolution of intention to approve a PERS coverage contract, which must include provision for an approval ballot by the employees. A sample resolution will be provided.

4. A Secret Ballot for Employee Election Held:

   The employee election must be held by secret ballot. A majority of the agency’s employees (which may be more than a majority of those voting) must approve of PERS coverage. A sample ballot will be provided.

5. A Clerk’s Certification Needed:

   The clerk (or other agent) of the agency legislative body needs to certify the results of the election to the legislative body and to the Board. A sample certification form will be provided.

6. A Motion to Adopt the Contract Needed:

   The legislative body must adopt the contract for PERS coverage by a 2/3 majority within 40 days of the original legislative body resolution and after receiving certification from the clerk that a majority of employees approve the PERS coverage contract. A sample motion will be provided.

7. Contract Must be Returned to MPERA:

   Once adopted by the legislative body, return the completed contracts to MPERA. Two original contracts will be provided.

Recap of What Needs to be Submitted for the Board to Approve:
The agency must send the following completed documents for the Board’s consideration and approval:

• Agency resolution of intention (original copy)
• Clerk’s certification of election results (original copy)
• Two signed contracts

The Board Will Notify you of Approval and the Effective Date:
MPERA staff will notify you when they approve your contract. The Board meets on the second Thursday of every other month. The contract must be effective the first regular pay period that begins one month after the Board approval or with the pay period specified in the contract. When you are approved, MPERA staff will contact you with additional information regarding payroll reporting, employee/employer education and implementation.

You Will Need to Implement Online Reporting and Payment Contributions:
Online reporting and electronic payment of contributions is required. To initiate proper reporting and contribution payment, you must return:

• MPERA application for online payroll reporting (Portal Access Manager Form)
• Authorization agreement for direct payments (ACH debits)
• Membership roster (all employees must be listed)
• Link to Okta electronic membership forms (and/or, if appropriate, optional membership election forms) for all employees

Establishing a 457(b) for Your Agency:

• If your agency contracts with MPERA for retirement coverage, you are automatically eligible to participate in the 457(b) Deferred Compensation plan.
• If you do not currently have a contract with MPERA, we can provide a questionnaire to determine your agency's eligibility.
• A political subdivision can contract with the Board to allow its employees to participate in the state-administered Deferred Compensation plan (§19-50-201, MCA). There is no cost to an employer to participate in this plan.
• The first step is to have your governing body pass a resolution to enter into an agreement with MPERA to provide a deferred compensation option to your employees. MPERA will provide drafts of the resolution and contract language to you. After passing a resolution, you may then enter into a contract, which will be reviewed by the Board for approval. Information about the contract requirements can be found in §19-50-201, MCA.
• We are happy to talk with the Board regarding the plan. It is an excellent benefit for employees looking for ways to supplement their retirement.
• If your organization decides to contract with MPERA to offer the 457(b) Deferred Compensation Plan, we will create a draft resolution and adoption agreement and send them to you. Please provide the following information:
  • The official name of your agency
  • The name and title of your authorized contracting representative
  • The name and title of your clerk or other like officer
  • Date of upcoming Board or Commission meeting in which the resolution and adoption agreement will be adopted.

Contact MPERA at: 406-444-3154 (in Helena) or 1-877-275-7372 (toll free) or email: mpera@mt.gov.