What is The Transit Pilot Program?

The Transit Pilot Program will allow eligible State employees who work for DOL, SIF or OSC in New York City to purchase certain transportation benefits with pre-tax dollars pursuant to Section 132(f) of the Internal Revenue Code.  Depending on their specific tax bracket, employees participating in this program can save between 30-40% of the cost of their monthly transit pass.

What benefits will be offered under The Transit Pilot Program?

Under the terms of the pilot program, the only benefit to be offered will be monthly transit passes. 

Can other transportation benefits be purchased with pre-tax dollars?

Yes.  Other qualified expenses (such as parking) are eligible, but the program will initially be restricted to transit companies offering monthly passes.  The vendor can provide comprehensive transportation benefits, but the pilot program will be limited to transit passes.

Who is eligible?

The Transit Pilot Program is limited to employees of DOL, SIF and OSC who are assigned to a work location in New York City.  Full-time, part-time and hourly employees who receive regular, biweekly paychecks from the Office of the State Comptroller are eligible. 

Who is administering the benefit?

The State has chosen to use the same vendor as was selected by the federal Transportation Administration Service Center (TASC).  Because TASC is a federal entity that operates for the benefit of federal, state, and local agencies, the State can contract through them without issuing an RFP.

By using TASC are we limited by the terms of their contract with the vendor?

No. The program will be designed by NYS and the vendor directly.  There is no requirement that it exactly mirror the benefits provided to other federal, state, or local agencies using the same contract.  The program established under the pilot will offer comparable benefits to those offered under the TransitChek program.

Who will be the vendor?

A company named WageWorks is currently under contract with TASC and will be the administrator for the pilot program.  WageWorks administers full transportation benefits and has established a large network of partnerships with local transit authorities nationwide. Although the pilot program will not include parking, the State was mindful that such expansion could be raised in the next round of bargaining.  For much more information on the vendor, check their website at https://www.wageworks.com/Home.asp

Why not TransitChek?

TransitChek is the “brand name” of a pre-tax program offered by TransitCenter—another administrator of pre-tax transportation benefits.  After examining various options for this pilot program, including TransitChek, the State determined that by using TASC, the pilot could be implemented much sooner than if they had selected a vendor through the RFP process.

How will the benefit work?

Although many of the specifics have yet to be finalized, we do have a general idea of how the program will operate.

Once every two weeks, the Office of the State Comptroller (OSC) will provide an electronic file of eligible enrollees to WageWorks.  Employees will then contact WageWorks directly, either on-line or via phone, and set up their enrollment. When enrolling, the employee will choose what transit pass (or passes) to purchase. WageWorks will then calculate the necessary bi-weekly deduction needed, and they will report the new payroll deduction to the Office of the State Comptroller. When an employee first enrolls, it will take two pay periods of deductions before there is enough money in the employee’s account to cover the purchase of passes.  After the second deduction, the passes will be sent to the address provided by the enrollee. Enrollment will continue until the employee modifies or discontinues enrollment or leaves State payroll.

One special note:  unlike other programs that provide “vouchers” that can be exchanged for passes, this program will mail the actual passes to the enrollees.  It is important that employees regard them as cash and make sure they are sent to an appropriate address.

Is there a limited enrollment period like other pre-tax programs?

No.  Eligible employees can enroll or change their enrollment on a monthly basis just by contacting WageWorks.

Is there a “use it or lose it” provision? 

No. Unlike other pre-tax programs that lock enrollees into a specific deduction for the whole year and require that they forfeit any unused monies, the Transit Pilot Program can be started or stopped by the employee at any time without penalty. Federal Law does not permit a refund of unused balances if an employee terminates from State service, however.

If you use more than one transit provider, can you buy multiple passes?

Yes.  Many employees will use transportation services from more than one vendor, and this program will permit multiple passes to be used.  (For example, someone rides MetroNorth or NJTransit and the NYC Subway). 

Are there limits on how much the passes cost?

The only limitation that exists is the amount of the pass that can be paid for in pre-tax dollars.  Currently, federal law limits that amount to $100 per month.  (The amount is not cumulative and any unexpended monies from a monthly allowance do not carry forward). 

What if your passes are more than $100 per month? How can you participate?

If your total cost for monthly passes exceeds $100 per month, you can still participate in the program.  One of the special arrangements NYS has already made with WageWorks and OSC is to allow for employees to pay for the full cost of their monthly passes via payroll deduction.  If the cost exceeds $100 per month, the first $100 will be paid with pre-tax dollars and the balance with a post-tax deduction.  Fortunately, this is all automatic and is virtually invisible to the enrollee.

When can I enroll?

At this moment, the State and WageWorks are working through a series of technical issues that must be addressed before enrollment can begin.  (For example, most of WageWorks’ other clients work on a monthly payroll—the bi-weekly payroll used by the State complicates the programming necessary to make the necessary computer systems interact).  We believe that the State is committed to open enrollment as soon as possible, and will do so once the payroll issues have been worked out between OSC and the vendor.

What transportation providers can be used?

Currently, WageWorks has partnerships with more than 60 transportation service providers for employees working in New York City.  All of the major providers are included: MTA, PATH, LIRR, NJTransit, Amtrak and the NY Waterway Ferries to name a few, but there are dozens of smaller providers who also participate.  Check the WageWorks website for a complete list of providers (from the home page, click on transit, then commuter benefits, and enter your zip code).

How long will the pilot program continue?

The pilot will continue for one year after it is first implemented.  The parties can, by mutual agreement, agree to extend it for longer periods of time.

With this new pilot just starting, will the issue be dropped from negotiations?

No. The contract team will continue to press for the widest and fullest participation in all pre-tax transportation benefits that are permitted under the law.