Starting your Own Transit
Benefit Program
Why All the Excitement?
 High profile to employees (unlike dental, eye, etc.,
that is only visible when they need it) Surveys
say…
 Sends the right message to employees (employer
understands issues of traffic congestion,
environment, money savings)
 While other employee programs are curtailed—
easy choice to keep the ones that save
everyone money.
Average Commute in US:
15 miles.*
*Bureau of Transportation Statistics
The car that gets you to work
emits 22 pounds of CO2 per
gallon.*
*Average, US EPA
This equates to roughly 20
pounds of CO2 each way or 40
pounds round trip.
…40 pounds adds
up over time…
Taking transit instead:
One day: 40 lbs. of CO2 not emitted
One month: 920 lbs.
One year: 11,040 lbs.
One employee/year: 11,040 lbs.
of CO2 not emitted
Five employees/year:
55,200 lbs.
Fifty employees/year:
552,000 lbs.
Goal of Presentation
Leave with an understanding of:
 The two options you have to administer a
transportation benefit program
 Steps to choose a third party benefits
administrator (TPA)
Steps to self administer a benefit program
The interface with online enrollment through a
TPA
Quick Review: IRS 132 (f)
-- Very Flexible -2 Key Points
- Monthly maximum cannot
exceed $230 (each for transit
and parking)
- No cash reimbursement
Three ways to offer the transit
benefit:
A. pre-tax payroll deduction
B. subsidy, in addition to salary
C. a combination of the two
Two Options for setting up your transit
benefit program
1. Have someone else do it for you—
through a third-party administrator
-- Multiple worksites
-- Larger companies
2. Administer it yourself
-- Less than 100 employees
-- You have one work site
Self administration: Do it Yourself…
9 steps to setting up your
program
#1 Choose the type of program
Debit Cards
- IRS considerations
Transit Passes
- Available from all transit
agencies
Vouchers
- Universal acceptance
#2 Get management approval
#3 Identify key personnel
#4 Create and distribute survey/enrollment form
#5 Tabulate surveys
#6 Arrange for payroll to establish a deduction code
#7 Order vouchers, passes or debit cards
#8 Distribute
benefit to employees
#9 Update your personnel policy handbook
Have someone else do it for you
Selecting a Third Party
Administrator
#1 Research options
Talk with your payroll or FSA provider
 Network with other companies to find out
about their TPA
Talk to HR associations
#2 Plan your program
Who is eligible?
 Full-timers; part-timers, temp workers (no
consultants)
 Which company branches?
 Who approves?
 Which internal staff are affected—payroll, HR?
 How will you publicize the program?
 New employee packet; intranet, employee
newsletter, etc.
#3 Meet with a representative
Make sure to understand plan details:
 Costs/fees (start up, PPPM)
 Timeframes (start up; deadlines)
 Contract period
 Your responsibilities (file transfer; payment
schedules)
 Payment options (ACH transfer, invoice, etc.)
#4 Sign agreement
#5 Increase your success
Meet…
Plan...
and Publicize…
….for maximum participation
How an Online
Ordering
Platform
Works… for
You and Your
Employees.
Employer’s Monthly Schedule
• Enrollment Deadline: Enrollment Ends
• Reports Available Two Days Later
- Orders/Deductions
- Invoice
• Payment by 15th of the month
- ACH Debit (ACH “Pull” or push)
• Fulfillment: 18th – 25th of the month
- Orders shipped
Employer’s Administrative Site
Login anytime - Upload new hires, delete terms…
Excel Document
Employer’s Administrative Site
…Generate Reports
Excel Document
File of Eligible Employees
Needed from Employer prior to program roll-out
• First and Last Name
• Day and Month of Birth (i.e. 2/20 is sufficient)
• Home Address
• Employee ID
• Email address
This information is necessary to recognize the user as
your employee, and as someone authorized to enter
the website and initiate participation
Compromising personal information is NEVER
collected
Sample Implementation Timeline
January 2010 fulfillment, using a 1st of the month
enrollment deadline
TIMEFRAME
Employer provides signed CCD Service Agreement and ACH Authorization
Nov 4 or earlier
Implementation Manager (IM) assigned by CCD, uploads Employer’s file of
eligible employees to secure website, provides employer with
communications materials to be used during program roll-out
~ Nov 10
Employer announces program to employees, distributes communications
Nov 11
Enrollment period: employees select their benefit
Nov 11 – Dec 1
Enrollment Deadline for January Service
Dec 1
Employer receives email stating that Deduction Report & Invoice
for January order are available for download
Dec 3
If pretax benefit, Employer takes deductions
Dec 3 – Dec 15
Employer pays invoice
Dec 15
CCD ships employees’ January orders
~ Dec 18
Employees receive their orders at the address they direct, electronic
products are loaded, all in time for easy January usage
Dec 21– 27
Employees use their fare media, debit or smart card, or redeem their
vouchers for fare media or vanpool participation
January 1 or earlier
“Rolling” Enrollment
Employees manage their account in advance of the
month of service.
They must enroll by an enrollment deadline occurring
anywhere from the 1st to the 10th of the month that
precedes the month of service
May
SUNDAY
MONDAY
TUESDAY
WEDNESDAY
THURSDAY
FRIDAY
SATURDAY
1
Always by
11:59pm!
2
3
4
5
6
9
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
Employee’s User Experience
Online Enrollment Platform
• Click on “New Participant Registration”, fill in fields as
prompted
• Must be completed by the enrollment deadline--in the
month prior to the month in which employee intends to
use the benefit
Employees Are “Qualified”
• The data the employee provides here needs to
match data supplied by employer in advance of
program roll-out
Password-Protected Homepage
This employee is clicking on “transit order”
Select Metro Area
Chose Provider, then Product
• Transit voucher, pass, smart card loading, debit card…
Agree to Terms and Conditions
Mark Order to Recur Automatically
Indicate When No Benefit is Desired
• Up to one year in advance
• Vacation, leave of absence, maternity leave, etc.
Uncheck the month in question
Summary Page
• The initial enrollment process takes 5 min. or less
• Subsequent logins for changes take 3 min. or less
Where we’ll
deliver
What we’ll
deliver
Final Points
Also consider including bicycling—it
is now covered up to $20 a month!
(But there is a caveat)
Final Points
Participate in a Guaranteed Ride
Home Program
1. Many programs are free
2. It pays for taxi or car rental
in case of emergency at
home
3. Check with your local TMA
“The mode of transportation that you
choose has a greater effect on the
environment than any other decision
you make as a consumer.”
-Union of Concerned Scientists