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…

One day: 40 lbs. of CO2 not

emitted

One month: 920 lbs.

One year: 11,040 lbs.

Taking transit instead:

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 #1 Choose the type of program

Debit Cards

- IRS considerations

Transit Passes

- Available from all transit agencies

Vouchers

- Universal acceptance

#2 Get management approval #2 Get management approval

#3 Identify key personnel #3 Identify key personnel

#4 Create and distribute survey/enrollment form#4 Create and distribute survey/enrollment form

#5 Tabulate surveys#5 Tabulate surveys

#6 Arrange for payroll to establish a deduction code#6 Arrange for payroll to establish a deduction code

#7 Order vouchers, passes or debit cards#7 Order vouchers, passes or debit cards

#8 Distribute benefit to employees#8 Distribute benefit to employees

#9 Update your personnel policy handbook#9 Update your personnel policy handbook

Have someone else do it for you

Selecting a Third Party Administrator

#1 Research options #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 #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 #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#4 Sign agreement

#5 Increase your success#5 Increase your success

Meet…

Plan...

and Publicize…

….for maximum participation

How an Online

Ordering Platform

Works… for You and

Your Employees.

• 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 Monthly Schedule

Employer’s Administrative Site

Login anytime - Upload new hires, delete terms…

Excel Document

Employer’s Administrative Site

…Generate Reports

Excel Document

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

File of Eligible Employees

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

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

Always by 11:59pm!

“Rolling” Enrollment

May

5

SUNDAY MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY SATURDAY

1

8963 42

12 15141310 119

19 222117 1816 20

26 292824 2523 27

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

What we’ll deliver

Where we’ll deliver

• The initial enrollment process takes 5 min. or less

• Subsequent logins for changes take 3 min. or less

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

Final Points

“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