Starting your Own Transit Benefit Program

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Starting your Own Transit Benefit Program
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• 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.

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Average Commute in US 15 miles.
Bureau of Transportation Statistics
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The car that gets you to work emits 22 pounds of
CO2 per gallon.
Average, US EPA
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This equates to roughly 20 pounds of CO2 each way
or 40 pounds round trip.
40 pounds adds up over time
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One day 40 lbs. of CO2 not emittedOne month
920 lbs. One year 11,040 lbs.
Taking transit instead
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One employee/year 11,040 lbs. of CO2 not emitted
Five employees/year 55,200 lbs.
Fifty employees/year 552,000 lbs.
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• 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

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Quick Review IRS 132 (f) -- Very Flexible -- 2
Key Points - Monthly maximum cannot exceed 230
(each for transit and parking) - No cash
reimbursement
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Three ways to offer the transit benefit A.
pre-tax payroll deduction B. subsidy, in
addition to salary C. a combination of the two
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• Two Options for setting up your transit benefit
  program
• Have someone else do it for youthrough a
  third-party administrator
• -- Multiple worksites
• -- Larger companies
• 2. Administer it yourself
• -- Less than 100 employees
• -- You have one work site

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Self administration Do it Yourself
9 steps to setting up your program
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1 Choose the type of program
Debit Cards - IRS considerations
Transit Passes - Available from all transit
agencies
Vouchers - Universal acceptance
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2 Get management approval
3 Identify key personnel
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4 Create and distribute survey/enrollment form
5 Tabulate surveys
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6 Arrange for payroll to establish a deduction
code
7 Order vouchers, passes or debit cards
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8 Distribute benefit to employees
9 Update your personnel policy handbook
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Have someone else do it for you Selecting a
Third Party Administrator
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1 Research options

• Talk with your payroll or FSA provider
• Network with other companies to find out about
  their TPA
• Talk to HR associations

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2 Plan your program

• Who is eligible?
• Full-timers part-timers, temp workers (no
  consultants)
• Which company branches?
• Who approves?
• Which internal staff are affectedpayroll, HR?
• How will you publicize the program?
• New employee packet intranet, employee
  newsletter, etc.

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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.)

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4 Sign agreement
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5 Increase your success
Meet Plan... and Publicize .for maximum
participation
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How an Online Ordering Platform Works for You
and Your Employees.
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Employers 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

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Employers Administrative Site
Login anytime - Upload new hires, delete terms
Excel Document
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Employers Administrative Site
Generate Reports
Excel Document
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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
  participationCompromising personal information
  is NEVER collected

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Sample Implementation TimelineJanuary 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 Employers 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
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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

Always by 1159pm!
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Employees User Experience
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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

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Employees Are Qualified

• The data the employee provides here needs to
  match data supplied by employer in advance of
  program roll-out

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Password-Protected Homepage
This employee is clicking on transit order
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Select Metro Area
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Chose Provider, then Product

• Transit voucher, pass, smart card loading, debit
  card

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Agree to Terms and Conditions
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Mark Order to Recur Automatically
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Indicate When No Benefit is Desired

• Up to one year in advance
• Vacation, leave of absence, maternity leave, etc.

Uncheck the month in question
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Summary Page

• The initial enrollment process takes 5 min. or
  less
• Subsequent logins for changes take 3 min. or less

Where well deliver
What well deliver
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Final Points
Also consider including bicyclingit is now
covered up to 20 a month! (But there is a caveat)
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Final Points
Participate in a Guaranteed Ride Home Program

• Many programs are free
• 2. It pays for taxi or car rental in case of
  emergency at home
• 3. Check with your local TMA

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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