Starting your Own Transit Benefit Program

1. Starting your Own Transit Benefit Program

2. 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.

3. Average Commute in US: 15 miles.* *Bureau of Transportation Statistics

4. The car that gets you to work emits 22 pounds of CO2 per gallon.* *Average, US EPA

5. This equates to roughly 20 pounds of CO2 each way or 40 pounds round trip. …40 pounds adds up over time…

6. Taking transit instead: One day: 40 lbs. of CO2 not emittedOne month: 920 lbs. One year: 11,040 lbs.

7. One employee/year: 11,040 lbs. of CO2 not emitted Five employees/year: 55,200 lbs. Fifty employees/year: 552,000 lbs.

8. 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

9. Quick Review: IRS 132 (f) -- Very Flexible -- 2 Key Points - Monthly maximum cannot exceed $230 (each for transit and parking) - No cash reimbursement

10. Three ways to offer the transit benefit: A. pre-tax payroll deduction B. subsidy, in addition to salary C. a combination of the two

11. Two Options for setting up your transit benefit program • 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

12. Self administration: Do it Yourself… 9 steps to setting up your program

13. #1 Choose the type of program Debit Cards - IRS considerations Transit Passes - Available from all transit agencies Vouchers - Universal acceptance

14. #2 Get management approval #3 Identify key personnel

15. #4 Create and distribute survey/enrollment form #5 Tabulate surveys

16. #6 Arrange for payroll to establish a deduction code #7 Order vouchers, passes or debit cards

17. #8 Distribute benefit to employees #9 Update your personnel policy handbook

18. Have someone else do it for you Selecting a Third Party Administrator

19. #1 Research options • Talk with your payroll or FSA provider • Network with other companies to find out about their TPA • Talk to HR associations

20. #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 publicizethe program? • New employee packet; intranet, employee newsletter, etc.

21. #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.)

22. #4 Sign agreement

23. #5 Increase your success Meet… Plan... and Publicize… ….for maximum participation

24. How an Online Ordering Platform Works… for You and Your Employees.

25. 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

26. Employer’s Administrative Site Login anytime - Upload new hires, delete terms… Excel Document

27. Employer’s Administrative Site …Generate Reports Excel Document

28. 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

29. Sample Implementation TimelineJanuary 2010 fulfillment, using a 1st of the month enrollment deadline

30. 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 “Rolling” Enrollment May SUNDAY MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY SATURDAY 1 2 3 4 5 6 9 8 9 10 11 14 15 12 13 20 16 17 18 19 21 22 25 26 23 24 27 28 29 30 Always by 11:59pm!

31. Employee’s User Experience

32. 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

33. Employees Are “Qualified” • The data the employee provides here needs to match data supplied by employer in advance of program roll-out

34. Password-Protected Homepage • This employee is clicking on “transit order”

35. Select Metro Area

36. Chose Provider, then Product • Transit voucher, pass, smart card loading, debit card…

37. Agree to Terms and Conditions

38. Mark Order to Recur Automatically

39. Indicate When No Benefit is Desired • Up to one year in advance • Vacation, leave of absence, maternity leave, etc. • Uncheck the month in question

40. 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

41. Final Points Also consider including bicycling—it is now covered up to $20 a month! (But there is a caveat)

42. 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

43. “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