COMPTROLLER'S SEAL STATE OF CONNECTICUT

STATE OF CONNECTICUT

NANCY WYMAN
COMPTROLLER
OFFICE OF THE STATE COMPTROLLER
55 ELM STREET
HARTFORD, CONNECTICUT 06106-1775
MARK OJAKIAN
DEPUTY COMPTROLLER

COMPTROLLER'S MEMORANDUM NO. 2003-14

March 26, 2003

TO THE HEADS OF ALL STATE AGENCIES

Attention: Personnel and Payroll Officers, Chief Administrative and Fiscal Officers, and Business Managers
Subject: Qualified Transportation Fringe Benefit

I. INTRODUCTION

Pursuant to the provisions of Public Act No. 02-123, the Office of the State Comptroller (OSC) in partnership with the Department of Transportation has implemented a Qualified Transportation Fringe Benefit (Benefit). This Benefit will allow State of Connecticut Employee Commuters to pay for transportation expenses on a pre-tax basis. In addition to saving on the cost of buses, trains or vanpools, employees can also save on qualified parking expenses.
 
In that connection, the purpose of this Memorandum is to (1) announce the commencement of the Benefit; (2) present its components; and (3) discuss issues pertaining to implementation and administration.

II. BACKGROUND

Public Act No. 02-123 authorizes the OSC to offer to qualified state employees the option to exclude from taxable wages and compensation, consistent with Internal Revenue Code (IRS) Section 132, employee commuting costs incurred through the use of transportation in a commuter highway vehicle, transit passes or qualified parking.

III. DISCUSSION

For calendar year 2003, pursuant to IRS Section 132, employees who commute to work by train, ferry, vanpool or bus may deduct up to $100 a month on a pre-tax basis. Employees who pay for qualified parking expenses may deduct up to $190 a month on a pre-tax basis.

IV. PROCEDURES

A. Enrollment Procedures
 
BCI (Brokerage Concepts, Inc. and Benefit Concepts, Inc.) is responsible for the enrollment of eligible employees who wish to participate in the Qualified Transportation Fringe Benefit. Employees are allowed to enroll in the Benefit on a monthly basis pursuant to the enrollment/change submission date schedule. (Attachment 1)
 
B. Payroll Procedures
 
The payroll processing of the Benefit is performed by BCI. Agencies are not responsible for processing enrollment or change applications for payroll purposes.
 
C. Election Changes
 
Once enrolled, changes in election can be made on a monthly basis during the calendar year. Participating employees who wish to make an election change or terminating employees must file an Election/Change Form with BCI in conjunction with the enrollment/change submission date schedule.
 
Employees may obtain enrollment forms, change forms and claim forms by contacting BCI toll free at (877) 629-1500.

V. CONCLUSION

Enrollment and benefit questions relating to the Qualified Transportation Fringe Benefit Program may be directed to BCI at (877) 629-1500. Questions pertaining to this Memorandum may be addressed to the Retirement & Benefit Services Division, Employee Benefits Unit at (860) 702-3543.
 
Thank you in advance for your assistance in making this benefit accessible to your agency's employees.

 

Very truly yours,

Nancy Wyman
State Comptroller

attachment

NW/SW/nm

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