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DIVISION MEMORANDUM 2016-01

TO THE HEADS OF ALL STATE AGENCIES

January 11, 2016

ATTENTION:   Personnel and Payroll Officers, Chief Administrative and Fiscal Officers, and Business Managers
SUBJECT:   Revised Maximum Reimbursements for Qualified Transportation Account benefits for Plan Year 2016

I. INTRODUCTION

The Qualified Transportation Account (QTA) Program is available to all full time active employees that use mass transportation to commute to work or incur work-related parking expenses. The third party administrator for this program is Progressive Benefit Solutions (PBS). The purpose of this memorandum is announce an increase in the amount that participants in the QTA program can set aside for qualified transit and parking expenses in 2016.

II. MODIFICATION OF MAXIMUM TRANSIT CONTRIBUTIONS FOR 2016

The QTA allows participants to pay for eligible transportation and parking expenses with pre-tax dollars. The program operates under Section 132 of the Internal Revenue Code, and the maximum amount that can be used for tax-free reimbursements is set by the IRS each year. During 2016, the maximum amount that could be reimbursed for qualified transit expenses was $130 per month and the maximum amount eligible for reimbursement of qualified parking expenses was $250 per month.

Congress recently addressed the disparity in treatment of transit and parking benefits under Section 132 transportation plans. Going forward, the maximum limits for eligible transit expenses and parking benefits will be equal.

Effective in January 2016, participants in the QTA will now be able to set aside up to $255 per month to pay for eligible public transportation expenses, which include the cost of commuting to and from work by commuter van pools, railroads, buses, or other public transportation services (excludes carpools or travel by private car) and up to $255 per month for eligible parking expenses. The minimum contribution for QTA participation continues to be $20 per month.

Employees who want to enroll in the QTA or to change an existing QTA election must complete the QTA Program Enrollment Form, CO-1312, which can be downloaded directly from the OSC web site http://www.osc.ct.gov/agencies/forms/index.html  or from the PBS website http://www.ctpbs.com/forms/CO-1312.pdf#zoom=100  or contact PBS at 1-866-906-8023.

III. CONCLUSION

These benefits help employees save money on necessary commuting and parking expenses. Please make sure that your agency’s employees get this information promptly so that they can make or change elections for 2016. We have posted a fact sheet concerning the QTA at http://www.osc.ct.gov/empret/transfben/2015/QTAFactSheet.htm.

Questions concerning the QTA may be directed to PBS at 1-866-906-8023. Questions pertaining to this memorandum may be directed to the Healthcare Policy & Benefit Services Division, Employee Benefits Unit at (860) 702-3570.

Very truly yours,

Thomas C. Woodruff, Ph.D., Director

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