Commuter Benefit Solutions Rallies Working Citizens As Senate Finance Committee Acts to Extend Transit Benefit Parity

The Senate Finance Committee and its new Chairman, Senator Ron Wyden (D-OR), has cleared legislation intended to extend a series of tax provisions that expired at the end of 2013. Included in that package is language that would re-establish parity between the parking and transit/vanpool portions of the transportation fringe benefit, more commonly known as the commuter benefit.

Will transit commuters see their commuter benefits restored to 2013 amounts? (Photo: Business Wire)

At the end of 2013, the monthly cap on the transit/vanpool portion of the commuter benefit dropped to $130/month because Congress failed to enact legislation to extend parity. The monthly cap on the parking portion, on the other hand, increased from $240/month to $250/month because of a cost-of-living adjustment.

The legislation passed by the Senate Finance Committee will restore parity by increasing the transit/vanpool portion of the benefit to $250/month through the end of 2015. The Senate Finance Committee’s effort to restore parity represents the hard work of those Senators who have supported parity, led by Senator Charles Schumer (D-NY).

In addition, Senator Schumer, joined by Senator Warner (D-VA), was able to include an amendment that would make bikeshare costs eligible under the transit benefit. The language specifically allows costs of bikesharing to count under the transit benefit portion, which would mean that it could be offered in combination with the transit benefit both as a subsidy and pre-tax. The language would not make other changes to the bike benefit, however, this is a welcome and much needed change that Commuter Benefit Solutions supports.

Meltem Korkmazel, COO of Commuter Benefit Solutions (CBS) had the following to say:

“CBS and the millions of commuters who use transit benefits thank Senator Wyden and the Senate Finance Committee for their actions today. Since the beginning of the year, urban commuters who face the most expensive transit and vanpool fares, were hit hard when their commuting costs effectively increased by 40% because of the inability of Congress to extend transit benefit parity. The action taken today by the Senate Finance Committee represents the first step in what we hope will be a swift restoration of parity between the transit/vanpool and parking portions of the commuter benefit.”

“We are also thrilled that Senator Schumer has been successful in including bikesharing as a part of the transit benefit. Across the nation, bikesharing is becoming an integral part of metro commuting, and commuters are embracing it as a part of their mobility options. This is a low-cost, common sense solution that will expand options for commuters!”

“I want to thank Senator Schumer (D-NY) and all of the other Senators who have worked so hard for the commuting public. With gas prices on the rise again, now is the time for Congress to step up and restore parity to provide options for our nation’s commuters.”

House Ways & Means Chairman, David Camp (R-MI) has also revealed a means to review tax provisions currently requiring extensions and making them permanent.

Meltem Korkmazel had the following to add:

“I am pleased that the House Ways & Means Chairman is looking into making certain provisions permanent that have previously required yearly extensions. The yo-yoing of the transit cap has served as a detriment to both those who commute and those who offer the commuter benefit. I am confident in those who champion parity in the House, specifically Congressmen Grimm (R-NY), McGovern (D-MA), King (R-NY) and Blumenauer (D-OR), and look forward to the ongoing collaboration with those Members and the Senate Finance Committee to make the case as to why permanent parity should be established.”

Edenred Commuter Benefit Solutions is the nation’s only comprehensive commuter benefit solutions provider and number one resource for commuter savings. Since 1985, Edenred has served Fortune 100 and Fortune 500 companies, top third party benefit administrators and the nation’s largest metropolitan area transit authorities. With its premier solution offerings; Commuter Check, a nationwide commuter benefits program for employers; and WiredCommute, a private label program for third party administrators, Edenred is able to provide a one-stop total solution experience. Edenred’s mission is to make tax-free commuter benefits a staple in employee benefits packages nationwide.

Edenred Group is the worldwide leader in prepaid corporate solutions and has been providing employee benefits for more than 50 years. Edenred Group operates in 40 countries, with 6,000 employees, nearly 610,000 private and public sector customers, 38 million beneficiaries and 1.3 million affiliates.

In 2013, Edenred generated total issue volume of €17.2 billion, with almost 60% in digital markets.

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