Description
The Qualified Commuter Expense Reimbursement Account is similar to the pre-tax health care
and dependent day care spending accounts. This program allows you to pay for certain work
related commuting expenses with tax-free dollars. Two important differences between this
account and the health care and dependent day care account is that the commuter account
does not include a “use it or lose it” penalty and it can be used for employee work related
commuting expenses only.
Types of Accounts
The Qualified Commuter Expense Reimbursement Account consists of two types of accounts: the
qualified parking expense account and the qualified mass transit expense account. You can choose
to participate in one and/or both accounts.
Participation
You may elect a qualified commuter expense reimbursement account during the Annual Open Enrollment.
If you do not enroll during open enrollment, you will not be able to enroll until next year’s open
enrollment unless you experience a qualified change in status.
Contributions
-Parking Reimbursement Account
- Minimum of $25 per month
- Maximum of $220 per month
-Mass Transit Reimbursement Account
- Minimum of $25 per month
- Maximum of $115 per month
Eligible Expenses
Examples include:
- Cost of parking in a non-University lot (leases and pay by the day) that is located near your work
- Cost of parking in a University lot if you pay by the day (i.e. do not have a University lease)
- Cost of parking that is located on or near a location from which you commute to work using mass transportation or a vanpool
- Vanpool fuel costs are reimbursable if they are paid as a separate expense
Non-covered Expenses
Examples include:
- Tunnel, bridge, or highway tolls (EZ Pass)
- Fuel, mileage or other costs incurred to operate a personal vehicle or taxi
- Non-work related transportation or parking expenses
- Expenses incurred in traveling from your office to business or client meetings
- Transit or parking expenses of your spouse and dependents
Reimbursement
When you incur an eligible expense, you first pay for the service or product and then you
file a claim online and fax appropriate documentation to EBDS.
Reimbursement will only be made on the form of direct deposit.
Unused Funds
Unclaimed contributions will roll over from month to month and plan year
to plan year. This means that any portion of your monthly contribution to the Commuter
Expense Account that is not reimbursed during a particular month will roll over to
subsequent months until you submit an eligible claim.
For example, if you elect to contribute $125 for parking and only incur $100 of eligible
expenses in January, the remaining $25 will roll over to the following months until you
submit an eligible claim for it.
However claims do not roll over from month to month. If you elect $125 a month for parking and
incur and submit $150 in eligible claims in January, you will only be reimbursed $125. If you
incur only $100 in eligible claims in February, you could not use the remaining $25 for January’s claim.
The $25 would roll over to the following month.
“Use it or lose it” does not apply unless you discontinue the program or if you terminate employment and
do not submit eligible claims for reimbursement within 90 days.
Important Information about Claims
- Claims are submitted on a monthly basis and will be paid after the expense is incurred (meaning a Plan Participant has been provided services that gives rise to an expense, not when a Plan Participant is billed, charged for or pays for services (ex. you pay for your July lease on July 1 and submit the claim on July 5; you will not receive reimbursement until August because the service must be incurred first).
- There is a $25 minimum reimbursement for both the parking and mass transit accounts. There is a $115 maximum reimbursement for the mass transit account and a $220 maximum reimbursement amount for the parking account.
- Claims which are not supported by appropriate documentation will be returned to you and can be resubmitted with appropriate documentation to be paid at a later date.
- Claims incurred during the plan year while you are enrolled which are not submitted within 90 days after the end of the plan year or within 90 days after your termination in the program, will not be eligible for reimbursements.
Changes and Cancellations
-
You may cancel the program if you have a qualified change in status. Examples include:
- Attainment of a University lease
- Change in mode of transportation (ex. switching from driving a vehicle to taking public transportation). Note: Public transportation expenses are only applicable outside of Allegheny County
- Changes to your elections may be made at any time; however changes will only take effect the first of the following month. Changes must be received in the Benefits Office by the last business day of the month prior to the effective date.
Limitations
-
Expenses cannot be reimbursed through another employer provided program. Examples include:
- University leased parking or University vanpool
- Expenses related to mass transit provided by the Port Authority with Allegheny County
- Expenses must be incurred by you during the Plan Year
- Expenses must be incurred while you are a participant in the Program
- Reimbursements cannot be paid unless your account is credited with enough contributions applicable to the time you incurred your expense.
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