Metro is making changes to their SmartBenefits program. Actually...the word on the street is that Metro is going to make changes to the already communicated changes regarding their SmartBenefits program. Confused? I don't blame you.
I attended Metro's first Private Employer Seminar regarding the changes. It started off as an informative meeting like any other. People were inquisitive and respectfully listening. As Metro's representative stated that the employees' option to have their SmartBenefits roll over into the next month was going away; the clouds rolled in and the sky became dark. Those who were once listening quietly started asking questions; voices were raised; there was chiding from the audience and some people actually stood up in disgust and left.
Arriving at the office, I told the above story and learned that no one was surprised. It wasn't the first time Metro had made some unfavorable decisions and our job was to communicate the situation to our customers.
Before I let you in on the changes already communicated by Metro, I would like to say that the newest round of changes I alluded to at the beginning of the post haven't been confirmed. The buzz is Metro has reevaluated their original program changes and have come to the conclusion that they need to offer a more flexible option. Employers will have a choice; either opt to stay in SmartBenefits and continue to allow their employees' SmartBenefits to roll over monthly OR have any unclaimed SmartBenefits elections be credited back to the employer.
Without further ado, here is a portion of the communication we sent out to employers we represent in Arlington County:
SmartBenefits Is Changing - Is Your Company Ready?
Metro’s SmartBenefits Commuter Benefit Program will be changing January 01, 2010.
Why the changes?
The changes are mandated by IRS rules that require employers to keep transit and parking benefits separate. The rule was issued in 2006, but the IRS delayed implementation until Jan. 1, 2010 to give transit agencies time to modify technology.
What are the changes?
Currently, the SmarTrip card has one purse or compartment that people can load money onto for the use of parking or transit. Beginning January 1, 2010, the SmarTrip card will have three purses:
- Transit Purse - maximum value of $230*
- Metro Parking Purse - maximum value of $230*
- Personal Stored Value Purse -maximum value of $300
*IRC 132(f) allows maximum benefit amounts of $230 per month for transit and vanpools and $230 per month for parking.
Key changes for SmartBenefits participants:
- Transit Benefits are used for bus and rail ONLY; if the Transit Purse is empty, the Personal Stored Value purse is the default
- Parking Benefits are used for Metro parking ONLY; if the Parking Purse is empty, the Personal Stored Value Purse is the default. People who park at Metro parking lots MUST have money in their Metro Parking Purse or their Personal Stored Value Purse; otherwise they WILL NOT be able to exit the parking facilities.
- If the Personal Stored Value Purse is empty, the Parking purse cannot be the default for the Transit Purse and vice versa
- The Personal Stored Value Purse can be used for transit or parking, but fare will be depleted from the Transit Purse first for transit and the Metro Parking Purse first for Metro parking
- Money in the Personal Stored Value Purse will roll over monthly and remain on the SmarTrip card
- At the end of the month unused Transit and Metro Parking Benefits will be credited back to the employer’s SmartBenefits account. It is up to the individual employer to determine along with their tax advisors and finance departments how to handle the credit from Metro.
- New monthly benefits will be made available in the benefits accounts when the SmarTrip card is “tagged” to any SmarTrip Card target in the system.
- SmartBenefits participants will no longer load their SmarTrip card at vending machines. The Transit and Parking Benefits are automatically available as riders use Metrorail faregates, fareboxes on buses, or card readers at parking lots.
- Any money on the SmarTrip card December 31st, 2009 will roll into the Personal Stored Value Purse on January 1, 2010.
There you have it; in all its long-winded glory. We will do our best to provide you with accurate and credible information as we receive it.
Wendy Duren is a Business Development Manager at Arlington Transportation Partners,
and commutes with Metrorail daily.