The cost of traveling to work is an expense that most employees have. These expenses can include the cost of public transportation to get to work (i.e. transit passes for subways, buses and commuter rail lines). Until now, an employee who paid for these expenses did so with "after-tax" dollars; that is, the money was subject to federal and state income taxes and Social Security taxes at the time it was received. How would you like to pay for this expense with pre-tax dollars and get a discount from Uncle Sam? It is now possible to avoid these taxes on the money used to pay for transportation expenses. Your Employer can make this opportunity available to you under its "Transportation Expense Reimbursement Plan".

Here is how the Plan works. Before the beginning of each "Plan Year", you make a decision to reduce your taxable pay for that year by the amount you expect to pay for transportation for that year. This election can be changed periodically (according to plan specification chosen by your employer, refer to plan SPD). The amount of your election is withheld from you and used to pay for the cost of your transportation expenses in the manner described below and is not included in your W-2 compensation for either income or Social Security tax purposes.

The following is a list of some of the more commonly asked questions regarding the Transportation Expense Reimbursement Plan.

Q Will I have to pay taxes on these dollars?

A No, you will never have to pay taxes on the pre-tax dollars withheld from your paycheck to pay for eligible transportation expenses.

Q How much can I have withheld from my check pre-tax for transportation expenses?

A The maximum amount you can have withheld is $115.00 per month.

Q How do I receive reimbursement for transportation expenses?

A You simply “swipe” your debit card where payment for transit passes is accepted. The amount is immediately debited from your account balance. (See Transportation Flex Card on web site @ www.padmin.com)

Q How often will I be reimbursed for transportation expenses?

A You will be reimbursed as frequently as you submit claims. A check will be made payable to you and sent directly to your home address. The minimum check amount is $25.00. (NOTE: This restriction does not apply at the end of the plan year). If you prefer, you can elect to have reimbursements directly deposited to your savings or checking account. We strongly recommend direct deposit for faster reimbursement. It generally takes up to four (4) business days for your reimbursement to appear in your bank account.

To get reimbursements faster, sign up for direct deposit TODAY!

Q What is the maximum amount I can be reimbursed for a submitted transportation expense claim?

A You will be reimbursed the amount you indicated on your fax cover sheet, up to the total amount in your account at the time your reimbursement is issued. Total reimbursements cannot exceed your total withholdings for the plan year.

Q Can I submit a claim after the plan year ends?

A Yes, please check with your employer to see how much time you have to submit all remaining claims for that year. However, your expenses MUST be for expenses incurred during your plan year.

Q What happens if I leave my employer?

A You no longer will be eligible to participate in the Plan. If you have a balance remaining at the end of the plan year and do not submit receipts to exhaust your balance, you forfeit the remaining funds in your account.

Q Can I change the amount withheld from my salary?

A You may change the amount withheld from your paycheck for transportation expenses periodically throughout the year (refer to SPD or check with your Human Resource Office for change allowances). The following are some examples of events that may necessitate a change in your transportation account election: if your work location changes and you no longer need to use public transportation or your employment hours increase or decrease, etc. You may also terminate your participation in the plan at any time during the plan year.

Q What happens if I have a balance at the end of the plan year?

A All balances will be rolled over to the following plan year. You may not receive cash for any balances remaining in the plan if your employment terminates.

• Transportation Debit Card

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