A new Commuter Choice Assistance Program will allow employees to create pre-tax debit accounts to lower the costs of public transportation and off-site parking starting Jan. 1.
Currently, all faculty and staff can use the Rhode Island Public Transit Authority free of charge, but those who commute from out of state pay for their own public transportation or parking if they are unable to park on-site.
Through the program, employees will be able to put up to $230 per month from their payrolls into debit accounts for off-site parking and up to $58 per month for a commercial transit account. Because the accounts enable employees to purchase tickets prior to paying federal and state income taxes, Drew Murphy, director of benefits for human resources, estimated commuters will save between 25 and 30 percent per month in transportation fees on average.
"I think I definitely would use it," said Chris Kottke, assistant professor of mathematics, who travels from Somerville, Mass., to Providence three times a week. "I think I spend on average probably about $150 a month on public transportation expenses, so that would definitely save me some money."
The money in the accounts will function on a use or lose basis, so unused dollars will return to the University. But reclaimed funds "should be minimal, since employees can start and stop their deductions in any month," wrote Cynthia Schimelpfenig, benefits manager, in an email to The Herald. If employees are aware of their travel costs, it is expected they will be able to accurately fund the pre-tax account for their transportation needs.
Though the program will not go into effect until Jan. 1, interested employees can sign up for the program during the open enrollment period from Oct. 31 to Nov. 18.
