How Commuter Benefits Help Now

Many employers are acting aggressively to help their employees cope with steep commuting costs. At a time of job insecurity – and of employers’ inability to provide wage increases – employees face the prospect of having to spend thousands of dollars more in 2009 and beyond toward their annual commuting costs. Here are just some of the facts:

• In New Jersey, fares increased 25% as of May 1st.

• In New York City fares increased 10% in 2009.

• In Chicago, the monthly full-fare pass increased from $75 to $86, a hike of nearly 15%, despite the CTA seeing its biggest ridership gains in three decades.

• Effective July 2009, the price of the monthly Adult Fast Pass for San Francisco Muni increased from $45 to $55.

• Minnesota’s Metro Transit increased off-peak bus fare from $1.50 to $1.75 in October 2008, but due to a budget shortfall increased fares a second time in 2009.

• The New York Times reported on the “transit paradox” of decreased revenue despite marked increases in ridership since the gas crisis of 2008. Transit agencies gain just 20-50% of their operating costs from fare collection – this means that many metropolitan areas, including Boston, Washington, D.C., St. Louis and Atlanta, must increase fares to offset decreases in outside tax revenue or cut service.

Increasing Savings

The monthly allowance for tax-free commuter benefits has doubled, enabling employees to deduct up to $230 per month for transit costs. By taking full advantage of this benefit, you may be able to cover all of your commuting cost using pretax dollars – and in many cases offset transit fare increases no matter what area of the country you live in.

For example, see how the increase in commuter benefit savings helps current North East Corridor NJ Transit commuters, as well as commuters on Chicago’s Metro train service: