PSC’s Transit Benefit Program eligible commuter services consist of Mass Transit, Vanpool, and Bike2Work.
Eligible commuter services available to Federal agencies include:
Mass Transit
The PSC Transit Benefits Program is a monthly tax-free benefit for Federal employees of participating agencies. The transit benefit must be used for daily commute between an employee’s primary residence and work location by using a qualified means of transportation such as public (mass) transit by subway, commuter or light rail, bus, ferry, vanpool, or bicycle.
Vanpool
Vanpooling is one of the most cost-effective and convenient commuting alternatives to driving alone. Vanpooling can provide many benefits – including saving time and money, reducing commuter stress, caring for the environment, improving quality of life, companionship, and reducing the wear and tear on your personal vehicle. But the benefits don't stop there! With transit benefits and other special incentives that are available, vanpooling can be one of the least expensive ways to get to work at little or no cost.
General Van Pool Regulations
Van pool vehicles must comply with all Internal Revenue Service (IRS) and U.S. Department of Transportation (DOT) regulations guiding the use of van pools and eligibility and distribution of federal transit benefits for federal employees.
Regulations include, but not limited to:
- Vehicles must meet the 80/50 rule:
- Transporting employees between their residence and place of employment must account for at least 80 percent of the vehicle’s mileage.
- The vehicle must be filled to at least 50 percent capacity (excluding the driver) (e.g., in a 7-passenger vehicle, at least four adult passenger excluding the driver, must be traveling in the vehicle). If a van pool has fewer than the minimum number of riders on any given trip, that trip does not count toward the 50 percent of the 80/50 rule.
- Vehicles must have a seating capacity of at least 7 people (6 adult passengers and the driver).
- Van pool participants may not use benefits to “hold” their space in a van pool during an extended absence. The cost of holding a seat is considered an out-of-pocket expense; extended absences are those more than 10 working days per month, including annual leave, sick leave or those due to part-time or telework schedules.
- Van pool participants must ride in the van pool at least 50 percent of their eligible working days each month to receive the monthly benefit.
- Van pool participants are not eligible to receive assigned facility parking or parking benefits and a transit benefit.
- While not all riders in the van pool must be federal employees, non-federal van pool riders cannot receive federal benefits and must pay out-of-pocket. All van pool members, whether federal employees or not, must pay the same rate for the same van pool services.
- In the event a transit program receives a rider benefit from a transit authority, the appropriate participant offset must be applied to the individual monthly benefit amount.
- A van pool invoice or receipt is required to document the actual commuting cost for individual van pool participants.
Bike2Work
The Bike2Work Program is intended to reduce traffic congestion, improve air quality, and promote wellness amongst employees by providing a monthly benefit for qualifying bicycle expenses incurred by participants who commute to work via bicycle.
Program Benefits
Bicycle commuters receive $20 per month to pay for qualifying expenses. Under the Tax Cuts and Jobs Act (Public Law 115-97), employees receiving the $20 per month Bike2Work benefit must now pay taxes on the benefit.
Expenses may include:
- The purchase of a bike lock
- Bike parking or storage
- Bike upgrades (lights, racks, etc.)
- Repairs, tuning, and general maintenance
- Safety equipment
Restrictions
- Complete application must be submitted.
- Participants must recertify annually to continue receiving benefits.
- Participants must adhere to the policy and rules of the garage and/or building for safeguarding a bicycle on HHS property.
- The bicycle benefit cannot be combined with the transit or parking benefit.
- The PSC Transit Benefit Program and Bike2Work Program are not currently available to NIH employees.
Contact Us
GOcard@hhs.gov
301-492-4774
