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Article 4 Transit Subsidies
Updated On: Jun 17, 2014

· The New DOL Coordinator for Transit Subsidy

Article 4

Transit Subsidies

Local 12 and the Department support programs to improve air quality and reduce

traffic congestion. The parties agree that the Department will provide a nontaxable

transit subsidy program designed to encourage employees to use qualified

mass transit modes for their daily commute to and/or from their duty location by

methods other than single occupancy vehicles.

Section 1. Definition

This Article covers “Qualified Transit Fringes” defined as commuting expenses

which one could qualify for a transportation subsidy/fringe benefit provided by

management to an employee by any of the following means:

a. Commuter Highway Vehicle (CHV) if such transportation is in connection

with travel between the employee’s residence and place of employment.

b. Any form of mass transit;

c. Qualified parking; and

d. Qualified bicycle commuting reimbursement.

Section 2. Transit Benefit

a. Within budgetary limitations, all bargaining unit users of eligible mass transit

or eligible commuter highway vehicles (CHVs) shall receive 100% of their

actual monthly commuting costs, not to exceed the statutory maximum

(currently $245 per month), as authorized by law or regulation, which may

be in the form of Smart Benefits or SmartTrip Cards.

b. All bargaining unit employees who convert from commuting solely by

privately operated vehicles (POVs) to eligible mass transit or eligible CHVs

for all or part of their commute shall receive an additional $5.00 per month

for the first six (6) consecutive months after conversion.

c. When the Department is authorized to change the maximum amount of the

transit subsidy by law, regulation or Executive Order, the Department will

implement the change for all employees. Notwithstanding any other

provision of this Agreement, when the Department is given discretion to

change or alter any of the maximums of any of the subsidies described

within this Article by law, regulation or Executive Order, the Department

and the Union will bargain over the Impact and Implementation of the

changes in the transit subsidy amounts after the date when the Department

receives this new discretion in accordance with the Statute. In addition, the

Department agrees to implement any change or alteration of any of the

maximums of any of the subsidies described within this Article by law,

regulation or Executive Order, within ninety (90) calendars days of the date

when the Department receives this new discretion.

d. An employee’s monthly subsidy cannot exceed the employee’s actual cost

based on twenty (20) workdays of commuting by eligible mass transit or


e. Participants must certify annually that they are eligible for the qualified

parking fringe benefit and/or are eligible to use qualifying mass transit,

eligible CHV, or qualified bicycle commuting as their regular and recurring

means of commuting.

f. The Department shall ensure that all employees who use qualified parking,

as defined by the law, receive a pre-tax deduction from gross income for

actual monthly parking costs associated with commuting up to the legal

maximum (currently $245 per month). The Department agrees that all

employees who park at eligible parking locations (e.g., Metro parking lots,

commercial lots, privately owned parking lots, commercial parking garages,

parking meter(s), or employer provided parking), and take mass

transportation, or ride to/from work in a vanpool, or ride to/from work in a

carpool of two or more persons will be authorized to exclude 100% of their

actual parking expenses from their taxable income up to $245 per month or

any subsequent statutory limit.

g. Employees may participate in the Qualified Bicycle Commuting

Reimbursement (QBCR) program. An employee is eligible for the QBCR

subsidy when he/she commutes via bicycle for a substantial portion of travel

between the employee’s residence and place of employment for any given

month. Employees participating in this program shall receive the maximum

monthly subsidy, as authorized by law and/or regulation (currently $20 per

month). Employees may only receive one form of transit subsidy in any

given month.

h. The Department will maintain an electronic resource on the DOL Intranet

for employees to advertise ridesharing information.

i. The Mass Transit Subsidy and the Qualified Bicycle Subsidy are not


j. The Department will provide Local 12 with an annual report regarding the

Mass Transit and Bicycle Subsidy programs. The report will contain the total

number of recipients and annual dollars expended by program. In addition,

the Department will provide an annual report on the total number of

employees participating in the pre-tax parking benefit program.

k. In addition to the Committees provided for in Article 40 of the Agreement,

the Union President or designee may raise on an ad hoc basis issues or

concerns about the operations of the program with the Director of OELMR or designee at any time.

AFGE Local 12
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