COMMONWEALTH OF PENNSLYVANIA COMMUTER BENEFITS PROGRAM Agenda

COMMONWEALTH OF PENNSLYVANIA COMMUTER BENEFITS PROGRAM

Agenda • Introduction to the Commonwealth’s Commuter Benefits Program • Overview of Commuter Benefits • Transit. Center Solutions – Products and Services • How the Program Works • How You Can Enroll

Introducing the Commonwealth of Pennsylvania’s Commuter Benefits Program A Great Way for You to Save Money

Commonwealth’s Commuter Benefits Program • With the Commonwealth’s Commuter Benefits Program, you can take home more of what you earn! – Thanks to a special provision in Federal law, Internal Revenue Code Section 132 (f), you can save money every time you commute by public transportation • Whether you take a bus, train, subway or qualified vanpool you can save money every time you commute • And, if you currently drive to work, consider using public transportation as a less expensive alternative to paying for fuel and parking

Commonwealth’s Commuter Benefits Program • When you enroll in the Commuter Benefits Program, you will be able to use your pre-tax salary to pay for commuting costs • That means you will pay less in taxes and take home more of what you earn • Set aside up to $110* per month/$1, 320 per year to pay for your commute *Amount can change annually; this is the amount for 2007.

Take Home More Of What You Earn • Here’s an example of how much you can save • The columns show the difference in take home pay with and without deductions for Federal Income Tax, Social Security, and Medicare • In this example, $23 is saved each month

Commonwealth’s Commuter Benefits Program • It’s a win/win! • You win by – Using pre-tax dollars to pay for commuting expenses which saves money – Receiving convenient transit products to pay for commuting costs • The environment wins with – Reduced traffic congestion – Improved air quality

Available Transit Providers • There approximately 70 transit providers serving Pennsylvania – Bus – Train – Subway – Qualified Vanpool • For a complete list of providers, visit the website or contact your Human Resource Office

Product Overview • Based on the transit provider you use, you will receive one of the following transit products to pay for your commuting costs: – Transit. Chek Quick. Pay® Card – Transit. Chek® Vouchers – Transit. Chek Cash. Back® • Each product is explained further on the next slides

What is the Transit. Chek Quick. Pay® Card? • Visa® Debit Card issued by Bank of America • Designed to be IRS compliant for mass transit • No annual or transaction fees • 24/7 access to account information • No monthly usage limit • No transaction limit • Funds rollover month-to-month • Quarterly Statements • Card is funded on the 23 rd of the month

What are Transit. Chek® Vouchers? • Like cash • Used to buy tickets and transit passes • Used for qualified vanpools • Accepted in Pennsylvania and New Jersey • Vouchers are received by mail before the end of each month

What is Transit. Chek Cash. Back®? • Used when the Quick. Pay Card and Vouchers are not accepted by the transit provider • Cash reimbursement for transit expenses • Employees submit Cash. Back Reimbursement form with receipts • Reimbursements directly deposited into employee’s checking or savings account within 2 weeks

Tools Available Additional information, including a brochure, Frequently Asked Questions, and contact information is available on the Commuter Benefits Website or by contacting your Human Resource Office www. transitcenter. com/pacommuterbenefits. aspx

How the Program Works 1. You sign-up for a monthly pre-tax payroll deduction equal to, but not more than the $110 maximum. (Under some circumstances, post-tax deductions may also be taken for expenses above $110. ) 2. The payroll deduction is automatically taken from your pre-tax salary on the first pay of the month. In addition, a small monthly administration fee of $3. 25 is taken from post-tax salary 3. The transit benefit product is made available to you by the end of the month in which the deduction is made from your pay 4. You use the product for expenses in the next month. (Note: This is an afterthe-fact benefit, since deductions are taken in one month and used the next month. )

Employee Enrollment: How do you enroll? • Enrollment is easy and takes just a few minutes • There are two ways an employee can enroll: – Complete an Enrollment Form available on the website or from your Human Resource Office and mail or fax as directed on the form – Or, Call our toll-free number, 1 -866 -591 -2435 to speak with an enrollment technician

Employee Enrollment: What Will You Need to Enroll? • When enrolling, employees will be asked to provide: – – – Employee Personnel Number Last name as it appears in employee records Home zip code The names of all the transit and/or vanpool services regularly used Monthly mass transit or vanpool cost

Employee Enrollment: Enrollment Form • Completed forms should be faxed or mailed to Transit. Center at the number or address provided at the bottom of the form

Customer Service Available • Customer service available from 8: 30 am to 5: 30 pm Monday through Friday (EST) 1(866)823 -3248 • Bi-Lingual Customer Service Representatives • 24/7 access to Transit. Center website • Employees may also refer questions to their Human Resource Office

On-Site Customer Service Available • Onsite enrollment will be offered for any employee who has questions before enrolling. Depending on the popularity of this service, additional dates may be added in January – – – • Dec. 12 – Keystone Bldg. Atrium & Strawberry Square Atrium Dec. 13 – Pittsburgh State Office Building Dec. 14 – Scranton State Office Building Dec. 19 – Philadelphia State Office Building Dec. 20 – Reading State Office Building The service will be provided from 8: 00 to 3: 00 on each day

What’s next? Why wait to save money? • Initial Enrollment begins December 11 th and continues through January 12, 2007 – First payroll deduction will be made in February. – Transit benefit product available for use in March. • Enroll on or before the 9 th of any month after the initial enrollment period ends for new enrollments or changes to existing enrollments