STATE OF CONNECTICUT
NANCY WYMAN COMPTROLLER	OFFICE OF THE STATE COMPTROLLER 55 ELM STREET HARTFORD, CONNECTICUT 06106-1775	MARK OJAKIAN DEPUTY COMPTROLLER

HEALTHCARE POLICY & BENEFIT SERVICES DIVISION MEMORANDUM

March 3, 2009

TO THE HEADS OF ALL STATE AGENCIES

I. INTRODUCTION

The purpose of this Memorandum is to advise of a recent increase in the contribution limits for mass transit commuting costs in our Qualified Transportation Account (QTA) program.

II. BACKGROUND

Comptroller's Memorandum 2008-43 discussed the QTA program established under Section 132 of the Internal Revenue Code to allow qualified State employees to exclude qualified parking and mass transit commuting expenses from their taxable compensation.

III. DISCUSSION

Effective March 1, 2009, the American Recovery and Reinvestment Act (ARRA) provides for an increase in the exclusion amount for commuter transit benefits. Specifically, the ARRA will increase the aggregate monthly exclusion for mass transit expenses from its current limit of $120. Employees who commute to work by mass transit (passes, commuter highway vehicle, railroads, ferries, buses, and other transportation services) will be able deduct up to $230 a month on a pre-tax basis. Employees who pay for qualified parking expenses (automobile parking lots & garages) may continue to deduct up to $230 a month on a pre-tax basis. Subject to cost of living adjustments, the increase is set to remain in effect through December 31, 2010.

Employees interested in participating in the program are responsible for obtaining the necessary enrollment applications and meeting all associated submission deadlines. Enrollment information is available on the OSC web site: www.osc.state.ct.us and from the plan administrator, Progressive Benefit Solutions (PBS), at www.ctpbs.com.

IV. CONCLUSION

Enrollment and benefit questions relating to the QTA may be directed to PBS at 1-866-906-8023. Questions pertaining to this Memorandum may be addressed to the HealthCare Policy & Benefit Services Division, Employee Benefits Unit at (860) 702-3543.

Thank you in advance for your assistance in making this benefit accessible to your agency's employees.

Very truly yours,
NANCY WYMAN, STATE COMPTROLLER
BY:

Thomas C. Woodruff, Ph.D., Director
HealthCare Policy & Benefit Services Division

MH/AA

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