Public Employee Press

New transit debit cards offer flexibility and tax savings

After discussions with the union, the city is now offering employees an additional transit benefit — a debit card that allows pre-tax earnings to be used for public transportation costs.

Through pre-tax payroll deductions, a city worker who earns $38,999 a year and uses subways and regular buses can save at least $200 a year. Express bus riders can save $355 a year by using the new Transportation Spending Account card.

The TSA debit card allows for greater flexibility and more options than the annual Premium Card, which provides for unlimited subway rides but can’t easily be suspended for vacations and doesn’t cover express buses.

“Since most members use some form of public transportation, we encourage them to sign up for the new card,” said Assistant Director Moira Dolan of the DC 37 Research and Negotiations Dept. “They can save on taxes, enjoy unlimited rides and easily replace lost cards.”

The debit cards are used to purchase transit cards at MTA vending machines. Visits to the machines aren’t necessary with the Premium Cards, which are automatically refilled by payroll deductions.

In the debit card program, subway and regular bus riders use biweekly pay deductions of $20 for occasional rider cards (five or fewer trips per week), $32.50 for frequent rider cards (10 or more trips per week), or $66 for the monthly express bus rider cards, which are also good for transfers and other rides on regular buses and the subway.

The debit cards have personal identification numbers, so cardholders can replace lost cards without losing money as they do with the Premium Card. The debit card program allows participants to suspend transportation payroll deductions while on leave or vacation. Dept. of Education employees will be able to withhold payments during the summer.

The new debit card resulted from recent discussions between municipal unions and the city over health-care benefits and economic issues. The new program has an administrative fee of 84 cents per biweekly paycheck, subject to current negotiations. The union plans to push for further improvements, such as coverage of the Long Island and Metro-North railroads.

Computer Operator Stanley Cates, Local 2627’s chief shop steward at the New York Police Dept., started using his new TSA card to buy Express Bus passes in March. The card is “selling like pancakes,” he said, predicting that many members will replace their less flexible Premium Card with it.

Further information about the transit benefit is available at the Office of Payroll Administration’s Web site at www.nyc.gov/html/opa.