Commuter Benefits Program

Overview

The Commuter Benefit Program, a voluntary benefit for eligible employees, offers you the ability to pay for eligible transit or vanpooling expenses with pre-tax dollars. If you enroll in the program, the monthly deduction that you specify (up to $340.00 for transit or vanpooling* - effective February 2026) is deducted from your pay before federal, state and FICA taxes are calculated. Your taxable income is reduced, and consequently, your taxable income reflected on your annual W-2 statement is reduced.

Enrollment is based on the calendar year from January 1 – December 31. The annual open enrollment period for all employees is November 1 – November 30 of each year.

Is It For You?

You should consider signing up for Commuter Benefits Program if you are a regular rider on:

• AC Transit (Alameda - Contra Costa counties)
• Altamont Corridor Express (ACE)
• Amtrak (Capitol Corridor)
• BART
• Caltrain
• East Bay County Connection
• Highway 17 Express
• Livermore Amador Valley Transit Authority
• Monterey-Salinas Transit
• Union City Transit
• other Bay Area bus and ferry systems

DO NOT sign up for this program if you ride exclusively on VTA using the AS-SJSU SmartPass Clipper card.

To learn more about how it works and how much you can save visit Edenred's website.

Eligible Employees

You are eligible to enroll in the Commuter Benefit Program if you are in an Executive, Management Personnel Plan (MPP), Confidential, or other nonrepresented State employee position, or are covered by a collective bargaining agreement that provides the benefit.

Rehired annuitants and employees under the Faculty Early Retirement Program (FERP) are not eligible to participate.

You must be in a position that can participate in the Plan through payroll deduction.

The following employees are NOT eligible:

• Student assistants
• Full time and part time employees of any SJSU auxiliary organization, which includes Associated Students, Student Union, SpartanEats, and SJSU Foundation. Auxiliary organizations have a separate payroll system from the rest of the University.

How to Enroll

Please complete the Commuter Benefit Program form in DocuSign.

Enrollment and Effective Date

Employees may enroll in the program within 60 days of hire, or due to a subsequent change in commute status (see explanation under the "Change in Commute Status" section below), or during open enrollment.

For new employees that are enrolled after the program year begins, participation in the Commuter Benefit Program will be for the remainder of the program year and deductions will become effective with the payroll period in the month following enrollment (subject to campus and State Controller's Office processing timelines; see table below).

Once deductions begin, you will not be able to change your deduction amount unless you have had a change in commute status as explained in the "Change in Commute Status" section below. If you have not had an eligible change in commute status, you will only be able to cancel your participation in the program (and will not be eligible to reenroll until the next annual open enrollment period).

How Does It Work?

Each month, the Commuter Benefit Program provides you with either a transit voucher towards the purchase of discounted Highway 17 Express tickets and passes from Transportation Solutions or transit credit (loaded on a Commuter Check Debit MasterCard) redeemable for discounted ACE (Altamont Corridor Express) transit passes, other transit passes, tickets, and/or cash value at transit vending machines, transit agency offices, Clipper customer service centers, and the clippercard.com website. The Commuter Check Debit MasterCard may also be used to pay for rides with vanpool providers and multi-passenger TNC (transportation network company) services, such as Lyft Line or uberPOOL. The "Commuter Benefit Options" section below will determine whether you will receive a transit voucher or transit credit (loaded on a Commuter Check Debit MasterCard).

Pre-tax commuter benefits are governed by Internal Revenue Code Section 132(f)(2)(A), which is subject to Congressional action and/or IRS cost-of-living adjustments.

Using the Clipper Card

If you have a Commuter Check Prepaid MasterCard, you can use it to add value to your Clipper card online at clipper.com, at transit agency ticket offices and machines, at Clipper Add Value machines, Clipper Customer Service Centers or by phone. For more information visit Commuter Check/Clipper Card.

This pre-tax benefit is available only through payroll deduction for public transportation as defined by the Internal Revenue Service (IRS) and available in the bay area.

Pre-tax commuter benefits are governed by Internal Revenue Service Code Section 132(f)(2)(A) which is subject to Congressional action and/or IRS cost-of-living adjustments.

Amount You Can Deduct

You can deduct a maximum of $340.00 (starting February 2026) each month, which must be made by payroll deduction. Your payroll deductions are exempt from federal, state, and FICA taxes; however, they are not exempt from CalPERS retirement contributions. Your commuter benefit deductions have no impact on any other employer-provided benefits that are based on your salary, such as the Health Care Reimbursement Account (HCRA).

Depending on your salary, your Social Security deductions may also be reduced by your commuter benefit deductions. This means your Social Security benefits at retirement also may be reduced, because you have paid Social Security taxes on a lower wage amount. You should take this into consideration as you make your decision about enrolling in the Commuter Benefit Program. (For more information, you may wish to consult your tax advisor or financial planner.)

How to Plan Your Deductions

If you are already paying for transit expenses, you probably know your monthly expenditures. By looking at your records for the past year, you can estimate the monthly deductions you want to make. You must estimate your eligible expenses very carefully, as your deduction amount is irrevocable during the program year unless you have a change in commute status event. IRS regulations prohibit the return or refund of unused transit passes or Commuter Check Debit MasterCard transit credit.

Change in Commute Status

Once the program year has begun, you cannot make changes in your deduction amount unless there has been a change in your commute status. Please note that your election must be on account of and consistent with one of the following events:

• Change in transit fare
• Change in transit service route or provider
• Change in home or work location resulting in a change in transit service route or provider
• Change in age resulting in a change in transit fare (such as a senior fare, depending on agency)
• Disability resulting in a change in transit fare (such as a disabled fare) or service route or provider

If you have not had an eligible change in commute status, you will only be able to cancel your participation in the program (and will not be eligible to reenroll until the next annual open enrollment period).

Termination of Your Participation

Your participation in the Commuter Benefit Program will end as a result of one of the following events:

• The end of the current plan year if you fail to re-enroll during the annual open enrollment period
• You voluntarily cancel your participation, in which case you will not be eligible to reenroll until the next annual openenrollment period
• Change in employee status to one that is ineligible for the Commuter Benefit Program, such as Faculty Early RetirementProgram (FERP)
• Termination of your employment
• Termination of the Commuter Benefit Program by San Jose State University or by Congressional action (including, but notlimited to, actions which increase the cost of administering the Commuter Benefit Program)

Upon the termination of your participation in the program, any unused Commuter Check Debit MasterCard transit credit not spent by the end of the month following the month of termination will be forfeited. For example, if you terminate your participation anytime during the month of January, you will have until the end of February to spend any remaining funds.

Final Note

Through the Commuter Benefit Program, it is possible to pay for transit and vanpooling expenses on a tax-advantaged basis easily and automatically. If you carefully consider your decision to participate, you will find it a worthwhile addition to your benefits package.

References

Discounted fares are available to SJSU staff, faculty, and students on ACE (Altamont Corridor Express) trains and Highway 17 Express buses:

The table below will determine whether you will receive transit passes or transit credit (on a Commuter Check Debit MasterCard).