State of California

  M E M O R A N D U M

  REFERENCE CODE:
  98-060

  DATE:
  November 24, 1998

  TO:
  Employee Relations Officers
  Personnel Officers

  FROM:
  Department of Personnel Administration
  Office of the Director

  SUBJECT:
  Clarification to PML #98-054 - Transit and Vanpool 
  Incentives for Excluded Employees

  CONTACT:
  Charlotte Johnson
  (916) 324-0476, CALNET 8-454-0476
  FAX: (916) 322-0765
  INTERNET: CHARLOTTEJOHNSON@DPA.CA.GOV


  The purpose of this memorandum is to clarify the changes 
  announced in PML #98-054   Transit and Vanpool Incentives 
  for Excluded Employees.
  
  Prior to the issuance of PML #98-054, the transit subsidy 
  for excluded employees consisted of a discount of 50 
  percent on public transit, up to a maximum of $21 per 
  month.  In addition, vanpool drivers were provided a $50 
  per month incentive if they were the primary driver of a 
  vanpool consisting of 7 to 15 people.  When established, 
  these subsidies were the maximum allowed by the Internal 
  Revenue Service (IRS) on an untaxable basis.
  
  As a result of recent changes, excluded employees will now 
  receive 50 percent of the cost of the transit pass, up to a 
  maximum of $60 per month.  (Specific provisions for the 
  transit subsidy implemented in the Bay Area for the Loma 
  Prieta earthquake in 1989 remain in effect.)  Vanpool 
  driver incentives for excluded employees have been raised 
  to $100 per month.  Transit subsidies over $60 per month, 
  however, must be reported by the employer as taxable 
  income.  Daily ticket/tokens should be determined on a 
  prorata basis.
  
  The following chart summarizes the various subsidies 
  currently in effect:  
  
  Transit Subsidies and Vanpool Driver Incentives 
  (except for greater Bay Area counties listed below)
  
  Excluded Employees:  (Effective November 1, 1998)
  Transit subsidy: 50 percent of cost of transit pass, 
  up to $60 per month maximum
  Vanpool driver:  $100 per month
  
  Represented Employees:  (Unit 6, 8, 16, and 19)  (Effective 
  date by MOU)
  Transit subsidy: 50 percent of cost of transit pass, 
  up to $60 per month maximum
  Vanpool driver:  $100 per month
  
  Represented Employees:  (Unit 1)
  Transit subsidy: 50 percent of cost of transit pass, 
  up to $15 per month maximum
  Vanpool driver:  $50 per month
  
  Represented Employees:  (All other Units)
  Transit subsidy: 50 percent of cost of transit pass, 
  up to $21 per month maximum
  Vanpool driver:  $50 per month
  
  
  Transit Subsidies and Vanpool Driver Incentives:  (Greater 
  Bay Area Counties)
  (Alameda, Contra Costa, Marin, San Benito, San Francisco, 
  San Mateo, Santa Clara, and Santa Cruz Counties)
  
  Excluded Employees:  (Effective November 1, 1998)
  Transit subsidy (minimum):  $30 per month or cost of 
  transit pass (whichever is less)
  Transit subsidy (maximum): 50 percent of the cost of 
  transit pass or $60 per month, 
  (whichever is less)
  Vanpool driver:  $100 per month
  
  Represented Employees: (Units 6, 8, 16, and 19) (Effected 
  date by MOU)
  Transit subsidy (minimum):  $30 per month or cost of 
  transit pass (whichever is less)
  Transit subsidy (maximum): 50 percent of the cost of 
  transit pass or $60 per month 
  (whichever is less)
  Vanpool driver:  $100 per month
  
  Represented Employees:  (Unit 1)
  Transit subsidy:  $30 per month or cost of transit 
  pass (whichever is less)
  Vanpool driver:   $50 per month
  
  Represented Employees All Other Units:
  Transit subsidy: $30 per month or cost of transit pass 
  (whichever is less)
  Vanpool driver:  $50 per month
  
  Following are examples:
  
  1.An excluded employee in the Bay Area buys a transit 
  pass for $70.  The State will reimburse the employee 
  $35.  The same employee buys a transit pass for $140.  
  The State will reimburse the employee $60.
  
  A Unit 16 employee in the Bay Area buys a transit pass 
  for $40.  The State will reimburse the employee $30.  
  The same employee buys a transit pass for $25.  The 
  State will reimburse the employee $25.
  
  A Unit 1 employee in the Bay Area buys a transit pass 
  for $100.  The State will reimburse the employee $30.  
  The same employee, not in the Bay Area, buys a pass 
  for $100.  The State will reimburse the employee $15.
  
  A Unit 4 employee in the Bay Area buys a monthly 
  transit pass for $50.  The State will reimburse the 
  employee $30.  The same employee, not in the Bay Area, 
  buys a pass for $50.  The State will reimburse the 
  employee $21.  
  
  
  If you have any questions regarding this PML, please call 
  Charlotte Johnson at 916-324-0476.
  
  
  David J. Tirapelle
  Director