NTEU Leader Says Congress Reinstating Transit Benefit Parity the ‘Right Thing to Do’

Press Release August 2, 2012

Washington, D.C. — The leader of the nation’s largest independent federal union praised today’s action by a key Senate committee to reinstate parity between the transit and parking portions of the commuter benefit through 2013 and make the change retroactive to January 2012. The provision is part of a tax extender package.

“By reducing commuting costs for many working people, the mass transit commuter benefit provides much needed relief for tens of thousands of federal employees who rely on public transportation to get to and from work,” said Colleen M. Kelley, national president of the National Treasury Employees Union (NTEU). “It is imperative for Congress to end this disparity and restore equity to the transit and parking portions of this important benefit.”

The Senate Finance Committee approved legislation to extend a number of tax provisions that have expired or will expire at the end of this year, including the provision that would retroactively reinstate parity within the commuter benefit from January 2012 through December 2013. Parity ended on Dec. 31, 2011, when Congress failed to extend the mass transit portion, which had previously been increased to $230 per month. The transit benefit reverted to a maximum of $125 per month, while the parking benefit increased at the start of this year to $240 per month due to cost of living adjustments.

Kelley noted that the transit subsidy encourages greater transit ridership, which helps lessen congestion on roadways, reduces pollution and conserves energy.

“It makes no sense that workers using public transportation should be provided a lesser benefit than those driving and parking personal vehicles,” Kelley said. “Restoring parity is simply the right thing to do.”

It is unlikely that the full Senate will consider the tax package before they break for the August recess; however, NTEU will continue working for the reinstatement of the benefit.

NTEU represents 150,000 employees in 31 agencies and departments.

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