AUTHORITY: Implementing section 132(f) of the Internal Revenue Code (926 USC 132(f)), Section 405-110 of the Civil Administrative Code of Illinois [20 ILCS 405/405-110], Section 30c of the State Finance Act [30 ILCS 105/30c], and Sections 3 and 9 of the State Employees Group Insurance Act of 1971 [5 ILCS 375/3 and 9] and authorized by Section 5-625 of the Civil Administrative Code of Illinois [20 ILCS 5/5-625].

SOURCE: Adopted at 31 Ill. Reg. 374, effective December 28, 2006; amended at 37 Ill. Reg. 4253, effective March 22, 2013.

SUBPART A: INTRODUCTION AND DEFINITIONS

 

Section 2190.10  Summary and Purpose of the Commuter Savings Program (CSP)

 

The Commuter Savings Program (CSP) is intended to serve as a qualified transportation fringe program under section 132(f) of the Internal Revenue Code (26 USC 132(f)) and is to be interpreted in a manner consistent with the requirements of this Section. The purpose of CSP is to enable participants the opportunity to pay qualified transportation expenses with pre-tax payroll deducted contributions, limited to expenses not claimed on federal tax forms.

 

Section 2190.20  Definitions

 

a)         Whenever used in this Part, the following words and phrases shall have the meanings specified.

 

"Carpool" means an arrangement in which a group of people commute together by car.

 

"Code" means the Internal Revenue Code of 1954 (26 USC 1 et seq.) and applicable regulations, or any successor statute. 

 

"Commuter Highway Vehicle" means any highway vehicle with seating capacity of at least 6 adults (not including the driver) for which at least 80% of the mileage use can reasonably be expected to be:

 

for purposes of transporting employees in connection with travel between their residence and their place of employment; and

 

on trips during which the number of employees transported for those purposes is at least one-half of the adult seating capacity of the vehicle (not including the driver).

 

"Compensation" means wages, salary or other compensation received by a Plan participant as reported on the participant's W-2 from the employer. 

 

"Department" means the Illinois Department of Central Management Services.

 

"Eligible Employee" means any active State of Illinois employee working full-time or more than 50% of the average work week and who has payroll checks processed through the Office of the Comptroller for the State of Illinois.  An eligible employee of the employer excludes independent contractors, temporary employees, and retirees who return to work for no longer than 75 days per year after they retire.

 

"Employer" means the State of Illinois, which includes all officers, boards, commissions, and agencies created by the Illinois Constitution, whether in the executive, legislative or judicial branch; all officers, departments, boards, commissions, agencies, institutions, authorities, universities, bodies politic and corporate of the State; and administrative units or corporate outgrowths of the State government that are created by or pursuant to statute other than units of local government and their officers, school districts and boards of election commissioners, and all administrative units and corporate outgrowths of the above as may be created by executive order of the Governor.

 

"Group Insurance Representative" or "GIR" means an individual who assists the Department with the administration of the Plan.

 

"Participant" means each eligible employee who participates in the Plan in accordance with Section 2190.210 of this Part.

 

"Pay Period" means a regular accounting period established by the State of Illinois for measuring and paying compensation earned by employees.  A pay period may be monthly, semi-monthly or biweekly.

 

"Plan" means the State of Illinois Commuter Savings Program as set forth in this Part, and as may be amended from time to time in compliance with the Illinois Administrative Procedure Act [5 ILCS 100].

 

"Plan Administrator" means an organization, company or other entity designated by the Director to perform certain duties related to the administration of a specific plan in accordance with the terms of the contract between that organization and the Department. 

 

"Plan Year" means the 12-consecutive-month period comprising the State fiscal year beginning July 1. 

 

"Qualified Parking" means parking provided to the eligible employee on or near the business premises of the employer or on or near a location from where the eligible employee commutes to work by transportation on mass transit facilities, in a commuter highway vehicle or by carpool.  This term shall not include any parking on or near property used by the eligible employee for residential purposes.

 

"Qualified Transportation Expenses" means:

 

mileage reimbursement, up to the federally set limits, for transportation in a commuter highway vehicle if the transportation is in connection with travel between the participant's residence and place of employment;

 

            any transit pass; or

 

            qualified parking.

 

"Reimbursement" means to pay a participant in the Plan for qualified transportation expenses.

 

"Transit Pass" means any pass, token, fare card, voucher or similar item entitling a person to transportation (or transportation at a reduced price) if the transportation is:

 

            on mass transit facilities (whether or not publicly owned); or

 

provided by any person in the business of transporting persons for compensation or hire if the transportation is provided in a highway vehicle with a seating capacity of at least 6 adults (not including the driver).

 

b)         A pronoun or adjective in the masculine gender includes the feminine gender and

the singular includes the plural, unless the context clearly indicates otherwise.

SUBPART B: ADMINISTRATION

 

Section 2190.110  Administration of the Plan

 

a)         The Plan shall be administered by the Plan Administrator.

 

b)         The Department reserves the right to enter into agreements with other agencies to

delegate various record keeping and other administrative functions to the employing agencies of the participants.

 

c)         It shall be the principal duty of the Department to see that the Plan is carried out for the exclusive benefit of persons entitled to participate in the Plan without discrimination among them.

 

Section 2190.120  Expenses of Administration

 

Any expenses incurred relative to the administration of the Plan shall be paid by the Department. 

SUBPART C: PARTICIPATION

 

Section 2190.210  Date of Participation

 

a)         An eligible employee will become a participant upon an election under this Plan to participate.

 

b)         Eligible employees may enroll in the Plan at any time.

 

c)         Participation can only be through payroll deduction.

 

Section 2190.220  Errors

 

a)         Participants are responsible for notifying their GIR of any payroll deduction errors.

 

b)         In the event a deduction is missed or an incorrect amount is deducted because of payroll or other processing errors, the error must be corrected on the payroll immediately following the discovery of the error. 

 

c)         If the correction of the error causes an economic hardship for the participant, funds sufficient to correct the error will be deducted from the participant's paycheck over the two months immediately following the discovery of the error.

 

d)         If the error is unable to be corrected on payroll and the participant's account does not contain funds sufficient to cover the costs of participation in the Plan, the participant will be asked to refund to the Department any amount owed. 

 

e)         If the participant refuses, the Department will request the Comptroller to withhold the required amount from the participant's next available paycheck pursuant to 74 Ill. Adm. Code 285.

 

f)         If the error is unable to be corrected on payroll and the participant's account contains funds in excess of those necessary to participate in the Plan, the Plan Administrator will refund the participant any excess amount.

SUBPART D: ELECTION

 

Section 2190.310  Election Procedures

 

a)         An eligible employee may elect to participate in this Plan by contacting the Plan Administrator.  The Plan Administrator will notify the Department and the participant's GIR of the enrollment and the amount of the deduction.

                       

b)         Enrollment decisions or changes must be made and communicated to the Plan Administrator on or before the 10^th day of each month to be effective at the start of the following month.

 

c)         Eligible employees may enroll in the Plan at any time.  Eligible employees are not required to re-enroll each Plan year. 

 

Section 2190.320  Benefit Options and Limits

 

a)         Maximum contributions are in accordance with limitations set forth in the federal guidelines at 26 USC 132(f)(2). 

 

b)         Separate maximums apply to each qualified transportation benefit. 

SUBPART E: QUALIFIED TRANSPORTATION BENEFIT ACCOUNTS

 

Section 2190.410  Establishment of Accounts

 

The Plan Administrator shall establish and maintain a qualified transportation benefit account for each participant. 

 

Section 2190.420  Crediting to Accounts

 

a)         There shall be credited to each account, as of each pay period, an amount equal to the reduction made in the participant's compensation in accordance with the  participant's election.

 

b)         All amounts credited shall be the property of the State until paid out pursuant to Subpart G of this Part. 

SUBPART F: TERMINATION

 

Section 2190.510  Termination of Enrollment

 

a)         Participants may terminate enrollment in the Plan at any time.

 

b)         Termination decisions must be made and communicated to the Plan Administrator on or before the 10^th day of each month to be effective at the start of the following month.

 

Section 2190.520  Termination, Leave of Absence or Death of Participant

 

a)         If a participant terminates employment or takes a leave of absence, the participant must notify the Plan Administrator and his or her GIR by the 10^th of the month prior to the termination or leave of absence in order for cancellation of enrollment to be effective at the start of the following month. Participants who do not cancel enrollment by the 10^th of the month prior to the termination or leave of absence will continue to be enrolled in the Plan through the month following the date that notice of cancellation is provided and shall remain responsible for the contributions associated with the enrollment.

 

b)         If the participant returns to State service, the participant may re-enroll in the Plan.

 

c)         In the event a participant dies, the participant's participation in the Plan shall be

terminated.

 

(Source:  Amended at 37 Ill. Reg. 4253, effective March 22, 2013)

 

Section 2190.530  Fraud

 

In the event a participant knowingly supplies the Department or the Plan Administrator with false information or knowingly files a claim that is not qualified for reimbursement as adjudicated by the Internal Revenue Service or a court of competent jurisdiction, the Department shall exclude the participant from further participation in the Plan.

SUBPART G: REIMBURSEMENT

 

Section 2190.610  Procedures

 

a)         Fees for transit passes are paid directly to the pass provider and the transit pass is mailed to the participant before the beginning of the month the pass is to be used.

 

b)         Fees for qualified parking may be paid directly to the parking provider or the participant may be reimbursed by submitting a claim form and proof of service directly to the Plan Administrator. 

 

c)         Claims for mileage reimbursement for transportation in a commuter highway vehicle must be submitted on a claim form with proof of expense directly to the Plan Administrator.

 

Section 2190.620  Exclusions

 

A participant shall not be reimbursed for any expense that would otherwise be a qualified

transportation expense if:

 

a)         The expense was incurred at a time when the participant was not a participant in    the Plan; or

 

b)         A claim for reimbursement of such expense has not been filed in accordance with the provisions of Section 2190.610 of this Part; or

 

c)         The expense was claimed as a credit or deduction on the participant's federal or State income tax form; or

 

d)         The expense is reimbursable under any other benefit plan maintained by the employer or purchased privately by the participant.

SUBPART H: MISCELLANEOUS

 

Section 2190.710  Illegality of a Particular Provision

 

The illegality of any provision of this Part shall not affect the other provisions of the Part and this Part shall be construed in all respects as if the invalid provisions were omitted.

 

Section 2190.720  Applicable Law

 

To the extent not preempted by federal law, the Plan shall be governed and construed according to the laws of the State of Illinois.

 

Section 2190.730  Effect on Pensions

 

Participation in the Plan will not affect the amount paid into a participant's pension nor reduce benefits received.

 

Section 2190.740  Effect on Social Security

 

Participation in the Plan reduces a participant's Social Security wages by the amount contributed and may therefore reduce the benefits received.

 

Section 2190.750  Benefits Solely from General Assets

 

The benefits provided by the Plan will be paid solely from the general assets of the State.  The State will not be required to maintain any fund or segregate any amount for the benefit of any participant, and no participant or other person shall have any claim against, right to, or security or interest in, any asset of the State from which any payment under the Plan may be made.

 

Section 2190.760  Nonassignability of Rights

 

The right of any participant to receive reimbursement under the Plan shall not be alienable by the participant by assignment or any other method except as provided in Section 2190.610 of this Part.  Any attempt to alienate a participant's interest, other than as specifically authorized, will not be recognized.

 

Section 2190.770  Tax Consequences

 

Once enrolled, it shall be the obligation of each participant to determine whether each payment under Section 2190.420 is excludable from the participant's compensation for federal and State income tax purposes.  Participants should notify the Department if there is reason to believe that any payment is not excludable.

 

Section 2190.780  Indemnification of State by Participants

 

If any participant receives reimbursements under Section 2190.610 that are not for qualified transportation expenses, the participant shall indemnify and reimburse the State for any liability the State may incur for failure to withhold federal or State income tax.

 

Section 2190.790  Right to Amend and Terminate Reserved

 

a)         The Department has established the Plan with the bona fide intention and expectation that it will be continued indefinitely, but the Department will have no obligation to maintain the Plan for any given length of time and may discontinue or terminate the Plan at any time without liability.

 

b)         Upon termination or discontinuance of the Plan, all elections and reductions in compensation relating to the Plan shall terminate, and the Department will pay any remaining balances to the participants as additional taxable compensation.