Frequently Asked Questions

As the Plan Administrator for the employer, can I decide whether to allow terminated employees to continue using the transit and/or parking balances after the date of termination?

Simple Answer:

No. Terminated employees cannot use remaining transit/parking balances.

Detailed Answer:

No. According to Treas. Reg. Sec. 1.132-9, Q/A-5:

May qualified transportation fringes be provided to individuals who are not employees?

A-5. An employer may provide qualified transportation fringes only to individuals who are currently employees of the employer at the time the qualified transportation fringe is provided.