Just as the tax law permits employees to shelter from taxes the cost of dependent care via a Flexible Spending Account or 125 Plan, it also permits employees who pay parking fees to get to work to pay with pre-tax dollars.  Because employers have the option of setting up these programs, it is up to employee unions to bargain for this benefit. One union just did with the support of the FSIP.

NTEU took its case to the Panel when the Internal Revenue Service would not agree to establish a pre-tax payment program for commuters who had parking expenses.  It explained that the prior term contract had required the agency to survey employees to see how many would be interested in this benefit and that survey showed nearly 5,000 were.  NTEU then showed how the program could actually save the employer money. In the end, the Panel ordered the employer to establish a pilot program with the goal of recouping one-half of its start-up costs in the first year.  See NTEU, 2013 FSIP 020 (6/12/13)

Not long ago FEDSMILL posted a two-art piece entitled, “Compensation Increases a Union Can Bargain.” This is just another example of how unions can put money in the pocket of federal employees.

About AdminUN

FEDSMILL staff has over 40 years of federal sector labor relations experience on the union as well as management side of the table and even some time as a neutral.
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