Unsuck DC Metro: Nickel-and-Diming Riders? Part 2

Tuesday, February 12, 2013

Nickel-and-Diming Riders? Part 2

From Robin:

About a year ago, I switched jobs. At my former and current places of employment, I have had SmartBenefits deducted from my paycheck, pre-tax. Unlike government employees, I was not given extra money from my employers.

Since I already had a SmartTrip card registered, I used my current card's information when I registered for pre-tax deductions from my new employer. Whenever I was due to receive benefits from my paycheck, my account was frozen and wiped of all stored SmartBenefits. Due to vacation I had to take at my previous job before I left (no unused vacation payout), I had $80 and some change in SmartBenefits stored. My SmartBenefits from my new job were also not added because the account was frozen.

After talking to a somewhat helpful customer service representative, I was told that since I had benefits from a previous employer on my card, I could not receive benefits from my new employer and the card was frozen. I was told that a card can be connected to only one employer at a time. She was able to update the card with my new employer's information, and in about 36 hours, I was able to start using the SmartBenefits from my new employer. Until then, I survived on paper fare cards.

I was also told that the $80 and some change that was taken out of my paycheck, pre-tax, would revert back to my old employer and I would have to get it from them. Of course, I contacted both HR and payroll at my old job and told them the situation. They said they didn't know of such a policy since the money was taken out of my paycheck, but as soon as they received it, [they said] I would receive a check from them. Three months passed with me calling SmartTrip Customer Service and calling and emailing my old employer multiple times, each claiming the other would have the money. After numerous attempts, I cut my losses and accepted I would never see that $80 again.

I can't be the only person in this situation. Where does the money go?

Related:
Nickel-and diming riders? Part 1

Other items:
Homicides, theft of electronics on the rise (Examiner)

Comments (30)

Logging you in...

Dashboard | Edit profile | Logout

Logged in as

+1 Vote up Vote down

Guest · 632 weeks ago

I know at my company, unused SmartBenefits revert to the employer at the end of the month.

12 replies · active 631 weeks ago

+8 Vote up Vote down

ANON · 632 weeks ago

This is true for the amount the EMPLOYER KICKED IN. Not for your own money.

+2 Vote up Vote down

Me2D2 · 632 weeks ago

Not true (at least as of a year ago). I had a registered SmarTrip card associated with a federal agency's transit benefits. I also loaded my own money onto the card to pay for parking. When I relocated out of state last year, I tried to obtain a refund for the roughly $100 still on the card that was all my own $ - I had exhausted the transit subsidy at least 2 weeks prior to the last time I rode the Metro. But I was denied the cash-out on my card because it was registered for transit benefits. I was told that it didn't matter if it was my $ or not - any card associated with transit subsidies (pre-tax personal contributions or federal subsidies) you could not cash out on. It allegedly goes back to the employer...even if it was your OWN money left on the card. Calls to my old agency resulted in giving the transit subsidy lady a really good laugh because she said in all the years of the subsidies, Metro has NEVER refunded any money to them. So my $ was also left forfeit into Metro's coffers.

+6 Vote up Vote down

dddddda · 632 weeks ago

If Metro has NEVER refunded money to employers, then an investigation needs to be undertaken. Pursuant to new IRS rules, Metro was to refund unused benefits at the end of each month (regardless of their source - pre-tax employee contribution or employer stipend), and the employer was to decide what to do with them from there (I guess the idea is tax it and return it to the employee if it's theirs, report it as revenue/profit if the company's money). If Metro is removing the money from people's cards at the end of every month (whenever I have money left over, the residual benefits have vanished as expected), but not returning it to employers, they're violating IRS rules. This is not some little "snafu," this is blatant disregard of federal law, and also theft from the employee or employer who paid for the benefits in the first place.

0 Vote up Vote down

Me2D2 · 631 weeks ago

I was told that the only time it comes back to them is if you decrease the benefit amount at the machine when you're loading them onto the card (e.g. there is $230 available, but you know you're taking a week's vacation that month, so you reduce the amount appropriately on the screen, and then it only loads $195 for example). But refunds AFTER loaded to your card - she said they've never received nor did it reflect in their accounting logs.

+2 Vote up Vote down

dddddda · 631 weeks ago

Well that's just silly. Reasons I may have money left over:

*sick days
*unexpected personal days
*nice weather so I walk or bike some days
*bad weather and the Metro/city is shut down

Plus, with the auto-load, I now don't go to a machine and decide how much to take. They put it all on and, if there's anything left at the end of the month it disappears. This could be a HUGE scandal!

0 Vote up Vote down

@escameron · 631 weeks ago

Interesting. If I have anything left over at the end of the month (I contribute from my paycheck - no employer benefits for me), it rolls over to the next month. Granted, I haven't been in that situation since last summer -- so if the rules have changed since, maybe next time my $ won't roll over.

0 Vote up Vote down

dddddda · 631 weeks ago

I think the change was before last summer. I sounds like, from some other comments, that employee pre-tax contributions can be allowed to roll over month-to-month, I guess in that case they would revert back to the employer at the end of the year for taxation and refund. Bottom line is that it sounds like Metro is stealing AND violating IRS rules.

+5 Vote up Vote down

Jason · 632 weeks ago

I've managed to have money left over at the end of the month before and your SmartBenefits DO accumulate (at least in some cases) month over month.

+4 Vote up Vote down

Radner · 632 weeks ago

If the money comes out of your paycheck pre-tax, then it has to go back to the employer so that the appropriate income taxes can be applied. Seems pretty simple, except I'm sure that there is a breakdown of record keeping, accounting, etc on Metro's end and both the employer and employee are getting screwed. Unfortunately, it might be accurate to say that Metro is also screwing themselves because the money is probably disappearing into the ether and they can't figure it out.

+2 Vote up Vote down

Guest · 632 weeks ago

I guess that explains it

+2 Vote up Vote down

jkuchen · 632 weeks ago

It's an option selected by the employer, Radner. My SmartBenefits are taken out pre-tax, and I can rollover from month to month thanks to the option that my employer has chosen.

+2 Vote up Vote down

Nonny · 631 weeks ago

I just went through this same exact thing with my former employer. There are rollover and non-rollover accounts. For non-rollover accounts, at the end of every month, if there is a balance on your card that money is refunded to your employer. I asked to get back my $114 that was refunded to my old company at the end of the month that I quit and they told me that it was my responsibility to make sure the correct amount was taken out every month and they would not give me any of my money back. They did not contribute anything to my SmartBenefits, it was all my money, pre-tax. I went back through every month over the 2 years I worked there and noticed this happened after 5 or 6 months, all much smaller amounts. Seems to me that if a company chooses the non-rollover account and they do not contribute to the funds they are probably hoping to profit from employees not paying attention and getting their extra money at the end of the month. My old company would totally do something shady like that. Just my opinion...

+2 Vote up Vote down

BMK · 632 weeks ago

Where does the money go? The executive team

-4 Vote up Vote down

Tim · 632 weeks ago

This is not a question of either the employer or Metro being at fault. It is the IRS that regulates how unused transit benefits are handled.

+3 Vote up Vote down

Avg Unsuck Reader · 632 weeks ago

what a surprise... the people work at metro... STEAL... I wonder if that is a coincidence...you know.... THAT KIND of people....

1 reply · active 631 weeks ago

0 Vote up Vote down

AvgObservantRider · 631 weeks ago

Just to (I assume) clarify:

"that kind:"
_ sleeping station managers
_ unqualified techs
_ rude customer service reps
_ shady upper-management types
_ change nabbing gamblers

+11 Vote up Vote down

guest · 632 weeks ago

so i guess the solution going forward is when you change jobs, get a completely *new* card, register it, set it up with your new employer, and then use up your old card after all the remaining funds are put on it? (for instance where i work, we are six weeks ahead on payroll deduction because our office manager screwed it up back when this first started and kept missing deadlines.)

sorry you had to eat the $80 OP, but thank you for telling us about your experience. forewarned is forearmed...

1 reply · active 632 weeks ago

+2 Vote up Vote down

Guest · 632 weeks ago

--or transfer the money off the old farecard onto the new one. it takes a few days but it actually seems to work. (i just did it.)

+7 Vote up Vote down

rory · 632 weeks ago

The sad part is people at metro probably have no idea where the money is. No one is stealing it, it's just lost in the abyss

1 reply · active 631 weeks ago

+2 Vote up Vote down

Guest · 631 weeks ago

It probably goes to the union bosses.

+6 Vote up Vote down

jkuchen · 632 weeks ago

I ran into a similar situation this year when my employer changed vendors for administering SmartBenefits. My first riding day of 2013, it looked like my old rollover was gone. The second day, it reappeared, but my 2013 benefit wasn't appearing. It turned out that SmarTrip couldn't handle having funds from two administrators active at the same time. For the rest of January, I had access to the old funds with the claim that the 2013 funds were in another bucket. Come February, they kicked in the 2013 funds (or at least a month of it), and my 2012 funds are in limbo. At least I can see that they are there, and the 2013 funds are low enough that I can burn through them and get back to the 2012 funds. What a mess.

2 replies · active 631 weeks ago

+1 Vote up Vote down

sbc · 632 weeks ago

I had a similar problem. My new employer took money out of my pay check to put on Smarttrip, and their system showed it was on my card. But it wasn't--when I looked at my card balance and usage history online or swiped it through a faregate, there wasn't any money on it.

It took one call to a spectacularly unhelpful person at metro's smartbenefits office, three emails with HR at my new job, and one phone call to Angela in the smarttrip card office who was WONDERFUL. She didn't know what was wrong at first, but she took my email address and not only fixed the problem, but emailed me when it had been resolved! It was nice to use the "commendation" category on Metro's website to tell wmata how great she was. But I wish they could have just put my $75 on the card properly in the first place.

+1 Vote up Vote down

karah 81p · 631 weeks ago

My 2012 funds poofed at the end of December too. Usually we do rollovers and this had never happened before. I assumed it was because I changed how much I was putting on my card about then. The funds never came back so far and I just assumed that was normal and they went into your paycheck.

+9 Vote up Vote down

Dan · 632 weeks ago

You got to work, didn't you? You're welcome.

+11 Vote up Vote down

dezlboy 76p · 632 weeks ago

Remember the Metro employees who emptied FARECARD machinces and kept the money? Well, now they've automated the procedure! ;-})

0 Vote up Vote down

689 · 632 weeks ago

quit your bitching. Our members go to work everyday to give you a warm cozy feeling that you are riding on a safe, reliable ride.

+1 Vote up Vote down

@Hell_on_wheelz · 631 weeks ago

I'm thankful that my employer issues a transit debit Master Card card for our transit deductions (company matches up to $60/mo, you can kick in up to the IRS max). The debit card is good to purchase ANY mass transit fare to/from work (MARC, VRE, MTA, Metro Access's EZ Pay etc). It works like the medical flex debit cards. AND more importantly means I don't have to store my transit benefits with WMATA.

0 Vote up Vote down

@megster67 · 631 weeks ago

You guys - each employer can set their system to either allow "rollover benefits" - which stay on your card from month to month and if you have any left over at the end of the month, you use those first at the beginning of the next month before your current month SmartBenefits are accessed. OR, the employer can set their system to NOT allow rollover benefits. In that case, unused funds from your card get refunded to the employer as a credit on their next month's invoice. The employer does not get a check back, it's an invoice credit, but it does happen monthly.

0 Vote up Vote down

@megster67 · 631 weeks ago

The rest of my comment disappeared. Went on to say: The SmartBenefits system that plan administrators use is cumbersome and not at all intuitive. The admin needs to set up a separate "benefit category" in the amount an employee elects, then characterize that benefit category as "rollover" or "non-rollover." When they began rollover benefits last year, plan admins had to go into existing benefit categories and go through a complicated, nonsensical procedure to recharacterize each existing category.

Meanwhile, the SmartBenefits system does NOT allow ANY changes during the FULL LAST HALF OF A MONTH. So, if the OP left the company during the last half of the month, her previous employer had to wait till the first of the next month in order to terminate her from their plan. can't tell you how many times I've forgotten to do that in the weeks between when the employee leaves and the SmartBenefits system opens up.