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April
27, 2000
Arlington Heights, Illinois
For Immediate Release
The Administrative Management Group ("AMG"), a third
party administrator for retirement plans and other employee benefit
programs, announced today a new type of employee benefit that recently
became available because of changes in Internal Revenue Tax codes.
These tax law changes allow employees to make pre-tax payroll deductions
that can be applied to the cost of their commuting. These payroll
deductions can then be applied to eligible commuting expenses, lowering
the effective costs for commuting.
AMG calls this new program TRIP, an acronym for Transit Reimbursement
Incentive Program. "TRIP is an exciting new employee benefit that
let's employers reduce their employees' costs of getting to work
by 15% to 40%," said John Salajka, president of AMG. "From the employees'
perspective, TRIP works much like traditional FLEX spending accounts,
employees make pre-tax deductions and are then reimbursed for the
commuting expenses they incur," he added.
Eligible commuting expenses include fare cards and passes on public
transportation or parking expenses at or near the employer's place
of business. Employees who commute to work on public transportation
receive Transit Vouchers that are redeemable for fare cards or monthly
passes. Employees who deduct for parking submit parking receipts
for which they are then reimbursed. The maximum Transit Voucher
is $65 per month. The maximum deduction for parking is $175 per
month. Gas, mileage and tolls are not reimbursable expenses.
AMG currently administers TRIP for clients in Chicago, New York
City, Detroit and Washington, D.C.
For more information on this program, visit the TRIP web site at
www.amgtransit.com.
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