The American Recovery and Reinvestment Act (ARRA) signed into law by President Obama on February 17, 2009 provides a temporary pre-tax increase in the transit pass and commuter vehicle expense limit, as well as changes to COBRA.

Mass Transit and Commuter Expense increases for employees from $120.00 to $230.00 per month.

Parking Expenses remain at $230.00 Agencies cannot approve any amounts above the $230 per month limit. The rate increase is effective for the remainder of 2009 and will end December 31, 2010. This provision will not extend pass the end date.

COBRA provides a 65 percent reduction in the premiums payable for involuntarily terminated employees and their families; 35% of premium is paid by the individual, and the total premium amount is inclusive of the 2% admin fee.

COBRA reductions apply to Health, HRAS, Dental-only, and Vision-only plans.

Premium reduction will extend for up to 9 months.

Applies to any involuntarily terminated employees during the period from September 1, 2008 through December 31, 2009.

An involuntary termination is a termination that is at the direction of the employer.

Effective immediately, agencies are required to document the termination type to accurately identify terminated employees. Currently, the majority of agencies notify the Flex Program of voluntary and involuntary terminations as “TERRES – Termination due to resignation.” In a recent email a list of termination codes were distributed to all benefits coordinator. You may request another copy of these codes by sending an email to flexiblebenefits@spa.ga.gov.