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Health & Welfare: Commuter Benefits

Participating in the Commuter Benefits (CB) program can save you money! The CB program provides eligible employees an opportunity to use pre-tax dollars to pay for certain transportation expenses on a monthly basis. You do not pay federal income taxes, state income taxes (in most states) or Social Security taxes on qualifying expenses. The program also offers the convenience of online ordering and home delivery of transit/parking passes or vouchers.

General Information

The Commuter Benefits program offers a Transit or Parking benefit, or both. If you incur transit and parking expenses, you can take advantage of both. The Internal Revenue Service (IRS) sets the federal monthly contribution limits, which are subject to change annually.

Note: Some states may have lower monthly pre-tax limits. In these cases, employees may still elect up to the federal limit, but the pre-tax savings for state taxes will be subject to the state's monthly limit.

Transit covers public transportation, commuter highway vehicles or official vanpool (excludes current after-tax State Farm vanpool expenses) fees you incur while traveling to and from work. This also includes buses, trains, and subways.

Parking covers monthly parking fees for driving your vehicle to and from work. Parking at a commuting location, such as a public transit, vanpool or carpool parking lot is also a qualified expense.

Other Considerations

The pre-tax Commuter Benefits program is considered a flexible spending account, but it's not a "use it or lose it" benefit (except if an employee terminates and they have not used the funds allocated for Cash Reimbursement or for a debit card). It is intended to be payroll-deducted and used on a monthly basis. Excess balances will be carried over to the next month. However, for any given month, you can only spend up to the monthly IRS limits.

Note: Internal Revenue Code does not permit any funds allocated toward these benefits to be refunded to you. The payroll deductions taken for this program must be used toward qualified transit/parking passes or expenses.

Enrollment Details

For new employees, your participation effective date will be the first of the month following your hire date. You can elect to participate in Commuter Benefits any time after that date; however, you must order transit and parking passes/vouchers by the 10th of each month in order to receive your order by the first of the next month. (For example, your start date is August 19, your effective date to participate is September 1, and you must place your order by September 10 to receive your order by October 1.) Please be sure to consult the HR Policy Manual once you begin your employment with State Farm.

State Farm encourages you to review your benefit options carefully and make informed decisions.


This brief overview of the State Farm Commuter Benefits Plan is not intended to be a complete explanation of plan features. For more detailed information, please refer to the online Human Resources Policy Manual for U.S. employees.