Simple Answer:

No.

Per Treas. Reg. Sec. 1.132-9, Q/A-14(d), any remaining account balances cannot be refunded to the terminated employee. According to Treas. Reg. Sec. 1.132-9, Q/A-5, an employer may provide qualified transportation fringes only to individuals who are currently employees of the employer at the time the qualified transportation fringe is provided.

Detailed Answer:

No, an employee who ceases to participate in the employer’s qualified transportation fringe benefit plan (such as in the case of termination of employment) is not entitled to receive a refund of the amount by which the employee’s compensation reductions exceed the actual qualified transportation fringes provided to the employee by the employer.  Treas. Reg. Sec. 1.132-9, Q/A-14(d) states:

Compensation reduction amounts not refundable. Unless an election is revoked in a manner consistent with paragraph (c) of this Q/A-14, an employee may not subsequently receive the compensation (in cash or any form other than by payment of a qualified transportation fringe under the employer’s plan). Thus, an employer’s qualified transportation fringe benefit plan may not provide that an employee who ceases to participate in the employer’s qualified transportation fringe benefit plan (such as in the case of termination of employment) is entitled to receive a refund of the amount by which the employee’s compensation reductions exceed the actual qualified transportation fringes provided to the employee by the employer.