Remember three things, if I recall correctly, you have to offer *all* the commuter options if you offer one. So that includes mass transit stuff and car/van pooling as well as cycling commuting. It can also cover parking fees (that might make it really appealing to your union if the parking garage charges).
Second, you have to do 51% (or was it 61%?) of your commuting miles on the bike. It might not be an issue for you but for me, with a passel of kids, Real Life tends to interrupt my bike mileage. You also can't claim for biking and parking.
Third, there's two ways to do this, they can pay you the money as a benefit, or they can set up an account where you pay in pre-tax dollars and then can use that to buy bike stuff. The second way doesn't mean much for taxes (unless you're $235 into the next tax bracket). It would be useful as a kind of safety, I-can-buy-emergency-bike-stuff-when-I-need-it voucher, or it might just be a reimbursement thing. Google Section 132 benefits or Section 132 transportation for more info.