Drafting an Education Benefit Plan

[Guest schnicker]

I have been blessed with the responsibility of drafting an education benefit plan. I would like it to include seminars and cont'd undergraduate ed. if job related. I am looking for info on what other small businesses are offering.

Any assistance would be appreciated.

Thanks.

[Sheila K]

schnicker:

We pay college tuition for job-related classes, up to the rate of the state university (made this the cut-off for private schools, like University of Phoenix, etc.). We will pay expenses & tuition for other seminars or training sessions.

Our current policy is that the employee must continue with the company for 6 months AFTER the end of the class, or repay the tuition/registration, etc. Also, for college classes, employee must have at least a "C" average to maintain the reimbursement. Reimbursement for college classes is immediate, but would be repaid if the grade or employement status warranted it.

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Good Luck!!!

Sheila K 8^)

602 683-1013

[Guest David A. Harmon]

What's nice, is that you have an opportunity to draft any kind of a plan you want, subject to any budget limitations. I have worked for 2 employers that offered educational benefits. The first would pay 90% of tuition, fees and books for undergrad and graduate work (NOT PhD work though). It required approval in advance by supervisor and and upper management. The second employer had three different plans: The first was tuition reimbursement and they would pay 60% of tuition, fees and books NOT to exceed $1500 in a calendar year. The second plan was for professional development - those people who needed to continue certifications by taking CEU's were provided with $300 per year. and the third plan was just for those people who wanted to take a seminar or non job related or certification related course (like a Fred Pryor seminar or something similar) and for this, an extra $200 was allotted per person per year.

I must caution you that the Legislature and IRS play around with educational benefits relative to them being taxable or non- taxable (includable on the year end W-2). But I have found educational benefits to be a great motivator and morale booster.

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David A. Harmon