What is College Tuition Benefit - CTB?. CTB is a fantastic attention getter! Employers can not afford additional benefits Putting a child through college is many employees most pressing financial concern, Retirement can wait.
Would you postpone your retirement by two years if it meant your child attending a college of choice without taking on more debt? (2007-07-31)
How do you allocate your savings between retirement plans and college savings plans? (2006-04-10)
CONCERN OVER A WIDE ARRAY OF FINANCIAL ISSUES ROSE FROM 2006 TO 2007
NEARLY 60% OF EMPLOYERS BELIEVE BENEFITS ARE VERY IMPORTANT IN RETAINING EMPLOYEES
Study of Employee Benefits Trends
Findings from the National Survey of Employers and Employees
Employees receive an initial Tuition Reward just for being an eligible employee. The initial reward then increases each year the employee remains employed, by either a fixed amount, or by 5% of the employee’s retirement account balance, such as a 401k or 403b. CTB does not affect the retirement account in any way.
Employers benefit through recruitment and retention, and increased 401k participation.
To illustrate how the program helps pay for a child or grandchild’s college education; assume a 12 year old in a family where the employee has $50,000 in the 401k or 403b, assume an annual contribution of $2,000 into the Plan and a hypothetical 7% investment return.
(Monies in a 401k or 403b do not have a guaranteed return and can actually lose money)
In this example, if the child attends a participating SAGE school, the tuition will be reduced by 20,030 reward points with each point being equal to $1. Imagine the benefit when the College Tuition Benefit is offered to the employee with very young children.
To illustrate how the program helps pay for a child or grandchild’s college education; assume a 12 year old in a family where the employee works until the child reaches age 18.
In this example, if the child attends a participating SAGE school, the tuition will be reduced by 7,500 with each point being equal to $1. Imagine the benefit when an employee starts participating when the child is young.
275+ Colleges and Universities in 39 states
60% of participating colleges are ranked by U.S. News & World Report as “America’s Best Colleges”
These benefits are less expensive and have simpler underwriting than individual coverage available outside the workplace.