The Educational Assistance Plan of [Company Name] An Employee Communication Presentation. Introduction. We now accept the fact that learning is a lifelong process of keeping abreast of change. Peter F. Drucker
We now accept the fact that learning is a lifelong process of keeping abreast of change. Peter F. Drucker
Recognizing the accuracy of this statement by Peter Drucker, acclaimed management consultant and writer, the majority of employers include educational assistance in their employee benefit programs. This assistance is generally provided under Section 127 of the Internal Revenue Code which allows an exclusion of $5,250 per calendar year from an employee’s income for amounts received under an educational assistance program.
This sample presentation is intended for presentation to all employees. It is designed to be presented by an individual who has knowledge of the employer’s tuition/educational assistance plan. This is a sample presentation that must be customized to include and match the employer’s own benefit package.
During this meeting, we will review:
An Educational Assistance Plan is an employee benefit program under which an employer pays for or reimburses an employee’s educational expenses.
An Educational Assistance program that complies with Section 127 of the Internal Revenue Code provides a significant benefit to employees as it permits the exclusion of up to $5,250 per calendar year from an employee’s income for amounts received for educational assistance.
To qualify under Section 127, a program must:
The Educational Assistance Plan of [Company Name] is a qualified plan as it meets all of these conditions.
Note to Presenter: The slides for this agenda item are based on a sample Educational Assistance Plan. You will want to customize these for your own Plan. You will also want to distribute a copy of your policy and procedures to attendees at the beginning of this session.
Q - Does our plan cover online courses?
A – Yes, as long as the online courses are business-related undergraduate or graduate courses given by an accredited college or university.
Q - Do the courses have to be related to my current job?
A – No, not as long as it is business-related. For example, the plan would cover an accounting course taken by an employee in the sales department but would not cover a course in art history taken by the employee.
Q - Does this plan cover courses to obtain a MBA?
A – Yes. Approval is on a course-by-course basis and each course must be business-related.
Q – Do the repayment requirements apply only if I resign and not if I am involuntarily terminated?
A – The repayment requirements apply for a resignation (voluntary termination) and for involuntarily terminations, such as those for poor performance. If our company is forced to have a reduction in force or layoff, we would make a decision at that time on whether to enforce this requirement for any employee who loses his/her job.
Please be sure to complete and leave the evaluation sheet you received with your handouts
Thank you for your attention and interest !