Current Employer Continuing Education Tuition Support???

[Stillerfan]

I will be assisting a committee at my company to address policy for tuition support. The questions we'll be asking are:
How much to provide,
Should the company expect repayment if the employee leaves within two years, and
Incentives to get people started.

If you can respond based on your company's benefit structure, that would be great.

Thank you for your time.

 

[debodine]

Our company basics:

Must be pre-approved as related to your current position, max $600 per semester, max two classes per semester, max $6,000 total. Must repay any reimbursement received in the twelve months prior to termination/resignation. The reimbursement is pro-rated based on grade achieved: A = 100%, B = 75%, C = 50%, Pass in a Pass/Fail Grading System = 50%, below a C or Fail = 0%.

Considering the cost of college today, it is not much but on the other hand every little bit helps. Our company has a very large number of aircraft mechanics and that is the target group for reimbursement. You can see that they don't expect very many folks from that group to go to engineering school. Most of the users opt for basic management courses to help them become leads/supervisors/managers in the maintenance arena.

 

[MacGyverS2000]

I like the basics of debodine's setup, but it will vary with industry. For example, I typically see $4-6k/yr for training, no max on the number of years you can use it. This includes conferences, training material, degrees/schooling, etc. It is usually extendable based upon special circumstances, so don't make it a hard and fast rule if there is something useful out there for a candidate.

Dan - Owner

http://www.Hi-TecDesigns.com

 

[xnuke]

If you're in the U.S., up to $5250 a year in education benefits is tax-free. Anything more than that is often considered taxable income, and will show up as income in your W-2.

xnuke
"Live and act within the limit of your knowledge and keep expanding it to the limit of your life." Ayn Rand, Atlas Shrugged.
Please see FAQ731-376 for tips on how to make the best use of Eng-Tips.

 

[DistCoop]

My company expects you to initially pay for any classes on your own. Upon receiving a C or better, they will reimburse 1/3 of the cost per year for 3 years, up to a local university's cost (if you wish to go to another, more expensive university, they will only reimburse you as though you were taking a comparable course at the other university).

No repayment is expected if you leave... I guess they figure they'll still have gotten their money's worth if you leave early.

 

[kylesito]

Xnuke...do you have reference for that data? If that's accurate, I need to revisit our policy because I'm going to see some unexpected taxes coming through?!

PE, SE
Eastern United States

"If a builder builds a house for someone, and does not construct it properly, and the house which he built falls in and kills its owner, then that builder shall be put to death!"
~Code of Hammurabi

 

[xnuke]

The reference starts on page 9 of IRS Publication 15-B, Employer's Tax Guide to Fringe Benefits

xnuke
"Live and act within the limit of your knowledge and keep expanding it to the limit of your life." Ayn Rand, Atlas Shrugged.
Please see FAQ731-376 for tips on how to make the best use of Eng-Tips.

 

[Stillerfan]

Thank you for your responses. I will use this information going forward.

StillerFan

 

[morgwreck243]

Here's my 2 cents:

My current employer's policy:
Eligible for tuition reimbursement after being employed for 6 months. You don't have to pay it back if you stay employed with the company for 6 months following the end of the course. $600 per Graduate course & $400 per Undergrad course. You need prior approval from you Manager for the course. You receive full reimbursement for a grade of C or higher.

My previous employer's policy:
No reimbursements, but they would offer a 0% loan for the costs & take a portion out of each paycheck until it was paid off. The amount withheld per paycheck would've been negotiated (I'm assuming - I never took them up on it).

--morgwreck243