Survey & Sample Series: Education Assistance Plans

Education assistance has remained a popular benefit, even during uncertain economic times, but may now be more important than ever as the workforce faces looming talent shortages. As the population ages and baby boomers retire, a skills gap is created. Education assistance is critical in developing a skilled workforce.

The International Foundation of Employee Benefit Plans’ survey, Education Assistance Plans, part of our Survey & Sample Series, found 94% of 226 respondents offer some type of formal or informal education assistance plan. Specifically, 88% have a formal plan or policy and 6% have an informal policy. The book includes 62 valuable sample education assistance plans and forms. Main survey findings, by category, include:

• Prevalence and Availability of Benefits by Type of Employee: All but two of the respondents offering education assistance benefits make them available to full-time salaried employees, for a prevalence of 99%. Eighty-six percent offer benefits to full-time hourly employees.
• Covered Course Work: A substantial majority of respondents offering education assistance cover undergraduate-level and graduate-level course work (93% each). More than half (56%) cover vocational and technical course work but only 22% offer coverage for below college-level course work (e.g., high school equivalency classes).
• Covered Expenses: All of the respondents who offer assistance pay tuition expenses. Almost two-thirds (64%) pay for books and 63% pay fees (e.g., administrative, lab, registration, etc.).
• Reimbursement Timing: Overall, the majority (86%) reimburse covered expenses after the end of the term or course of study upon evidence that the employee has met specific requirements.
• Reimbursement Limitations: Organizations limit coverage or the amount of coverage based on various criteria: —Seventy-three percent of respondents reimburse expenses based on completion of the course. Sixtynine percent base reimbursement on the grade received.
• Payback Provisions: Most organizations, 57% of those offering assistance, do not require that employees pay back all or part of any monies reimbursed for education if they leave employment. Forty-three percent require some payback.
• Participation Rates: Generally, employee participation in education assistance is low. Almost three-quarters of respondents (74%) indicated that less than 15% of their employees participate in the plan.

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