One of the unique benefits available through FIRST BENEFITS is the College Tuition Benefit (CTB). Through CTB, an employer can affordably provide each employee with a college scholarship. Each year the scholarship grows by an amount equal to 5% of the employee’s 401k balance. In this way an employer establishes themselves as an employer of choice, addresses many employees’ most immediate financial concern, increases 401k participation and reduces 401k plan borrowing. All scholarships and matching awards come from participating colleges.

Highlights of the College Tuition Benefit (www.CollegeTuitionBenefit.com)

• Each employee is registered to receive 500 SAGE Scholarship Tuition Reward Points. Married employees are eligible for 1,000.
• Employees in the 401k balance receive an annual 5% SAGE scholarship match of their 401k account balance.
• The security of worksite benefits is made available to employees while they are enrolled in the SAGE Scholarship Program.

Imagine telling a prospective or valued employee, “At our company we provide your children or grandchildren with a college scholarship and as you save for your retirement we are adding to your children’s or grandchildren’s college savings.”

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 Company 401k, assume an annual contribution of $2,000 into the 401k plan and a hypothetical 7% investment return.

(Note: Monies in a 401k plan do not have a guaranteed rate of return and may actually lose value).

In this example, if the child attends a participating SAGE school, the tuition will be reduced by
20,030 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.

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