Employer-Sponsored 529 Plans Are a Great Employee Benefit

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As the labor market becomes more competitive, employers who offer a variety of helpful benefits to their employees are the ones that stand out from the crowd. Benefits that help their employees accomplish personal goals or help their families are an extra boost.

More and more, employees are trying to establish a balance between their work and home lives. Sponsoring 529 college savings plans for employees is a great way to communicate that you care about more than just what they do during the hours they spend in the office.  Your employees will be more invested in the company if they know that they are more than just a number to you. This study by MetLife shows that employees feel more satisfied in their work and more loyal to their employer when the benefits they receive show a commitment on the part of their employer to education.

To remain competitive, many employers are looking for benefits to offer their employees beyond the job.  Providing a way for employees to start saving for college for their children, or even themselves, with North Carolina’s National College Savings Program (the NC 529® Plan) is a creative and low-cost benefit which can set your company apart from its competitors and make employees feel recognized.

The NC 529 Plan can make it easy for your company to add such a benefit — and at no cost. (If you’re an employee reading this blog, and the company with which you work doesn’t offer help with college savings, feel free to share the information below with your employer.)

How it Works: 

An employer can decide whether to offer employees the chance to contribute to the NC 529 Plan through payroll deduction or to suggest employees use automatic draft. You can also announce enrollment periods on whatever schedule suits you and ask NC 529 specialists to present information sessions at no charge. There are no setup fees or administrative charges to offer the NC 529 Plan to your employees.

Additional ways the NC 529 Plan assists employers

  • Online enrollment forms (or paper copies if needed).
  • A toll-free call center to answer questions for you and your employees.
  • Consultations with your payroll administrator, to seamlessly handle automatic payroll deductions.
  • Overview presentations and informational materials about NC 529 at your workplace.

 
The NC 529 Plan is open to all your employees, even if they are residents of another state. And their savings can be used at virtually any college, anywhere.

 
How the NC 529 Plan benefits employees:

  • No enrollment fees or sales charges.
  • Low minimum contribution of just $25.
  • Multiple ways to contribute.
  • A choice of various investment options — individual and age-based portfolios.
  • Quarterly statements and easy online account maintenance.
  • Earnings free from N.C. and federal taxes when used for qualified higher education expenses at any eligible college or university, in-state or out-of-state.

 

To learn more about adding the NC 529 Plan to your company’s benefits, please call us toll free at 800.600.3453; 8 a.m. – 5 p.m., Monday – Friday. One of our representatives will be glad to talk with you or set up a visit.