What are the requirements for a Section 127 Plan? | Kent State University

What are the requirements for a Section 127 Plan?

Section 127 requires that an employer prepare a separate written plan for the exclusive benefit of its employees to provide such employees with educational assistance. In addition, eligible employees must be provided reasonable notification of the availability and terms of the plan and the plan must not discriminate in favor of highly compensated employees. Section 127 does not require the educational assistance program to be funded.