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#2183248 - 06/26/18 09:36 PM Graduate Banking School require repayment if quit?
cpa4u Offline
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We currently have a tuition reimbursement plan in place. Our plan is probably like most any other out there in that it reimburses employees taking classes at accredited colleges or universities. Our plan does have a clause that requires a payback to the bank if the employee leaves employment within a certain time after being reimbursed. Our question is whether other banks include "tuition" paid for employees to attend Graduate Banking School programs (Wisconsin, LSU, Colorado, etc). We never really thought about it until an employee who completed a 3 year GSB program quit 2 weeks later. Does anyone have employees sign an agreement stating that they would reimburse their bank for GSB tuition if they quit within a certain timeframe of completing the program?

Thanks

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#2183250 - 06/26/18 09:45 PM Re: Graduate Banking School require repayment if quit? cpa4u
rlcarey Online
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rlcarey
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Galveston, TX
If you can under State law, I sure would be doing it. That is a lot of time and money to invest in an employee just for them to jump ship.
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#2183260 - 06/27/18 12:05 PM Re: Graduate Banking School require repayment if quit? cpa4u
osucpa Offline
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Yes they sign an agreement.

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#2183290 - 06/27/18 02:28 PM Re: Graduate Banking School require repayment if quit? cpa4u
Dog Lady Offline
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Posts: 74
We also sign agreements for large education expenses. If you quit during or within two years of completion, you reimburse all or part, depending on how long it's been.

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#2183644 - 06/29/18 01:30 PM Re: Graduate Banking School require repayment if quit? cpa4u
burkemi Offline
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Posts: 522
We also have a 2 year agreement. If you quit within 2 years of the Bank's reimbursement you agree to repay the Bank.
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#2183846 - 07/02/18 06:31 PM Re: Graduate Banking School require repayment if quit? cpa4u
Harambe Offline
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Joined: Jul 2016
Posts: 32
Our institution requires an employee to stay one year from the date the funds were disbursed to the employee.

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#2183889 - 07/02/18 09:16 PM Re: Graduate Banking School require repayment if quit? cpa4u
HappyGilmore Offline
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Pulling people out of the ditc...
ours for a 3-year banking school is:

1st year - 100% repayment if leaving within 12 months of completion of 1st year, 50% repayment leaving months 13-24
2nd year - 100% repayment if leaving within 12 months + 50% repayment of 1st year dues, 50% repayment if leaving months 13-24
3rd year - 100% repayment if leaving within 12 months + 50% repayment of 2nd year, 50% repayment if leaving months 13-24
Repayment is also required if you leave the bank voluntarily withing 24 months of completion, or if you are involuntarily discharged at any time during the 3-year enrollment.
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#2184048 - 07/03/18 08:26 PM Re: Graduate Banking School require repayment if quit? cpa4u
cpa4u Offline
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Joined: Jun 2010
Posts: 2
Thanks for all the feedback. It sounds like others are definitely requiring a payback of GSB type programs if the employee terminates employment. We just weren't sure about this type of education expense since we select the candidates that attend GSB and it is not actual "tuition" expense to a college for degree courses.

Are most of you having the employee pay the GSB tuition first and then reimbursing them for it after they complete the school year?

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#2184080 - 07/04/18 01:35 AM Re: Graduate Banking School require repayment if quit? cpa4u
Rocky P Offline
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Florida
When I went to Wisconsin, the bank paid the school expenses directly. I was reimbursed for travel and miscellaneous expenses.
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#2184104 - 07/05/18 01:16 PM Re: Graduate Banking School require repayment if quit? cpa4u
HappyGilmore Offline
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Pulling people out of the ditc...
bank pays, those attending have bank issued credit cards for miscellaneous expenses, including travel. nothing out of pocket for employees attending
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#2228217 - 01/03/20 04:33 PM Re: Graduate Banking School require repayment if quit? cpa4u
SmallBank3 Offline
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Joined: Nov 2019
Posts: 57
I know this thread has a bit of age to it so I wanted to ask if two years is still the norm? I just came to a new institution and will be completing a certification in a few months which will cost just under $3,000 (no travel required thankfully). I was shocked when I read the policy that requires me to pay it back if I leave employment within two years. My previous bank required just six months. My immediate reaction was that this felt like indentured servitude and an endless cycle trapping someone that requires extensive continuing education be met every two years after the initial certification. When I decide to terminate my employment, I could be working my last one or two pay periods for free. How do others handle this?

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#2228218 - 01/03/20 04:37 PM Re: Graduate Banking School require repayment if quit? cpa4u
Skittles Online
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Skittles
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TN
Hi SmallBank3!

FWIW - my previous employer required restitution if the employee left within 3 years. It's a bank decision and I don't know if there is any industry standard.
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#2228225 - 01/03/20 05:46 PM Re: Graduate Banking School require repayment if quit? cpa4u
Reg Warrior Offline
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We have two standards. If you are below the manager level, you can get tuition reimbursement with no requirement to stay. If you are in a manager position and working on a masters or PHD, you have a 3 year requirement to stay or pay back the tuition grant ($10,000) at a pro-rate amount.

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#2228248 - 01/03/20 09:19 PM Re: Graduate Banking School require repayment if quit? SmallBank3
HappyGilmore Offline
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Pulling people out of the ditc...
Originally Posted by SmallBank3
I know this thread has a bit of age to it so I wanted to ask if two years is still the norm? I just came to a new institution and will be completing a certification in a few months which will cost just under $3,000 (no travel required thankfully). I was shocked when I read the policy that requires me to pay it back if I leave employment within two years. My previous bank required just six months. My immediate reaction was that this felt like indentured servitude and an endless cycle trapping someone that requires extensive continuing education be met every two years after the initial certification. When I decide to terminate my employment, I could be working my last one or two pay periods for free. How do others handle this?


is there a requirement for you to attain the certification to stay in the job? does the 3 year period solely apply to the initial certification? or does it get extended for the continuing education as well?

of course, if you choose to leave you can always tell the place you are going that you have a $ buyout for certification.
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#2232349 - 03/04/20 09:03 PM Re: Graduate Banking School require repayment if quit? cpa4u
InFairness, CRCM Online
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InFairness, CRCM
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USA
My old shop had a payback requirement for 1 year post-completion. My current does not unless the expense exceeds $5000/year, in which case the 1 year requirement applies. Neither requires payback on ongoing certification expenses (but might the associated continuing education component).
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