University of Delaware
Office of Public Relations
UpDate - Vol. 16, No. 25, March 27



     Educational benefits legislation pending
     
     Pending federal legislation, the Employer-Provided
Educational Assistance Act (H.R. 127), has generated
interest among University employees, Nancy Wallace,
benefits, said.
     The legislation pertains to Section 127 of the Internal
Revenue Code, which allows both public and private employers
to offer employees tax-exempt, educational assistance up to
an annual threshold of $5,250.
     This provision of the tax code has expired eight times
since it began in 1978, Wallace said. In fact, the benefit
for graduate-level educational assistance expired June 30,
1996, which necessitated the taxation of employee graduate
fee waiver benefits, she said.
     The pending legislation proposes a permanent extension
of Section 127 to all levels of educational assistance, both
graduate and undergraduate.
     "Fortunately, the University's Tuition Remission
Program and Course Fee Waiver benefits for undergraduate
study are tax-exempt through Section 117 of the tax code,"
Wallace said. "Nevertheless, it is still important for
employees to support H.R. 127, which could restore favorable
tax treatment to employee, graduate-level educational
benefits."
     UD AAUP President Gerald Turkel has encouraged faculty
members to write to their legislators in support of the
Employer-Provided Educational Assistance Act.
     "I am pleased that employees are taking an active
interest in this legislation," Wallace said, "and I think
it's important that employees encourage their senators and
representatives to support legislation protecting employee
educational benefits from taxation."
     Questions concerning the University's employee
educational assistance benefits may be directed to Benefits
Services, at 831-2913, or through e-mail at
BenefitsServices@mvs.udel.edu