Lifelong Learning Accounts Description

         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         

         



        Council for Adult and Experiential Learning (CAEL)

        Lifelong Learning Accounts
        Core Components

        I. Purpose

          To demonstrate and refine a new method of increasing individual and employer investment in employee training and education.

        II. Scale and Duration
          Regions:
        • Two regions, including a current demonstration in the Chicago area, and a planned demonstration in the San Francisco Bay Area

        • Encompass a labor market area

          Employers:
        • Defined economic sectors or business clusters that have good career potential

        • Mix of sizes of companies

        • A combined total employment of at least 1500 eligible employees

          Participants:
        • 125 - 150 in each region

          Duration:
        • Funds are expended within in a three year period

        III. Eligibility

          Employers:
        • Approximately 50 percent of employment in each participating company and in the aggregate are in low-wage/low skill jobs

        • All employees are given the opportunity to participate (employers determine the definition of employee)

          Individuals:
          • Current employees of the participating companies

        IV. Use of Account Funds

          Broadly, the funds may be used to meet individual needs for training and education. Eligible uses may include, but not be limited to:

        • Books
        • Fees/tuition
        • Supplies and materials
        • Training and education provided by an established list of qualified vendors, organizations, and institutions and selected professional development programs and distance learning offerings
        • Career counseling and assessments provided by accredited institutions or credentialed professionals

        V. Ineligible Uses

        • On the Job Training
        • Exercise Courses
        • Transportation
        • Equipment
        • Day Care
        • Food
        • Travel
        VI. Match
        • Individuals are expected to contribute at least $120 a year to trigger employer and third party match
        • Employers are expected to contribute at least $1 for every dollar contributed by employees up to $500. (Employers may choose to exceed the $500 cap.)
        • Employees may contribute additional funds
        • Employers may contribute additional funds from other sources
        • The third party will provide $1 for every dollar contributed by participating employees and employers
        • Unused funds will be disbursed to the contributors in proportion to their contributions
        VII. Administration
          An administrative entity in each region to perform the following functions:

        • Provide system to answer questions throughout the demonstration
        • Receive and record deposits
        • Monitor accounts
        • Authorize payments to vendors (for tuition, books, etc.)
        • Transfer funds to financial manager
        • Submit financial reports to individual account holders, companies, and CAEL

        VIII. Financial Manager
          Hold and manage accounts

        IX. Manager

          Provide financial reports

        X. Employers

          Responsibilities
        • Match individual contributions on a monthly basis, as appropriate
        • Support outreach efforts to company employees
        • Authorize supervisors to attend training sessions
        • Provide information and data for use in research and evaluation
        • Provide information about the skills that are important to success and advancement in the company

          Benefits of Participation

        • Build skills, knowledge, and motivation of participating employees
        • Increase motivation of employees to pursue training and education
        • Leverage financial investment in employee education
        • Strengthen employer ability to attract and retain employees
        • Raise the awareness of the importance and value of learning and skills development
        • Learn how to develop career paths for productive employees

        XI. Employees
          Responsibilities
        • Attend orientation session
        • Provide match
        • Provide background information
        • Prepare Learning Plan
        • Participate in evaluation
        • Commit to further learning

          Benefits of Participation

        • Expand education/training opportunities
        • Triple their initial investment
        • Increase skills, employability and future earning potential
        • Obtain information about career paths and training/education requirements

        XII. Local Sponsor*
          Responsibilities
        • Help market to employers
        • Help organize meetings
        • Help obtain other sources of matching funds for the demonstration
        • Support and monitor implementation activities
        • Help link the LiLA effort to related initiatives and leverage complementary services

          Benefits of Participation

        • Be a leader in development of a new, simple means of building the skills and knowledge of the existing regional workforce
        • Pioneer a new public/private partnership
        • Raise awareness of the need and value of lifelong learning
        • Leverage funds for workforce development
        • Improve the skills of participating employees

        * Also needs to include support of public officials (WIB, agencies, elected officials) and private institutions (foundations, business associations, etc.)

        CAEL is a national non-profit organization focused on life-long learning in companies, educational institutions, and communities. It assists employers, colleges and universities, and adult learners. For more information, contact Amy Sherman at asherman@cael.org or 312.499.2635 or go to CAEL's web site at: www.cael.org.



        back to homepage




        Other CAEL Documents on Lifelong Learning:
      • Why Lifelong Learning Accounts?
      • Lifelong Learning Accounts Summary
      • Lifelong Learning Accounts Needs and Benefits
      • Lifelong Learning Accounts Policy Vision
      • Who Pays for Lifelong Learning>