Council for Adult and Experiential Learning (CAEL)
Lifelong Learning Accounts Summary
Background
Global competition and information technology make lifelong learning essential for success in the workplace. Yet, there is no systematic way to assist active workers to finance training and education. The problem is particularly difficult for low skill; low wage workers who have the greatest need for training and least ability to pay.
Definition
Lifelong Learning Accounts (LiLAs) are individual accounts to finance lifelong learning so that everyone can upgrade their workforce skills and abilities to enhance their career potential.
Components
Universal LiLA Eligibility: Open to a wide range of adult learners regardless of where they work or what job they hold.
Employer Based: Employers provide the opportunities to their employees to open accounts.
Contributions: Individuals provide initial capital. However, contributions and matches may come from a variety of sources, employers, relatives, government, etc.
Portability: Individuals are able to take these accounts with them from one employer to another.
Voluntary Participation: Individuals and employers have the option of participating. The design encourages and facilitates widespread participation.
Consumer choice: Individual participants choose learning opportunities, services and providers.
Information: Information about qualified service providers help individuals make choices that meet their needs.
Demonstration Project
A three-year demonstration project is designed to 1) refine the operating components, 2) identify individual and employer responsibilities, utilization and benefits, and 3) link individual learning to workforce development in a regional economic sector. The results will inform a larger demonstration and public policy changes. Key elements of the demonstration include:
Regions: At least two; each will encompass a defined labor market area. One demonstration was recently launched in Chicago.
Employers: Focus on small and mid-sized companies in each region with a combined total employment of at least 1000, with the support of local business and trade associations. The Illinois Restaurant Association is our partner in the Chicago demonstration.
Participants: 75-125 current company employees in each region.
Use of Funds: Broadly, to meet individual needs for learning, including: tuition and fees assessments, counseling, information, supplies, materials, and books.
Match: Employers will agree to match individual contributions on a $1 to $1 basis up to a cap; individuals will contribute a minimum amount; and a third party will match the combined amount up to an established cap.
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 the CAEL web site: www.cael.org.
The Ford Foundation is providing initial funding for the Demonstration.
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