A good job and long-term employability — that’s the need and desire of every American worker. Now, more than ever, our knowledge-based economy requires up-to-date skills, recognized credentials and postsecondary degrees that meet labor market demands. The high cost of education and re-training, however, results in limited career advancement opportunities for millions of frontline workers. Lifelong Learning Accounts (LiLAs) are a way to bridge this funding gap and to assist workers to achieve their career goals.
LiLAs are employer-matched, portable, employee-owned accounts used to finance education and training. LiLAs encourage the creation of a partnership between workers and employers to effectively leverage resources to increase productivity, improve recruitment and retention, and meet the changing needs of our economy. LiLAs are intended to supplement, not replace, existing employer-supported tuition assistance programs.
CAEL's goal is to make LiLAs available to those who need them. The goal is for all workers to have the option of contributing to a LiLA, receiving career and educational advising, and to having their individual LiLA contributions matched by participating employers (and, in some cases, third parties) up to an established cap.
LiLAs are good for business and for workers. The reality is LiLAs differ from traditional sources of education funding, in that workers invest in themselves through saving while also leveraging employer investment. The combined LiLA funds are then used for education, training and qualified expenses that enhance worker productivity.
For more information about LiLAs, please contact CAEL’s Amy Sherman (asherman@cael.org) or Randall Johnson (rjohnson@cael.org).