Larson Introduces Lifelong Learning Accounts Act Congressman Larson announced that he will introduce legislation to help workers save money for education and job training through the creation of worker-owned, employer-matched educational accounts
PoliticalNews.me - Jul 14,2010 - (From PoliticalNews.me)
HARTFORD, CT—At Capital Community College, U.S. Congressman John B. Larson (CT-01), Chairman of the House Democratic Caucus, announced that he will introduce legislation to help workers save money for education and job training through the creation of worker-owned, employer-matched educational accounts. The Lifelong Learning Accounts Act will give our country’s workers the chance to pursue training and educational opportunities and support their personal growth and the economic competitiveness of the United States.
Congressman Larson was joined at today’s announcement by Chancellor Marc Herzog of Connecticut Community Colleges System, Amy Sherman of the Council for Adult and Experiential Learning (CAEL), Maura Banta from IBM, and Alice Pritchard from the Campaign for a Working Connecticut
“Now more than ever, continuing training and education are invaluable for workers to remain competitive in the job market. The Lifelong Learning Accounts Act recognizes this fact and provides workers with the ability and flexibility to further their education while they work, throughout their careers. By providing an opportunity for workers to participate in these types of employer-matched savings accounts, this bill will provide a significant tool to make it easier for millions of Americans to continue their education,” said Congressman Larson.
Lifelong Learning Accounts (LiLAs) can be used to save for a wide range of educational opportunities, including part time education, job training, and apprenticeships. The bill provides several financial incentives to workers and employers to participate. Like a 401(k), employers can choose to match workers’ contributions, and contributions to the accounts will grow tax-free. A total of $2,500 can be contributed to the account during a year, and workers can receive up to a $750 tax credit for making these contributions.
In addition, employers have the option of contributing as well and will receive a 25% tax credit on their contributions. The accounts will also be portable and worker-owned, meaning that they will stay with the individual even if they lose their job, switch jobs, or stop working.
The Council for Adult and Experiential Learning (CAEL) has been a pioneer in finding ways to give working adults the opportunity to advance. They conducted a successful multi-site LiLA demonstration program and have worked with several states that have adopted pilot programs.
“Lifelong Learning Accounts are a win for both employers and employees. In pilot programs across the country, workers are using their LiLAs to pay for everything from industry certificates to graduate level degrees,” stated Amy Sherman, Associate Vice President of CAEL. “We have seen workers who have been promoted, earned more, and moved into hard-to-fill positions in high demand fields, such as healthcare, advanced manufacturing and IT. LiLAs help give workers the means to get the education and training they need to achieve their career goals. Under the leadership of Representative Larson and his colleagues, we are excited to see LiLAs move to the next level.”
IBM, a world leader in innovation and technology, is an innovator in employer-matched savings accounts through its Personal Learning Accounts Program.
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