WIA Fact of the Day, Employment & Training Administration (ETA)

February 11, 2005

Question:

Is there a difference between Personal Reemployment Accounts and Innovation Training Accounts?

Answer:

While Personal Reemployment Accounts (PRA) and Innovation Training Accounts are each designed to promote individual choice, there are fundamental differences between the two types of accounts.

PRAs are personally managed funds that certain unemployment insurance recipients use to purchase intensive career, job training and supportive services from public One-Stop Career Centers, the marketplace, or a combination of the two. Seven states are currently piloting PRAs. At least 2,200 workers are expected to take part in the pilot. All seven states will offer PRAs of $3,000 and will provide bonus payouts when a person becomes employed quickly and retains employment for six months.

Innovation Training Accounts, as proposed by the President in his Job Training Reform proposal, build upon the success of Individual Training Accounts. Innovation Training Accounts allow individuals to access a broad range of public and private training resources through a single, self-managed account. They would also authorize longer-term training opportunities by acknowledging that many skills needed for today's jobs require more than just short-term attention and exposure.

Unlike PRAs, Innovation Training Accounts would not be limited to certain unemployed workers and would not offer bonus payouts. In addition, Innovation Training Accounts would be used through the eligible training provider system established under the Workforce Investment Act.