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ETA News Release: [09/24/2004]
Contact Name: Lorette
Post
Phone Number: (202) 693-3984
U.S. Secretary of Labor Elaine L. Chao Launches $9
Million Test of Personal Reemployment Accounts in up to Nine States
MINNEAPOLIS—U.S.
Secretary of Labor Elaine L. Chao today announced a $9 million demonstration
project for states interested in Personal Reemployment Accounts (PRAs) that
will help unemployed workers find new jobs.
“Personal Reemployment Accounts will empower unemployed and
dislocated workers with more control over selecting their own training and
career paths,” said U.S. Labor Secretary Elaine L. Chao. “It’s
part of the President’s commitment to building an ownership society.
That’s simply another way of saying that we trust individual workers to
know what training courses to choose and to decide what job options they
prefer.”
Personal Reemployment Accounts are personally managed funds that
eligible unemployed workers use to purchase job training and supportive
services and products from either the marketplace or public One-Stop Career
Centers.
States that take part will be able to offer individual accounts of up to
$3,000 to unemployed workers most likely to exhaust their Unemployment
Insurance benefits before finding employment. Personal Reemployment Accounts
are additional benefits and will not affect UI benefits.
Under the demonstration announced today, states wanting to make use of
Personal Reemployment Accounts must send a letter of commitment to qualify for
the pilot program. Up to nine states will be selected to participate.
States participating also will offer a reemployment bonus feature.
Workers who find employment within 13 weeks of receiving a Personal
Reemployment Account will receive a bonus payment of 60 percent at the time of
employment and 40 percent after staying employed for six months.
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