What Are Personal Reemployment Accounts?

In order to test an innovative job-finding approach immediately, the Department of Labor has launched a Personal Reemployment Account (PRA) demonstration. PRAs are personally managed funds that eligible unemployed workers use to purchase job training and supportive services and products from public One-Stop Career Centers and/or the marketplace at large.

PRAs will not replace Unemployment Insurance (UI) benefits but will serve as additional resources provided to eligible UI recipients.

Qualifying unemployed workers in states that volunteer for this program are eligible. Specifically, Personal Reemployment Accounts will go to dislocated workers who have been identified by their states as most likely to exhaust UI benefits before finding work.

How Will These Demonstration Projects Work?

A maximum of nine volunteering states will be chosen for this demonstration. Each selected state will determine dollar levels for its accounts, up to a maximum of $3,000 per account. Account amounts must be uniform within each state, but they may vary from state to state.

Individuals will be provided with the most up-to-date national and local labor market/career information on high growth jobs and allowed to use their private account to select the training provider of their choice in order to qualify.

Workers will also be able to use their account to buy services and products such as childcare, clothes, tools, uniforms, transportation, and auto repairs - items and services needed to help find and retain a good job.

Individuals who find employment within 13 weeks will receive a reemployment bonus. The bonus will be paid in two installments - 60% at employment and 40% after working six months.

States operating a PRA demonstration project will be responsible for providing up-to- date, accurate, and actionable workforce information to account holders.

President Bush has proposed $50 million in his 2005 Budget for a Personal Reemployment Account (PRA) initiative to help workers who have lost their jobs.