Lifelong Learning Accounts
Lifelong learning accounts are an employee owned educational savings account which helps to pay for the education and training expenses with no much employee strain. They are the only educational tax benefits for which employers can provide to match to employee contributions (CAEL 2008). Lifelong Leaning Accounts (LILAs) have been introduced in handful of states nationwide and so many institutions like IBM and Peugeot private employers plan to expand them and offer federal tax credits and tax breaks. (AllBusiness 2008)
CAEL, a Chicago based organization promoting workforce development introduced a pilot program to provide a little financial assistance for working adults to stay competitive in the workforce. Sherman, the vice president for policy and strategy alliances in CAEL says that about half of those who participated in contribution never intended to enroll classes. He further added that they idea could be potentially serve as an incentive. (AllBusiness 2008)
LILAs unlike other programs benefit individuals from 18-70 years of age. An individual can use LILA funds in his/her account at any time, and it is always known that these funds are used in education or course instructions. When the individual leaves the company, a space is left for someone else whom it is believed that this job might be well or perfect. They do not however offer for any existing tax favored educational savings programs or the student financial assistance programs like the state educational grants.
It is seen that LILAs have helped most companies by bringing employees together and this helps to retain them to further working in the company. The educational courses undergone by the employees help them to improve the workforce of the company.
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