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What To Expect Under Personal Reemployment Accounts (PRAs): Predictions and Procedures

This presentation discusses the key elements, predicted impacts, likely customer responses, challenges, and available resources for implementing Personal Reemployment Accounts (PRAs) as part of unemployment insurance (UI) programs.

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What To Expect Under Personal Reemployment Accounts (PRAs): Predictions and Procedures

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  1. What To Expect Under Personal Reemployment Accounts (PRAs): Predictions and Procedures Presenter: Irma Perez-JohnsonUSDOL Workforce Innovations ConferencePhiladelphia, PA – July 11-13, 2005

  2. Key Elements of PRA Programs • Targeted at UI recipients likely to exhaust their benefits • Contain up to $3,000; amount set by states • As voucher, can be used to pay for range of intensive, training, and supportive services • Bonus eligibility based on reemployment within 13 weeks of UI receipt and 6-month retention • Bonus paid in 2 installments; amount based on unspent PRA funds

  3. Key Questions Addressed • What are the predicted impacts of the PRA reemployment bonus? • What are likely customer responses to the bonus and voucher components of PRAs? • What challenges may states and local areas encounter in implementing PRAs? • What resources exist to support, facilitate PRA implementation?

  4. Information Sources • Reemployment bonus demonstrations • Evaluation of the ITA Experiment • Research on Worker Profiling and Reemployment Services (WPRS) • Research on UI population

  5. Predicted PRA Bonus Impacts • Bonus receipt rates expected to vary by PRA amount • $3,000 PRA  31 - 33% bonus receipt rate • $1,000 PRA  20 - 29% bonus receipt rate • UI impacts also expected to vary by PRA amount • $3,000 PRA  – 1.66 weeks per PRA recipient • $1,000 PRA  – 1.09 weeks per PRA recipient • Predicted PRA impacts larger than in prior demonstrations • PRA bonuses more generous • First PRA bonus installment paid immediately • Impacts on aggregate UI payments could be greater at lower PRA amounts • $3,000  –1.66 weeks per PRA recipient • $1,000  –1.09 weeks per PRA recipient, but 3 times the number of PRA recipients (–3.27 weeks)

  6. Other Considerations in Setting PRA Amount • Tradeoff between PRA amount and number of offers • Tension between bonus and service voucher features of PRAs • Variation by local areas

  7. Likely Customer Responses • Expect PRA customers to attempt to qualify for bonus first • PRA customers unlikely to purchase substantial counseling assistance • Customers interested in training likely to purchase it • Extent of PRA use for support service purchases is unknown • Expect PRA expenditures close to award amount

  8. Key Challenges in PRA Implementation • PRA concept is new • Uneven experience and awareness of resources • Desire to keep procedures simple • Requires coordination across distinct workforce development functions

  9. Building Blocks Exist to Support, Facilitate PRA Implementation

  10. PRA Demonstration • Seven states (FL, ID, MN, MS, MT, TX, WV) • Two-year implementation period • Programs launched in spring 2005 • Expect about 2,200 total PRA recipients • PRA award set at $3,000 by all states

  11. Evaluation of PRA Demonstration • Examine implementation process • Identify successful strategies and likely replication challenges • Examine patterns in acceptance and use of PRA funds • Describe UI, employment, and retention outcomes for PRA recipients

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