Frequently Asked Questions about Voluntary Workforce Training Programs

1. What are Voluntary Workforce Training Programs?

Voluntary Workforce Training Programs (VWTP) combine secondary education, work-based learning, and a postsecondary component. The program may include an optional trust fund agreement between the student participant and employer to help pay for the students' postsecondary education.

2. Who can participate?

Students who are at least 16 years of age and enrolled in a public or private secondary or postsecondary school, or an equivalent program, and who began to voluntarily participate in a certified voluntary workforce training program as part of secondary school education.

No.

There is nothing in the law that would prevent a school district or employer from setting up a trust fund for a student who is not participating in a VWTP. Only students who are participating in a VWTP are eligible to participate in a trust fund set up for that purpose.

Yes, they can be in the same class. However, if an employer is the sponsor, it is possible that the student may not be enrolled in a class that is directly linked to the VWTP.

The Texas Workforce Commission and local workforce development boards are providing information and technical assistance to employers and other entities that wish to implement the program.

A student who benefits from the trust fund would report half of the trust fund amount (the amount the student actually contributed from wages) as savings on the Free Application for Federal Student Aid (FAFSA). Current federal aid needs analysis would assume that 35% of the reported savings would be available to the student as part of the student contribution. The student would also notify the financial aid office of the post-secondary school of the expected disbursement of the other half of the trust (from the employer). This amount would be considered a resource to the student and would likely be treated by the aid office in the same fashion it would handle an "external" or private scholarship.

The trust fund can be dissolved at any time by mutual agreement. The employer and student both recover all the funds that they invested in the trust fund, plus interest.

The employer could gain qualified workers.

There is not a tax credit for the employer at this time.

The student can receive academic credit for classes he or she is participating in. No extra credit will be given for work-based training.

The legislation specifies that one-half of the students' salary may be contributed to the trust fund, and that the employer will match the contribution.

If there is a cost, responsibility for payment will be mutually determined by the employer and participant.

A participant who is 16 or 17 years old cannot by law be held accountable for a contract. The agreement will be signed by the participant, the sponsor, the employer, and a parent or guardian of the participant if the participant is under 18 years of age.

The program provides an option for students to earn more income for postsecondary education, and provides an incentive to establish a long-term employment relationship between the student participant and employer.

The law specifies that the student must agree to work for the employer for at least two years immediately following the date the participant completes postsecondary education.

That will be determined between participant and employer, and should be specified in the trust fund agreement.

The participant would pay taxes on his or her earnings. The Agency is investigating the tax implications for the employer.

The law specifies that the fund will be applied toward the student's postsecondary education. To avoid disputes over what that means, the employer and student should specify in the trust fund agreement how the funds may be spent.

Texas Education Agency
Career and Technology Education
Phone: (512) 463-9311
Revised January 17, 2002
Send comments or suggestions to the web administrator at career@tea.state.tx.us.