Industry Training Fund

• • Standard Training Measures

Funding entitlement

For an ITO to claim funding (limited to the amount approved under its Investment Plan), each trainee must have a valid training agreement that complies with the requirements of Rule ITO004[1].

Industry training funding is calculated based on Standard Training Measures (STMs). An STM is defined as the amount of training that is required for a trainee to achieve 120 Register credits (or its equivalent) in an approved structured training programme. An STM is funded at a single rate. There is no annual Consumer Price Index adjustment to this rate.

Under Rule ITO016[2] a trainee is funded for a maximum of 70 credits per year, but may undertake additional credits. 

Under Rule ENR024[3] funding must not be claimed for a trainee whose enrolment is deferred, until the trainee commences, or recommences, training.

Funding will be recovered where ITOs report fewer STMs than the level agreed in the Investment Plan funding approval letter for the relevant year.

Numbers of trainees are calculated at the end of each month. To be eligible for payment, a trainee must:

• be “active” at the end of the month.
• be awarded credit achievement, subject to exceptions specified in Rule ITO017[4].

Exception to individual credit achievement

If 80% or more trainees in the funding year and the previous year (combined) achieve credits, trainees not achieving credits in the funding year will still be funded.

Example:

In 2011, 75 of 100 trainees achieve credits; 25 do not.

Will the funding for the 25 trainees be repayable to the TEC?

Scenario #1:

90 of 100 trainees in 2010 achieve credits.

The total percentage of trainees achieving credits over the two years (2011 and 2010) is 165/200 (82.5%).

This is 80% or more, so funding for the 25 trainees will not have to be repaid.

Scenario #2:

80 of 100 trainees in 2010 achieve credits.

The total percentage of trainees achieving credits over the two years (2011 and 2010) is 155/200 (77.5%).

This is less than 80%, so funding for the 25 trainees will have to be repaid to the TEC. 

• [1]

  Rule ITO004: Industry Training Fund valid training agreements

  To claim funding, each trainee must have a valid training agreement that complies with the following requirements:

  • In the case of an eligible trainee who is:
    
    • employed, the training agreement is part of, or linked to, an employment agreement entered into by the trainee and their employer pursuant to the Employment Relations Act 2000
    • a member of the New Zealand Defence Force, the training agreement is between the member and the New Zealand Defence Force
    • a volunteer, the training agreement is between the volunteer and the host organisation of the volunteer
    • a self-employed contractor, the training agreement is between the self-employed contractor and the organisation with which they have the principal contract for services
  • The training is intended to lead or relate to the achievement of at least 20 New Zealand Qualification Framework credits per year
  • The training programme must not require the completion of more than 70 credits per year
  • The agreement provides for one of the following:
    
    • industry training that has been approved by the Tertiary Education Commission (TEC)
    • an equivalent programme of industry training that has been recognised by the TEC under section 18(a) of the Industry Training Act 1992
  • The agreement is registered with the industry training organisation
  • The agreement is classified "active" on the last day of the month for which funding is sought.

  Note: If a trainee changes employer, or association with the relevant organisation identified above, any existing training agreement becomes invalid and must be replaced by a new agreement with the relevant organisation.

• [2]

  Rule ITO016: Funding limit on enrolments

  An industry trainee can attract industry training funding for a maximum of 5.833 credits per month (i.e. 70 credits in any one 12 month period).

  A trainee may enrol in more than the limit by enrolling in multiple programmes, but the additional credits cannot be claimed for funding unless the Tertiary Education Commission has allowed an exception.

• [3]

  Rule ENR024: Admission regulations - deferred enrolment

  Tertiary education organisations must:

  • specify the conditions upon which learners may defer their enrolment start dates
  • ensure a claim for funding is not made for a learner whose enrolment is deferred.

  Note:

  This rule applies to Student Achievement Component funding and, in the case of industry trainees, Industry Training Funding

• [4]

  Rule ITO017: Trainee eligibility and achievement

  Industry training funding is only provided for active trainees achieving credits, in a programme approved for funding by the Tertiary Education Commission (TEC), in the year for which funding is claimed by the relevant industry training organisation (ITO). Trainees not achieving credits are not eligible for funding unless either of the following applies:

  • Eighty percent or more of trainees enrolled with the ITO in the year for which funding is sought and the previous year (combined) have evidence of credit achievement
  • The TEC has allowed an exception.

  Funding paid for ineligible trainees is recoverable by the TEC.