Work Opportunities and Retraining Compact (WORC) of 1986

Work Opportunities and Retraining Compact of 1986 - Amends part A (Aid to Families with Dependent Children) of title IV of the Social Security Act to require AFDC applicants and recipients to register with a State agency for employment counseling, training, and assignment. Authorizes AFDC recipients to refuse employment which results in a net loss in their income.

Directs an agency of each State to: (1) establish a single intake and registration process for AFDC applicants and recipients; (2) determine whether training or education is needed to prepare registered applicants and recipients for employment and then provide counseling regarding prospects and needs; (3) arrange for their participation in one or more of the work-related programs established under title IV of the Act or other Federal law, while coordinating such programs to enhance the availability and efficiency of services provided; and (4) develop an employment plan for each AFDC applicant or recipient.

Requires the State agency to provide AFDC applicants and recipients assigned to employment, training, or education programs with child care and transportation services.

Sets the Federal contribution to education, training, and assignment costs at 70 percent and the Federal share of administrative and support service costs at 50 percent. Increases, by five percent in any fiscal year after FY 1987, the Federal share of education, training, and assignment costs, provided a State meets certain performance standards to be developed by the Office of Technology Assessment. Provides that such standards shall measure a State's success in reducing welfare costs and helping AFDC recipients achieve self-sufficiency, while accounting for differing conditions among the States. Requires the publication of such standards within two years of enactment of this Act.