Social Security Benefits Could Increase for Millions Under New Bill
Summary
A new bill in Congress aims to help unpaid family caregivers by giving them Social Security credits for the time they spend caring for loved ones. This would prevent their future retirement benefits from being reduced when they leave or reduce work to provide care.Key Facts
- The Social Security Caregiver Credit Act has been reintroduced by Senators Kirsten Gillibrand and Chris Murphy.
- The bill would allow unpaid caregivers to earn up to five years of Social Security credits if they spend at least 80 hours a month caring for a dependent child under 12 or a chronically dependent relative.
- Social Security benefits are based on a person’s 35 highest-earning years, and years with no earnings currently lower future payments.
- Millions of Americans provide unpaid care, which can reduce their Social Security benefits permanently.
- The credited caregiver years would count as high-earning years to improve benefit calculations.
- The credits apply only to caregivers who do not get paid for their caregiving work.
- Companion legislation has been introduced in the House by Representative Brad Schneider.
- The goal is to avoid penalizing caregivers financially for stepping away from paid work to care for family members.
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