Sen. Chris Murphy (D-Conn.) has announced he will propose new legislation today aimed at providing retirement compensation to unpaid family caregivers.
The legislation, the Social Security Caregiver Credit Act, will create a Social Security Caregiver credit for individuals who have had to leave the workforce or reduce their hours to care for a loved one and comes after several roundtables hosted by Murphy to hear from caregivers about the challenges they face in their industry.
“Millions of people across the country sacrifice so much to care for loved ones. I”™ve listened to caregivers across Connecticut, and many were forced to cut back on hours or leave their jobs,” said Murphy. “This not only affects their pocketbooks today, but it reduces the amount they”™re paying into the Social Security system and takes a chunk out of the benefits they”™ll receive when they retire.”
According to Murphy, tens of millions of Americans leave the workforce entirely or reduce their hours significantly to care for loved ones at some point in their career. Studies indicate that on average, total wage, private pension, and Social Security losses due to caregiving total more than $300,000, and can significantly threaten an individual”™s retirement security.
In Connecticut, the 65-and-over population is expected to grow by 57 percent by 2040, and more than half of Connecticut residents age 40 and older say they have provided care on an unpaid basis for an adult loved one. Women, who make up two-thirds of unpaid caregivers, are disproportionately impacted.
Details of the legislation provided by Murphy”™s office state that the proposed bill will create a credit that would be added to an individual”™s earnings to calculate their future Social Security benefits. In order to qualify, caregivers must provide care for a minimum of 80 hours per month to a parent, spouse, domestic partner, sibling, child, aunt, or uncle who cannot perform daily living activities without assistance.
The credit, which individuals can claim for up to 60 months, is progressive and would vary on an income-based sliding scale. A caregiver”™s Social Security credit will decrease in value as the caregiver earns closer to the average national wage. The credit will phase out when the caregiver earns more than the average national wage. Individuals who do not earn an income will receive a maximum credit equal to half of the average national wage.
U.S. Senator Bernie Sanders (I-Vt.) is an original cosponsor of the Social Security Caregiver Credit Act. A companion bill was introduced in the U.S. House of Representatives by U.S. Congresswoman Nita M. Lowey, which currently has 54 cosponsors in the House.
Murphy will present the new legislation alongside Fairfield”™s Director of Human and Social Services Terry Giegengack, Rep. Cristin McCarthy-Vahey, family caregivers and advocates at the Bigelow Center for Senior Activities in Fairfield at 2 p.m.
