Murphy, Gillibrand Introduce Bicameral Bill to Protect Retirement Security for Unpaid Caregivers

WASHINGTON-U.S. Senators Chris Murphy (D-Conn.) and Kirsten Gillibrand (D-N.Y.) today reintroduced the Social Security Caregiver Credit Act, bicameral legislation to provide five years of Social Security retirement credits to caregivers who spend at least 80 hours per month providing care to a dependent relative. By allowing caregivers to earn Social Security Credits while they are out of the workforce, this legislation recognizes the essential, economic value of care work and would aid millions of Americans' long-term financial security. U.S. Representative Brad Schneider (D-N.Y.-10) introduced companion legislation in the House.

According to a joint report from AARP and the National Alliance for Caregiving, sixty-three million American adults - nearly a quarter of the U.S. adult population - provide care to adults or children with a medical condition or disability. Tens of millions of Americans will significantly reduce their work hours, or leave the workforce entirely, to provide care for a dependent relative at some point in their career. Family members are often best equipped to provide sensitive, individualized care to dependent relatives and the Social Security Caregiver Credit Act would lower the financial stakes for individuals facing the difficult choice between continuing their careers or caring for their loved ones.

"Caregivers shouldn't lose out on Social Security benefits because they step away from the workforce to care for a loved one. Caregiving is work, and it's time we start treating it that way. This legislation would make clear that the selfless decision to care for a family member no longer jeopardizes if and when you can retire," said Murphy.

"Caregiving for an aging parent, relative with a disability, or ailing loved one is a full-time job," said Gillibrand. "Individuals who leave the workforce to care for their loved ones should receive compensation for that critical work. This commonsense bill would ensure eligible caregivers receive essential Social Security benefits in retirement, helping them to continue to provide for themselves and their families after leaving their jobs. As the top Democrat on the Senate Aging Committee, I am committed to getting this legislation passed."

"The cost of a care facility or in-home nurse is simply out of reach for many American families caring for a relative in need. Too often, families must risk their own financial security when doing what we all would do - providing essential care for spouses, parents, grandparents, or children," said Schneider. "The Social Security Caregiver Credit Act would help ensure that people who step away from the workforce to care for loved ones aren't penalized in retirement."

The Social Security Caregiver Act is endorsed by the following organizations: Social Security Works, National Association of Nutrition and Aging Services Programs (NANASP), The Arc, Sibling Leadership Network, National Alliance of Caregiving, ALS Association, and Alliance for Retired Americans.

"Every day, spouses, partners, and loved ones give up their own jobs, savings, and retirement security to care for someone living with ALS. Even children are often called upon to be caregivers. The Social Security Caregiver Credit Act helps address these issues by allowing caregivers to earn social security credits while they are out of the workforce caring for their loved ones," said Calaneet Balas, CEO of the ALS Association. "We thank Senator Murphy and Congressman Schneider for standing with the ALS community and protecting caregivers from being financially punished for caring for their loved ones."

"This legislation is long overdue, and we thank Rep. Schneider and Sen. Murphy for recognizing the value unpaid caregivers bring to our families, communities, and economy," said Richard Fiesta, Executive Director of the Alliance for Retired Americans. "Caregivers often sacrifice their financial security to care for loved ones. By recognizing caregiving as work and providing Social Security credits, this bill takes a vital step toward fairness and equity and will help ensure more older Americans get the care they need."

"Americans, disproportionately women, who drop out of the paid workforce to care for children or other family members are doing essential work. Yet as a result, they not only forego income now, they also are likely to receive lower Social Security benefits. Social Security Works is delighted to endorse the Social Security Caregiver Credit Act, which addresses this injustice by having Social Security explicitly recognize and compensate the invaluable work of caregiving," said Nancy Altman, President of Social Security Works.

Full bill text for the Social Security Caregiver Credit Act is available here.