S-4396-119
Read twice and referred to the Committee on Finance.
Sponsored by Christopher Murphy (D-CT)
What it does
This bill would create a Social Security earnings credit for individuals who leave the paid workforce — or reduce their paid work hours — to provide unpaid care for children, elderly relatives, or people with disabilities. These credited earnings would count toward a person's Social Security benefit calculation, potentially increasing their future retirement, disability, or survivor benefits. The bill's specific credit amounts, eligibility thresholds, and funding mechanism are not detailed in the available bill text.
Who benefits
Unpaid family caregivers — disproportionately women, particularly mothers and daughters — who currently receive reduced Social Security benefits because caregiving years appear as zero-income years in their earnings record. Older women who face poverty in retirement due to caregiving gaps. Spouses and adult children who care for elderly or disabled family members. Indirectly, elderly and disabled individuals whose family members may be more able to provide care without as severe a financial penalty. Lower- and middle-income caregivers who cannot afford paid help and thus bear the full caregiving burden themselves.
Who is hurt
Current Social Security beneficiaries and future workers who pay into the system could face higher payroll taxes or reduced benefits if the credit is not fully offset. Employers in caregiving-adjacent industries (e.g., professional home care) could see reduced demand if family caregiving becomes more financially viable. Workers who remained in the paid workforce continuously — forgoing caregiving — would not receive the credit, potentially reducing their benefit advantage relative to caregivers. Taxpayers broadly, if the program requires general revenue transfers to the Social Security trust funds.
Supporters argue
Supporters argue that the current Social Security formula systematically penalizes caregivers — overwhelmingly women — by treating unpaid caregiving as zero-income years, directly reducing lifetime benefits. They contend that caregiving is economically productive labor that saves the government billions in institutional care costs, and that countries including Germany, Canada, and the United Kingdom already provide similar caregiver credits in their public pension systems. Supporters further argue the bill corrects a structural inequity that contributes to women's higher rates of elderly poverty.
Opponents argue
Opponents argue that Social Security is an insurance program tied to paid work contributions, and that extending credits for unpaid activity fundamentally alters its structure in ways that could accelerate trust fund insolvency — a system already projected by the Social Security trustees to face a funding shortfall by the mid-2030s. They contend that the bill's costs would ultimately fall on workers and employers through higher payroll taxes or benefit reductions, and that targeted means-tested programs would more efficiently address caregiver retirement poverty without restructuring the entire benefit formula.