Lowey Proposes Social Security for Unpaid Caregivers

Congresswoman Nita M. Lowey visited Meals on Wheels Programs & Services of Rockland in Nanuet, on Thursday.

She was joined by local caregivers, senior citizens, officials, and advocacy organization representatives.

She announced legislation that would provide a Social Security earnings credit to caregivers, thereby increasing retirement security for those who care for family members and loved ones.

The Social Security Caregiver Credit Act would be particularly beneficial to women, who represent two-thirds of the more than 65 million unpaid caregivers nationwide, and receive far fewer Social Security benefits.

Lowey (Westchester/Rockland) is the Ranking Member on the House Appropriations Committee.

“Sacrificing a paycheck to care for a loved one shouldn’t jeopardize a secure and enjoyable retirement,” said Lowey. “My proposal would provide caregivers with a Social Security earnings credit when they take unpaid time off from their job to provide care. This would be particularly helpful for women, who make up 66 percent of unpaid caregivers who, onaverage, lose $324,000 in wages and retirement benefits in their lifetime. As Ranking Member on the House Appropriations Committee, I will continue working to ensure Americans receive the retirement benefits they’ve earned after a lifetime of hard work.”

Roughly 65 million Americans sacrifice their job or reduce their hours during their careers to provide care to family members. The Social Security Caregiver Credit Act (H.R. 3377) would create a credit that would be added to earnings to calculate future Social Security benefits. The credit is progressive and varies on an income-based sliding scale. As an example, someone who is a full-time caregiver would receive a credit worth around $22,000 a year, while someone who is able to work and earns $33,000 would receive a credit worth around $5,500. It phases out when the caregiver makes more than the average national earnings. The amount credited would be used by the Social Security Administration to calculate future benefits.

Because women earn less than men and average 10 fewer years in the workforce, which lowers Social Security benefits, they often have far less saved for retirement than men. Providing assistance with an increase in Social Security benefits will make them more financially stable when they retire. A national study on women and caregiving found that:

· 33 percent of working women decreased their working hours;

· 20 percent left full-time jobs for park-time work; and

· Nearly 30 percent were forced to quit their jobs or retire early to care for a loved one.

For millions of American women, unpaid caregiving becomes a financial emergency, and on average accounts for $324,000 in lost wages and Social Security benefits in a caregiver’s lifetime.

Lowey’s proposal has been endorsed by 19 national organizations, including the National Committee to Preserve Social Security and Medicare, the National Organization for Women (NOW), and the National Alliance for Caregiving.

Siobhan O’Grady is a Rockland resident and was a caregiver of her late father who passed away in 2013 after a four-year battle with Alzheimer’s. Siobhan and her mother, with the help of a live-in aide, provided nearly 24-hour supervision to care for her father, causing financial and emotional pain. At today’s event, Siobhan said, “To this day, being one of the caregivers for my father was the absolute hardest thing I’ve ever done. Taking time off work, my mother and spouses in her situation are not able to recoup financial loss at their age. They put their heart and soul into caring for their spouse for what can be years and years, and when it’s all said and done, they are financially depleted and emotionally wrecked. The system has to do something to help them, because the job they’re doing is one of the hardest jobs there is.”

“Hospice care includes the care and support from family caregivers, which is crucial to individuals and their families facing a serious illness,” said Donna Branca, Director of Marketing and Public Relations at United Hospice of Rockland. “Most families can’t afford to pay for private care so the Social Security Caregiver Credit Act would help alleviate some of the lost wages by providing an earnings credit to those caring for loved ones. At United Hospice of Rockland, we see many families struggling to ensure their loved ones are cared for and this credit would help a family caregiver.”