What This Bill Does
This bill adds a new parental leave benefit to Social Security for parents who have a baby or adopt a child. Parents who qualify can receive monthly payments for up to three months during the year after their child is born or adopted. The bill requires parents to repay the full cost of these benefits later through reductions to their retirement benefits or by increasing their retirement age.
Who It Affects
Parents with a qualifying child who have worked enough to earn Social Security credits. The Social Security Commissioner (the official who runs Social Security). Employers who offer parental leave benefits. State and local governments that provide parental or family leave benefits. Adults who plan to apply for Social Security retirement benefits in the future.
Key Provisions
* Parents must have earned at least 8 quarters of Social Security coverage (roughly two years of work), with 4 quarters earned in the year before they use this benefit, OR have at least 12 quarters of coverage total. (Sec. 219(a))
* Parents can choose to receive parental leave payments for up to 3 months during a one-year period after their child is born or adopted. (Sec. 219(b) and (c))
* Parents must repay the full cost of parental leave benefits through deductions from their future retirement benefits, not to exceed the first 60 monthly retirement payments, OR by increasing their retirement age. (Sec. 219(f))
* The Social Security Commissioner must prevent fraud by requiring proof that the person applying is actually the parent of the child. (Sec. 219(e))
* Parents can apply for this benefit online as soon as practicable after the law takes effect. (Sec. 219(d))
What Changes
If someone receives parental leave benefits, they will have to repay that money when they start collecting Social Security retirement benefits. Their monthly retirement checks will be reduced for up to 60 months, or they can choose instead to delay when they can start collecting retirement benefits. The bill does not affect any parental leave benefits provided by employers or state governments. Parents must file their application within the calendar year of their child's birth or adoption.
Important Definitions
"Qualified child" means a biological or legally adopted child of the parent who will not turn 18 before the benefit period ends and will live with and be cared for by the parent during the benefit period. (Sec. 219(i))
"Benefit period" means the one-year period starting the month after a child is born or adopted. (Sec. 219(c)(4))
Effective Date
The bill takes effect for applications filed after 2023. However, no one can apply for this benefit in any calendar year if Social Security's trust fund is projected to drop below 20 percent of its annual costs.
II
118TH CONGRESS
1ST SESSION
S. 35
To amend title II of the Social Security Act to make available parental
leave benefits to parents following the birth or adoption of a child,
and for other purposes.
IN THE SENATE OF THE UNITED STATES
JANUARY 24 (legislative day, JANUARY 3), 2023
Mr. RUBIO (for himself and Mr. ROMNEY) introduced the following bill; which
was read twice and referred to the Committee on Finance
A BILL
To amend title II of the Social Security Act to make avail-
able parental leave benefits to parents following the birth
or adoption of a child, and for other purposes.
Be it enacted by the Senate and House of Representa-
1
tives of the United States of America in Congress assembled,
2
SECTION 1. SHORT TITLE.
3
This Act may be cited as the ‘‘New Parents Act of
4
2023’’.
5
SEC. 2. PARENTAL LEAVE BENEFITS.
6
(a) IN GENERAL.—Title II of the Social Security Act
7
is amended by inserting after section 218 the following:
8
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‘‘SEC. 219. PARENTAL LEAVE BENEFITS.
1
‘‘(a) IN GENERAL.—Every individual—
2
‘‘(1) who has—
3
‘‘(A) not less than 8 quarters of coverage,
4
4 of which are credited to calendar quarters
5
during the calendar year preceding the calendar
6
year in which the 1st month of the benefit pe-
7
riod described in subsection (c) occurs; or
8
‘‘(B) not less than 12 quarters of coverage;
9
and
10
‘‘(2) who has filed an application for a parental
11
leave benefit with respect to a qualified child of the
12
individual,
13
shall be entitled to a parental leave benefit with respect
14
to such qualified child.
15
‘‘(b) BENEFIT AMOUNT.—Such individual’s parental
16
leave benefit shall be an amount equal to the product of—
17
‘‘(1) the number of benefit months (not to ex-
18
ceed 3) selected by the individual in the individual’s
19
application for a parental leave benefit, multiplied by
20
‘‘(2) an amount equal to the primary insurance
21
amount for the individual that would be determined
22
under section 215 if—
23
‘‘(A) the individual had attained age 62 in
24
the first month of the individual’s benefit pe-
25
riod; and
26
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‘‘(B) the individual had become entitled to
1
an old-age insurance benefit under section 202
2
beginning with such month.
3
For the purposes of the preceding sentence, the elapsed
4
years referred to in section 215(b)(2)(B)(iii) shall not in-
5
clude the year in which the individual’s benefit period be-
6
gins, or any year thereafter.
7
‘‘(c) PAYMENT OF BENEFIT.—
8
‘‘(1) SELECTION
OF
NUMBER
OF
BENEFIT
9
MONTHS.—In filing an application for a parental
10
leave benefit under this section, an individual shall
11
select the number of months (not to exceed 3) for
12
which the individual will receive a monthly payment
13
under such parental leave benefit (in this section re-
14
ferred to as ‘benefit months’).
15
‘‘(2) ELECTION
OF
BENEFIT
MONTHS.—Not
16
later than 14 days before the start of any month in
17
the benefit period of an individual entitled to a pa-
18
rental leave benefit, the individual may elect to treat
19
such month as a benefit month. The number of
20
months in such benefit period treated as benefit
21
months shall equal the number selected in the indi-
22
vidual’s benefit application, and the Commissioner
23
may designate any month as a benefit month in any
24
case in which an individual does not elect to treat
25
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a sufficient number of months as benefit months be-
1
fore the end of the benefit period.
2
‘‘(3) AMOUNT
OF
MONTHLY
PAYMENT.—The
3
amount of a monthly payment made in any benefit
4
month within a benefit period to an individual enti-
5
tled to a parental leave benefit shall be an amount
6
equal to—
7
‘‘(A) the amount of the parental leave ben-
8
efit determined for the individual under sub-
9
section (b); divided by
10
‘‘(B) the number of benefit months se-
11
lected by the individual pursuant to paragraph
12
(1) with respect to such benefit.
13
‘‘(4) DEFINITION
OF
BENEFIT
PERIOD.—For
14
purposes of this section, the term ‘benefit period’
15
means, with respect to an individual entitled to a pa-
16
rental leave benefit with respect to a qualified child,
17
the 1-year period beginning with the month after the
18
month in which the birth or adoption of the qualified
19
child occurs.
20
‘‘(d) BENEFIT APPLICATION.—
21
‘‘(1) IN
GENERAL.—The Commissioner shall
22
ensure that the application for a parental leave ben-
23
efit—
24
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‘‘(A) includes a notice, clearly written in
1
language that is easily understandable to the
2
reader, explaining that—
3
‘‘(i) failure to submit such proof or
4
documentation as the Commissioner may
5
require to demonstrate that the applicant
6
is the parent of the qualified child shall be
7
subject to criminal and civil penalties;
8
‘‘(ii) the full cost to the Trust Funds
9
of any amount received by an individual as
10
a parental leave benefit must be repaid
11
through reductions to old-age insurance
12
benefits payable to the individual in subse-
13
quent months, or by other means; and
14
‘‘(iii) entitlement to a parental leave
15
benefit has no effect on the determination
16
of an individual’s entitlement to leave
17
under the Family and Medical Leave Act
18
of 1993; and
19
‘‘(B) requires an attestation by the indi-
20
vidual submitting the application that—
21
‘‘(i) the individual expects to be the
22
parent of a qualified child throughout the
23
benefit period with respect to such applica-
24
tion;
25
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‘‘(ii) the individual intends to use the
1
benefit to finance spending more time with
2
the qualified child at home and away from
3
employment during the benefit period; and
4
‘‘(iii) the individual consents to the
5
terms and conditions specified in the notice
6
described in subparagraph (A).
7
‘‘(2) OPTION TO FILE SIMULTANEOUS APPLICA-
8
TIONS.—The Commissioner of Social Security may
9
establish an option under which an individual may
10
file an application for a parental leave benefit under
11
this section with respect to a qualified child at the
12
same time the individual submits an application for
13
a social security account number for such qualified
14
child.
15
‘‘(3) ONLINE
AVAILABILITY.—The Commis-
16
sioner of Social Security shall, as soon as practicable
17
after the date of enactment of this section, permit
18
an individual to apply for a parental leave benefit
19
through an internet website or other electronic
20
media.
21
‘‘(e) FRAUD PREVENTION.—
22
‘‘(1) IN GENERAL.—The Commissioner of So-
23
cial Security shall establish procedures to ensure the
24
prevention of fraud with respect to applications for
25
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parental leave benefits under this section, including
1
procedures for the submission of such proof or docu-
2
mentation as the Commissioner may require to
3
verify the information contained in such an applica-
4
tion.
5
‘‘(2) ENFORCEMENT.—In any case in which an
6
individual willfully, knowingly, and with intent to de-
7
ceive the Commissioner of Social Security fails to
8
comply with the procedures established under para-
9
graph (1), the Commissioner may impose on such in-
10
dividual, in addition to any other penalties that may
11
be prescribed by law—
12
‘‘(A) a civil monetary penalty of not more
13
than $7,500 for each such failure; and
14
‘‘(B) an assessment, in lieu of any dam-
15
ages sustained by the United States because of
16
such failure, of not more than twice the amount
17
of the cost to the Federal Old-Age and Sur-
18
vivors Insurance Trust Fund of any parental
19
leave benefit paid to the individual.
20
‘‘(f) BENEFIT REPAYMENT.—
21
‘‘(1) IN GENERAL.—An individual who is paid
22
a parental leave benefit under this section shall
23
repay the full cost of such benefit to the Federal
24
Old-Age and Survivors Insurance Trust Fund (as
25
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such amount is determined by the Commissioner) in
1
accordance with this subsection.
2
‘‘(2) OLD-AGE INSURANCE BENEFIT OFFSET.—
3
‘‘(A) IN GENERAL.—Except as provided in
4
paragraph (3), in the case of any individual de-
5
scribed in paragraph (1) who becomes entitled
6
to an old-age insurance benefit, deductions shall
7
be made from each monthly payment of such
8
benefit (not to exceed the first 60 such monthly
9
payments) in such amounts, subject to subpara-
10
graph (B), as the Commissioner of Social Secu-
11
rity shall determine necessary to fully recover
12
the cost to the Federal Old-Age and Survivors
13
Insurance Trust Fund of any parental leave
14
benefit paid to the individual as of the month
15
in which the individual becomes entitled to an
16
old-age insurance benefit.
17
‘‘(B) NOTIFICATION.—Not later than the
18
beginning of each calendar year, the Commis-
19
sioner of Social Security shall notify each indi-
20
vidual whose old-age insurance benefits are sub-
21
ject to a deduction under subparagraph (A)
22
during such calendar year of the amount of the
23
deduction that will be applied to each monthly
24
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•S 35 IS
payment of such benefits during the calendar
1
year.
2
‘‘(3) ALTERNATIVE INCREASE OF RETIREMENT
3
AGE.—
4
‘‘(A) IN GENERAL.—In the case of any in-
5
dividual described in paragraph (1) who be-
6
comes entitled to an old-age insurance benefit,
7
such individual may elect, at the time of appli-
8
cation for such benefit, to be subject to a retire-
9
ment age increase in accordance with this para-
10
graph. Such election shall be irrevocable, and
11
an individual who makes such an election shall
12
not be subject to a deduction under paragraph
13
(2) for any month.
14
‘‘(B) RETIREMENT AGE INCREASE.—Not-
15
withstanding section 216(l)(1), with respect to
16
an individual who makes an election under sub-
17
paragraph (A), the retirement age of such indi-
18
vidual shall be deemed to be—
19
‘‘(i) the retirement age determined
20
with respect to the individual under such
21
section; plus
22
‘‘(ii) the additional number of months
23
the Commissioner of Social Security shall
24
determine necessary to result in the full re-
25
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•S 35 IS
covery of the cost to the Federal Old-Age
1
and Survivors Insurance Trust Fund of
2
any parental leave benefit paid to the indi-
3
vidual as of the month in which the indi-
4
vidual becomes entitled to an old-age in-
5
surance benefit.
6
‘‘(C) INCREASE
TO
EARLIEST
ENTITLE-
7
MENT AGE.—In the case of an individual who
8
makes an election under subparagraph (A), not-
9
withstanding subsection (a) of section 202, no
10
old-age insurance benefit shall be paid to such
11
individual for any month before the first month
12
throughout which the individual has attained
13
age 62 plus the additional number of months
14
determined for the individual under subpara-
15
graph (B)(ii).
16
‘‘(4) OTHER
RECOVERY
METHODS.—In any
17
case in which the Commissioner of Social Security
18
determines that the cost to the Federal Old-Age and
19
Survivors Insurance Trust Fund of a parental leave
20
benefit paid to an individual cannot be fully recov-
21
ered pursuant to paragraph (2) or (3)—
22
‘‘(A) such benefit shall be deemed, upon
23
the making of such determination, to be a pay-
24
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ment of more than the correct amount for pur-
1
poses of section 204; and
2
‘‘(B) the Commissioner may recover such
3
amounts by means of any method available to
4
the Commissioner under such section.
5
‘‘(5) PROJECTION OF REPAYMENT AMOUNT.—
6
As soon as practicable after the date of enactment
7
of this section, the Commissioner shall establish a
8
system to make available through an internet
9
website or other electronic media to each individual
10
who is paid a parental leave benefit under this sec-
11
tion, beginning with the first month beginning after
12
the individual’s benefit period the projected amount
13
of the deduction to be made from each of the first
14
60 monthly payments of old-age insurance benefits
15
under paragraph (2), or if the individual so elects,
16
the additional number of months by which the indi-
17
vidual’s retirement age would be increased under
18
paragraph (3), in order to fully repay the cost to the
19
Federal Old-Age and Survivors Insurance Trust
20
Fund of any parental leave benefit paid to the indi-
21
vidual, and a description of the assumptions used by
22
the Commissioner in making such projection.
23
‘‘(g) RELATIONSHIP WITH STATE LAW; EMPLOYER
24
BENEFITS.—
25
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‘‘(1) IN GENERAL.—This section does not pre-
1
empt or supersede any provision of State or local
2
law that authorizes a State or political subdivision to
3
provide paid parental or family medical leave bene-
4
fits similar to the benefits provided under this sec-
5
tion.
6
‘‘(2) GREATER BENEFITS ALLOWED.—Nothing
7
in this Act shall be construed to diminish the obliga-
8
tion of an employer to comply with any contract, col-
9
lective bargaining agreement, or employment benefit
10
program or plan that provides greater benefits for
11
leave or other leave rights to individuals than the
12
benefits for leave or leave rights established under
13
this Act.
14
‘‘(h) SUNSET.—No application for parental leave ben-
15
efits under this section may be filed in any calendar year
16
if the OASDI trust fund ratio (as defined in section
17
215(i)) for such calendar year or for the year
[Text truncated for display. Full text available on Congress.gov.]