VERY important bill could correct social security shortfall for many Americans.

http://thinkprogress.org/economy/2016/03/18/3761628/murphy-social-security-caregiver-credits/

When Sen. Chris Murphy (D-CT) went home for the winter holidays, he met with a number of people who sacrificed careers to care for family members. And many of them kept bringing up the same worries.
“I heard these heartbreaking stories of people who were fearful of losing everything that they had saved because they had to leave a job in order to come home and take care of a loved one,” he said. Time out of the workforce caring for an elderly parent or a young child means lost income.

It also means reduced Social Security benefits once the caregiver gets to retirement age, since she won’t be paying those taxes if she’s not earning income while she’s taking a break from her job. “One of the realities is that your retirement takes a big hit if you leave the workforce and come home to care for a child or parent,” he said.

So on Friday, he’s introducing a bill to help make that financial picture a bit less troubling. The Social Security Caregiver Credit Act would add a credit to a caregivers’ lifetime earnings to determine how much she should get in Social Security benefits. The credit would be based on a sliding income scale related to previous earnings capped at the average national wage or a maximum credit equal to half the average national income for those who weren’t earning money previously, for up to five years of caregiving. And it would apply to anyone caring for a child, grandchild, niece or nephew, aunt or uncle, spouse or domestic partner, parent, or sibling who needs daily assistance with basic activities like eating and bathing or even managing finances and shopping for food.

Taking care of a child or a parent is work too

And while full-time caregivers will be covered, those who provide part-time care — 80 hours or more a month — can also get coverage. “Our bill acknowledges that this isn’t just about the handful of individuals who are full-time caregivers,” Murphy said.

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