Social Security Caregiver Credit Act of 2016

Summary: Social Security Caregiver Credit Act of 2016 This bill expresses the sense of the Senate that Congress must address the unfair exclusion of professional and hardworking home care providers who are not eligible to receive Social Security or Medicare because they provided paid care to a family member with a disability under programs operated at the state and local level for general health and welfare protection. This bill amends title II (Old Age, Survivors and Disability Insurance) (OASDI) of the Social Security Act with respect to determining entitlement to and the amount of any monthly benefit, including any lump-sum death payment, payable under OASDI on the basis of the wages and self-employment income of any individual. Such an individual shall be deemed to have been paid a wage (according to a specified formula) during each month during which the individual was engaged for at least 80 hours in providing care to a dependent relative without monetary compensation for up to five years of such service. This bill shall not apply in the case of any monthly benefit or lump-sum death payment if a larger benefit or payment would be payable without its application. 

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Social Security Caregiver Credit Act 
of 2016''.

SEC. 2. FINDINGS AND SENSE OF THE SENATE.

    (a) Findings.--Congress finds that:
            (1) Caregiving is an essential element of family life and a 
        vital service for children, the ill, the disabled, and the 
        elderly.
            (2) The establishment of a caregiver credit would bolster 
        the economic prospects of unpaid caregivers and would provide 
        them with vital retirement security.
            (3) The 2015 Annual Report of the Board of Trustees of the 
        Federal Old-Age and Survivors Insurance and Federal Disability 
        Insurance Trust Funds concluded that the combined Trust Funds 
        will be able to pay scheduled benefits in full until 2034.
            (4) While there is no immediate crisis, policy options 
        should be considered to extend OASDI solvency, including by 
        eradicating the gender wage gap, increasing overall employment, 
        or increasing the minimum wage.
    (b) Sense of the Senate.--It is the sense of Senate that the United 
States Congress must address the unfair exclusion of professional and 
hardworking home care providers who are not eligible to receive Social 
Security or Medicare because they provide paid care to a family member 
with a disability under programs operated at the State and local level 
for general health and welfare protection.

SEC. 3. DEEMED WAGES FOR CAREGIVERS OF DEPENDENT RELATIVES.

    (a) In General.--Title II of the Social Security Act is amended by 
adding after section 234 (42 U.S.C. 434) the following new section:

          ``deemed wages for caregivers of dependent relatives

    ``Sec. 235.  (a) Definitions.--For purposes of this section--
            ``(1)(A) Subject to subparagraph (B), the term `qualifying 
        month' means, in connection with an individual, any month--
                    ``(i) beginning after the date which is 60 months 
                prior to the date of the enactment of the Social 
                Security Caregiver Credit Act of 2016, and
                    ``(ii) during which such individual was engaged for 
                not less than 80 hours in providing care to a dependent 
                relative without monetary compensation.
            ``(B) The term `qualifying month' does not include any 
        month ending after the date on which such individual attains 
        retirement age (as defined in section 216(l)).
            ``(2) The term `dependent relative' means, in connection 
        with an individual--
                    ``(A) a child, grandchild, niece, or nephew (of 
                such individual or such individual's spouse or domestic 
                partner), or a child to which the individual or the 
                individual's spouse or domestic partner is standing in 
                loco parentis, who is under the age of 12, or
                    ``(B) a child, grandchild, niece, or nephew (of 
                such individual or such individual's spouse or domestic 
                partner), a child to which the individual or the 
                individual's spouse or domestic partner is standing in 
                loco parentis, a parent, sibling, aunt, or uncle (of 
                such individual or his or her spouse or domestic 
                partner), or such individual's spouse or domestic 
                partner, if such child, grandchild, niece, nephew, 
                parent, sibling, aunt, uncle, spouse, or domestic 
                partner is a chronically dependent individual.
            ``(3)(A) The term `chronically dependent individual' means 
        an individual who--
                    ``(i) is dependent on a daily basis on verbal 
                reminding, physical cueing, supervision, or other 
                assistance provided to the individual by another person 
                in the performance of at least two of the activities of 
                daily living (described in subparagraph (B)) or 
                instrumental activities of daily living (described in 
                subparagraph (C)), and
                    ``(ii) without the assistance described in clause 
                (i), could not perform such activities of daily living 
                or instrumental activities of daily living.
            ``(B) The `activities of daily living' referred to in 
        subparagraph (A) means basic personal everyday activities, 
        including--
                    ``(i) Eating.
                    ``(ii) Bathing.
                    ``(iii) Dressing.
                    ``(iv) Toileting.
                    ``(v) Transferring in and out of a bed or in and 
                out of a chair.
            ``(C) The `instrumental activities of daily living' 
        referred to in subparagraph (A) means activities related to 
        living independently in the community, including--
                    ``(i) Meal planning and preparation.
                    ``(ii) Managing finances.
                    ``(iii) Shopping for food, clothing, or other 
                essential items.
                    ``(iv) Performing essential household chores.
                    ``(v) Communicating by phone or other form of 
                media.
                    ``(vi) Traveling around and participating in the 
                community.
    ``(b) Deemed Wages of Caregiver.--(1)(A) For purposes of 
determining entitlement to and the amount of any monthly benefit for 
any month after December 2016, or entitlement to and the amount of any 
lump-sum death payment in the case of a death after such month, payable 
under this title on the basis of the wages and self-employment income 
of any individual, and for purposes of section 216(i)(3), such 
individual shall be deemed to have been paid during each qualifying 
month (in addition to wages or self-employment income actually paid to 
or derived by such individual during such month) at an amount per month 
equal to--
            ``(i) in the case of a qualifying month during which no 
        wages or self-employment income were actually paid to or 
        derived by such individual, 50 percent of the national average 
        wage index (as defined in section 209(k)(1)) for the second 
        calendar year preceding the calendar year in which such month 
        occurs; and
            ``(ii) in the case of any other qualifying month, the 
        excess of the amount determined under clause (i) over \1/2\ of 
        the wages or self-employment income actually paid to or derived 
        by such individual during such month.
    ``(B) In any case in which there are more than 60 qualifying months 
for an individual, only the last 60 of such months shall be taken into 
account for purposes of this section.
    ``(2) Paragraph (1) shall not be applicable in the case of any 
monthly benefit or lump-sum death payment if a larger such benefit or 
payment, as the case may be, would be payable without its application.
    ``(c) Rules and Regulations.--
            ``(1) Not later than one year after the date of the 
        enactment of this section, the Commissioner of Social Security 
        shall promulgate such regulations as are necessary to carry out 
        this section and to prevent fraud and abuse with respect to the 
        benefits under this section, including regulations establishing 
        procedures for the application and certification requirements 
        described in paragraph (2).
            ``(2) A qualifying month shall not be taken into account 
        under this section with respect to an individual unless--
                    ``(A) the individual submits to the Commissioner of 
                Social Security an application for benefits under this 
                section that includes--
                            ``(i) the name and identifying information 
                        of the dependent relative with respect to whom 
                        the individual was engaged in providing care 
                        during such month;
                            ``(ii) if the dependent relative is not a 
                        child under the age of 12, documentation from 
                        the physician of the dependent relative 
                        explaining why the dependent relative is a 
                        chronically dependent individual; and
                            ``(iii) such other information as the 
                        Commissioner may require to verify the status 
                        of the dependent relative; and
                    ``(B) for every qualifying month or period of up to 
                12 consecutive qualifying months that occurs after the 
                first period of 12 consecutive qualifying months, the 
                individual certifies, in such form and manner as the 
                Commissioner shall require, that the information 
                provided in the individual's application for benefits 
                under this section has not changed.''.
    (b) Conforming Amendment.--Section 209(k)(1) of such Act (42 U.S.C. 
409(k)(1)) is amended--
            (1) by striking ``and'' before ``230(b)(2)'' the first time 
        it appears; and
            (2) by inserting ``and 235(b)(1)(A)(i),'' after ``1977),''.