Social Security Parent Penalty Repeal Act

To amend title II of the Social Security Act to provide for an annual increase in the contribution and benefit base, to exclude a certain number of childcare years from the benefit computation formula, and for other purposes. 1. Short title This Act may be cited as the Social Security Parent Penalty Repeal Act 2. Annual increase in contribution and benefit base (a) Annual increase Section 230(a) of the Social Security Act ( 42 U.S.C. 430(a) (a) The Commissioner shall determine and publish in the Federal Register on or before November 1 of each calendar year the contribution and benefit base determined under subsection (b) which shall be effective with respect to remuneration paid after such calendar year and taxable years beginning after such calendar year. . (b) Rate of annual increase Section 230(b) of such Act ( 42 U.S.C. 430(b) (b) (1) The amount of such contribution and benefit base determined under this subsection shall be the product of the contribution and benefit base in effect in the year in which the determination is made multiplied by the larger of— (A) 1, plus the percentage that is equal to twice the annual national average wage increase; or (B) 1.03, with such product, if not a multiple of $300, being rounded to the next higher multiple of $300 where such product is a multiple of $150 but not of $300 and to the nearest multiple of $300 in any other case. (2) For purposes of this subsection, the term annual national average wage increase (A) the amount by which the national average wage index (as defined in section 209(k)(1)) for the calendar year before the calendar year in which the determination under subsection (a) is made exceeds the national average wage index (as so defined) for the calendar year that is 2 years before the calendar year in which such determination is made, divided by (B) the national average wage index (as so defined) for the calendar year that is 2 years before the calendar year in which such determination is made. . (c) Conforming and technical amendments Section 230 of such Act ( 42 U.S.C. 430 (1) by striking subsection (c); (2) by redesignating subsection (d) as subsection (c); and (3) in subsection (c) (as redesignated by paragraph (2)), by striking Public Law 93–406 the Employee Retirement Income Security Act of 1974 (d) Effective date The amendments made by this section shall apply with respect to renumeration paid, and taxable years beginning, after calendar year 2016. 3. Exclusion of certain childcare years from benefit computation formula (a) In general Section 215(b)(2) of the Social Security Act ( 42 U.S.C. 415(b)(2) (1) in subparagraph (A), by striking The number Subject to subparagraph (C), the number (2) by adding at the end the following: (C) (i) The number of an individual’s benefit computation years determined under subparagraph (A) shall be further reduced (after application of the reduction under such subparagraph) by the number of childcare years of the individual (not exceeding 5), except that not more than 2 years may be determined to be a childcare year on the basis of the individual’s status as a primary caregiver for the same child. (ii) For purposes of this subparagraph, the term childcare year (I) during which the individual is the primary caregiver for a child under 6 years of age; and (II) for which the total of the individual's wages and self-employment income is $0. . (b) Effective date The amendments made by subsection (a) shall apply with respect to the computation or recomputation of a primary insurance amount after calendar year 2016.

Summary: Social Security Parent Penalty Repeal Act This bill amends title II (Old Age, Survivors and Disability Insurance) (OASDI) of the Social Security Act to direct the Social Security Administration to determine and publish in the Federal Register on or before November 1 of each year a revised contribution and benefit base, which shall be effective with respect to remuneration paid in subsequent calendar and taxable years. The bill also revises the formula for determining that base. The number of an individual's benefit computation years, for the purpose of determining the individual's primary OASDI insurance amount, shall be further reduced (after a specified initial reduction) by the number of the individual's childcare years (not exceeding five), except that not more than two years may be determined to be a childcare year on the basis of the individual's status as a primary caregiver for the same child. "Childcare year" means an elapsed year of the individual: during which the individual is the primary caregiver for a child under age 6, and for which the total of the individual's wages and self-employment income is $0.