New Parents Act of 2021
Bill: S.2764 | Sponsor: Sen. Rubio, Marco (R-FL)
Policy area: Social Welfare

Summary:
New Parents Act of 2021
This bill allows parents to use a portion of their Social Security benefits for up to three months of paid parental leave after the birth or adoption of a child. To receive the parental leave benefit, parents must choose to either increase their retirement age or temporarily receive a reduction in Social Security benefits upon retirement, as specified.

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.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``New Parents Act of 2021''.

SEC. 2. PARENTAL LEAVE BENEFITS.

    (a) In General.--Title II of the Social Security Act is amended by 
inserting after section 218 the following:

``SEC. 219. PARENTAL LEAVE BENEFITS.

    ``(a) In General.--Every individual--
            ``(1) who has--
                    ``(A) not less than 8 quarters of coverage, 4 of 
                which are credited to calendar quarters during the 
                calendar year preceding the calendar year in which the 
                1st month of the benefit period described in subsection 
                (c) occurs; or
                    ``(B) not less than 12 quarters of coverage; and
            ``(2) who has filed an application for a parental leave 
        benefit with respect to a qualified child of the individual,
shall be entitled to a parental leave benefit with respect to such 
qualified child.
    ``(b) Benefit Amount.--Such individual's parental leave benefit 
shall be an amount equal to the product of--
            ``(1) the number of benefit months (not to exceed 3) 
        selected by the individual in the individual's application for 
        a parental leave benefit, multiplied by
            ``(2) an amount equal to the primary insurance amount for 
        the individual that would be determined under section 215 if--
                    ``(A) the individual had attained age 62 in the 
                first month of the individual's benefit period; and
                    ``(B) the individual had become entitled to an old-
                age insurance benefit under section 202 beginning with 
                such month.
For the purposes of the preceding sentence, the elapsed years referred 
to in section 215(b)(2)(B)(iii) shall not include the year in which the 
individual's benefit period begins, or any year thereafter.
    ``(c) Payment of Benefit.--
            ``(1) Selection of number of benefit months.--In filing an 
        application for a parental leave benefit under this section, an 
        individual shall select the number of months (not to exceed 3) 
        for which the individual will receive a monthly payment under 
        such parental leave benefit (in this section referred to as 
        `benefit months').
            ``(2) Election of benefit months.--Not later than 14 days 
        before the start of any month in the benefit period of an 
        individual entitled to a parental leave benefit, the individual 
        may elect to treat such month as a benefit month. The number of 
        months in such benefit period treated as benefit months shall 
        equal the number selected in the individual's benefit 
        application, and the Commissioner may designate any month as a 
        benefit month in any case in which an individual does not elect 
        to treat a sufficient number of months as benefit months before 
        the end of the benefit period.
            ``(3) Amount of monthly payment.--The amount of a monthly 
        payment made in any benefit month within a benefit period to an 
        individual entitled to a parental leave benefit shall be an 
        amount equal to--
                    ``(A) the amount of the parental leave benefit 
                determined for the individual under subsection (b); 
                divided by
                    ``(B) the number of benefit months selected by the 
                individual pursuant to paragraph (1) with respect to 
                such benefit.
            ``(4) Definition of benefit period.--For purposes of this 
        section, the term `benefit period' means, with respect to an 
        individual entitled to a parental leave benefit with respect to 
        a qualified child, the 1-year period beginning with the month 
        after the month in which the birth or adoption of the qualified 
        child occurs.
    ``(d) Benefit Application.--
            ``(1) In general.--The Commissioner shall ensure that the 
        application for a parental leave benefit--
                    ``(A) includes a notice, clearly written in 
                language that is easily understandable to the reader, 
                explaining that--
                            ``(i) failure to submit such proof or 
                        documentation as the Commissioner may require 
                        to demonstrate that the applicant is the parent 
                        of the qualified child shall be subject to 
                        criminal and civil penalties;
                            ``(ii) the full cost to the Trust Funds of 
                        any amount received by an individual as a 
                        parental leave benefit must be repaid through 
                        reductions to old-age insurance benefits 
                        payable to the individual in subsequent months, 
                        or by other means;
                            ``(iii) entitlement to a parental leave 
                        benefit has no effect on the determination of 
                        an individual's entitlement to leave under the 
                        Family and Medical Leave Act of 1993; and
                    ``(B) requires an attestation by the individual 
                submitting the application that--
                            ``(i) the individual expects to be the 
                        parent of a qualified child throughout the 
                        benefit period with respect to such 
                        application;
                            ``(ii) the individual intends to use the 
                        benefit to finance spending more time with the 
                        qualified child at home and away from 
                        employment during the benefit period; and
                            ``(iii) the individual consents to the 
                        terms and conditions specified in the notice 
                        described in subparagraph (A).
            ``(2) Option to file simultaneous applications.--The 
        Commissioner of Social Security may establish an option under 
        which an individual may file an application for a parental 
        leave benefit under this section with respect to a qualified 
        child at the same time the individual submits an application 
        for a social security account number for such qualified child.
            ``(3) Online availability.--The Commissioner of Social 
        Security shall, as soon as practicable after the date of 
        enactment of this section, permit an individual to apply for a 
        parental leave benefit through an internet website or other 
        electronic media.
    ``(e) Fraud Prevention.--
            ``(1) In general.--The Commissioner of Social Security 
        shall establish procedures to ensure the prevention of fraud 
        with respect to applications for parental leave benefits under 
        this section, including procedures for the submission of such 
        proof or documentation as the Commissioner may require to 
        verify the information contained in such an application.
            ``(2) Enforcement.--In any case in which an individual 
        willfully, knowingly, and with intent to deceive the 
        Commissioner of Social Security fails to comply with the 
        procedures established under paragraph (1), the Commissioner 
        may impose on such individual, in addition to any other 
        penalties that may be prescribed by law--
                    ``(A) a civil monetary penalty of not more than 
                $7,500 for each such failure; and
                    ``(B) an assessment, in lieu of any damages 
                sustained by the United States because of such failure, 
                of not more than twice the amount of the cost to the 
                Federal Old-Age and Survivors Insurance Trust Fund of 
                any parental leave benefit paid to the individual.
    ``(f) Benefit Repayment.--
            ``(1) In general.--An individual who is paid a parental 
        leave benefit under this section shall repay the full cost of 
        such benefit to the Federal Old-Age and Survivors Insurance 
        Trust Fund (as such amount is determined by the Commissioner) 
        in accordance with this subsection.
            ``(2) Old-age insurance benefit offset.--
                    ``(A) In general.--Except as provided in paragraph 
                (3), in the case of any individual described in 
                paragraph (1) who becomes entitled to an old-age 
                insurance benefit, deductions shall be made from each 
                monthly payment of such benefit (not to exceed the 
                first 60 such monthly payments) in such amounts, 
                subject to subparagraph (B), as the Commissioner of 
                Social Security shall determine necessary to fully 
                recover the cost to the Federal Old-Age and Survivors 
                Insurance Trust Fund of any parental leave benefit paid 
                to the individual as of the month in which the 
                individual becomes entitled to an old-age insurance 
                benefit.
                    ``(B) Notification.--Not later than the beginning 
                of each calendar year, the Commissioner of Social 
                Security shall notify each individual whose old-age 
                insurance benefits are subject to a deduction under 
                subparagraph (A) during such calendar year of the 
                amount of the deduction that will be applied to each 
                monthly payment of such benefits during the calendar 
                year.
            ``(3) Alternative increase of retirement age.--
                    ``(A) In general.--In the case of any individual 
                described in paragraph (1) who becomes entitled to an 
                old-age insurance benefit, such individual may elect, 
                at the time of application for such benefit, to be 
                subject to a retirement age increase in accordance with 
                this paragraph. Such election shall be irrevocable, and 
                an individual who makes such an election shall not be 
                subject to a deduction under paragraph (2) for any 
                month.
                    ``(B) Retirement age increase.--Notwithstanding 
                section 216(l)(1), with respect to an individual who 
                makes an election under subparagraph (A), the 
                retirement age of such individual shall be deemed to 
                be--
                            ``(i) the retirement age determined with 
                        respect to the individual under such section; 
                        plus
                            ``(ii) the additional number of months the 
                        Commissioner of Social Security shall determine 
                        necessary to result in the full recovery of the 
                        cost to the Federal Old-Age and Survivors 
                        Insurance Trust Fund of any parental leave 
                        benefit paid to the individual as of the month 
                        in which the individual becomes entitled to an 
                        old-age insurance benefit.
                    ``(C) Increase to earliest entitlement age.--In the 
                case of an individual who makes an election under 
                subparagraph (A), notwithstanding subsection (a) of 
                section 202, no old-age insurance benefit shall be paid 
                to such individual for any month before the first month 
                throughout which the individual has attained age 62 
                plus the additional number of months determined for the 
                individual under subparagraph (B)(ii).
            ``(4) Other recovery methods.--In any case in which the 
        Commissioner of Social Security determines that the cost to the 
        Federal Old-Age and Survivors Insurance Trust Fund of a 
        parental leave benefit paid to an individual cannot be fully 
        recovered pursuant to paragraph (2) or (3)--
                    ``(A) such benefit shall be deemed, upon the making 
                of such determination, to be a payment of more than the 
                correct amount for purposes of section 204; and
                    ``(B) the Commissioner may recover such amounts by 
                means of any method available to the Commissioner under 
                such section.
            ``(5) Projection of repayment amount.--As soon as 
        practicable after the date of enactment of this section, the 
        Commissioner shall establish a system to make available through 
        an internet website or other electronic media to each 
        individual who is paid a parental leave benefit under this 
        section, beginning with the first month beginning after the 
        individual's benefit period the projected amount of the 
        deduction to be made from each of the first 60 monthly payments 
        of old-age insurance benefits under paragraph (2), or if the 
        individual so elects, the additional number of months by which 
        the individual's retirement age would be increased under 
        paragraph (3), in order to fully repay the cost to the Federal 
        Old-Age and Survivors Insurance Trust Fund of any parental 
        leave benefit paid to the individual, and a description of the 
        assumptions used by the Commissioner in making such projection.
    ``(g) Relationship With State Law; Employer Benefits.--
            ``(1) In general.--This section does not preempt or 
        supersede any provision of State or local law that authorizes a 
        State or political subdivision to provide paid parental or 
        family medical leave benefits similar to the benefits provided 
        under this section.
            ``(2) Greater benefits allowed.--Nothing in this Act shall 
        be construed to diminish the obligation of an employer to 
        comply with any contract, collective bargaining agreement, or 
        employment benefit program or plan that provides greater 
        benefits for leave or other leave rights to individuals than 
        the benefits for leave or leave rights established under this 
        Act.
    ``(h) Sunset.--No application for parental leave benefits under 
this section may be filed in any calendar year if the OASDI trust fund 
ratio (as defined in section 215(i)) for such calendar year or for the 
year following such calendar year is projected, based on the 
intermediate projections in the most recent (as of January 1 of such 
calendar year) annual report issued under section 201(c)(2), to be less 
than 20 percent.
    ``(i) Definitions.--For purposes of this section--
            ``(1) the term `qualified child' means, with respect to an 
        individual for a benefit period, a biological child or legally 
        adopted child of the individual (as determined by the 
        Commissioner of Social Security) who--
                    ``(A) will not attain 18 years of age before the 
                end of such benefit period; and
                    ``(B) will be residing with, and under the care of, 
                the individual during the benefit period as determined 
                by the Commissioner.''.
    (b) Conforming Amendments.--
            (1) Nonpayment provisions.--Section 202 of the Social 
        Security Act (42 U.S.C. 402) is amended--
                    (A) in subsection (n)(1)(A), by striking ``under 
                this section or section 223'' and inserting ``under 
                this section, section 219, or section 223'';
                    (B) in subsection (t), in paragraphs (1) and (10), 
                by striking ``under this section or under section 223'' 
                each place it appears and inserting ``under this 
                section, under section 219, or under section 223'';
                    (C) in subsection (u)(1), by striking ``under this 
                section or section 223'' and inserting ``under this 
                section, section 219, or section 223''; and
                    (D) in subsection (x)--
                            (i) in paragraph (1)(A), by striking 
                        ``under this section or under section 223'' and 
                        inserting ``under this section, under section 
                        219, or under section 223''; and
                            (ii) in paragraph (2), by striking ``under 
                        this section or section 223'' and inserting 
                        ``under this section, section 219, or section 
                        223''.
            (2) Delayed retirement credits.--Section 202(w) of the 
        Social Security Act (42 U.S.C. 402(w)) is amended by inserting 
        after ``age 70'' each place it appears the following: ``(or, in 
        the case of an individual whose retirement age is increased 
        under section 219(f)(3), age 70 plus the number of months by 
        which the individual's retirement age is so increased)''.
            (3) Voluntary suspension of benefits.--Section 
        202(z)(1)(A)(ii) of the Social Security Act (42 U.S.C. 
        402(z)(1)(A)(ii)) is amended by striking ``the age of 70'' and 
        inserting ``age 70 (or, in the case of an individual whose 
        retirement age is increased under section 219(f)(3), age 70 
        plus the number of months by which the individual's retirement 
        age is so increased)''.
            (4) Number of benefit computation years.--Section 
        215(b)(2)(A) of such Act (42 U.S.C. 415(b)(2)(A)) is amended--
                    (A) in clause (i), by striking ``, and'' and 
                inserting a semicolon;
                    (B) in clause (ii), by striking the period and 
                inserting ``; and''; and
                    (C) by inserting after clause (ii) the following:
            ``(iii) in the case of an individual who is entitled to a 
        parental leave benefit under section 219, by the number of 
        years equal to one-fifth of such individual's elapsed years 
        (disregarding any resulting fractional part of a year), but not 
        by more than 5 years.''.
    (c) Effective Date.--The amendments made by this section shall 
apply with respect to applications for parental leave benefits filed 
after 2022.
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