Title: Economic Security for New Parents Act
Policy area: Families

Summary:
Economic Security for New Parents Act
This bill allows parents to use a portion of their Social Security benefits for paid parental leave after the birth or adoption of a child.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 3345 Introduced in Senate (IS)]

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115th CONGRESS
  2d Session
                                S. 3345

To provide paid parental leave benefits to parents following the birth 
                        or adoption of a child.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             August 1, 2018

   Mr. Rubio introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
To provide paid parental leave benefits to parents following the birth 
                        or adoption of a child.

    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 ``Economic Security for New Parents 
Act''.

SEC. 2. PARENTAL LEAVE BENEFIT PAYMENTS.

    (a) In General.--Title II of the Social Security Act (42 U.S.C. 401 
et seq.) is amended by adding at the end the following new section:

``SEC. 235. PARENTAL LEAVE BENEFIT PAYMENTS.

    ``(a) In General.--Any individual who--
            ``(1) qualifies as an eligible parent (as defined in 
        subsection (d));
            ``(2) has filed an application for a parental leave benefit 
        in accordance with paragraph (1) of subsection (c); and
            ``(3) has provided the Commissioner with the information 
        described in paragraph (3) of such subsection,
shall be entitled, subject to subsection (f), for such a benefit under 
this section.
    ``(b) Benefit Amount.--
            ``(1) In general.--The amount of the parental leave benefit 
        under this section shall be an amount equal to the applicable 
        percentage of the primary insurance amount for the eligible 
        parent (as determined under section 215) for the month 
        preceding the month in which the information described in 
        subsection (c)(3) is received by the Commissioner, as though 
        such parent had attained age 62 in such month.
            ``(2) Applicable percentage.--For purposes of paragraph 
        (1), the applicable percentage shall be--
                    ``(A) in the case of an eligible parent who takes 
                leave to provide care for a child for a period 
                described in item (aa) of subsection (c)(1)(A)(ii)(II), 
                150 percent; or
                    ``(B) in the case of an eligible parent who takes 
                leave to provide care for a child for a period 
                described in item (bb) of such subsection, 300 percent.
            ``(3) Reduction in benefit amount on account of disability 
        insurance benefits.--The amount of any parental leave benefit 
        under this section shall be reduced by the amount, if any, of 
        any disability insurance benefits under section 223 of the 
        Social Security Act (42 U.S.C. 423) received by an eligible 
        parent during the calendar year in which the parental leave 
        benefit is received by such parent.
            ``(4) Rounding.--Any amount determined under paragraph (1) 
        shall be rounded down to the next whole dollar amount.
    ``(c) Administration.--
            ``(1) Application.--
                    ``(A) In general.--An application for a parental 
                leave benefit shall include--
                            ``(i) a statement that the applicant 
                        anticipates giving birth to or becoming the 
                        parent of a child;
                            ``(ii) if applicable, an attestation from 
                        the applicant that the applicant has provided 
                        60 days written notice to the applicant's 
                        employer of the applicant's intention (except 
                        that if the date of the birth or placement 
                        involved requires the leave to begin in less 
                        than 60 days, the attestation shall provide 
                        such written notice of that intention as is 
                        practicable) to--
                                    ``(I) receive a parental leave 
                                benefit under this section; and
                                    ``(II) subject to subparagraph (B), 
                                take leave to provide care for the 
                                child for--
                                            ``(aa) 1 month; or
                                            ``(bb) a period of not less 
                                        than 2 consecutive months; and
                            ``(iii) the social security number of the 
                        applicant.
                    ``(B) Two-parent household.--In the case in which 
                both eligible parents of a child elect to receive a 
                parental leave benefit under this section, the leave 
                requirement under subparagraph (A)(ii)(II) shall be 
                applied to such parents jointly.
                    ``(C) Online availability.--The Secretary shall 
                make the application described in this paragraph 
                available through an Internet website or other 
                electronic media.
            ``(2) Eligibility determination.--Following receipt of an 
        application described in paragraph (1), the Commissioner 
        shall--
                    ``(A) determine whether the information required 
                for such application has been properly submitted, 
                including determining the validity of the individual's 
                social security number;
                    ``(B) determine whether the individual satisfies 
                the requirement for quarters of coverage under 
                subsection (d)(2); and
                    ``(C) provide notice to the individual regarding 
                the determinations under subparagraphs (A) and (B).
            ``(3) Notification.--Not later than 52 weeks following the 
        date of the birth or adoption of the child, an individual who 
        has submitted an application under paragraph (1) shall provide 
        the Commissioner with--
                    ``(A) the name and the date of the birth or 
                adoption of the child;
                    ``(B) an attestation from the individual that they 
                have submitted an application for issuance of a social 
                security number for such child; and
                    ``(C) a copy of the birth certificate or other 
                documentation demonstrating that the individual is the 
                parent of the child.
            ``(4) Payment.--The Commissioner shall provide payment to 
        the eligible parent of--
                    ``(A) not later than 2 weeks after receipt of the 
                information described in paragraph (3), 50 percent of 
                the parental leave benefit; and
                    ``(B) not later than 30 days after the payment 
                described in subparagraph (A), 50 percent of the 
                parental leave benefit.
            ``(5) Review.--All final determinations of the Commissioner 
        under this subsection shall be reviewable according to the 
        procedures set out in section 205.
            ``(6) Minimum period of leave.--The Commissioner may 
        publish rules, regulations, or guidance or take other actions 
        in order to ensure that any eligible parent (or, for purposes 
        of paragraph (1)(B), both eligible parents) claiming a benefit 
        under this section takes leave from employment for a period of 
        not less than the number of months provided under paragraph 
        (1)(A)(ii)(II), including directly contacting the employer of 
        such parent or offsetting overpayments against future social 
        security benefits.
    ``(d) Eligible Parent.--
            ``(1) In general.--The term `eligible parent' means a 
        parent who satisfies the requirement under paragraph (2).
            ``(2) Requirement for quarters of coverage.--The 
        requirement described in this paragraph is that the individual 
        shall have not less than--
                    ``(A)(i) 4 quarters of coverage during the 4-
                quarter period preceding the birth or adoption of their 
                child; and
                    ``(ii) 8 quarters of coverage preceding the birth 
                or adoption of their child; or
                    ``(B) 12 quarters of coverage preceding the birth 
                or adoption of their child.
            ``(3) Child and parent.--
                    ``(A) Child.--In this section, the term `child' 
                means a biological or legally adopted child who has not 
                attained 18 years of age.
                    ``(B) Parent.--In this section, the term `parent' 
                means--
                            ``(i) the biological mother or father of a 
                        child; or
                            ``(ii) an individual who legally adopts a 
                        child,
                who is the legal guardian of the child and who has the 
                same principal place of abode as the child for more 
                than \1/2\ of the taxable year.
    ``(e) Relationship With State Law; Employer Benefits.--
            ``(1) In general.--This section does not preempt or 
        supercede any provision of State or local law that authorizes a 
        State or political subdivision to provide paid parental or 
        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.
    ``(f) Sunset.--No benefits shall be paid under this section after 
December 31, 2023.''.
    (b) Delayed Eligibility for Old-Age Insurance Benefits.--
            (1) Retirement age; early retirement age.--Section 216(l) 
        of the Social Security Act (42 U.S.C. 416(l)) is amended by 
        adding at the end the following:
    ``(4)(A) Notwithstanding the preceding paragraphs of this 
subsection, in the case of an individual who received a parental leave 
benefit under section 235--
            ``(i) the retirement age with respect to such individual 
        shall be deemed to be--
                    ``(I) the retirement age determined with respect to 
                such individual under paragraph (1); plus
                    ``(II) the parental leave benefit adjustment with 
                respect to such individual, as determined under 
                subparagraph (B); and
            ``(ii) the early retirement age with respect to such 
        individual shall be deemed to be--
                    ``(I) the early retirement age determined with 
                respect to such individual under paragraph (2); plus
                    ``(II) the parental leave benefit adjustment with 
                respect to such individual, as determined under 
                subparagraph (B).
    ``(B)(i)(I) For purposes of subparagraph (A), the parental leave 
benefit adjustment of the individual shall be equal to the sum of any 
adjusted benefit months of such individual.
    ``(II) The term `adjusted benefit months' means, for each parental 
leave benefit received by an individual under section 235, the number 
of months (rounded to the nearest whole month) equal to the product 
of--
            ``(aa) 3 months (or, in the case of an eligible parent who 
        takes leave to provide care for a child for a period described 
        in item (aa) of section 235(c)(1)(A)(ii)(II), 1.5 months), 
        multiplied by
            ``(bb) the parental leave benefit ratio applicable for the 
        calendar year in which such parental leave benefit was 
        received.
    ``(ii) The parental leave benefit ratio for each calendar year 
shall be the amount, as determined by the Chief Actuary of the Social 
Security Administration, needed to ensure that the total amount of 
annual outlays from the Federal Old-Age and Survivors Insurance Trust 
Fund which are attributable to parental leave benefit payments under 
section 235 are equivalent to the subsequent reduction in outlays from 
such Trust Fund which are attributable to the application of the 
amendments made by section 2(b) of the Economic Security for New 
Parents Act.
    ``(iii) In each calendar year, the Commissioner shall publish in 
the Federal Register, on or before November 1, the parental leave 
benefit ratio applicable for any parental leave benefits received by 
any individual during the subsequent calendar year.''.
            (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 described in subparagraph (A) of 
        paragraph (4) of section 216(l), age 70 plus the parental leave 
        benefit adjustment determined under subparagraph (B) of such 
        paragraph)''.
            (3) Voluntary suspension of benefits.--Section 
        202(z)(1)(A)(i) of the Social Security Act (42 U.S.C. 
        402(z)(1)(A)(i)) is amended by inserting after ``the age of 
        70'' the following: ``(or, in the case of an individual 
        described in subparagraph (A) of paragraph (4) of section 
        216(l), the age of 70 plus the parental leave benefit 
        adjustment determined under subparagraph (B) of such 
        paragraph)''.
    (c) Transfers to Federal Old-Age and Survivors Insurance Trust 
Fund.--Section 201 of the Social Security Act (42 U.S.C. 401) is 
amended by adding at the end the following new subsection:
    ``(o)(1) For each fiscal year, there is hereby appropriated to the 
Federal Old-Age and Survivors Insurance Trust Fund, out of any moneys 
in the Treasury not otherwise appropriated, an amount (not less than 
zero) equal to--
            ``(A) the total amount of outlays from the Federal Old-Age 
        and Survivors Insurance Trust Fund during the preceding fiscal 
        year which are attributable to parental leave benefit payments 
        under section 235; minus
            ``(B) the total reduction in outlays from such Trust Fund 
        during the preceding fiscal year which are attributable to the 
        application of the amendments made by section 2(b) of the 
        Economic Security for New Parents Act.
    ``(2) The amount appropriated to the Federal Old-Age and Survivors 
Insurance Trust Fund under paragraph (1) shall be determined by the 
Secretary of the Treasury in consultation with the Chief Actuary of the 
Social Security Administration.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to calendar years beginning after December 31, 2019.

SEC. 3. TAXATION OF PARENTAL LEAVE BENEFIT PAYMENTS.

    (a) In General.--Section 86 of the Internal Revenue Code of 1986 is 
amended--
            (1) in subsection (d)(1)(A), by inserting ``(or, in the 
        case of section 235 of the Social Security Act, a single 
        benefit payment)'' after ``a monthly benefit''; and
            (2) by adding at the end the following new subsection:
    ``(g) Parental Leave Benefit Payments.--In the case of a taxpayer 
who receives a parental leave benefit under section 235 of the Social 
Security Act during the taxable year, the base amount and adjusted base 
amount, as described in subsection (c), for such taxable year shall be 
determined by multiplying the dollar amounts otherwise applicable under 
paragraphs (1) and (2) of such subsection by 2.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2019.
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