North Miami-Dade News

Rep. María Elvira Salazar (R-FL) and Rep. Brittany Pettersen (D-CO) have introduced two legislative bills aimed at enhancing retirement security for family caregivers in the United States. Senators Susan Collins (R-ME) and Mark Warner (D-VA) have introduced corresponding bills in the Senate.

The proposed legislation, named the Improving Retirement Security for Family Caregivers Act (H.R. 9765) and the Catching Up Family Caregivers Act (H.R. 9764), seeks to alleviate financial burdens on individuals who leave their jobs to care for family members, thereby impacting their long-term financial stability.

Rep. Salazar emphasized the importance of supporting caregivers, stating, “Caregiving is one of the most important jobs, but our current policies penalize selfless Americans who look after their loved ones.” She expressed pride in co-leading these initiatives to provide caregivers with opportunities for a dignified retirement.

The Improving Retirement Security for Family Caregivers Act would permit family caregivers to contribute up to $7,000 annually to a Roth IRA regardless of income constraints that typically limit contributions based on annual earnings. This change aims to help caregivers save for retirement despite reduced wages due to caregiving duties.

Meanwhile, the Catching Up Family Caregivers Act would allow caregivers to make catch-up contributions to employer-sponsored retirement plans for every year they are out of work, up to five years, helping them recover missed savings opportunities.

The Alzheimer’s Association and other organizations like Edward Jones Grassroots Task Force and Society for Human Resources Management support both bills. These groups recognize the economic challenges faced by caregivers who often sacrifice personal financial security while caring for loved ones.

Rep. Pettersen highlighted the critical role of caregivers: “Caregivers do some of the most important but under-appreciated work in our country.” She noted that many struggle financially due to time spent away from employment.

Senator Collins remarked on the necessity of providing better financial futures for family caregivers: “Our bipartisan bills would give these individuals a better opportunity to build a secure financial future.”

Senator Warner added that facilitating continued contributions to retirement accounts is crucial: “We need to make it easier for those folks...to retire with dignity.”

Robert Egge from the Alzheimer’s Association praised the bills as supportive measures for dementia caregivers facing emotional and financial difficulties. Dr. Lamell McMorris from Edward Jones expressed gratitude towards Senator Collins' leadership in advancing this legislation which aims at improving savings opportunities.

Emily M. Dickens from SHRM emphasized that caregiver support should be prioritized by business leaders when designing benefit plans: "If we intend to lead with empathy...providing employees with the opportunity must be a priority."

Jason Resendez from the National Alliance for Caregiving noted that these acts represent progress toward addressing economic sacrifices made by family caregivers.

Research indicates significant losses in retirement savings among women who take career breaks for caregiving purposes, with studies showing adverse impacts on long-term financial goals due to such responsibilities.