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Study: Paid family leave plan could compromise Social Security

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in Compensation and Benefits,Human Resources

A Republican-backed plan that would let employees borrow against future Social Security benefits to pay for family leave could wind up reducing their monthly retirement benefits by an average of 3%—and 10% for those with large families. So says a new study by the Urban Institute think tank.

Republican Sens. Mike Lee (Utah) and Marco Rubio (Fla.) have proposed allowing workers to take up to 12 weeks off at half pay for the birth or adoption of a child, with costs debited against their future Social Security benefits. The Urban Institute found the plan would also raise Social Security’s annual costs by about 1%, worsening the program’s financing shortfall.

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