Senator Frederick E. Berry (D-Peabody), in his role as Vice-Chairman of Ways and Means, advocated for legislation to create a three-year pilot program offering 12 weeks of paid family leave for parents of newborns or newly adopted children. The legislation, which was proposed yesterday by the Senate Ways and Means Committee, was passed as part of a supplemental budget today in a formal session.
"It is unfair that parents are unable to take time off with their newborn children due to financial constraints," said Senator Berry. "Creating strong bonds with children during the first few months of their lives is critical to their health and development. This legislation would provide parents with the invaluable opportunity to create this crucial bond with newborns and newly-adopted children without having to worry about losing a paycheck."
The proposal would establish a New Families Trust Fund, which is comprised of various resources. The most significant contribution is $70 million from the current end-of-year surplus. Additional deposits will consist of $50 million from the Medical Security Trust Fund and up to $30 million annually from the surplus of the Medical Security Trust Fund for the three years as needed during the pilot program.
The cost estimates for this program are wide-ranging due to a number of variables including how many people participate and how many weeks of the benefit are selected. The Senate plan funds paid family leave with a conservative estimate of an annual $70 million cost, providing for high levels of participation.
As with unemployment compensation, the benefit is 50% of the individual's average weekly salary over the previous four quarters that he or she worked, a maximum of $477 per week. The Federal Department of Labor estimates the average weekly benefit provided to a recipient would be $282.
The supplemental budget was passed today by the Senate. It will be sent to the house for its review.