Department of Public Welfare v. Early

49 Pa. D. & C.2d 795, 1970 Pa. Dist. & Cnty. Dec. LEXIS 487
CourtPennsylvania Court of Common Pleas, Dauphin County
DecidedMay 29, 1970
Docketno. 685
StatusPublished

This text of 49 Pa. D. & C.2d 795 (Department of Public Welfare v. Early) is published on Counsel Stack Legal Research, covering Pennsylvania Court of Common Pleas, Dauphin County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Department of Public Welfare v. Early, 49 Pa. D. & C.2d 795, 1970 Pa. Dist. & Cnty. Dec. LEXIS 487 (Pa. Super. Ct. 1970).

Opinion

CALDWELL, J.,

This appeal is taken pursuant to the Administrative Agency Law of June 4, 1945, P. L. 1388, 71 PS §1710, et seq., from a decision of the Secretary of Public Welfare dated September 3, 1969. The proceeding involves an attack upon certain practices of the Pennsylvania Department of Public Welfare in administering the public assistance program of the Commonwealth. Appellant is the mother of five children and the family has been on public assistance since 1963.

In order to qualify for assistance, appellant signed a reimbursement agreement wherein she contracted, on behalf of herself and her children, to repay the department for the assistance granted to the family. In February 1966, one of her children, Fanny Early, was found to be entitled to a Social Security Old Age Survivors and Disability Insurance award (OASDI) of $57.90 per month, retroactive to September 1965. A lump-sum award was made in the amount of $289.50, covering the period from the date of entitlement (September 1965) to the date of award (February, 1966). Upon receiving notice of the OASDI award to Fanny, the Department of Public Welfare sought reimbursement for the assistance attributable to Fanny’s inclusion in the family unit. The department calculated that the reimbursement owed by Fanny for the period covered by the OASDI lump-sum award was $135.68. When appellant received payment of the award, the department claimed and collected this amount from the proceeds. Appellant’s first contention is that the Department of Public Welfare was prohibited by Social Security legislation from asserting a reimbursement claim to all or [797]*797any part of the OASDI payment for Fanny, and she seeks to recover the sum of $135.68.

Because of the monthly award that Fanny was to receive in the future, the department, beginning in March 1966, no longer considered her a recipient, but public assistance was continued to the remainder of the family. In determining the amount of assistance to be paid to the family, the department concluded that a part of Fanny’s monthly OASDI payment was “available to the rest of the family.” This calculation reduced the monthly amount of public assistance that otherwise would have been paid to appellant for herself and her other children. In January 1969, it was belatedly discovered that the department’s regulations had been changed and that, effective October 1, 1967, the department no longer followed the practice of attributing OASDI payments to anyone other than the recipient. The department thereupon paid appellant the sum of $567.40, which represented the additional family assistance she would have received from October 1, 1967, to January 30, 1969, had Fanny’s OASDI payments not been considered in calculating the amount of assistance payable to the remainder of the family. The department, however, refused to adjust the amount of the assistance grant to the family from March 1, 1966, to September 30, 1967, contending that during this period it was correct in following the regulations that were in effect at that time.

Appellant contends that the department committed legal error by attributing any part of Fanny’s OASDI income to the family at any time, and she seeks to recover the sum of $499.70. This is the amount of additional assistance that appellant and her family would have received during the earlier period if her conclusion is correct.

As to appellant’s first contention, we conclude that the Department acted properly in obtaining reimburs[798]*798ment of the assistance granted to Fanny for the period covered by the lump-sum Social Security payment. Appellant had agreed in writing to reimburse the department for assistance, and she did so upon the request of a department official when the OASDI payment was received. We believe that Commonwealth v. Garlick, 26 D. & C. 2d 389 (1961), cited as controlling in Klaric Petition, 27 D. & C. 2d 93 (1961), correctly decided that the Federal exemption of Social Security benefits from claims of creditors (42 U.S.C.A. §407) does not apply to the Commonwealth’s claim for reimbursement for assistance granted, especially where there was an agreement to repay the Commonwealth.1

Federal cases construing the exemption hold that the statute refers to future benefits and not to accrued Social Security payments: Beers v. Federal Security Administrator, 172 F. 2d 34, 36 (2nd cir., (1949); Ewing v. Gardner, 185 F. 2d 781, 784 (6th Cir., 1950), reversed in part on other grounds, 341 U.S. 321, 71 S. Ct. 684 (1951). Future Social Security payments were not claimed in this case. In a similar case, the Texas Court of Civil Appeals held that “federal law does not attempt to assert any control over the disposition to be made of social security payments after such have been paid into the hands of a lawful guardian for the benefit of minor children.” Texas Baptist Children’s Home v. Corbitt, 321 S.W. 2d 610, 613 (Tex. Civ. App., 1959). See also Ponath v. Hedrick, 22 Wis. 2d 382, 126 N.W. 2d 28 (1964). [799]*799We believe the department properly obtained reimbursement for assistance granted Fanny during the period covered by the delayed but accrued Social Security payment. In paying public assistance to a minor who is entitled to receive income from Social Security, the Commonwealth is, in fact, paying an obligation of the Federal government. Social Security benefits are not voluntary payments and are clearly designed to provide the recipient with an income, thus removing the qualification and / or need for public assistance.

In Commonwealth v. Thompson, 22 D. & C. 2d 236 (1960), the specific holding of the court was that a Social Security payment deposited and credited to the recipient’s bank account has lost its identity as a Social Security benefit. The court held that such funds represent a debt due by the bank to the owner of the account, and in such circumstances can be attached by the Commonwealth to satisfy a claim for reimbursement of public assistance. In the course of its opinion, the court recognized the validity of the department’s position ih this case, page 239:

“If defendant were now permitted to retain the social security benefits, she would in effect be receiving double benefits for the same period of time. This was certainly not the intention of the Social Security Administration nor the Department of Public Welfare of the Commonwealth, and defendant specifically agreed that she would return to the Commonwealth the assistance she had received from the Commonwealth when she received her accumulated social security benefits. If we were to decide that the Commonwealth could not attach the funds in question, our decision could and probably would have far reaching results in that many widows and orphans might be deprived of assistance from the Commonwealth during the period of delay in the start of social security benefits if the Commonwealth knew [800]*800that it could not recoup the assistance so granted. Having received the bounty of the Commonwealth, defendant should unhesitatingly repay the Commonwealth out of her social security benefits, just as she promised to do.” (Italics supplied.)

It must be noted that this is not a proceeding wherein the Commonwealth is attempting to obtain reimbursement from Social Security benefits, for it has already been reimbursed. The issue here is appellant’s right to recover the amount she has paid pursuant to her reimbursement agreement.

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Related

Ewing v. Gardner
341 U.S. 321 (Supreme Court, 1951)
Shapiro v. Thompson
394 U.S. 618 (Supreme Court, 1969)
Ewing v. Gardner
185 F.2d 781 (Sixth Circuit, 1950)
Patten v. County of San Diego
235 P.2d 217 (California Court of Appeal, 1951)
Sweeney v. State Board of Public Assistance
36 F. Supp. 171 (M.D. Pennsylvania, 1940)
Beers v. Federal Security Administrator
172 F.2d 34 (Second Circuit, 1949)
Jefferson v. Hackney
304 F. Supp. 1332 (N.D. Texas, 1969)
Smith v. Reynolds
277 F. Supp. 65 (E.D. Pennsylvania, 1968)
Ponath v. Hedrick
126 N.W.2d 28 (Wisconsin Supreme Court, 1964)
Washington Park, Inc. Appeal
229 A.2d 1 (Supreme Court of Pennsylvania, 1967)
Eways v. Board of Road Supervisors
220 A.2d 840 (Supreme Court of Pennsylvania, 1966)
Texas Baptist Children's Home of Round Rock v. Corbitt
321 S.W.2d 610 (Court of Appeals of Texas, 1959)
Commonwealth v. Frost, Com. of Welfare
172 S.W.2d 905 (Court of Appeals of Kentucky (pre-1976), 1943)
Blumenschein v. Pittsburgh Housing Authority
109 A.2d 331 (Supreme Court of Pennsylvania, 1954)
Founders Hall Foundation Liquor License Case
209 A.2d 15 (Superior Court of Pennsylvania, 1965)

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Bluebook (online)
49 Pa. D. & C.2d 795, 1970 Pa. Dist. & Cnty. Dec. LEXIS 487, Counsel Stack Legal Research, https://law.counselstack.com/opinion/department-of-public-welfare-v-early-pactcompldauphi-1970.