Kientz v. Commissioner, SSA

954 F.3d 1277
CourtCourt of Appeals for the Tenth Circuit
DecidedApril 1, 2020
Docket18-3240
StatusPublished
Cited by12 cases

This text of 954 F.3d 1277 (Kientz v. Commissioner, SSA) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kientz v. Commissioner, SSA, 954 F.3d 1277 (10th Cir. 2020).

Opinion

FILED United States Court of Appeals PUBLISH Tenth Circuit

UNITED STATES COURT OF APPEALS April 1, 2020

Christopher M. Wolpert FOR THE TENTH CIRCUIT Clerk of Court _________________________________

STEVEN KIENTZ,

Plaintiff - Appellant, No. 18-3240 v.

COMMISSIONER, SSA,

Defendant - Appellee. _________________________________

Appeal from the United States District Court for the District of Kansas (D.C. No. 5:17-CV-04067-SAC) _________________________________

Roger D. Moore, Rehm, Bennett, & Moore, P.C., LLO, Lincoln, Nebraska, for Plaintiff- Appellant.

Sushma Soni, Attorney (Joseph H. Hunt, Assistant Attorney General, Stephen R. McAllister, United States Attorney, and Alisa B. Klein, Attorney, with her on the brief), U.S. Department of Justice, Washington, DC, for Defendant-Appellee. _________________________________

Before TYMKOVICH, Chief Judge, MURPHY, and CARSON, Circuit Judges. _________________________________

CARSON, Circuit Judge. _________________________________

A dual status technician occupies a hybrid role—created by Congress under 10

U.S.C. § 10216—that includes a balance of traditionally civilian and traditionally

military responsibilities. Dual status technicians are federal civilian employees who perform “maintenance and repair of supplies or equipment issued to” reserve

components of the United States military branches, including the National Guard.

10 U.S.C. § 10216(a)(1)(C). A dual status technician may participate in the Civil

Service Retirement System and receive a pension in retirement. This case requires us

to consider whether a dual status service technician’s civil service pension is “based

wholly on service as a member of a uniformed service” under 42 U.S.C.

§ 415(a)(7)(A). Our jurisdiction to do so arises under 28 U.S.C. § 1291.

I.

Plaintiff Steven Kientz spent many years as a dual status technician with the

Kansas Army National Guard, where he worked as a mechanic on electronic

measurement equipment. Plaintiff’s position required him to simultaneously serve as

a member of the National Guard, a second job with separate pay and separate

responsibilities. In retirement, Plaintiff receives a monthly pension payment under

the Civil Service Retirement System based on his service as a dual status technician.

Plaintiff also receives Social Security retirement benefits based on contributions he

made to the Social Security system from his separate pay as a National Guard

member. And this matters because the amount of Plaintiff’s Social Security

retirement benefits depends on how we classify Plaintiff’s employment, and

specifically his civil service pension in particular, under the Social Security statutory

scheme. We begin our analysis with a description of the relevant statutory

background.

2 A.

The Social Security Administration (SSA) calculates an individual’s Social

Security retirement benefits according to a statutory formula. See 42 U.S.C. § 415.

The formula determines how much money an individual receives from the SSA in

retirement based partially on how much the individual paid into the system via Social

Security taxes.1 See id. From the SSA’s perspective, there are two types of civilian

employment: covered and noncovered. If an employer withholds Social Security

taxes from an individual’s paycheck, the individual works in covered employment.

See 20 C.F.R. § 404.1001(a)(1). If not, the individual works in noncovered

employment. See 42 U.S.C. § 410(a)(5); 20 C.F.R. § 404.1018. And only those who

work in covered employment receive the full measure of Social Security retirement

benefits because covered employees pay into the Social Security system while

noncovered employees do not. See 42 U.S.C. § 415. Noncovered employees (at one

time including civil service employees) often receive a pension instead of Social

Security retirement benefits because these employees did not pay into the Social

Security system. See 20 C.F.R. § 404.1018.

1 Employees and employers generally pay Social Security taxes to fund the “Federal Old-Age and Survivors Insurance Trust Fund.” 42 U.S.C. § 401(a). That fund pays out Social Security retirement benefits, administered by the SSA, to qualifying “old-age” beneficiaries based, in part, on beneficiaries’ past contributions to the fund. See id.; see also Francine Lipman & Alan Smith, The Social Security Benefits Formula and the Windfall Elimination Provision: An Equitable Approach to Addressing ‘Windfall’ Benefits, 39 J. Legis. 181, 185 (2013). 3 In some instances, there are individuals who spend their careers in both

covered and noncovered positions. These people stand to receive both a civil service

pension and Social Security retirement benefits. And such persons could ultimately

receive a windfall not available to their peers who worked solely in covered or

noncovered positions. The windfall occurs because of the way the Social Security

formula works. The statutory formula provides persons with lower covered earnings

a greater percentage (vis-à-vis what they paid in) of Social Security retirement

benefits than persons with higher covered earnings. See 42 U.S.C. § 415(a)(1)(A)(i)–

(iii). Thus, persons with both covered and noncovered earnings stand to receive a

windfall from Social Security. See id.

To address this inequity in the Social Security system, Congress enacted the

Windfall Elimination Provision (WEP). Social Security Amendments of 1983, Pub.

L. No. 98–21, § 113, 97 Stat. 65, 76 (codified at 42 U.S.C. § 415(a)(7)(A)). The

WEP modifies the usual statutory formula to proportionally reduce Social Security

retirement benefits for any individual who also receives “a monthly periodic

payment”—such as a pension payment—“based in whole or in part upon his or her

earnings” for noncovered work. Id. But the WEP is not without its own exceptions.

Relevant to this case, Congress decided that certain individuals defending our

country as members of the armed forces should not be subject to the reduction. Thus,

Congress created an exception to the WEP for any monthly periodic payment “based

wholly on service as a member of a uniformed service.” Id. (we call this the

“uniformed services exception”). Thus, a typical military pension does not reduce an

4 individual’s Social Security retirement benefits from covered employment under the

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Bluebook (online)
954 F.3d 1277, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kientz-v-commissioner-ssa-ca10-2020.