Linza v. Saul

990 F.3d 243
CourtCourt of Appeals for the Second Circuit
DecidedMarch 8, 2021
Docket19-2766
StatusPublished
Cited by1 cases

This text of 990 F.3d 243 (Linza v. Saul) is published on Counsel Stack Legal Research, covering Court of Appeals for the Second Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Linza v. Saul, 990 F.3d 243 (2d Cir. 2021).

Opinion

19-2766 Linza v. Saul 1 2 United States Court of Appeals

3 For the Second Circuit

6 August Term 2019

8 Argued: June 2, 2020

9 Decided: March 8, 2021

11 No. 19-2766

14 STEPHEN LINZA,

15 Plaintiff-Appellee,

16 v.

17 ANDREW SAUL, COMMISSIONER OF SOCIAL SECURITY,

18 Defendant-Appellant.

21 Appeal from the United States District Court 22 for the Western District of New York 23 No. 15-cv-567, Michael A. Telesca, Judge. 24

1 1 Before: SULLIVAN, PARK, and NARDINI, Circuit Judges.

2 Plaintiff-Appellee Stephen Linza, a retired “dual status technician” with the 3 National Guard, appeals the Social Security Administration’s calculation of his 4 Social Security retirement benefits. Linza argues that the civil service pension he 5 received in connection with his employment as a dual status technician – a civilian 6 position that requires concurrent National Guard membership – is not subject to 7 reduction under the Social Security Act’s Windfall Elimination Provision because 8 the pension falls within an exception applicable to payments based wholly on 9 work performed as a member of a uniformed service. The district court (Telesca, 10 J.) granted judgment on the pleadings to Linza, and the agency appealed. Looking 11 to the plain text of the statute and using traditional tools of statutory 12 interpretation, we hold that a civil service pension based on federal civilian 13 employment as a dual status technician does not fall within the uniformed service 14 exception. Accordingly, we REVERSE and REMAND so that the district court 15 may enter a judgment consistent with this opinion. 16 17 REVERSED. 18 19 Andrew O. Miller, Webster Szanyi LLP, Buffalo, 20 New York, for Plaintiff-Appellee Stephen Linza. 21 22 SUSHMA SONI, Attorney, Appellate Staff, Civil 23 Division (James P. Kennedy, Jr., United States 24 Attorney for the Western District of New York, 25 Alisa B. Klein, Attorney, Appellate Staff, Civil 26 Division, on the brief), U.S. Department of Justice, 27 Washington, DC, for Defendant-Appellant United 28 States of America. 29 30 RICHARD J. SULLIVAN, Circuit Judge:

31 This appeal concerns whether Plaintiff-Appellee Stephen Linza’s federal

32 civil service pension from his work as a National Guard “dual status technician”

2 1 constitutes a payment based wholly on work performed as a member of a

2 uniformed service under the Social Security Act (the “Act”). The answer to that

3 question determines whether Linza’s Social Security retirement benefits will be

4 reduced, since a provision of the Act lowers retirement benefits for a person (like

5 Linza) who receives a monthly payment based – at least in part – on income that

6 is not subject to Social Security taxes, unless the monthly payment is exclusively

7 for work as a uniformed service member.

8 A dual status technician is “a Federal civilian employee” who is required to

9 maintain membership in the National Guard while “assigned to a civilian position

10 as a technician.” 10 U.S.C. § 10216(a)(1); see also 32 U.S.C. § 709. Focusing on the

11 position’s military characteristics, the district court held that Linza’s pension

12 qualified as “a payment based wholly on service as a member of a uniformed

13 service.” 42 U.S.C. § 415(a)(7)(A)(III). The district court expressly rejected the

14 view that a dual status technician plays a role with bifurcated civilian and military

15 components, finding instead that Linza served only in one position – namely, as a

16 member of the National Guard with special technical capabilities. Having so

17 found, it then determined that all of Linza’s work as a dual status technician

3 1 constituted work as a uniformed service member, which in turn meant that his

2 pension was wholly based on such service.

3 Urging reversal, the government argues that the plain meaning of the

4 provision at issue, along with its statutory context, makes clear that a dual status

5 technician’s federal civil service pension is not “based wholly on service as a

6 member of a uniformed service.” We agree with the government and reverse.

7 I. BACKGROUND

8 A. Statutory Scheme

9 The Social Security Act pays individuals a retirement benefit based on a

10 percentage of their pre-retirement income from “covered” employment – i.e.,

11 income that was subject to Social Security taxes (“covered income”). See 42 U.S.C.

12 § 415 (describing the calculation of benefits). The Act uses a weighted formula to

13 progressively distribute benefits based on how much covered income an

14 individual has earned over her life. The lower the average covered income an

15 individual has earned, the higher the percentage of her average earnings she will

16 receive in Social Security benefits. See id. § 415(a)(1)(A). As a result, “lower-

17 income workers receive a greater return on their Social Security contributions than

18 higher-income workers.” Babcock v. Comm’r of Soc. Sec., 959 F.3d 210, 215 (6th Cir.

4 1 2020), cert. granted, Babcock v. Saul, 2021 WL 769691 (U.S. Mar. 1, 2021) (No. 20-480).

2 But some employment is not covered under the Act. See 42 U.S.C. § 410(a).

3 For example, most federal civil service jobs for employees hired before 1984 are

4 not covered. See id. § 410(a)(5). Noncovered income is exempt from Social Security

5 taxes and not included in the calculation of Social Security benefits. See id. § 415(b).

6 Because only the covered income is used to calculate Social Security benefits,

7 workers with both covered and noncovered employment would tend to have their

8 Social Security benefits calculated as if they had low lifetime earnings. See Rudykoff

9 v. Apfel, 193 F.3d 579, 581 (2d Cir. 1999). Under the standard formula – that is,

10 without any adjustments – workers whose careers span covered and noncovered

11 employment would thus receive a windfall because of the progressively weighted

12 formula, getting a higher return on their Social Security payments relative to

13 workers with only covered employment.

14 Further, noncovered positions often provide non-Social Security retirement

15 pay through pensions or annuity plans, like the pension provided under the Civil

16 Service Retirement System (“CSRS”) for noncovered civil service employees.

17 Thus, under the standard formula, federal employees who receive a civil service

18 pension for noncovered work and a favorably weighted Social Security benefit

5 1 could receive total retirement income that would “most likely greatly exceed that

2 of a worker with similar earnings all under social security.” Id. (internal quotation

3 marks omitted) (quoting H.R. Rep. No. 98-25, at 22 (1983), reprinted in 1983

4 U.S.C.C.A.N. 219, 240).

5 In 1983, Congress amended the Act to eliminate this unintended windfall

6 by introducing the Windfall Elimination Provision (“WEP”). 42 U.S.C.

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990 F.3d 243, Counsel Stack Legal Research, https://law.counselstack.com/opinion/linza-v-saul-ca2-2021.