Newton v. Shalala

874 F. Supp. 296, 1994 U.S. Dist. LEXIS 20016, 1994 WL 739518
CourtDistrict Court, D. Oregon
DecidedJune 13, 1994
DocketCV 93-1066-PA
StatusPublished
Cited by6 cases

This text of 874 F. Supp. 296 (Newton v. Shalala) is published on Counsel Stack Legal Research, covering District Court, D. Oregon primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Newton v. Shalala, 874 F. Supp. 296, 1994 U.S. Dist. LEXIS 20016, 1994 WL 739518 (D. Or. 1994).

Opinion

*298 OPINION

PANNER, District Judge.

Plaintiff Erna E. Newton brings this action under the Social Security Act (the Act), 42 U.S.C. § 405(g), seeking judicial review of a final decision of the Secretary of Health and Human Services (the Secretary). Plaintiff contends that the Secretary incorrectly applied the Windfall Elimination Provision, 42 U.S.C. § 415(a)(7), to reduce her old-age insurance benefits. I affirm Secretary’s decision.

BACKGROUND

Plaintiff was born on September 1,1926, in Konigsberg, East Prussia. She worked in Germany from at least January 1945 until 1952. She came to the United States in 1952 and became a United States citizen on March 16, 1954. She worked in the United States from 1952 to 1977.

In 1977, plaintiff returned to Germany and worked there until August 1985.. She worked in the United States from 1985 to 1991.

Plaintiff received 65% of her salary from her former German employer until January 31, 1987. Effective February 1, 1987, plaintiff began receiving a pension of 656.10 marks per month from Germany. The German pension benefits were based on plaintiff’s employment in Germany, a total of 16.58 insurance years.

On June 25, 1991, plaintiff applied for United States old-age insurance benefits. On August 18, 1991, the Secretary determined that plaintiffs monthly benefits would be about $457, effective June 1991. Because of plaintiffs German pension benefits, the Secretary calculated plaintiffs benefits under the Windfall Elimination Provision, reducing her Social Security benefits by about $110.

Plaintiff requested reconsideration, contending that the Windfall Elimination Provision did not apply. After reconsideration was denied, an administrative law judge (ALJ) held a hearing on plaintiffs claims. On March 16, 1992, the ALJ concluded that the Secretary had correctly calculated plaintiffs benefits. After accepting reyiew, on July 9, 1993, the Appeals Council concluded that plaintiff was subject to the Windfall Elimination Provision.

STANDARDS

The court may set aside the Secretary’s denial of benefits if the denial is based on legal error or is not supported by substantial evidence in the record as a whole. Baxter v. Sullivan, 923 F.2d 1391, 1394 (9th Cir.1991). Substantial evidence is “more than a mere scintilla” but “less than a preponderance.” Id. (citations omitted). The court must weigh “both the evidence that supports and detracts from the Secretary’s conclusion.” Martinez v. Heckler, 807 F.2d 771, 772 (9th Cir.1986).

Because it is the Secretary’s job to apply the Social Security Act, the court “must give considerable weight to the Secretary’s construction of the Act.” Das v. Department of Health & Human Servs., 17 F.3d 1250, 1254 (9th Cir.1994). The court must accept the Secretary’s construction if it is reasonable. Id.

DISCUSSION

I. The Windfall Elimination Provision

The Windfall Elimination Provision applies to retirees who are eligible for both Social Security old-age benefits and benefits under another pension plan. Congress wanted to prevent such retirees from receiving disproportionately high Social Security benefits. See Johns v. Sullivan, No. 90-P-1587-S, 1991 WL 284081, at *1 (N.D.Ala. Feb. 20, 1991) (noting “the statutory intent to eliminate so-called ‘double-dipping’ ”).

The Windfall Elimination Provision applies to “an individual ... who [1] attains age 62 after 1985 ... and who [2] first becomes eligible after 1985 for a monthly periodic payment ... which is based in whole or in part upon his or her earnings for service which did not constitute ‘employment’ [i.e., earnings not subject to Social Security tax].” 42 U.S.C. § 415(a)(7)(A). The Provision does not apply to individuals with 30 or more years of Social Security coverage. Id. at § 415(a)(7)(D).

*299 Plaintiff meets the statute’s first condition because she was not 62 years old until 1988. Plaintiff contends that she does not meet the statute’s second condition, eligibility for a non-Social Security pension after 1985, and that she is exempt because she has 30 years of coverage.

II. Plaintiff Is Not Eligible for Totalized Benefits

A foreign pension may subject a retiree to the Windfall Elimination Provision. 20 C.F.R. § 404.213(a)(3) (“Noncovered employment includes employment outside the United States which is not covered under the United States Social Security system.”). However, plaintiff contends that Germany’s “totalization” treaty with the United States places German pensions outside the statute’s reach.

Under the United States’ totalization treaty with Germany, a person who has worked in the United States and Germany and does not qualify for Social Security coverage may add German credits to create eligibility. See U.S. Department of Health and Human Services, Agreement on Social Security Between the United States and Germany (SSA Publ. No. 05-10715) (June 1990) (Agreement). However, German credits may be added to claimant’s United States credits only if the claimant “has at least 6 quarters of U.S. coverage but not enough to be insured for regular U.S. benefits.” Programs Operation Manual System (POMS) § 01707.120(A) (POMS is the Secretary’s procedural manual) (original boldface); see also POMS GN § 01701.105 (to be eligible for totalization benefits, a claimant must “not be insured for benefits based on U.S. coverage alone”). Because plaintiff has enough United States earnings to qualify for United States coverage, she cannot receive totalized benefits under the treaty.

The regulation implementing the Windfall Elimination Provision at first glance appears to favor plaintiff. It provides that “no reduction resulting from entitlement to a pension based on employment covered by a totalization agreement ... will be made in the computation of a totalized benefit.” 20 C.F.R. § 404.213(a)(3). However, because plaintiff is not eligible for totalized benefits, there is no “computation of a totalized benefit.”

III. Plaintiff Was Not Eligible for German Benefits Before 1986

Plaintiff next argues that she became eligible for German old-age benefits before 1986.

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Bluebook (online)
874 F. Supp. 296, 1994 U.S. Dist. LEXIS 20016, 1994 WL 739518, Counsel Stack Legal Research, https://law.counselstack.com/opinion/newton-v-shalala-ord-1994.