Michigan law does not allow employer to coordinate payment of workers comp disability benefits with Social Security survivor benefits

Law Reporter, Apr 2000

Robinson v. Shatterproof Glass Corp., - N.W.2d -, No. 218193,1999 WL 1000126 (Mich. Ct. App. Nov. 2, 1999).

A Michigan appellate court held the state Worker's Disability Compensation Act (WDCA), Mich. Comp. Laws 418.354-which provides for the coordination of worker's disability benefits with retirement, social security, and other benefits-does not authorize an employer to coordinate worker's disability compensation benefits with survivor benefits received by the employee under the Social Security Act, 42 U.S.C. 402.

Here, Robinson suffered a disabling work injury and began receiving worker's compensation disability benefits. About eight years later, she began receiving social security benefits as a survivor of her husband. Four years later, her former employer determined that Robinson's disability benefits should have been coordinated with her social security benefits, reduced her weekly disability compensation rate, and petitioned to recoup a claimed overpayment of disability benefits.

The magistrate held the employer could not coordinate the worker's compensation disability benefits with Robinson's survivor benefits. The Workers' Compensation Appellate Commission (WCAC) reversed.

Reversing the WCAC, the appellate court noted that the primary goal in statutory interpretation is to give effect to the legislature's intent. The first step in discerning the intent of the legislature is to consider the language of the statute, the court said.

Applying these principles, the court noted that .(secs) 418.354(1) of the WDCA, which identifies the benefits subject to coordination, refers to old-age benefits under the Social Security Act, not survivor benefits. Section 418.354(9), which addresses the overpayment of compensation benefits, refers to benefit payments as specified in subsection (1). Thus, the court reasoned, a reading of subsection (1) with subsection (9) indicates that social security benefits other than old-age benefits are not subject to coordination.

The court then examined the Social Security Act to determine if survivor benefits are the same as old-age insurance benefits. Under the statute, survivor benefits are clearly separate from old-age benefits, the court said. Accordingly, the court reasoned, because survivor benefits are not old-age insurance benefit payments, they may not be coordinated with worker's compensation disability benefits. Robinson's Counsel

*Rosemary K. Wolock, Southfield, Mich.