From the
Indiana Lawyer:
A split 7th Circuit Court of Appeals panel affirmed a
grant of summary judgment to the Social Security Administration on
Monday in a class-action suit brought by a Canadian woman with dual
citizenship who alleged her U.S. Social Security benefits were wrongly reduced based on similar benefits she receives from Canada.
Lorraine Beeler, a dual citizen of
Canada and the United States, has established nearly 20-year careers in
both countries and receives monthly retirement benefits from the Canada
Pension Plan, that country’s equivalent to U.S. Social Security. She
also worked at jobs on which she paid Social Security taxes in the
United States.
Beeler’s earnings in Canada were not subject to Social
Security taxes, and her earnings in the United States were not subject
to Canada Pension Plan taxes. But Beeler ran into a problem
after she alleges her Social Security benefits were wrongly withheld.
She then sued the Social Security Administration in the U.S. District
Court for the Southern District of Indiana in the class action case of Lorraine Beeler v. Andrew M. Saul, 19-2099.
There, Beeler asserted that the reduction of her U.S.
benefits is a violation of two Social Security provisions: The Windfall
Elimination Provision and the U.S.-Canada totalization agreement. The
class claims that both the statutory language of the WEP and the terms
of the agreement prohibit the reduction of Beeler’s benefits. ...
The 7th Circuit Court of Appeals split in affirming the district court’s
decision, with the majority concluding the agency correctly ruled that
plaintiffs’ Canadian employment was noncovered under the Social Security
Act, and thus the provision applied to reduce their Social Security
benefits. ...
But Circuit Judge Amy St. Eve dissented from the majority’s opinion,
finding that its analysis “rests on an unsupported premise to exclude
Beeler’s work from the definition of employment. ...
I'm a little surprised that we're just now getting litigation on this issue. I suppose the reason there hasn't been litigation is that most of the time the U.S. Social Security Administration cannot apply the offset because it has no knowledge that a claimant is receiving foreign social security benefits.
By the way, I think it would have been better if this case had not been brought as a class action. When there were more class actions against Social Security than there are now, the practice was to win an individual case and THEN bring the class action in another case with a different named plaintiff so that Social Security could raise nothing other than procedural defenses. Don't put all your eggs in one basket until you have to.