SSR 70-45c: SECTION 224. -- DISABILITY INSURANCE BENEFITS -- REDUCTION UPON RECEIPT OF LUMP-SUM PAYMENT OF WORKMEN'S COMPENSATION BENEFITS

20 CFR 404.408

SSR 70-45c

NIEVES V . SECRETARY, U.S.D.C., P.R., Civil Action No. 63-68

(5/20/69) (CCH U.I.R. Fed. Par. 15,479)

CANCIO, District Judge This is an action under Section 205(g) of

the Social Security Act, s amended, 42 U.S.C.A. 405(g), to review a final

decision dated December 31, 1968 of the defendant Secretary of Health,

Education, and Welfare, following remand of the case by this Court on

March 22, 1968. The decision holds that the plaintiff's disability

insurance benefits were subject to reduction pursuant to Section 224 of

the Act, 42 U.S.C.A. 424, because of his receipt of workmen's compensation

benefits in the amount of $35.00 per week. The decision further held that

the lump-sum workmen's compensation payment in the total amount of

$6,000.00 made to plaintiff Benedicto Nieves were benefits paid as a

substitute for periodic workmen's compensation benefits of $50.00 per

month beginning with the month of June 1967 and that, therefore, a

reduction of the Social Security benefits of plaintiff and his family is

proper under said Section 224 of the Act, on the basis of such payment

commencing with the month of June 1967.

The sole question before the Court is whether the above mentioned

decision of the Secretary is supported by substantial evidence. The matter

has been submitted to the Court on the transcript attached to defendant's

answer, as required by law, together with an exhaustive brief in support

of his allegations to said answer.

The administrative proceedings in the case disclosed that plaintiff's

application filed on September 8, 1965 for disability insurance benefits

was allowed, but subject to reduction with respect to State workmen's

compensation payments he received. Numerous requests for reconsideration

ensued until finally plaintiff filed this action for review on June 26,

1968.

legations to said answer.

The administrative proceedings in the case disclosed that plaintiff's

application filed on September 8, 1965 for disability insurance benefits

was allowed, but subject to reduction with respect to State workmen's

compensation payments he received. Numerous requests for reconsideration

ensued until finally plaintiff filed this action for review on June 26,

1968.

Section 224 of the Act provides, inter alia , that a claimant's

Social Security disability insurance benefits must be reduced in

accordance with the formula set out therein, if the claimant receives

periodic workmen's compensation payments or a lump-sum payment as a

substitute for periodic payments. Therefore, the question raised in this

case is whether the amounts received by plaintiff pursuant to his

workmen's compensation award were either periodic payments, or a

substitute for periodic payments, so as to render his Social Security

benefits subject to reduction pursuant to Section 224(b) of the Act.

The record is clear with respect to the compensation payments plaintiff

actually received.

The Supreme Court of Puerto Rico has held that weekly amounts, as

received by plaintiff herein under the provisions of the Workmen's

Compensation Law of Puerto Rico, are considered weekly compensation. Arecibo Dock & Shipping Co. et al., v. District Court of

Arecibo , 47 P.R.R. 258 (1934).

So the terms used to refer to the benefits plaintiff received do not

alter the nature of the payment. Nor was the periodic nature of this

compensation received by plaintiff in any way altered by the fact that he

was permitted to receive the total at one time for investment rather than

to be paid the total over a period of time.

As the Supreme Court of Puerto Rico held in Cordero v. Industrial

Commission of P.R. , 59 P.R.R. 754 (1942), the Workmen's Compensation

Law recognizes the existence of a transitional period during which an

injured workman receives medical treatment and a weekly compensation.

s permitted to receive the total at one time for investment rather than

to be paid the total over a period of time.

As the Supreme Court of Puerto Rico held in Cordero v. Industrial

Commission of P.R. , 59 P.R.R. 754 (1942), the Workmen's Compensation

Law recognizes the existence of a transitional period during which an

injured workman receives medical treatment and a weekly compensation.

From the record it is clear that Benedicto Nieves, plaintiff herein, was

entitled to and received a periodic workmen's compensation benefit under

the laws of Puerto Rico which requires that his Social Security benefits

be subject to reduction pursuant to Section 224 of the Social Security

Act. The applicability of the law in the instant case is clear, and it is

not within the province of judicial review to go into the wisdom of

Congress in providing for such reduction in Social Security benefits under

Section 224, supra , in order to avoid payment of excessive combined

benefits.

Under the pertinent jurisprudence it is also clear that Congress has the

power to exercise such discretion in the benefit program under the Social

Security Act, Flemming v. Nestor , 363 U.S. 603 (1960), reh. denied

364 U.S. 854 (1960), and that therefore the Secretary of Health,

Education, and Welfare properly reduced the plaintiff's Social Security

benefits in the instant case.

It is therefore ORDERED that the final decision of the Secretary of

Health, Education, and Welfare be and it is hereby AFFIRMED, and the

complaint herein must be and hereby is DISMISSED.