Opinion ID: 747799
Heading Depth: 2
Heading Rank: 3

Heading: Disability Retirement Annuity

Text: 21 After his unlawful discharge, Arneson received Civil Service Retirement System (CSRS) disability retirement benefits (disability benefits) in the amount of $72,241.87. The SSA argues that we should deduct the amount of these benefits from Arneson's back pay award because Arneson would otherwise receive a double recovery. We disagree. 22 The Title VII back pay remedy is limited by 42 U.S.C. § 2000e-5(g), which provides in part, [i]nterim earnings ... by the person or persons discriminated against shall operate to reduce the back pay otherwise allowable. This provision prevents employment discrimination victims from recovering twice for the same injury. The SSA argues that Arneson's disability benefits constitute interim earnings. 23 Because the National Labor Relations Act provides the model for the Title VII back pay remedy, see Craig v. Y & Y Snacks, Inc., 721 F.2d 77, 82 (3d Cir.1983), we find the Court's decision in NLRB v. Gullett Gin Co., 340 U.S. 361, 71 S.Ct. 337, 95 L.Ed. 337 (1951) particularly relevant to this issue. 24 The common law collateral source rule holds that the defendant's liability shall not be reduced merely because the plaintiff's net damages are reduced by payments received from others. See Gullett Gin, 340 U.S. at 364, 71 S.Ct. at 339-40. In Gullett Gin, the Court applied the collateral source rule to uphold the National Labor Relations Board's refusal to deduct unemployment benefits from an employee's NLRA back pay award for unlawful discharge. Id. The Court held that the unemployment benefits at issue were collateral because they were not direct benefits from the employer and they were made to carry out a policy of social betterment for the benefit of the entire state. Id. 25 We have previously addressed this issue under the Age Discrimination in Employment Act of 1967, 29 U.S.C. § 621. See, e.g., Smith v. World Ins. Co., 38 F.3d 1456, 1465 (8th Cir.1994). In Smith, we refused to reduce an ADEA back pay award by pension benefits received on account of the employee's wrongful discharge and remanded the case to determine whether the award of backpay includes amounts designed to put [the employee's] pension account in the same position as though he were never discharged. Id. at 1466. 26 We affirm the district court's refusal to deduct Arneson's disability benefits from his back pay award because these benefits were from a collateral source and should not be considered interim earnings. 8 Cf. Eichel v. New York Central R.R. Co., 375 U.S. 253, 254, 84 S.Ct. 316, 316-17, 11 L.Ed.2d 307 (1963) (stating [r]espondent does not dispute that it would be highly improper for the disability pension payments to be considered in mitigation of petitioner's damages). We believe Arneson's back pay award does not include monies for disability pension contributions that the SSA would have made but for Arneson's wrongful termination. Moreover, the disability benefits do not come entirely from Arneson's employer because Arneson has unquestionably contributed to his CSRS disability retirement fund. Finally, the payments to Arneson from the CSRS disability fund were made to carry out a social policy wholly independent of back pay awards and they did not discharge any direct obligation that the SSA had to Arneson. See Gullett Gin, 340 U.S. at 364, 71 S.Ct. at 339-40.