Opinion ID: 437251
Heading Depth: 2
Heading Rank: 1

Heading: Language of Statute

Text: 12 Because the question confronting this court is one of statutory interpretation, we must first turn to the language of the statute. Matala v. Consolidation Coal Co., 647 F.2d 427, 429 (4th Cir.1981). Section 3304(a)(15) expressly provides that the requirement that states offset pension, retirement or other similar periodic payments from unemployment insurance compensation is applicable only if both the pension or retirement benefit is paid under a plan maintained or contributed to by a base period or chargeable employer and, with the exception of Social Security or Railroad Retirement Benefits, services performed for such employer after the beginning of the base period affect the eligibility for, or increase the amount of, the pension or retirement benefits. 26 U.S.C. Sec. 3304(a)(15). See Rivera v. Becerra, 714 F.2d 887, 894 (9th Cir.1983), cert. denied sub nom. International Union, United Automobile, Aerospace & Agricultural Implement Workers of America, --- U.S. ----, 104 S.Ct. 1591, 80 L.Ed.2d 124 (1984); Peare v. McFarland, supra, 577 F.Supp. at 793. Section 3304(a)(15)(B) exempts states from this requirement to the extent that the state determines to take into account an unemployment insurance compensation claimant's contributions for the pension or retirement payment. See Bowman v. Stumbo, 735 F.2d 192 at 197 (6th Cir.1984); Cabais v. Egger, supra, 690 F.2d at 239. 13 Contrary to Watkins's suggestion, this language, which requires states to offset pension benefits from unemployment compensation only if certain conditions are met, is not tantamount to a prohibition of offsets whenever the conditions are not met. Section 3304(a)(15) nowhere explicitly prohibits states from offsetting from unemployment insurance compensation pension or retirement payments in excess of the mandated offset. The absence of such an explicit prohibition in the language of the statute clearly indicates that no such prohibition was intended by Congress. As the Supreme Court has stated concerning a related matter, the absence of such an explicit condition [is] a strong indication that Congress did not intend to restrict the States' freedom to legislate in this area. New York Telephone Co. v. New York State Department of Labor, supra, 440 U.S. at 538, 99 S.Ct. at 1340 (construing Ohio Bureau of Employment Services v. Hodory, 431 U.S. 471, 97 S.Ct. 1898, 52 L.Ed.2d 513 (1977) (footnote omitted). Accordingly, our review of the language of the statute leaves us with the firm conviction that Congress did not preclude states from offsetting pension or retirement payments from unemployment insurance compensation in excess of that mandated by Sec. 3304(a)(15) when it amended that section in 1980. See Cabais v. Egger, supra, 690 F.2d at 240 (impact of states' law varies depending on whether a state chooses to exceed federal minimum standards); McKay v. Horn, supra, 529 F.Supp. at 856 (Sec. 3304 contains only minimum requirements and states are free to set broader offset provisions); Rivera v. Patino, 524 F.Supp. 136, 140 (N.D.Cal.1981) (Federal law sets forth minimum eligibility requirements, but a state is free to impose stricter requirements. Thus, under the new statute, states must offset certain pensions against unemployment insurance benefits in order to maintain federal certification, but if Congress were to repeal the pension offset provision, the state ... could still enact and enforce an identical provision.), aff'd in part & rev'd in part sub nom. Rivera v. Becerra, 714 F.2d 887 (9th Cir.1983), cert. denied sub nom. International Union, United Automobile, Aerospace & Agricultural Implement Workers of America v. Donovan, --- U.S. ----, 104 S.Ct. 1591, 80 L.Ed.2d 124 (1984). Contra In re Cullen, 93 A.D.2d 907, 461 N.Y.S.2d 592 (1983). 14 Watkins also suggests that our construction of the amendment of Sec. 3304(a)(15) in 1980 is such a narrow reading that it has little, if any, force. We do not agree. Quite simply, the 1980 amendment permitted states to refrain from offsetting substantial amounts of pension and other retirement income if the states so chose. See, e.g., 126 Cong.Rec. 23,044 (1980) (remarks of Rep. Davis & Rep. Corman); id. 23,048 (remarks of Rep. Biaggi).