Document: 404 U.S. 78 92 S.Ct. 254 30 L.Ed.2d 231 Elliott L. RICHARDSON, Secretary of Health, Education, and Welfare, Appellant,v.Raymond BELCHER. No. 70—53. Argued Oct. 13, 1971. Decided Nov. 22, Syllabus Section 224 the Social Security Act, which requires a reduction in social security benefits to reflect workmen's compensation payments, has rational basis does not violate Due Process Clause Fifth Amendment. 317 F.Supp. 1294, reversed. Richard B. Stone, Washington, D.C., for appellant. John Charles Harris, Alexandria, appellee. Mr. Justice STEWART delivered opinion Court. 1 The appellee was granted disability effective October 1968, amount $329.70 per month himself his family. In January 1969, federal payment reduced $225.30 monthly under 'offset' provision 79 Stat. 406, 42 U.S.C. § 424a,1 upon finding that receiving from State West Virginia of.$203.60 month. After exhausting administrative remedies, brought this action challenging payments required by on ground statutory deprived him due process law guaranteed District Judge, disagreeing with other courts have considered question,2 held statute unconstitutional. 1294. Department Welfare appealed directly Court 28 1252.3 We noted probable jurisdiction, 401 935, 91 937, 214, case briefed argued merits. now reverse judgment 2 our last consideration challenge constitutionality classification created we 'a person covered Act such right benefit as would make every defeasance 'accrued' interests violative Amendment.' Flemming v. Nestor, 363 603, 611, 80 1367, 1373, 4 1435. fact are financed part taxes an employee's wages itself limit power Congress fix levels or conditions they may be paid. Nor expectation public confer contractual receive expected amounts. Our decision Goldberg Kelly, 397 254, 90 1011, 25 287, relied, matter procedural interest welfare recipient continued is sufficiently fundamental prohibit termination those without prior evidentiary hearing. But there no controversy over procedure present case, analogy drawn between 'property,' U.S., at 262 n. 8, S.Ct., 1017, cannot stretched impose constitutional limitation substantive changes entitlement benefits. 3 To characterize conferring 'public benefit' not, course, immunize it scrutiny '(t)he employee (Social Security) sufficient substance fall within protection arbitrary governmental afforded Clause.' supra, 1373. argues embodied because discriminates disabled employees who private insurance tort claim awards. say difference treatment constitutionally invalid. A area consistent Equal Protection Fourteenth Amendment if 'rationally based free invidious discrimination.' Dandridge Williams, 471, 487, 1153, 1162, 491. While involving statute, implicate Amendment's Clause, meets test articulated perforce requirement Cf. Bolling Sharpe, 347 497, 499, 74 693, 694, 98 L.Ed. 884. 5 find 224, need go further than reasoning reflected legislative history. predecessor enacted 1956 along amendments first establishing program, full offset state federal4 against payable insurance. 70 816. It self-evident programs certain instances served common purpose, should take precedence overlap. repealed 1958, 72 1025, believed 'the danger duplication might produce undesirable results (was) importance justify benefits.' H.R.Rep. 2288, 85th Cong., 2d Sess., 13. 6 response renewed criticism overlap programs, reexamined problem 1965. Data submitted committees showed 35 50 States, typical worker injured course employment eligible both received excess take-home pay disability. Hearings H.R. 6675 before Senate Committee Finance, 89th 1st pt. 2, p. 904. strongly urged situation incentive return job, impeded rehabilitative efforts programs. Furthermore, anticipated perpetuation lead erosion programs.5 which, limiting total 80% average earnings disability, inherent same time allowed supplement where were inadequate. 7 apparently assumed only established lay characterization benefit.' Because program employer contributions rather taxes, court 'public' distinguish agree discrimination two like classes rationalized assigning them different labels, but neither can unlike made indistinguishable, attaching label. original purpose laws satisfy inadequately met could rationally conclude continue primarily began duplicate States gradual weakening atrophy 8 occasion, limited function Constitution, consider whether legitimate purposes been better applying recipients insurance, judge ourselves apprehensions justified facts. If goals sought legitimate, adopted related achievement goals, then so 9 10 Reversed. 11 DOUGLAS, dissenting. 12 I affirm upheld today is, my view, Federal Government's obligation guarantee all citizens equal laws. 13 Eligibility premised worker's having attained 'insured' status 'covered' Act. undisputed Raymond Belcher, through wife minor children, had qualified 1968 when he broke neck while employed Pocahontas Fuel Co. Lynco, Virginia. Indeed, application approved, authorized 14 however, these substantially solely Belcher also receives payments. said impedes rehabilitation, cutting back Ante, 83. 15 rehabilitation goal explain special given beneficiaries. There many important private, contain provisions affecting substantial portion work force, do require 16 Thus, Belcher's supplemental come Veterans' Administration program,1 Civil Service Retirement Act2 Railroad Act3 annuity, policy,4 self-insurer,5 voluntary wage-continuation plan, proceeds arising disabling injury, applies beneficiaries group 1965 totaled 1.4% beneficiaries.6 Yet, 849,000 workers benefits,7 sixteen percent overlapping veteran's benefits,8 almost fourteen maintained auspices union.9 address aspects its legislation. must, distinctions draws people otherwise similarly situated. Rehabilitation incentives justification worked 224.10 argue duplicating 'impede rehabilitation,' argument must apply regardless their source. nature relation work. 17 designed stem possible 'erosion' plans. As MARSHALL points out, post, 263, provides shall respect plans themselves encourages concerned about overcompensation cut own 'rational basis' discerned majority precisely opposite purpose. 18 19 MARSHALL, whom BRENNAN joins, 20 424a, creates unlawful 21 Before 53-year-old became March supporting children yearly approximately $6,600. Once disabled, work, family awarded totaling month.1 chosen set up fund, entitled totaling.$203.60 These forms compensation. Had keep initial award benefits, income nearly $6,400 year, somewhat less earned appellee's reduced, form result, $5,146.80. 22 Appellee complains unconstitutional places severe burden single class persons adequate justification. Under challenged provision, whose entitles Other kinds compensation—for example, damages—are question here singled out way 23 Starting assumptions assistance, contract nor property interests, classifications basic needs individuals viewed differently Constitution business regulation, concludes reasonable reach today's revitalizes 1435 (1960),2 extends doctrine 491 (1970), law.3 holds long behave 'arbitrary' way; 24 opposing adhere dissenting views Williams. believe used reviewing regulation place reviews legislation providing services distributing government funds provide human needs. deciding requirements Amendment,4 look character question, relative discriminated receive, asserted (or federal) support classification.' 521, 1180 (MARSHALL, J., dissenting); cf. Williams Rhodes, 393 23, 30, 89 5, 10, (1968). approach, necessary more classification. Judges ignore what everyone knows, namely regulating equated dealing destitute, elderly individuals. assessing lawfulness disadvantages suffered beneficiaries, individual stake. even supplemented compensation, families means getting by. far mere deprives need. unnecessary elaborate analysis principles dissent. For Court's test, discriminatory sustained. simply singling compensaion treated. 26 This scheme intrinsically impermissible. Arguably, paying greater relying completely lesser sources prevent 'duplicative' exceed previous thereby discourage returning work.5 issue exclude similar sources. concern excessive combined 'rehabilitation' distinction. 27 What, then, disfavored compensation? majority, conclusory appears 'satisf(ies) need' special; and, claiming rely history,' finds 'anticipated programs.' accept statute. nothing Senate, House, Conference Reports indicating actually passed.6 And think rational. exceeds maximum irrationality arbitrariness countenanced Workmen's serve damage suits. assist way, home Virginia, most complete functional equivalent liability, since employers participate sued damages employees. W.Va.Code Ann. 23—2—6. Moreover, distinction source privately, just damages. Usually paid (as self-insurer) employer's carriers (in pays premiums). See A. Larson, Law Compensation 92.10, 444 (1971); 23—2—1 et seq. see solicitude. 29 More pointedly, defies logic any extent protect encourage manner suggested appellant relies heavily statement representative Council Chambers Commerce subcommittee Finance: 'A impact Legislative proposals offered several (Colorado, Florida, Maryland, Minnesota) reduce (social security) worker. follow direction * will until destroyed.' 1, 259. 31 addition, Government refers testimony another Chamber representative: 32 'Encroachment hampering improve systems improvements needed. Faced sharply rising costs supported Id., 252. 33 am unable how connected rationale. 'average current earnings.' However, plan event 224(d). want save money, invites own. adopting provisions. anything, encouraged programs.7 34 Even some forestall creating degree 'lead (those) 84.8 How hurt program? preposterous suggest destruction destroy program. Such manufactured totally illusory concerns deemed plain passed thought Perhaps oversight,9 arbitrarily universe compensations, alone security. majority's meaning, permitted adverse treatment. benefits—so devastating once-working poor—cannot imposed happened here. dissent.10 provides, pertinent part: '(a) attains age 62— '(1) section 423 title, '(2) month, United State, periodic partial (whether permanent), has, notice title 402 self-employment (but below zero) sum of— '(3) sections '(4) (and paid) 'exceeds higher '(5) percentum earnings,' . 'For clause (5), individual's larger (A) wage computing (B) one-sixtieth (computed regard limitations specified 409(a) 411(b)(1) title) five consecutive calendar years after 1950 highest. .' 424a(a). E.g., Gambill Finch, 309 (E.D.Tenn.1970); Lofty Cohen, 325 285 (E.D.Mich.1970), aff'd sub nom. Richardson, 440 F.2d 1144 (CA6 1971); Bartley 311 876 (E.D.Ky.1970); Bailey 312 918 (N.D.Miss.1970); Benjamin Civ. 32816, E.D.Mich., May 26, 1970, 20,714, CA6, April 29, 1971; Gooch 6840, S.D.Ohio, July 1970; Rodatz 69—170, E.D.Ill., Sept. 4, Richardson (CA7 1971). 'Any party appeal Supreme interlocutory final judgment, decree order *, holding civil action, suit, proceeding agencies, officer thereof, employee, party.' primary Longshoremen's Harbor Workers' 44 1424, 901 seq., applicable Columbia maritime-related occupations, Employees' 532, 8101 (1970 ed.), Government. overwhelming thus refer generally States. amendment originated, took note expressed witnesses hearings concurrently S.Rep.No.404, 100, U.S.Code Cong. & Admin.News 1965, pp. 1943, 2040. Testimony concerning effects future 252, 259, 366, 540, 738—740, 892—897, 949—954, 990. fiscal 2,000,000 veterans service-connected disabilities statutes administered Administration. Statistical Abstract 264 (1971) (hereinafter cited Abstract). 38 301 Benefits provided non-service-connected disabilities. 501 1967, amounted $3,197,906,000. Berkowitz Johnson, Towards An Economics Disability: Magnitude Structure Transfer Medical Costs, J. Human Resources 271, 282 (1970) Disability). indicated three during World War II. Transcript Appeals 37. record silent, potential eligibility Employees 8301 annuity civilian service. 8337. 184,000 annuitants. 284. Title 45 228a railroad Covered excluded coverage If, history separately qualifies dual coverage, Acts HEW publication, Programs 46, 108 (1968) Programs). Participation Virginia's fund optional employer. §§ 23—2—1, 23—2—8 (1970). declines participate, self-insurer. 23—2—9. elected premiums carrier fund—a presumably control exerted collective-bargaining process—the 224. Over 26,000,000 sort 115. 1.3 billion dollars. Disability 278. figure exceeded year. Ibid. Were large enough, determined become self-insurer claims. self-insurers least available 3, $2,008,000,000 $604,000,000 289. 1966 Survey Disabled Adults, Office Research Statistics, Administration, Table Survey). confirmed led adoption Anthony Celebrezze, Welfare. 6675, 152. Survey, 5. Assuming rationality temporary disabilities, still concededly permanent nature. Nevertheless, done. reveal stern one. With exception blind people, 'inability engage gainful activity reason medically determinable physical mental impairment result death lasted continuous period months *.' 423(d)(1)(A). 5—4 upholding terminated oldage fully worker, deported former member Communist Party. unanimous critical acclaim. Reich, New Property, 73 Yale L.J. 733, 768—771, 775 (1964). Prematurely, appear, scholars predicted demise. Court, 1969 Term, 84 Harv.L.Rev. 103—104 Dandridge, State's grant did unconstitutionally discriminate small families. use essentially approach either 884 (1954). idea rocky notes, 1958 H.R.Rep.No.2288, restored estimated 2% perhaps plausible duplicative circumstances worth noting, 88, supra. sole documents 'excessive S.Rep.No. 404, 1943; H.R.Conf.Rep.No.682, Sess.; H.R.Rep.No.213, Sess. so, 522, Appendix A, 23—2—8, opt purchase noting act. medical hospital expenses, funeral specific scheduled losses, loss, see, e.g., 23—4—3, 23—4 23—4—6, unaffected Celebrezze opposed arguing change await thorough study problem. 146. chose wait. Since, stand, decide finally pass qualify already accrued Whatever assistance 287 surely forced tax clearly cognizable tax. 'noncontractual' 1372, (1960), incorrect. contract, rejected there, seems apt. 624, 1379 (Black, dissenting). Of says, 'fix paid.' once fixed level conditions, contributed accord law, unilaterally modify defeats expectations prospective beneficiaries? At least, seem quarters, 423(c)(1), accrued, introducing previously contemplated parties.

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