Gerald v. HODGE, Plaintiff-Appellee, v. Donna SHALALA, Secretary of Health and Human Services, Defendant-Appellant
Opinion
Opinion
Reinhardt, J.
Opinion by Judge REINHARDT.
I. INTRODUCTION
The Secretary of Health and Human Services (“Secretary”) appeals the district court’s holding that Gerald Hodge (“Hodge”) was not required to offset a state lump-sum disability award (“lump-sum award”) against his federal social security benefits. We reverse. Under 42 U.S.C. § 424a(a)(2), Hodge must offset his lump-sum award for the months during which he also received his federal benefits.
The Secretary argues that the monthly offset amount should be equal to what Hodge had previously received each month in state temporary disability payments. By contrast, Hodge argues that the offset amount should be equal to his lump-sum award divided by the expected number of months remaining in his natural life. We reject both arguments. We conclude that the offset amount should be equal to Hodge’s lump-sum award divided by the number of months between the date of the award and the date Hodge reaches the age of 65.
II. BACKGROUND
Hodge, a 55-year old boilermaker in Oregon, suffered a work-related injury to his right wrist on October 23, 1986. His right wrist was caught and severely twisted by 500-pound tubes as he retubed a boiler. Hodge…