Employment – ERISA — overpayments

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United States Court of Appeals

CIVIL

Employment

ERISA; overpayments

Section 207(a) of the Social Security Act, 42 U.S.C. 407(a), does not preclude a disability insurance company from recovering any overpayment that resulted from an insured’s receipt of social security benefits.

“Section 207(a) provides that social security benefits shall not ‘be subject to execution, levy, attachment, garnishment, or other legal process.’ Weitzenkamp argues that Unum’s counterclaim effectively seeks an equitable lien on her social security benefits. True, Unum cannot impose a lien directly on Weitzenkamp’s social security benefits. But Unum recognizes this and instead seeks an equitable lien on specific funds it paid Weitzenkamp under the plan to which it has a claim for reimbursement. This does not contravene § 207(a). See Hall v. Liberty Life Assurance Co. of Boston, 595 F.3d 270, 274-75 (6th Cir. 2010). To paraphrase Cusson v. Liberty Life Assurance Co. of Boston, 592 F.3d 215, 232 (1st Cir. 2010), although the amount in question happens to be the same as the amount of Weitzenkamp’s retroactive social security payment, the funds Unum is targeting do not come from social security. Rather, they come from overpayments Unum paid to Weitzenkamp. Thus, § 207(a) does not bar recovery.”

Affirmed in part, and Reversed in part.

10-3898 & 11-1006 Weitzenkamp v. Unum Life Ins. Co. of America

Appeals from the United States District Court for the Eastern District of Wisconsin, Griesbach, J., Lefkow, J.