STEVEN KIENTZ v. COMMISSIONER, SSA
No. 18-3240
United States Court of Appeals for the Tenth Circuit
April 1, 2020
PUBLISH
Sushma Soni, Attorney (Joseph H. Hunt, Assistant Attorney General, Stephen R. McAllister, United States Attorney, and Alisa B. Klein, Attorney, with her on the brief), U.S. Department of Justice, Washington, DC, for Defendant-Appellee.
Before TYMKOVICH, Chief Judge, MURPHY, and CARSON, Circuit Judges.
CARSON, Circuit Judge.
A dual status technician occupies a hybrid role—created by Congress under
I.
Plaintiff Steven Kientz spent many years as a dual status technician with the Kansas Army National Guard, where he worked as a mechanic on electronic measurement equipment. Plaintiff‘s position required him to simultaneously serve as a member of the National Guard, a second job with separate pay and separate responsibilities. In retirement, Plaintiff receives a monthly pension payment under the Civil Service Retirement System based on his service as a dual status technician. Plaintiff also receives Social Security retirement benefits based on contributions he made to the Social Security system from his separate pay as a National Guard member. And this matters because the amount of Plaintiff‘s Social Security retirement benefits depends on how we classify Plaintiff‘s employment, and specifically his civil service pension in particular, under the Social Security statutory scheme. We begin our analysis with a description of the relevant statutory background.
A.
The Social Security Administration (SSA) calculates an individual‘s Social Security retirement benefits according to a statutory formula. See
In some instances, there are individuals who spend their careers in both covered and noncovered positions. These people stand to receive both a civil service pension and Social Security retirement benefits. And such persons could ultimately receive a windfall not available to their peers who worked solely in covered or noncovered positions. The windfall occurs because of the way the Social Security formula works. The statutory formula provides persons with lower covered earnings a greater percentage (vis-a-vis what they paid in) of Social Security retirement benefits than persons with higher covered earnings. See
To address this inequity in the Social Security system, Congress enacted the Windfall Elimination Provision (WEP). Social Security Amendments of 1983, Pub. L. No. 98-21, § 113, 97 Stat. 65, 76 (codified at
Relevant to this case, Congress decided that certain individuals defending our country as members of the armed forces should not be subject to the reduction. Thus, Congress created an exception to the WEP for any monthly periodic payment “based wholly on service as a member of a uniformed service.”
B.
Plaintiff worked as a dual status technician from 1978 to 2007. To obtain and keep the dual status technician position, Plaintiff had to remain a member of the National Guard, wear a military uniform at work, and maintain military fitness standards.
Plaintiff received separate military pay for his National Guard service, apart from his dual status technician job, from 1978 to 2007.2 See
But for his dual status technician work, Plaintiff received civil service pay because Congress classified dual status technicians as federal civilian employees.
And it was under this backdrop that when Plaintiff filed an application for Social Security retirement benefits, the SSA reduced his benefits by applying the WEP. Specifically, the SSA identified that Plaintiff could receive a windfall from the usual statutory formula because he participated in both covered and noncovered employment during his career. And the SSA determined that Plaintiff‘s civil service pension from noncovered employment as a dual status technician triggered the WEP and reduced his Social Security retirement benefits accordingly.
Plaintiff requested reconsideration from the SSA, a determination by an administrative law judge, and review by the SSA Appeals Council, but had no luck. He then sought review in federal district court, but the district court agreed with the SSA. The district court concluded that Plaintiff‘s Social Security retirement benefits were subject to the WEP because his civil service pension was not “based wholly on service as a member of the uniformed service.” Plaintiff now appeals.
II.
We review questions of statutory interpretation de novo, following the same standards as the district court. Wedelstedt v. Wiley, 477 F.3d 1160, 1165 (10th Cir. 2007). When we review an agency‘s legal determination, that standard is often one of deference. Id. In this case, two types of deference could apply: Chevron deference or Skidmore deference. Chevron v. Natural Resources Defense Council, 467 U.S. 837 (1984); Skidmore v. Swift & Co., 323 U.S. 134 (1944). Under Chevron deference, we defer to an agency‘s reasonable interpretation of an ambiguous statute that the agency is responsible for implementing. See Carpio v. Holder, 592 F.3d 1091, 1096 (10th Cir. 2010). Under Skidmore deference, we afford an agency‘s informal interpretation of a statute some measure of “respect according to its persuasiveness.” United States v. Mead Corp., 533 U.S. 218, 221 (2001). In this case, the SSA does not ask for Chevron deference but instead argues that we should afford Skidmore deference to its interpretation.
In either instance, though, we first look “at the statute to determine whether Congress “has spoken directly to the precise question at issue” in such a way that its intent is clear and unambiguous.” Wedelstedt, 477 F.3d at 1165 (quoting Chevron, 467 U.S. at 842); see
For the reasons discussed below, we conclude the plain language of the uniformed services exception, in combination with the relevant statutory context, resolves the question before us. See infra Part III. We therefore do not reach whether to afford deference to the SSA‘s interpretation of the relevant statute because our inquiry begins and ends with the text. See Wedelstedt, 477 F.3d at 1165.
III.
The single issue in this case is whether Plaintiff earned his dual status technician pension “based wholly on service as a member of a uniformed service.”
The SSA, on the other hand, contends that the dual status technician position is not wholly military in nature and, therefore, Plaintiff did not earn his pension from that position based wholly on service as a member of the National Guard. By this, the SSA means that Plaintiff earned his civil service pension in his capacity as a federal civilian employee. And Plaintiff‘s role as a dual status technician was distinct from his role as a National Guard member, for which he earned separate pay and separate retirement benefits. One court of appeals has agreed with the SSA‘s position. Martin v. Soc. Sec. Admin., Comm‘r, 903 F.3d 1154 (11th Cir. 2018) (concluding that a dual status technician‘s Social Security retirement benefits were subject to the WEP because his civil service pension was not “based wholly on service as a member of the uniformed services“). In coming to our own answer, we consider the plain language and structure of the uniformed services exception, context of the full statutory scheme, and characteristics of Plaintiff‘s role in our analysis. See Hamer v. City of Trinidad, 924 F.3d 1093, 1103 (10th Cir. 2019) (observing that “the meaning of statutory language, plain or not, depends on context,” so we look to “the specific context in which that language is used” and “the broader context of the statute as a whole“).
To understand the breadth of the uniformed services exception, we must first define key terms in the statutory provision. See Perrin v. United States, 444 U.S. 37, 42 (1979) (“A fundamental canon of statutory construction is that, unless otherwise defined, words will be interpreted as taking their ordinary, contemporary, common meaning.“); see also Antonin Scalia & Bryan A. Garner, Reading Law: The Interpretation of Legal Texts 140 (2012) (“Words are to be given the meaning that proper grammar
Next, we look to the grammatical structure of the uniformed services exception. See United States v. Ron Pair Enterprises, Inc., 489 U.S. 235, 241 (1989) (explaining that courts should consider “the grammatical structure of the statute” in statutory interpretation); see also Scalia & Garner, supra, at 140 (explaining that the “rules of grammar govern” statutory interpretation “unless they contradict legislative intent or purpose“). The uniformed services exception contains several prepositions. See Bryan A. Garner, The Redbook: A Manual on Legal Style ¶ 10.46 (2002) (explaining that a preposition “is usually positioned before a noun, pronoun, or nominative phrase or clause and relates its subject to another word in the sentence“). Most important to our inquiry, Congress used “as” as a preposition, and “member” serves as the object of that preposition.
In context, the prepositional phrases establish the full criteria for a payment—the principal object of the provision—to qualify for the uniformed services exception. First, the prepositional phrase “based wholly on” restricts a qualifying payment
We reject the Eighth Circuit‘s reasoning for several reasons. For one thing, the statutory text dictates that “the work for which [Plaintiff] now receives civil service [pension] payments—his employment as a dual status technician—must have been performed in his role as a member of a uniformed service.” Id. (emphasis in original). But the Eighth Circuit opined that “absent from the [uniformed services] exception is a requirement that the service be only in a non-civilian or military duty capacity” and rejected a so-called “military duty requirement.” Petersen, 633 F.3d at 637 (internal quantitation marks omitted). That is not how we read the statute. See Royal v. Kautzky, 375 F.3d 720, 723 (8th Cir. 2004) (relying on “unmistakably clear language” to interpret a statute even though other courts to consider the subject provision reached opposite results).
Indeed, the statute requires that a qualifying pension-holder‘s service be “as a member of the uniformed service.”
Next, we must determine whether the military characteristics of Plaintiff‘s dual status technician employment made Plaintiff‘s service “wholly” as a National Guard member. To that end, we “look to Congress‘s conception of the dual status technician role, as evidenced by the rest of the statutory scheme.” Id. at 1165. In the statute describing the dual status technician role, Congress unambiguously states: “For
Additionally, dual status technicians—like all federal technicians—are appointed in the civil service and receive the same civil service pay and retirement benefits as other members of the federal civil service. See
We recognize that the dual status nature of Plaintiff‘s position did include some military-specific requirements. Namely, the position required him to maintain membership in the National Guard, hold a specific military grade, and wear the appropriate military uniform while performing his dual status technician role.
But Plaintiff had many separate responsibilities as a National Guard member that were detached from his dual status technician role. For instance, Plaintiff had to meet certain military requirements, such as assembling periodically for “drill and instruction,” for which he received military pay.
Stated differently, Plaintiff‘s federal civilian employment as a dual status technician was not wholly as a member of the National Guard because Plaintiff cannot simultaneously act wholly in two distinct capacities. See
Accordingly, we hold that certain National Guard-specific requirements are not “sufficient to place dual status technicians within the sweep of the [uniformed services] exception—especially given the provision‘s use of the word “wholly.“” See Martin, 903 F.3d at 1168. Plaintiff‘s dual status technician work was at least partially distinct from the performance of his military duties. See Walch, 533 F.3d at 291. And Plaintiff received separate compensation and separate pensions for his performance of those distinct roles. So Plaintiff‘s civil service pension payments from his employment as a dual status technician
AFFIRMED.
Notes
We also observe that Plaintiff raises an argument for the first time in his reply brief based on the Equal Protection Clause of the Fourteenth Amendment. As Plaintiff concedes, he did not raise an Equal Protection argument to the district court, nor did he raise the argument in his opening brief. Therefore, Plaintiff has waived this argument, which we decline to address on appeal. See, e.g., In re: Motor Fuel Temperature Sales Practices Litig., 872 F.3d 1094, 1113 (10th Cir. 2017) (observing that “arguments raised for the first time in a reply brief are waived“).
