Temm v. S.D. Warren Co.12/6/2005
[ ] The hearing officer interpreted section 221 to require coordination of benefits in this case based on her finding that although the plan was in existence on December 31, 1992, it was renewed on or after January 1, 1993. Temm contends that if a disability plan was in existence as of December 31, 1992, the coordination of benefits is prohibited even if the plan was renewed on or after January 1, 1993.
[ ] In construing section 221(10), we first examine the plain meaning of the statutory language, "and we construe that language to avoid absurd, illogical or inconsistent results." Jordan v. Sears, Roebuck & Co., 651 A.2d 358, 360 (Me. 1994). If the statutory language is ambiguous, we then look beyond the plain meaning and examine other indicia of legislative intent, including legislative history. Id.
[ ] Section 221(10) provides in effect that (1) disability benefits paid pursuant to plans in effect prior to December 31, 1992, are not to be offset; and (2) new plans and old plans renewed after January 1, 1993, may expressly provide for no offset. At issue in this case, however, is whether benefits paid pursuant to an old plan that was renewed after January 1, 1993, but is silent as to coordination, must be offset. Because section 221(10) does not directly address this question, we conclude that the statute is ambiguous, and we attempt to discern the Legislature's intent.
[ ] Prior to the enactment of the current version of the Act, Maine required coordination of workers' compensation benefits paid pursuant to employer-funded disability insurance plans. P.L. 1985, ch. 372, § A, 26 (effective June 30, 1985) (codified as amended at 39 M.R.S.A. § 62-B(1989)). Section 221(10) was enacted by the Legislature as part of the wholesale redrawing of Maine's workers' compensation system, P.L. 1991, ch. 885, § A-8 (effective January 1, 1993), and was based on the Michigan Workers' Compensation Act. L.D. 2464, Statement of Fact, § A, at 214 (115th Legis. 1991) ("Section 221 is based on the Michigan coordination of benefit provision found in § 418.354."); see Mich. Comp. Laws Ann. § 418.354 (West 1999).
[ ] While the precursor to Maine's current statute required coordination of disability and workers' compensation benefits, the precursor to Michigan's statute did not. See Gen. Motors Corp. v. Romein, 503 U.S. 181, 184 (1992). When Michigan revised its statute to allow for coordination, it included an exception for disability benefits paid pursuant to plans in effect before the enactment. The intent of including the exception in Michigan was to "prevent retroactive application of the act's coordination provisions and thus protect retirees who may have retired on the assumption that their workers' compensation and disability pension benefits would not be coordinated." Murphy v. City of Pontiac, 561 N.W.2d 882, 884 (Mich. Ct. App. 1997). In Maine, there was no need to protect against retroactive application of the coordination of benefits. Maine already required coordination.
[ ] The Statement of Fact that accompanied the prior version of Maine's coordination provision, 39 M.R.S.A. § 62-B, provides that " he purpose of coordination of benefits is to preclude anyone from receiving a greater income because of the receipt of Social Security or retirement benefits along with workers' compensation than they would have received had they continued to work." Sen. Amend. B to L.D. 1634, No. S-217, Statement of Fact (112th Legis. 1985). We have reiterated in our opinions that the purpose of benefits coordination is to prohibit double recoveries and the stacking of benefits. See, e.g., Jordan, 651 A.2d at 360-61; Berry v. H.R. Beal & Sons, 649 A.2d 1101, 1103 (Me. 1994).
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