Michigan Court of Appeals; Docket No. 177279; Published
Judges Markey, Holbrook, and Matuzak; Unanimous; Per Curiam
Official Michigan Reporter Citation: 217 Mich App 1; Link to Opinion 
STATUTORY INDEXING:
Standards for Deductibility of State and Federal Governmental Benefits [§3109(1)]
Social Security Disability Benefits [§3109(1)]
TOPICAL INDEXING:
Employee Retirement Income Security Act (ERISA – 29 USC Section 1001, et seq.)
CASE SUMMARY:
In this unanimous published per curiam Opinion, the Court of Appeals held that plaintiffs social security disability benefits were properly deducted from disability benefits he received from his employer's self-funded disability plan controlled by ERISA, as well as from his non-coordinated no-fault benefits, pursuant to §3109(1) of the statute. The court upheld this "double setoff" by relying upon the previous Supreme Court opinions in Auto Club Insurance Association v Frederick & Herrud, Inc. (After Remand) (Item No. 1628) and Profit v Citizens Insurance Company, 444 Mich 281 (1993). The court stated:
"Given that an ERISA plan's setoff provision must be enforced according to its plain meaning. . .and that §3109(1) of the no-fault act clearly requires the setoff of social security benefits even for noncoordinated no-fault policies,.. .we believe that defendant is also entitled as a matter of law to set off each social security payment that plaintiffs decedent received."
The court rejected plaintiffs argument that such a double setoff is patently unfair and constitutes an inequitable penalty, especially in light of the fact that plaintiff paid a higher premium for a noncoordinated no-fault policy. The court noted that plaintiff cites no statutory case law authority for not enforcing the social security setoff under both the ERISA disability plan and the no-fault policy and therefore if there was an inequity, it "must be remedied by the Legislature."
