Klender v. United States

OPINION AND ORDER GRANTING PLAINTIFFS’ MOTION FOR SUMMARY JUDGMENT AND DENYING GOVERNMENT’S MOTION FOR SUMMARY JUDGMENT

LAWSON, District Judge.

This case presents the issue of whether installment payments toward a fixed sum made to school teachers by their school districts as an inducement to relinquish their tenure rights and retire early constitute “wages” from which deductions must be made under the Federal Insurance and Contribution Act (FICA), 26 U.S.C. § 3101, et seq. Although this issue has not yet been addressed by the Sixth Circuit, a similar case decided by the Eighth Circuit answered…