Kaczkowski v. Bolubasz, 491 Pa. 561 (1980), is one of the few decisions in the nation that rules out discounting to present value, under the assumption that the inflation rate is equal to the discount rate. This method is called total offset. Kaczkowski is a wrongful death case, but the principle of inflation rate equal to the discount rate appears to indicate that it applies in general to lost earnings cases except when trumped by the MCARE Act that requires discounting in medical liability cases. In addition, the Helpin decision leads to a broad interpretation of Kaczkowksi beyond wrongful death.
Social Security is a frequently overlooked component of an economic damage case. While some cases may involve the loss of a defined benefit pension, in almost all cases involving a wrongful death, personal injury or wrongful termination, there is a lost Social Security component as well as lost earnings. Note that in some cases the lost Social Security may be offset by the Social Security survivor’s benefits or disability benefits. Since Kaczkowski applies to lost earnings, the question that remains is whether or not it applies to lost Social Security.
