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Monetary remedies under the ADEA are limited to back
wages, which are clearly of an "economic character,"
and liquidated damages, which we have already noted
serve no compensatory function. Thus, though this is a
closer case than Burke, we conclude that a recovery
under the ADEA is not one that is "based upon tort or
tort type rights."
Commissioner v. Schleier, 515 U.S. at ___, 115 S. Ct. at 2167.
Consequently, petitioner is not entitled to exclude from income
the $75,000 she received from the Postal Service.
Petitioner also received $23,106.64 from the Office of
Personnel Management reflecting changes to her disability
retirement benefits. Petitioner appears to make two basic
arguments for exclusion of the disability retirement benefits.
First, she considers it to be part of the total settlement she
received from the Postal Service, and therefore excludable under
section 104(a)(2). For the reasons stated above, the increased
retirement benefits are not damages received on account of
personal injuries or sickness within the meaning of section
104(a)(2).
Petitioner also cites section 104(a)(4) and argues that
gross income does not include a "disability annuity", and
therefore the payment in question is not income.
In the settlement agreement, the Postal Service agreed to
adjust petitioner's records to reflect a promotion, and then
transmit the information to the Office of Personnel Management,
which would then recalculate and pay to petitioner any additional
retirement benefits due based on her retroactive promotion. As
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