November 30, 2009
  Source:  WorkInjury.com
  ----------------------------------------

6th Dist. CA:   Court Rules on When Cost-of-Living Increases Start in Life Pensions & TPD Cases   In this just published opinion, the issue (of first impression) was when to start calculating the cost-of-living adjustments mandated by LC 4659(c) for maximum life pension and total permanent disability payments. Should they begin each January 1st: (1) following the date of injury? (2) following the P&S date? or (3) beginning on the date mentioned in the statute, regardless? The WCAB had ruled that it should be the January 1st following the date of injury. The Subsequent Injuries Fund had argued that the increase should only begin on the January 1st following when the applicant first becomes entitled to the benefits; i.e., after the P&S date. But the Sixth District rejected both those arguments and instead chose the earliest possible date of all! It ruled that the cost-of-living increase should be calculated from when the statute's clear wording says it should start -- January 1, 2004 -- even if the date of injury falls AFTER that date! "[W]e hold that the cost of living adjustments pursuant to Labor Code section 4659, subdivision (c), for life pensions and total permanent disability indemnity, are added to those payments, per the words of the statute, starting January 1, 2004, and every January 1 thereafter. "... [T]here is nothing in the language of section 4659, subdivision (c) that requires that COLAs start from the January 1 following the date of injury. "Accordingly, we annul the decision of the Workers' Compensation Appeals Board." This is without question a defeat for employers and a win for injured workers and will dramatically increase the benefits due for life pensions, total disability and death benefits (since they will get paid out sooner). The case is Duncan v. WCAB (X.S.).   To read the full opinion, → CLICK HERE.    [If links don't work, let us know!]

 

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