The California Supreme Court reversed a decision of the court of appeal. The court held that a disabled worker’s statutory cost of living adjustments had to be calculated and applied prospectively commencing on the January 1 following the date on which he or she first became entitled to receive, and actually began receiving, benefit payments.
In June 2007, an injured worker and his employer’s insurance company settled the worker’s claim for an industrial injury that occurred on January 20, 2004. The parties stipulated that the industrial injury caused partial permanent disability. Indemnity was payable for 437 weeks beginning October 20, 2006. The worker then claimed against the Subsequent Injuries Benefit Trust Fund (SIBTF), based on his preexisting disability caused by hepatitis B and HIV-positive status.
