Subsequent Injuries Benefits

Purpose

The “Subsequent Injuries Benefits Trust Fund” (SIBTF) was set up by the Legislature to encourage employers to hire employees who already have preexisting disabilities without having to worry that the said employee’s potential work-related injury will cause the employer to pay more than the share caused by the work injury. See Labor Code Sec. 4751 et. seq.

Qualifying for Benefits from the “Subsequent Injuries Benefit Trust Fund”

Simply put, to qualify for benefits from the SIBTF, you, the injured worker, must meet three requirements:

  1. Have any percentage of pre-existing permanent disability (i.e., before the work-injury) ;
  2. Percentage of permanent disability from the subsequent work-injury must be at least 35%; and
  3. Their combined percentages must equal 70% or more.

If you meet these three elements, you will likely qualify for benefits from the SIBTF.

Example

image-1Mr. Joseph Smith had already a pre-existing disability of 40% before applying for a job at McDon’s Restaurant. After being hired and during his first week on the job, he was injured at McDon’s Restaurant. The new work-related injury at McDon’s (ie., subsequent injury) and the pre-existing injury combined caused him to have 75% permanent disability. McDon’ is responsible only for the work-related portion of the disability of 35% (i.e., 75%-40%). The SIBTF will be responsible for the amount of additional permanent disability indemnity after McDon’s pays out its portion, and also SIBTF will pay the life pension to Mr. Smith (because life pensions are payable when permanent disability is 70% or more).

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