‘It’s a well-intentioned program that’s lost its way and run amok with real consequences for taxpayer-funded agencies,’ said a reform group spokesperson
A state workers’ compensation fund created after World War II primarily to help injured veterans get jobs has morphed into a program that pays up to $1,700 weekly to workers claiming disability for such conditions as diabetes, asthma and allergies.
Some receiving payments also have claimed erectile dysfunction, toenail fungus, urinary tract infections and acid reflux in their medical evaluations.
The program, called the Subsequent Injuries Benefits Trust Fund, was meant to encourage employers to hire veterans whose prior injuries could be made worse by new, work-related injuries. The SIBTF — not the employers — would be liable for the old injuries. It is funded by an annual tax on all employers.
Gov. Gavin Newsom’s office says the SIBTF is operating unfettered and without the same safeguards as the traditional workers’ compensation system. Unsustainable, the fund’s liabilities are expected to hit $30 billion by 2029 amid skyrocketing applications.
