High Court Exempts Retraining Benefits

The Idaho Supreme Court has exempted retraining benefits from the 5 percent levy imposed by the so-called second-injury fund on all workers’ compensation benefits except permanent and temporary disability income.

In its unanimous decision Monday, the high court held that retraining benefits are included in disability income benefits and not subject to the levy that finances disability payments to workers whose injuries on two different jobs have combined to disable them permanently.

The terse three-page ruling came in the case of Gloria Adams, who had been injured while employed at Caribou Memorial Hospital. As part of the settlement of her claim, the State Insurance Fund agreed to pay $3,200 for a program to retrain Adams as a teacher’s aide.

At that point, the Industrial Special Indemnity Fund tried to collect the 5 percent levy on that amount for the pool of cash used to compensate victims of second injuries.