Court Overturns Effort for Payment from Mo. Fund

Posted: Jan 22, 2013 6:03 PM by Associated Press

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JEFFERSON CITY, Mo. (AP) - A Missouri appeals court has overturned a judge's order directing a financially troubled state fund to pay an injured worker's claim for benefits.

But the Court of Appeals' Western District on Tuesday also sent the case to the state Supreme Court.

The case arose from a claim against the Second Injury Fund, which covers workers' compensation claims for people with previous disabilities who suffer new job-related injuries. The fund is financed by a surcharge on workers' compensation insurance premiums that was capped in 2005.

Analysts have warned for years the fund was headed toward insolvency.

The Appeals Court sent the case to Missouri's highest court because of constitutional concerns about the cap.

The ruling came the same day that a state Senate committee considered legislation to bolster the fund's finances.

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