Mont. High Court: Retirees Can Lose Workers' Comp

HELENA, Mont. (AP) — The Montana Supreme Court has upheld the constitutionality of a state law that allows insurance companies to cut off workers' compensation payments for those suffering permanent total disability when the disabled party is eligible for Social Security retirement benefits.

The 5-2 ruling Tuesday said workers' compensation benefits for permanently and totally disabled workers are meant to assist them for their "work life," and not into retirement.

"While this may not always seem fair, it is not unconstitutional," Justice William Leaphart wrote for the majority. "By acting to terminate benefits as it does, (the law) rationally advances the governmental purpose of providing wage-loss benefits that bear a reasonable relationship to actual wages lost."

Officials with the Montana State Fund, which writes workers' compensation insurance for about 27,000 businesses, said a decision in favor of the workers could have cost the fund as much as $300 million for current and future claims, leading to a rate increase.

State Fund President Laurence Hubbard said he was "quite relieved" with the decision.