AG: Solvency of Missouri’s Second Injury Fund Questionable

October 7, 2009

Missouri Attorney General Chris Koster reported that his office has temporarily stopped entering into new settlement agreements with claimants on Missouri’s Second Injury Fund. Additionally, Koster ordered the withdrawal of all outstanding settlement offers to claimants.

“Our office, along with the State Treasurer’s Office, received notification Tuesday from the Missouri Department of Labor that the solvency of the Missouri Second Injury Fund is in question,” Koster said.

“It was represented to us that current fund revenues may be adequate to meet current obligations upon the fund until the end of the year. However, we were informed that new obligations upon the fund could potentially push the fund past solvency.

“Therefore, given information currently available, our office has determined it is in the best interests of existing claimants and the state that no new settlements be entered into until a greater understanding of the fund’s solvency is reached and until further consultations with executive and legislative leaders are completed,” he said.

The Second Injury Fund began as a means to encourage employers to hire workers with pre-existing disabilities or injuries. It compensates employees for the combination of their pre-existing injuries with their workplace injury. It also ensures that workers who are injured while working for an uninsured employer are given medical care.

Source: Missouri Attorney General’s Office

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