ADJ9457888 · March 10, 2026

SIBTF failed to prove that the CalPERS industrial disability retirement benefits were paid primarily for or on account of applicant's preexisting disabilities or impairment, thus no credit is due.

From the decision · page 8Cases 16].) While the WCAB may draw reasonable inferences from the evidence, this court may only determine whether the evidence is susceptible to the inferences drawn. (Phoenix Indemn. Co. v. Industrial Acc. Com. (Hamilton) (1948) 31 Cal.2d 856, 859 [193 P.2d 745, 13 Cal. Comp. Cases 118]; Coborn v. Industrial Acc. Com. (1948) 31 Cal.2d 713, 716 [192 P.2d 959, 13 Cal. Comp. Cases 89].) Based on the foregoing, we find that SIBTF has failed to establish that applicant received IDR benefits primarily for or on account of her preexisting disabilities or impairment and SIBTF has not met its burden of proof in this case.

Applicant worked full duty until retirement in 2012 and the employer filed the disability retirement application on her behalf.

Favours Applicant prevailed

This testimony supports that the disability retirement payments were not primarily for preexisting disability.

From the decision · page 7based on the SII. Moreover, applicant testified that she worked full duty until her retirement in

There is no evidence that CalPERS payments were made for or on account of applicant's preexisting disability.

Favours Applicant prevailed

Without such evidence, SIBTF cannot prove entitlement to credit under Labor Code section 4753.

From the decision · page 8Cases 16].) While the WCAB may draw reasonable inferences from the evidence, this court may only determine whether the evidence is susceptible to the inferences drawn. (Phoenix Indemn. Co. v. Industrial Acc. Com. (Hamilton) (1948) 31 Cal.2d 856, 859 [193 P.2d 745, 13 Cal. Comp. Cases 118]; Coborn v. Industrial Acc. Com. (1948) 31 Cal.2d 713, 716 [192 P.2d 959, 13 Cal. Comp. Cases 89].) Based on the foregoing, we find that SIBTF has failed to establish that applicant received IDR benefits primarily for or on account of her preexisting disabilities or impairment and SIBTF has not met its burden of proof in this case.

Provided a medical report dated November 2, 2022, stating 46% permanent disability for the subsequent industrial injury.

The report was admitted as the only medical report in the record and was used to establish the permanent disability percentage.

From the decision · page 4based on the report by Nader Achackzad, M.D. dated November 2, 2022, which was admitted as

Labor Code section 4753

Labor Code section 4753 requires that SIBTF credit must be based on monetary payments received for or on account of preexisting disability or impairment.

The Board applied this statute to determine that credit is only due for payments attributable to preexisting disability.

From the decision · page 5Such additional compensation is not in addition to but shall be reduced to the extent of any monetary payments received by the employee, from any source whatsoever, for or on account of such preexisting disability or impairment, except as to payments being made to the employee or to which he is entitled as a pension or other compensation for disability incurred in service in the armed forces of the United States, and except as to payments being made to him or to which he is entitled as assistance under the provisions of Chapter 2 (commencing with Section 11200), Chapter 3 (commencing with Section 12000), Chapter 4 (commencing with Section 12500), Chapter 5 (commencing with Section 13000), or Chapter 6 (commencing with Section 13500) of Part 3, or Part 5 (commencing with Section 17000), of Division 9 of the Welfare and Institutions Code, and excluding from such monetary payments received by the employee for or on account of such preexisting disability or impairment a sum equal to all sums reasonably and necessarily expended by the employee for or on account of attorney's fees, costs and expenses incidental to the recovery of such monetary payments. (§ 4753.)

Subsequent Injuries Benefits Trust Fund v. Workers' Comp Appeals Bd. (Vargas) (2024) 103 Cal. App. 5th 835

The party seeking credit has the burden of proof to establish entitlement and extent of credit under section 4753.

The court held that SIBTF must prove entitlement to credit by a preponderance of the evidence.

From the decision · page 6In Subsequent Injuries Benefits Trust Fund v. Workers' Comp Appeals Bd. (Vargas) (2024) 103 Cal. App. 5th 835 [89 Cal.Comp.Cases 144], the Court of Appeals held that as the party

Applicant testified that she worked full duty until retirement and that the employer filed the disability retirement application on her behalf.

From the decision · page 7based on the SII. Moreover, applicant testified that she worked full duty until her retirement in

Lack of evidence showing that CalPERS payments were attributable to applicant's preexisting disability.

From the decision · page 8Cases 16].) While the WCAB may draw reasonable inferences from the evidence, this court may only determine whether the evidence is susceptible to the inferences drawn. (Phoenix Indemn. Co. v. Industrial Acc. Com. (Hamilton) (1948) 31 Cal.2d 856, 859 [193 P.2d 745, 13 Cal. Comp. Cases 118]; Coborn v. Industrial Acc. Com. (1948) 31 Cal.2d 713, 716 [192 P.2d 959, 13 Cal. Comp. Cases 89].) Based on the foregoing, we find that SIBTF has failed to establish that applicant received IDR benefits primarily for or on account of her preexisting disabilities or impairment and SIBTF has not met its burden of proof in this case.