State of Florida and Department of Insurance, Division of Risk Management v. Richard Herny

Summary

The Supreme Court of Florida reviewed certified questions concerning workers' compensation offsets for supplemental benefits, Social Security disability and disability retirement benefits, and cost-of-living increases. The court answered the certified questions in the negative and approved the First District's conclusion that a state health insurance subsidy was not a collateral-source disability benefit subject to the statutory benefits cap.

Holdings

1. An employer may not recalculate the workers' compensation offset to include the yearly five-percent increases in supplemental benefits.
2. An employer may not include cost-of-living increases in calculating offsets for Social Security disability and disability retirement benefits under the applicable workers' compensation offset provisions.
3. A state health insurance subsidy available to a retiree because of eligibility for state disability retirement is not a disability benefit or a collateral-source benefit for purposes of section 440.20(15), and therefore must not be included within the workers' compensation benefits cap.

Questions Presented

1. Whether an employer that initially included supplemental benefits in a workers' compensation offset under section 440.20(15), Florida Statutes (1985), may recalculate the offset to account for the yearly five-percent increase in supplemental benefits.
2. Whether an employer calculating offsets for Social Security disability and disability retirement benefits under Escambia County Sheriff's Department v. Grice may include cost-of-living increases to those benefits.
3. Whether a state health insurance subsidy should be treated as a collateral-source disability benefit and included within the cap on workers' compensation benefits under section 440.20(15), Florida Statutes (1985).

Disposition

approved