Baker

In this case we construe Labor Code section 4659, subdivision (c) (section 4659(c), or subdivision (c)), which provides for the annual indexing of two categories of workers’ compensation benefits—total permanent disability and life pension payments—to yearly increases in the state’s average weekly wage (SAWW), so that lifetime disability payments made to the most seriously injured workers will keep pace with inflation. The indexing procedure is sometimes referred to as an “escalator,” or one providing for “cost of living adjustments” (COLA’s).

Permanent disability and life pension benefits are intended to compensate the injured worker for the long-term, residual effects of an industrial injury once the worker has attained maximum medical recovery. (Department of Rehabilitation v. Workers’ Comp. Appeals Bd. (2003) 30 Cal.4th 1281, 1291 [ 135 Cal.Rptr.2d 665 , 70 P.3d 1076 ] (Department of Rehabilitation).) Total permanent disability benefits are weekly payments made for life to injured workers who are 100 percent disabled. (§ 4659, subd. (b).) They generally commence on the date the injured worker reaches a medically stable condition (permanent and stationary) because, at…