Worker's Compensation Advisory Council

Proposal # Statute Topic Proposal
1.   Permanent Total Disability Option 2 "Six Year Lag"
Under this option, there would be an immediate increase in maximum rates for PTD claims with dates of disability prior to year 2001.  The increase would allow the existing claims to receive increases up to 2001 maximum TTD rate of $549.  Beginning in 2006, all claims would be re-computed annually beginning with the 6th year after the year of injury.  All re-computed claims would be limited to the maximum TTD rate that existed 6 years prior to the date of re-computation.   For example, claims with injury dates of 2006 would keep their original rate until January of 2012.  They would be re-computed in January of 2012 to their proportion of the maximum rate that applied to dates of injury in 2007.

Thus a 6-year lag is created and maintained between the maximum rate applicable in the year of injury and the year of each re-computation.

The typical claim in 2006 for a permanently disabled worker injured in 1980 at the maximum rate of $233 per week would be $549 per week.  This would amount to an annual increase from $12,116 to $28,548.  The likelihood of increased social security reductions after re-computation would be minimal, and would likely occur only in the first few years in a small number of claims.

About 700 claims would be immediately re-computed in 2006 under this option.  The average ratio to maximum rate for these claims is 83% of the maximum wage for the year of injury.
PPD The maximum Permanent Partial Disability rate shall be 34% of the maximum Temporary Total Disability rate.