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Calculation of Lump Sums in Excess of $60,000

In a previous post I reported that effective July 1, 2014, the legislature amended § 8-43-406(2) to increased the maximum amount of all lump sums to $80,000, for all dates of injury prior to July 1, 2014 (and to adjust that maximum amount on July 1 of each calendar year).  W.C.R.P.  5-10(B)(1) requires the respondents to complete all sections of the Lump Sum Calculation and Proof of Payment form (WC62), which includes a requirement that the respondents calculate the lump sum discount to be applied after payment of the lump sum. To calculate the lump sum, the carrier is required to utilize the Division’s PPPD calculator.  However, the Division has not yet updated its calculator to accept calculations of lump sums in excess of $60,000.  Therefore, the adjuster will not be able to calculate lump sums in excess of $60,000 to include the lump sum discount to be applied after payment of the lump sum.  In communication with the claims management unit, my clients have been informed to complete only Parts A, C and D of the Lump Sum Calculation and Proof of Payment form until the Division can update its website to accept calculations of lump sums over $60,000.

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