DWC Revises Interest and Discount Rate to 5.36%

The interest rate on some workers' compensation benefits will drop to 5.36%, the Texas Division of Workers' Compensation announced Thursday. The rate, effective Oct. 1, will drop from the current level of 5.50%. The interest, or discount rate, is adjusted on a quarterly basis and is based on the U.S. Treasury's constant maturity rate for one-year treasury bills, as published by the Federal Reserve every quarter. The interest rate is applied to accrued income or death benefits, and carriers can discount accelerated impairment income benefits and commuted death benefits paid to the...