Discount Rates for Lump-Sum Settlements Drop Sharply for 2021

The Kentucky Workers' Claims Commissioner posted discount rates for lump-sum settlements in 2021, down sharply from 2020 rates. State law requires the commissioner to set the rates at a half-percent below the interest rate paid on 10-year U.S. Treasury notes, for settlements of future benefit payments that would amount to more than $40 per week. For 2021, thanks to historically low rates set by the Federal Reserve, the rate for those settlements will be 0.125%, a full percentage point below the 2020 discount rate. For settlements of future benefits that would have been $40 or less p...