Discount Rate on Settlements Drops Sharply for 2020

The discount rate used to calculate lump-sum settlements will drop sharply beginning in January, the Kentucky Department of Workers' Claims announced Thursday. Under Kentucky's two-tiered rate structure, settlements of $40 or less per week are set at the rate paid on 10-year U.S. Treasury Notes, as of Aug. 1. For settlements that pay more than $40 per week, the rate is a half-point lower. That means that for 2020, the discount rate will drop from 2.875% to 1.625% for settlements of $40 or less per week. For larger payments, the rate will drop from 2.375% to 1.125%. The dep...