DIR Posts Proposed Draft of Possible Changes to Lump Sum Factors
Monday, August 28, 2017 | 481 | 0 | 0 min read
The Nevada Division of Industrial Relations posted a draft of possible changes to the factors used to calculate lump sum payments for permanent partial disability awards.
Nevada law requires lump sum payments be equal to the present value of the compensation awarded. The present value must be calculated using monthly payments in the amounts set out in Nevada Revised Statutes Section 616C.490(7) as well as actuarial annuity tables adopted by the division.
The referenced statute requires each 1% of a whole person impairment to be compensated by a monthly payment equal to 0.5% of the claimant’s average monthly wage for injuries sustained prior to July 1, 1981; at 0.6% of the average monthly wage if the injury was sustained between July 1, 1981, and June 17, 1993; at 0.54% of the monthly wage for injuries sustained between June 18, 1993, and Dec. 31, 1999; and at 0.6% of the average monthly wage for injuries sustained on or after Jan. 1, 2000.
The DIR is proposing to revise the actuarial annuity tables, which are required by statute to be “reviewed annually by a consulting actuary.” The revised table proposed by the DIR is here.
The division has not scheduled a public hearing on the proposed changes.