Discount Rate Dips Slightly to 7.99%

The Texas Division of Workers’ Compensation announced that the interest rate used to calculate the present-day value of lump-sum settlements will drop to 7.99% on April 1 from the 8.11% in effect during the first three months of the year. In addition to being used to determine the current value of future payments for settlements, the discount rate is also used to calculate funding for the Subsequent Injury Fund and interest on accrued benefits. The discount rate is updated quarterly and must equal the rate for one-year U.S. Treasury bills, plus 3.5%. More information on the discount r...