Net Present Value Rises With Treasury Note Rate

The net present value discount rate for longer-term benefit payments will rise slightly for 2019, the South Carolina Workers’ Compensation Commission announced. The net present value, or the discounted value or current cost of a benefit amount to be paid in the future, by regulation is based on the yield-to-maturity rate of the five-year U. S. Treasury note. The Treasury on Wednesday published the rate as 2.49%. That means the net present value for weeks 101 through 500 shall be calculated using a discount rate of 2.49%, up from 2018 rate of 2.25%. For weeks one through 100,...