Discount Rate Climbing to 7.46% in October

The Texas Division of Workers’ Compensation announced that the interest rate used to calculate the present-day value of lump sum settlements, among other things, will climb to 7.46% in October from 6.38% for the third quarter of 2022. The discount rate is used to determine the present-day value of future payments for the purposes of setting lump sum settlement amounts. It is also used to calculate funding for the Subsequent Injury Fund and interest on accrued benefits. The rate for the last three months of 2022 is almost double the 3.77% interest rate in effect in the first quarter of ...