Kentucky WC will often make an award based upon a given number of weeks and then convert
the award to a LS by discounting that number of weeks. (i.e., In 2008, if an award
for periodic payments is awarded for 425 weeks, it will be converted to an LS award
by using a calculation that uses 359.0785 weeks rather than 425. See examples below
and links for yearly discount tables).
The dollar amount that is multiplied by the number of weeks is always the weekly WC
rate that will be used for prorating the LS settlement for SSA purposes. The computation
formula may contain additional multipliers before arriving at a weekly amount. However,
the multipliers are not important. Extract the dollar amount that is multiplied by
the number of weeks.
Example 1:
The W/E is awarded a lump-sum settlement of $5000 based on a permanent disability
of 3 percent.
The lump-sum award included $278.60 for waiver of right to vocational rehabilitation,
and $2000 for waiver of right to reopen.
The individual received weekly temporary total disability of $332.02.
The settlement computation formula is shown as follows: $332.02 x .03 x0.75 = $7.47 x 364.3106 (number of weeks) = $2721.40.
Total settlement is $2721.40 + $2000 + $278.60 = $5000. When prorating the $5000 settlement,
use the weekly rate of $7.47.
NOTE: The “0.75” is of no importance. It is not necessary to determine what the figure
represents. Extract $7.47 that is multiplied by the number of weeks 364.3106.
Example 2:
The W/E is awarded a $21,237.11 lump-sum settlement based on 15 percent permanent
disability. No periodic payments were made.
The “Settlement Computation” is shown as follows: “$220.54 x 15 percent x 1.25 x 1.5
x 342.3683 = $21,237.11”
When prorating this settlement, use the weekly rate of $62.03 ($220.54 x .15 = 33.08 x 1.25 = 41.35 x 1.5 = $62.03.
NOTE: Similar to Example 1, the “1.25” and “1.5” multipliers used by Kentucky in the calculation
are not important and it is not necessary to verify what they represent. The formula
“$220.54 x 15 percent x 1.25 x 1.5” is equal to $62.03, which is multiplied by the
number of weeks, and is the figure we need to extract from the computation.