The WC Act permits employers and injured workers to settle claims for WC benefits,
including medical expense benefits. Life expectancy lump sum settlements are prevalent
in Pennsylvania. For information on life expectancy lump sum settlements, see DI 52150.065.
A Compromise and Release Agreement, form LIBC-755, is required and must be approved
before the agreement is legally binding. The form itself is detailed and generally
provides all the information needed to impose offset, but sometimes the effective
date of the award is not specified. This is problematic when periodic payments were
made but their end date is not shown in the award. However, C&R agreements are signed
on the day of the hearing, right before being submitted to the judge for approval
and the date the C&R was signed is the last date periodic payments were due. If the body of the C&R does not specify an effective date, use the day after the day
it was signed as the lump sum proration effective date.
CAUTION: Disregard any subsequent addendums regarding how to prorate the award. If an addendum
was made at the same time as the award, it will generally be referred to in the award. If there is no reference to the addendum in the award, the employer/carrier can be
contacted to verify whether the addendum was part of the original settlement. For
more information on Subsequent Addenda to LS Settlements, see DI 52150.065.