Section R20-5-121. Present Value and Basis of Calculation of Lump Sum Commutation Awards

A.      The Commission shall calculate the present value of an award that is commuted to a lump sum under R20-5-122. The Com- mission shall not include in the present value calculation com- pensation paid before the filing of a lump sum commutation petition. The Commission shall use the filing date of a lump sum commutation petition to compute the present value of an award.

B.       The Commission shall calculate the present value of an award at least annually, whether payable for a period of months or based upon the life of the employee, using the United States Life Tables, 2003, National Vital Statistics Reports, Vol. 54, Number 14, April 19, 2006, revised March 28, 2007, Table 1 incorporated by reference, and discounted at the rate estab- lished by the Commission. This incorporation does not include any later amendments or editions of the incorporated matter. A copy of this referenced material is available for review at the Commission and may be obtained from the U.S. Department of Health and Human Services, Centers for Disease Control. The rate established by the Commission is based on the fol- lowing formula: The mean average of the three-month Trea- sury Bill rate on December 31 of each of the five years prior to July 1 of the current year. The rate, once calculated, is effec- tive until the Commission calculates a new rate under this sub- section. The discount rate is published in the minutes of the Commission meeting establishing the rate and is  available upon request from the Commission.

Historical Note

Former Rule 21. Amended effective March 1, 1987, filed

February 26, 1987 (Supp. 87-1). R20-5-121 recodified from R4-13-121 (Supp. 95-1). Amended by final rulemaking at 7 A.A.R. 3966 and 7 A.A.R. 4995, effec-

tive August 17, 2001 (Supp. 01-3). Amended by final

rulemaking at 10 A.A.R. 724, effective February 3, 2004 (Supp. 04-1). Amended by final rulemaking at 11 A.A.R. 2973, effective July 12, 2005 (Supp. 05-3). Amended by final rulemaking at 13 A.A.R. 4139, effective November 6, 2007 (Supp. 07-4).