Ark. Code Ann. § 11-9-804 (2020)
Lump-sum settlement
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- Whenever the Workers' Compensation Commission determines that it is for the best interest of the parties entitled to compensation, and after due notice to all parties in interest of a hearing, the liability of the employer for compensation may be discharged by the payment of a lump sum equal to the present value of all future payments of compensation computed at ten percent (10%) discount, compounded annually.
- Lump-sum settlements shall not be allowed if the employer presents evidence which proves by a preponderance of the evidence that ordering the compensation discharged in such a manner would result in a substantial adverse effect on the continuing economic viability of the employer.
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- The probability of the death of the injured employee or other persons entitled to compensation before the expiration of the period during which they are entitled to compensation shall, in the absence of special circumstances making such a course improper, be determined in accordance with the following table.
- It is intended that this table shall be used in conjunction with the discount rate prescribed in subsection (a)(1) of this section for the purpose of calculating the present value of lump-sum settlements to injured employees.
- The probability of the happening of any other contingency affecting the amount or duration of compensation shall be disregarded, except the possibility of the remarriage of the widow, which shall be determined in accordance with the Danish Annuity and Dutch Remarriage Table.
Age Years Average Remaining Lifetime Years 1 74.97 2 75.37 3 74.47 4 73.54 5 72.59 6 71.63 7 70.67 8 69.70 9 68.73 10 67.75 11 66.77 12 65.80 13 64.82 14 63.84 15 62.87 16 61.90 17 60.94 18 59.97 19 59.02 20 58.06 21 57.10 22 56.15 23 55.19 24 54.24 25 53.29 26 52.33 27 51.38 28 50.42 29 49.47 30 48.52 31 47.57 32 46.62 33 45.68 34 44.73 35 43.79 36 42.86 37 41.92 38 40.66 39 40.07 40 39.14 41 38.23 42 37.31 43 36.41 44 35.50 45 34.60 46 33.71 47 32.83 48 31.95 49 31.08 50 30.21 51 29.35 52 28.49 53 27.65 54 26.80 55 25.97 56 25.14 57 24.31 58 23.49 59 22.68 60 21.88 61 21.09 62 20.30 63 19.53 64 18.76 65 18.00 66 17.25 67 16.51 68 15.78 69 15.06 70 14.35 71 13.67 72 13.01 73 12.38 74 11.77 75 11.18 76 10.61 77 10.04 78 9.48 79 8.93 80 8.40 81 7.90 82 7.42 83 6.98 84 6.57 85 6.17 86 5.80 87 5.43 88 5.09 89 4.77 90 4.47 91 4.18 92 3.92 93 3.69 94 3.50 95 3.33 96 3.18 97 3.06 98 2.95 99 2.85 100 2.77
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History. Init. Meas. 1948, No. 4, § 19, Acts 1949, p. 1420; Acts 1959, No. 167, § 1; 1979, No. 253, § 6; 1986 (2nd Ex. Sess.), No. 10, § 9; A.S.A. 1947, § 81-1319; Acts 1989, No. 460, § 1.
Case Notes
Attorney's Fee.
Where the only compensation awarded to a claimant is weekly benefits, the Workers' Compensation Commission had no statutory authority to direct that an attorney's fee be paid on the basis of a lump sum award, and since the award and assessment of an attorney's fee against the employer or carrier is purely statutory, the commission erred in awarding a lump-sum fee. United States Fid. & Guar. Co. v. Potter, 263 Ark. 689, 567 S.W.2d 104 (1978).
The Workers' Compensation Commission properly concluded that a lump sum attorney's fee could not be awarded on a claimant's current total disability award where the award was not ascertainable because it was not permanent; therefore, it was impossible to calculate the award. Pitts v. Western Elec., 15 Ark. App. 85, 689 S.W.2d 582 (1985).
Commission's Discretion.
Commission did not abuse its discretion in denying a lump sum award where the widow was only twenty-one and the minor children were of tender years. Gary McJunkin Trucking Co. v. Byars, 258 Ark. 387, 525 S.W.2d 662 (1975).
Deviation from Table.
Where administrative law judge found that special circumstances existed that required him to deviate from the American Experience Table of Mortality, the judge was required to make an independent assessment of claimant's probable life span; clearly, the actual life span is the best evidence that could be acquired on this issue. Quinn v. Webb Wheel Prods., 52 Ark. App. 208, 915 S.W.2d 740 (1996).
Employer Liability.
A lump-sum settlement does not discharge the employer from liability for payment of compensation not susceptible of determination and not contemplated nor included in the lump-sum settlement. Brooks v. Arkansas-Best Freight Sys., 247 Ark. 61, 444 S.W.2d 246 (1969).
Future Claims.
Lump sum settlements for the full amounts payable for permanent total disability did not preclude future claims for additional medical benefits accruing subsequent to the lump sum award. Brooks v. Arkansas-Best Freight Sys., 247 Ark. 61, 444 S.W.2d 246 (1969).
Future Payments.
Where claimant was awarded compensation for permanent partial disability and received a lump sum equal to all payments which had already accrued, claimant wrongly contended the payments ran from the date of award, since the deduction permitted under this section when future payments are discharged by a single total payment had not been claimed. Phillips v. Bray, 234 Ark. 190, 351 S.W.2d 147 (1961).
Cited: Davis v. Action Mech., 2012 Ark. App. 515 (2012).