§386-54 Commutation of periodic payments.
Upon application of the disabled employee, the employee's dependents or the
employer, the director of labor and industrial relations may order that the
periodic benefit payments be commuted to one or more lump sum payments equal to
the present value at the time when the lump sum payments are due of the future
benefit payments, computed at four per cent true discount compounded annually,
if the director finds that such commutation is in the best interest of the
employee or the employee's dependents and does not impose undue hardship upon
the employer.
The probability of the death of the disabled
employee or of a dependent entitled to benefits before the expiration of the
period during which the employee or dependent is entitled to receive such
payments and the probability of the remarriage of the spouse shall be
determined in accordance with the latest United States Life Tables and the
American Remarriage Tables, respectively, as adjusted and corrected on the
basis of the most recent available experience, or in accordance with any other
appropriate actuarial tables selected by the director, upon advice of the chief
actuary of the Social Security Administration. The probability of the
happening of any other contingency affecting the amount or duration of the
benefit payments shall not be considered.
Payment of the lump sums shall discharge the
employer of the employer's liability for the corresponding income and indemnity
benefits. [L 1963, c 116, pt of §1; Supp, §97-53; HRS §386-54; am L 1974, c
157, §1; gen ch 1985]
Law Journals and Reviews
Administering Justice or Just Administration: The Hawaii
Supreme Court and the Intermediate Court of Appeals. 14 UH L. Rev. 271 (1992).
Case Notes
Board may make lump sum payments not less than the present
worth of installments. 31 H. 672 (1930).
Notes of Decisions
Treloar v. Swinerton & Walberg Co., 653 P.2d 420 (Haw. 1982).
· cites it 21× “The claimant, however, immediately sought the Director’s approval of a commutation of the then unpaid periodic benefit payments into a lump sum pursuant to HRS § 386-54. The application, also filed on November 21, 1975, was submitted on a form, WC-12, specifically prepared by…”
Gillan v. Gov't Employees Ins. Co., 194 P.3d 1071 (Haw. 2008).
· cites it 4× “2d 420, 424, 426-27 (1982) (deferring to the department of labor and industrial relations’ construction of an ambiguous provision in HRS § 386-54, which the department enunciated in an administrative ruling, because the department was charged with carrying out the workers’…”
Waltrip v. TS Enter., Inc., 398 P.3d 815 (Haw. 2016).
“This subsection shall not apply when the employer’s liability for compensation has been discharged in whole by the payment of a lump sum in accordance with section 386-54. HRS § 386-89(c). . Reconsideration or reopening of decision or order.”
In re Attorney's Fees to McLaren v. Paradise Inn Hawaii, Inc., 321 P.3d 671 (Haw. 2014).
“This subsection shall not apply when the employer’s liability for compensation has been discharged in whole by the payment of a lump sum in accordance with section 386-54. 7 . HRS § 386-87 provides: (a) A decision of the director shall be final and conclusive between the…”
Treloar v. Swinerton & Walberg Co., 641 P.2d 327 (Haw. App. 1982).
· cites it 4× “The unpaid balance of these benefits was commuted pursuant to § 386-54, HRS, into a lump sum at the claimant’s request.”
Rames v. Starwood Hotels & Resorts Worldwide, Inc., 515 P.3d 231 (Haw. App. 2022).
“This subsection shall not apply when the employer's liability for compensation has been discharged in whole by the payment of a lump sum in accordance with section 386-54 [(concerning commutation of periodic payments)].”
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