Iowa Code

Iowa Code § 85.45 (2026)

Commutation

✓ current as of July 2026
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1. Future payments of compensation may be commuted to a present worth lump sum payment only upon application of a party to the commissioner and upon written consent of all parties to the proposed commutation or partial commutation, and on the following conditions:

a. When the period during which compensation is payable can be definitely determined.

b. When it shall be shown to the satisfaction of the workers’ compensation commissioner that such commutation will be for the best interest of the person or persons entitled to the compensation, or that periodical payments as compared with a lump sum payment will entail undue expense, hardship, or inconvenience upon the employer liable therefor.

c. When the recipient of commuted benefits is a minor employee, the workers’ compensation commissioner may order that such benefits be paid to a trustee as provided in section 85.49.

d. When a person seeking a commutation is a surviving spouse, an employee with a permanent and total disability, or a dependent who is entitled to benefits as provided in section 85.31, subsection 1, paragraph “a”, subparagraphs (3) and (4), the future payments which may be commuted shall not exceed the number of weeks which shall be indicated by probability tables designated by the workers’ compensation commissioner for death and remarriage, subject to the provisions of chapter 17A.

2. Future payments of compensation shall not be commuted to a present worth lump sum payment when the employee is an inmate as set forth in section 85.59. \n Tue Dec 09 22:29:52 2025 Iowa Code 2026, Chapter 85 (59, 0) 23 WORKERS’ COMPENSATION, §85.48\n\n 3. The parties to any commutation or partial commutation of future payments agreed to and ordered pursuant to this section may agree that the employee has the right to benefits pursuant to section 85.27 under such terms and conditions as agreed to by the parties, for a specified period of time after the commutation or partial commutation agreement has been ordered by the workers’ compensation commissioner. During that specified period of time, the commissioner shall have jurisdiction of the commutation or partial commutation agreement for the purpose of adjudicating the employee’s entitlement to benefits provided for in section 85.27 as provided in the agreement.

4. When commuting future payments pursuant to this section, if the claim for workers’ compensation benefits was related to an injury that resulted in the injured worker needing a medically necessary permanent prosthetic device or an alteration of an existing medically necessary permanent prosthetic device, a portion of the lump sum payment must be designated for the purpose of covering the estimated cost of repair or replacement of the permanent prosthetic device. Moneys identified pursuant to this subsection shall be paid to the treasurer of state as custodian of the second injury fund for administration pursuant to section 85.65, subsection 2, section 85.66, and section 85.67A. [S13, §2477-m14; C24, 27, 31, 35, 39, §1405; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §85.45] 96 Acts, ch 1129, §19; 98 Acts, ch 1061, §11; 2008 Acts, ch 1032, §171; 2017 Acts, ch 23, §16, 17, 24; 2022 Acts, ch 1128, §4 Referred to in §85.65, 87.11, 515B.5\n\n 85.46 Reserved. \n

Notes of Decisions
Cited in 17 cases (2 in the last 5 years), 1958–2026 · leading case: Toby Thornton v. Am. Interstate Ins. Co., 897 N.W.2d 445 (Iowa 2017).
Toby Thornton v. Am. Interstate Ins. Co., 897 N.W.2d 445 (Iowa 2017). · cites it 9× “Iowa Code § 85.45 (1) (emphasis added). 7 In short, Iowa law allows for commutation *468 when it has been shown to the commissioner’s satisfaction to be in the best interest of the worker.”
Dameron v. Neumann Bros., Inc., 339 N.W.2d 160 (Iowa 1983). · cites it 14× “Iowa Code § 85.45 (1981) (emphasis added).”
Sidles Distrib. Co. v. Heath, 366 N.W.2d 1 (Iowa 1985). · cites it 10× “We believe that subsection 4 of section 85.45, enacted in 1973, is aimed at reversing the import of the Diamond decision in situations where it is probable that death or remarriage will shorten the length of time benefits are payable.”
Scheel v. Superior Mfg. Co., 89 N.W.2d 377 (Iowa 1958). · cites it 4× “Evidently this testimony is largely based upon the witness’s interpretation of Code section 85.45, hereinafter referred to. May 3 the casualty company issued to plaintiff its check for $718.”
Diamond v. Parsons Co., 129 N.W.2d 608 (Iowa 1964). · cites it 8× “46, Code, but evidence was submitted by both parties to allow the Industrial Commissioner to determine all of the conditions set out in section 85.45, Code. “Section 85.45 provides: “1.”
Groves v. Donohue, 118 N.W.2d 65 (Iowa 1962). · cites it 2× “When the period during which compensation is payable can be definitely determined.” and “2. When the written approval of such commutation by the industrial commissioner has been filed in the proceedings to commute.”
McKee v. Second Injury Fund of Iowa, 378 N.W.2d 920 (Iowa 1985). · cites it 5× “Iowa Code §§ 85.45 -.48, 85.63-67 (1983) (references are to that Code).”
Lowery v. Iowa Packing Co., 106 N.W.2d 71 (Iowa 1960). · cites it 5× “Section 85.45 of the 1958 Code of Io-wa provides: “Commutation.”
VanGetson v. Aero Concrete, LTD. (Iowa Ct. App. 2020). · cites it 42× “” Iowa Code § 85.45 (1)(a), (b) (2016). 3 In late March, the general assembly passed, and the governor approved, statutory amendments to section 85.”
Harrison v. Ray Keller & United States Fid. & Guar. Co., 117 N.W.2d 477 (Iowa 1962). · cites it 2× “Section 85.45, Code of 1954, provides: “Future pay *270 ments of compensation may be commuted to a present worth lump sum payment on the following conditions: “1.”
Williams v. Larsen Constr. Co., 125 N.W.2d 248 (Iowa 1963). · cites it 2× “On October 24, 1961, under the provisions of sections 85.45, 85.46, 85.47 and 85.48, 1958 Code of Iowa, there was a hearing before the deputy industrial commissioner.”
Amended August 22, 2017 Toby Thornton v. Am. Interstate Ins. Co. (Iowa 2017). · cites it 11× “When it shall be shown to the satisfaction of the workers’ compensation commissioner that such commutation will be for the best interest of the person or persons entitled to the compensation, or that periodical payments as compared with a lump sum payment will entail undue…”
— Iowa Code § 85.45(1) — 2 cases
Toby Thornton v. Am. Interstate Ins. Co., 897 N.W.2d 445 (Iowa 2017). “Iowa Code § 85.45 (1) (emphasis added). 7 In short, Iowa law allows for commutation *468 when it has been shown to the commissioner’s satisfaction to be in the best interest of the worker.”
Amended August 22, 2017 Toby Thornton v. Am. Interstate Ins. Co. (Iowa 2017). “When it shall be shown to the satisfaction of the workers’ compensation commissioner that such commutation will be for the best interest of the person or persons entitled to the compensation, or that periodical payments as compared with a lump sum payment will entail undue…”
— Iowa Code § 85.45(1)(b) — 1 case
— Iowa Code § 85.45(2) — 2 cases
Sidles Distrib. Co. v. Heath, 366 N.W.2d 1 (Iowa 1985). “We believe that subsection 4 of section 85.45, enacted in 1973, is aimed at reversing the import of the Diamond decision in situations where it is probable that death or remarriage will shorten the length of time benefits are payable.”
French & Hecht v. Arlingdale, 432 N.W.2d 705 (Iowa Ct. App. 1988).
— Iowa Code § 85.45(4) — 1 case
Sidles Distrib. Co. v. Heath, 366 N.W.2d 1 (Iowa 1985). “We believe that subsection 4 of section 85.45, enacted in 1973, is aimed at reversing the import of the Diamond decision in situations where it is probable that death or remarriage will shorten the length of time benefits are payable.”
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