05.09.07
Connecticut Workers’ Compensation Insurance Premiums Could Increase
Jeffrey A. Fritz
The current Connecticut workers’ compensation scheme entitles an injured employee who sustains a partial permanent disability (“PPD”) to a corresponding percentage of compensation for the complete loss of the organ for a certain period of time. See Conn. Gen. Stat. § 31-308(b). For instance, where Connecticut law entitles an employee who loses his master arm in its entirety (at or above the elbow) to 208 weeks of compensation, it entitles an employee who permanently loses the use or function of 50% of his master arm to 104 weeks of compensation. See id. Generally, the Workers’ Compensation Commission calculates weekly compensation as 75% of the employee’s after-tax loss in earning capacity due to the PPD.
The commission may also award additional benefits based upon the nature and extent of the injury, the training education and experience of the employee, the availability of work for persons with such PPD, and the employee’s age. See Conn. Gen. Stat. § 31-308a(a). Currently, Connecticut law constrains the duration of additional benefits to the lesser of (1) the same duration of PPD primary benefits or (2) 520 weeks (10 years). See id. Under the current scheme, Connecticut law would entitle an employee who lost the use of 50% of his master arm to 104 weeks of primary benefits and potentially 104 weeks of discretionary benefits. But if the Senate passes Senate Bill No. 847, that could change.
Senate Bill No. 847 bill, entitled “An Act Concerning Additional Benefits for Wage Loss Under the Workers’ Compensation Act,” purports to eliminate the “lesser of” language, permitting the commissioner, in his or her discretion, to provide for discretionary benefits up to 520 weeks. The commissioner, therefore, would no longer be constrained by the duration of PPD primary benefits when awarding discretionary benefits. The Office of Fiscal Analysis of Fiscal Analysis estimates that the bill could increase costs to the Second Injury Fund by $400,000 in fiscal year 2009, thereby increasing employer premiums by 8%.
The bill is ready for action in the Senate, and, if passed, would be effective October 1, 2007. To view the bill, click on the following link:
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