PDF Special Bulletin 222C Workers' Compensation Actuarial Tables ...

Special Bulletin 222C

Workers' Compensation Actuarial Tables for Aggregate

Trust Fund Deposits 5% Interest

New York State Workers' Compensation Board

March 2012

Andrew M. Cuomo, Governor Robert E. Beloten, Chair

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Foreword

The revised tables in this bulletin apply only to compensation cases where the accident occurred on or after January 1, 2001. The earlier tables in the 1983 Special Bulletin 222B apply to cases where the accident occurred prior to January 1, 2001. Chapter 6 of the Laws of 2007 amended Workers' Compensation Law ? 27 to change the discount rate applicable to new deposits into the Aggregate Trust Fund on claims made after July 1, 2007, involving accidents or deaths occurring on or after January 1, 2001. The rate changed from the 6% rate applicable to prior accident dates to an "industry standard rate" to be determined by a regulation promulgated by the Superintendent of Financial Services. Regulation No. 119 adopting 11 NYCRR ? 151-2.2 set the industry standard rate at 5%. These tables were approved by an actuarial advisory committee that included Reuben Epstein of the New York State Insurance Fund and Martin Heagen and Ziv Kimmel of the New York Compensation Insurance Rating Board. On behalf of the New York State Workers' Compensation Board, I wish to take this opportunity to express my appreciation to these individuals and their staffs for their efforts in preparing these tables.

Robert E. Beloten, Chair New York State Workers' Compensation Board

Section Explanation and Examples

Example 1: Death Case ? Award to Widow or Widower and One Child Example 2: Death Case ? Award to Widow or Widower and Six Children Example 3: Schedule Disability Case Example 4: Permanent Partial Non-Schedule Disability Case Example 5: Interest Due on Award Affirmed on Appeal Example 6: Death Case ? Award to Orphan Children Example 7: Death Case ? Award to Brothers, Sisters and Grandchildren Example 8: Death Case ? Third Party Recovery ? Award to Widow and No Children Example 9: Social Security Offset with a Widow and No Children Example 10: Deposit of a Capped PPD into the ATF Example 11: Refund of a Capped PPD Deposit from the ATF Tables Survivorship Annuitants' Table of Mortality Combined Death and Remarriage Table of the Dutch Royal Insurance Institution Table I ? Widow or Widower Where There are No Children Table I-A ? Reduction from Table I Due to Youngest Child Table I-B ? Reduction from Table I Due to Second Youngest Child Table I-C ? Reduction from Table I Due to Third Youngest Child Table I-D ? Reduction from Table I Due to Fourth Youngest Child Table IV ? Youngest Child Table V ? Second Youngest Child Table VI ? Third Youngest Child Table VII ? Fourth Youngest Child Table VIII ? Fifth Youngest Child Table IX ? Children at 66 2/3% Table IX-A ? Brothers, Sisters and Grandchildren at 25% Table IX-B ? Children with Widow Remarried Table X ? Parent or Grandparent Table XI ? Life Awards Table XII ? Present Value of $1 per Annum for Duration Given Table XIII ? Present Value of an Annuity Certain of $1 per Week Table XIV ? Suspension of 66 2/3% Payments to Children, No Widow Table XIV-A ? Suspension of 25% Payments to Brothers, Sisters and Grandchildren Table XIV-B ? Suspension of 30% Payments to Children with Widow Remarried Table XV ? Suspension of Payments to Widow and No Children

Formulae for Workers' Compensation Tables Special Bulletin 222C

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Page

2 3 4 5 6 7 8 9 10 11 12

13 15 17 18 20 22 24 26 28 30 32 34 36 37 38 39 40 41 59 62 63 64 65

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WORKERS' COMPENSATION EXAMPLES

Example No. 1 Death Case

Award to Widow or Widower and One Child

To find the value as of 1-28-11 of an award to a widow or widower and one child with birth dates as given below where the injured employee had received annual wages of $60,000, was killed 9-1-10, and compensation benefits had been paid regularly to the dependents to 1-28-11.

Dependents

Widow . . . . . . . . . . . . . . . . . . . . . . . . . Child . . . . . . . . . . . . . . . . . . . . . . . . . .

Date of Birth 5-22-71

1-5-00

Nearest Age

39 11

Nearest Age

40 12

Widow's Portion of Benefit: Widow without children Less: Reduction a/c youngest child

From Table

I

I-A

Value as of 9-1-10 $887.66

Value as of 9-1-11 $894.39

235.68

225.04

1 Year Decrease

Widow's Portion

Child's Portion of Benefit

IV

651.98 277.34

669.35 259.84

Total Tabular Value to Widow and 1 Child *Less: Decrease to 1-28-11 149/365 X (-.13)

929.32 -0.05

929.19

-0.13

Tabular Value 1-28-11

929.27

Multiply by Number of $100 Annual Wages**

577.07

Present Value of Future Payments as of 1-28-11***

$536,253.84

* Increase to 1-28-11: From 9-1-10 to 1-28-11 is 149 days.

Since the decrease from 9-1-10 to 9-1-11 is $0.13, the decrease for 149/365 of a year is $ 0.05.

** Reduced to $577.07 since the maximum weekly wage base from 7/1/2010- 6/30/2011 was $1,109.75.

*** Subject to Social Security offset if applicable.

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WORKERS' COMPENSATION EXAMPLES

Example No. 2 Death Case

Award to Widow or Widower and Six Children

To find the present value as of the date of death of the injured employee of an award to a widow and six children with birth dates as given below where the employee was killed 7-1-09 and received annual wages of $40,000.

Dependents

Widow

Youngest Child 2nd Youngest Child 3rd Youngest Child 4th Youngest Child 5th Youngest Child 6th Youngest Child

Date of Birth 9-7-76 2-6-07

11-11-04 4-27-03 3-11-02 7-13-99 1-21-97

Nearest Age 33 2 5 6 7 10 12

Widow's Portion of Benefit as of 7-1-09: Widow without Children Less: Reduction a/c Youngest Child Reduction a/c 2nd Youngest Child Reduction a/c 3rd Youngest Child Reduction a/c 4th Youngest Child Reduction a/c 5th and 6th Youngest Children

Total Reduction Widow's Portion Children's Portion of Benefits as of 7-1-09: Youngest Child 2nd Youngest Child 3rd Youngest Child 4th Youngest Child 5th Youngest Child 6th Youngest Child

Total Children's Portion Total Tabular Value to Widow and Four Children Present Value of Death Benefits as of 7-1-09: Total Tabular Value multiplied by number of $100 of Compensable Annual Wages (1,027.00 x 400)*

From Table

Value

I

I-A I-B I-C I-D (Values always zero)

$285.26 8.89 .41 .02

IV V VI VII VIII (Values always zero)

$402.50 63.44 42.12 4.99 0.30 0.00

Value $808.23

294.58 513.65

$513.35 $1,027.00 $410,800.00

*Subject to Social Security offset, if applicable.

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