There is a newer version of the Kentucky Revised Statutes
2009 Kentucky Revised Statutes
CHAPTER 342 WORKERS' COMPENSATION
342.265 Compensation agreement -- Approval by administrative law judge -- Lump-sum payments -- Reopening as remedy for disagreement -- Abatement of application for resolution.
Download pdfof application for resolution. (1) If the employee and employer and special fund or any of them reach an agreement conforming to the provisions of this chapter in regard to compensation, a
memorandum of the agreement signed by the parties or their representatives shall be
filed with the commissioner, and, if approved by an administrative law judge, shall
be enforceable pursuant to KRS 342.305. Where all parties have not joined in the
settlement agreement, it shall not be approved unless it is certified that the party not
participating in the settlement has been served with a copy of the agreement not less
than ten (10) days prior to submission of the agreement for approval. This provision
shall not be construed to prevent the voluntary payment of compensation for the
periods and in the amounts prescribed by this chapter, but nothing shall operate as a
final settlement except a memorandum of agreement filed with the commissioner
and approved by the administrative law judge. Upon claims settled after December
12, 1996, the special fund shall have the option of settling its liability for income
benefits on the same terms as those reached between the employee and employer.
Notice of the special fund exercise of the option granted in this subsection shall be
made by letter of the director of the Division of Workers' Compensation Funds
mailed to the parties within ten (10) days of receipt by the director of a copy of the
agreement. (2) Settlement agreements concluded after July 14, 2000, providing for commuted lump-sum payment of future income benefits which would otherwise be payable in
amounts greater than one hundred dollars ($100) per week shall not be approved
unless there is reasonable assurance that the worker will have an adequate source of
income during disability. This subsection is remedial and applies to all pending and
future claims. (3) Upon lump-sum settlement of future periodic payments, the discount rate used in the calculation of the settlement amount shall not exceed a reasonable amount fixed
by the commissioner. For settlements approved after December 12, 1996, until
December 31, 1997, the true discount rate shall be six percent (6%) compounded
annually on each payment. Before January 1 of each year commencing in 2001, the
commissioner shall fix the discount rate to be utilized in the succeeding year based
at one-half of one percent (0.5%) below the interest rate paid upon ten (10) year
United States Treasury Notes as of August 1 of the preceding year. (4) If the parties have previously filed an agreement which has been approved by the administrative law judge, and compensation has been paid or is due in accordance
therewith and the parties thereafter disagree, either party may invoke the provisions
of KRS 342.125, which remedy shall be exclusive. (5) An application for resolution of claim shall be held in abeyance during any period voluntary payments of income benefits are being made under any benefit sections of
this chapter to the maximum which the employee's wages shall entitle unless it shall
be shown that the prosecution of the employee's claim would be prejudiced by
delay. Effective: July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 1808, effective July 15, 2010. -- Amended 2002 Ky. Acts ch. 246, sec. 4, effective July 15, 2002. -- Amended 2000
Ky. Acts ch. 514, sec. 16, effective July 14, 2000. -- Amended 1996 (1st Extra. Sess.)
Ky. Acts ch. 1, sec. 11, effective December 12, 1996. -- Amended 1990 Ky. Acts
ch. 2, sec. 1, effective July 13, 1990. -- Amended 1987 (1st Extra. Sess.) Ky. Acts
ch. 1, sec. 30, effective January 4, 1988. -- Amended 1960 Ky. Acts ch. 147, sec. 14,
effective June 16, 1960. -- Amended 1952 Ky. Acts ch. 182, sec. 10. -- Recodified
1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 4931.
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