2014 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.
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<![CDATA[342.265 Compensation agreement -- Approval by administrative law judge -Lump-sum payments -- Reopening as remedy for disagreement -Abatement of application for resolution.
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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.
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.
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.
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.
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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