PERAC Memo #17 - 2007: Proposed Lump-Sum Settlements

MEMORANDUM #17, 2007 M E M O R A N D U M TO: All Retirement Boards FROM: Joseph E. Connarton, Executive Director RE: Proposed Lump-Sum Settlements DATE: February 12, 2007 Due to the tentative nature of proposed lump-sum settlements, it is not the common practice of the Commission to issue letters detailing the potential offsets to disability allowances when members are considering lump-sum settlements to their workers’ compensation claims. In a few rare instances, though, the Commission has issued such letters. However, due to the large number of recent requests for potential offsets of proposed lump-sum settlements and the corresponding requests for offsets to the finalized lump- sum settlements (which show the same figures as the proposed settlements), the Commission will begin enforcing the practice of not issuing letters on the potential offsets to proposed lump-sum settlements. This change will take effect immediately. Please note that while PERAC will no longer be reviewing proposed lump-sum settlements, we will continue to review and issue letters detailing the offsets of settlements that have been approved by the Industrial Accidents Board. Please notify any and all interested parties of this change. Thank your for your attention to this matter.