May
23
2012
0

Ever Wonder Where 4.6% Comes From?

Where did this SAWW come from anyhow?

Where did this SAWW come from anyhow?

Even with the recent Baker v. WCAB decision settling when the increase in state average weekly wage (SAWW) is applied, litigation continues over the precise future SAWW percentage to use in a commutation of life pension benefits. The DEU is currently using an assumed annual SAWW increase of 4.6% “based on a 50 year average.” [1]

Before we consider how the DEU calculates future SAWW increases, it is necessary to look back to past SAWW changes.  In the last 50 years there have been only two instances where the SAWW has decreased from the prior year.  Since Labor Code Sections 4659(c) and 4453(a)(10) only apply increases in the SAWW to life pensions and permanent total disability benefits, there is no effect on the benefit rates for those two years.

When the DEU indicates a historical 50-year average of SAWW increases, they mean exactly that.  Thus, instead of averaging the decreases in the SAWW with the increases, the DEU averages only the increases of the historical SAWW data.  (I’ll save you the trouble of looking it up – 2004 and 2011 are the only instances in the last 50 years of any reduction in the state average weekly wage).  An average of just the SAWW increases over the last 50 years does come to 4.6%.

If you’re interested in verifying this information for yourself, I’ve prepared a list of the data used by the DEU in computing the 50-year average of SAWW increases.

  1. Andrea Marutti via Compfight []
May
08
2012
0

Looking for a few good testers

A new kind of COLA

A new kind of COLA

I’m getting ready to launch a new workers’ compensation calculator and I could use your help. [1] I still need a few volunteers to help me test a permanent disability, life pension, and total permanent disability COLA commutation calculator.  Right now I need a few applicant attorneys, defense attorneys, and claims examiners.

Here’s what you need:

  • Any free or paid PDRater account
  • A familiarity with DEU COLA commutations
  • A familiarity with recent Baker decision
  • A willingness to answer a few questions

If this sounds like something you would be interested in helping with, please send me an e-mail!

 

  1. Photo Credit: Davide Reppucci via Compfight []
Sep
03
2008
1

New Retroactive Benefits Calculator Launched!!!

Google

Google

Google has a saying, “launch early and iterate.”  Launch your idea, get feedback, make it better, keep doing it! As a friend of mine has delicately suggested, I’m no Google.  This doesn’t mean I can’t learn from Google, right?

Two of the calculators I’ve been developing are a commutation calculator (for pre-1/1/2003 injuries) and a retroactive benefits calculator.  I’ll discuss the commutation calculators more closer to their launch.

However, today is the day I’m publicly launching my Retroactive Benefits calculator!  Its fairly straight-forward.  You tell it the weekly rate, start date, end date, payment date, and an interest rate.  It tells you how many days, how much is due, how many days the benefit was delayed, and how much is due with interest.

Take a look, play around with it, let me know what you think.  Drop me a line or post a comment.

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