Commutation Calculation Services
Commutation Services can be requested using the
Commutation Request Form
Annual Percentage Increase (SAWW)
COLA Increases Table 2004 to 2022
Permanent Partial / Permanent Total Disabilities & Life Pension
There appears to always be a rush to issue commutated calculations and checks. Commutations are for more than just figuring out the applicant attorney's fees, making advances from the far-end of the award or avoiding penalties for delayed benefits, when checks are issued on time. In many instances, this is the end of the line for both applicant and defense attorneys. Only the injured worker is left once you have issued the commutated checks.
It takes dedication, time and expertise to do a commutation correctly and to make sure the best interest of both parties is considered. You need the correct information to make sure that the commutated amount for the attorney's fee or other amounts do not have a disproportionate impact (reduction) in the employee's benefits.
- WCAB Lena Wilson vs. Piedmont Lumber & SCIF Decision, pages 16-18
We can provide you with the calculation of commutations for Permanent Disability & Life Pensions to include attorney's fee calculations based on the present value of Permanent Total Disability, deferred value of Life Pension or both based on the same Templates used by DEU, including those for injuries after 2003, which required the SAWW percentage increases.
DWC California Commutation Regulations and Tables
The regulations and tables can be found in section 10169 and 10169.1 of Title 8, California Code of Regulations. Here you will find the Labor Code and California Code of Regulations mandated Tables and Instructions to be used in the preparation of an Indemnity Commutation.
Table-1: Present Value of Permanent Disability at 03% interest.
Table 2: Present Value of Life Pension for a Male
Table-3: Present Value of Life Pension for a Female
Annual Percentage Increase (SAWW) COLA Increases Table 2004 to 2022
For All Dates of Injury after 1-1-03, payments of LIFE PENSION (LP) are to be increased annually by the SAWW percentage increase. When Permanent Partial Disability (PPD) is 70% or more, payments for Life Pension (LP) Benefits will begin following the complete payout of the Partial Permanent Disability Award.
Commutation Providers and Computer Programs
Commutation Services can be requested using the Commutation Request Form
Disability Evaluation Unit (DEU) Templates & Instructions (Do It Yourself)
Q: What are the DEU Commutation Templates?
A: They are Microsoft Office Documents with 'macros' written into the Templates.
When you enter the right information from the WCAB Award and the approved Labor Code Tables, it does the calculations for you.
Both the instructions and the Templates can be downloaded into your computer to be used more than once. https://www.dir.ca.gov/dwc/commtemps.zipCalifornia DEU Commutations Request Form: https://www.dir.ca.gov/dwc/FORMS/DEU_CommutationRequest.xls
Web Links to WC Professional Sites with Multiple Calculators (Alpha)
Med Legal Inc. http://www.getmedlegal.com/pd/calchome.html
PD Calculators: http://www.pdrater.com/original-calculators/
Court Decisions Related to Commutations
Link to Decision: Lena Wilson vs. Piedmont Lumber & SCIF
This decision states that the current 4.6% to 4.7% being used is only advisory and not absolute.
California Supreme Court Decision: Baker [Duncan] vs. WCAB
Calculation of Life Pension or Total Disability SAWW is to occur the January 1st after the benefits start and Permanent Partial Disability Payments (PPD) have been paid.