CASE SUMMARY:
The employee was awarded permanent and total disability benefits at the rate of $ 150 per week. He was also entitled to cost of living benefits.
He received his weekly benefits of $ 150 for more than 25 years. He was also entitled to Social Security Disability benefits but did not receive a monthly SSD check as his weekly workers’ compensation benefits totally offset these benefits. The total offset, however, made it possible for him to receive the COLA (cost of living adjustments) which increased his weekly compensation payments considerably.
Employee’s counsel proposed a lump sum settlement which allowed the employee to reinstate his monthly SSD benefits by proper use of the Sciorrata vs. Bowen allocation. Under the terms of the lump sum agreement, the Department of Industrial Accidents Trust Fund agreed to reimburse the workers’ compensation insurer for nearly $ 175,000 to be paid in installments over 5 years.
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