342.265 Compensation agreement -- Approval by administrative law judge --
549 words·~2 min read·
/ky/342-265A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Lump-sum payments -- Reopening as remedy for disagreement -- Abatement
of application for resolution.
(1)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.
(2)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.
(3)Upon lump-sum settlement of future periodic payments, the discount rate used in
the calculation of the settlement amount shall be fixed by the commissioner. 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. However, upon lump-sum settlement of future
periodic payments in weekly amounts that are forty dollars ($40) or less, the
commissioner shall fix the discount rate used in the succeeding year based at the
interest rate paid upon ten
(10)year United States Treasury notes as of August 1 of
the preceding year.
(4)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.
(5)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.