Under certain circumstances, injured and ill workers or the dependants of fatality victims may convert their payments under The Workers Compensation Act (the Act) from a monthly pension to a lump sum or from a lump sum to a monthly pension. The Workers Compensation Board (WCB) estimates the payment to which these individuals are entitled based on interest rates and mortality tables set out in this policy.
Interest rate estimates are made in the following situations to calculate the:
a) present value of future payments to a claimant for a lump sum settlement under subsections 26(2) and 40(4) of the Act as it read on December 31, 1991,
b) present value of future payments to a claimant for a lump sum settlement under section 32.1, subsection 36(4) and section 109.4 of the Act in effect January 1, 1992; or
c) monthly payment of an annuity under subsection 36(2) of the Act in effect January 1, 1992.
In most of the above situations, the WCB uses mortality tables to determine how long claimants are expected to live.
The interest rates and mortality tables may vary according to the purpose for which they are made. This policy describes the rates and tables that will be used in each of the different circumstances described above.