Lump-Sum Commutations

Policy Purpose

Many workers who were injured prior to January 1, 1992, and had a permanent disability as a result of that injury, received a monthly pension for life.  This pension is called a Permanent Partial Disability Award (PPD). Some of these workers may convert their pension benefits to a lump-sum payment.

If the permanent disability rating does not exceed ten percent, the worker has the option of receiving a lifetime monthly benefit or a lump-sum payment.  If, however, the permanent disability rating is greater than ten percent, the WCB must decide whether the worker’s request for a lump-sum payment should be granted.  The purpose of this policy is to establish the circumstances when the Workers Compensation Board (WCB) will pay these lump-sum amounts when requested by the worker.  All references to The Workers Compensation Act (the Act) in this policy refer to the Act as it existed prior to 1992.