2019 Discount Rate for Lump-sum Settlements
Pursuant to KRS 342.265(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 Jan. 1 of each year, 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 10-year United States Treasury Notes as of Aug. 1 of the preceding year.
However, upon lump-sum settlement of future periodic payments in weekly amounts that are $40 or less, the commissioner shall fix the discount rate used in the succeeding year based at the interest rate paid upon 10-year United States Treasury Notes as of Aug. 1 of the preceding year.
Accordingly, for the calendar year of 2019, the discount rate for lump-sum settlements of future periodic payments in weekly amounts that are $40 or less is fixed at 2.875 percent. For the calendar year of 2019, the discount rate for lump-sum settlements of future periodic payments in weekly amounts greater than $40 is fixed at 2.375 percent.
Please review the attached order, including discount tables in the links below.
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