PPD benefit structure
In 2003, SB 757 created a new structure for permanent partial disability (PPD) benefits. The changes, which were made permanent by HB 2244 (2007), apply to claims for injuries and illnesses occurring since January 2005. Since then, permanent impairment of all body parts and systems is rated as a percentage of the whole person. Workers receive an impairment benefit based on the statewide average weekly wage multiplied by their percentage of impairment. Benefits are adjusted annually in accordance with any changes in the state average weekly wage.
Workers who are unable to return to work receive a work disability benefit based on the impairment modified by age, education, adaptability factors, and earnings at the time of injury. Wage-based work disability rates are limited to a range between 50 percent and 133 percent of the state average weekly wage.
HB 2244 (2007) also required the Workers’ Compensation Management-Labor Advisory Committee (MLAC) to review permanent partial disability benefit amounts on a biennial basis and make recommendations to ensure the original policy goals continue to be met over time. One of those goals is to allocate PPD award dollars equitably in claims with greater economic loss.