Q: How is a ptd settlement calculated in IL workers comp?
A: A permanent total disability settlement is calculated by determining the life expectancy of the injured worker. The life expectancy gives us the interest rate equivalent to use, but remember, the insurance company is using its own internal rate of return and not what you or I earn on the amount. We then need to know the weekly amount. These are the three elements necessary to compute the present value of the permanent total disability settlement.
A: As per the Illinois Workers Compensation Act, "In case of complete disability, which renders the employee wholly and permanently incapable of work, or in the specific case of total and permanent disability as provided in subparagraph 18 of paragraph (e) of this Section, compensation shall be payable at the rate provided in subparagraph 2 of paragraph (b) of this Section for life." In general terms, compensation at the rate of 2/3 your average weekly wage - subject to minimum and maximum rates - for life. These settlements are more complicated in practice, and are very rare.
Charles Candiano agrees with this answer
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