The Appeal CommissionThe Workers Compensation Act of Manitoba

Applicable Legislation and Policy

The Appeal Commission and its panels are bound by The Workers Compensation Act (the “Act”), regulations and policies of the Board of Directors.

The worker is in receipt of SAC benefits and a PPD award. He has asked that the WCB commute the value of his PPD and pay him a lump sum.

The WCB Board of Directors enacted Policy 44.100.10, Lump Sum Commutations, which sets the circumstances and limitations when the WCB will commute a worker's PPD and pay a lump sum amount.

Worker's Position

The worker provided a written submission with his Notice of Appeal. The worker noted that his PPD was only a "couple dollars over the limit" set out in the policy. He noted that had it been below the limit, he would be entitled to have his PPD paid out in a lump sum.

In other correspondence on file, the worker advised that he hopes to obtain a lump sum so that he could make some necessary renovations to his home. He said that his home is in need of some repairs and renovations. He noted that he will soon be 65 years old and would like to deal with this matter before he begins receiving his retirement allowances. He said that he would save money on the renovations, including interest on the money that he must borrow, if the work was done now.

Employer's Position

The employer firm no longer exists.

Analysis

The worker has asked that his PPD be paid out as a lump sum. The WCB had denied his request. For the worker's appeal to be successful, the panel must find that the WCB policy allows for the payment of a lump sum in his case. The panel was not able to make this finding. The Appeal Commission and this panel are bound by WCB Policy. The panel finds that the policy does not authorize a lump sum payout in the worker's case.

The worker is in receipt of a PPD and SAC benefits. His request for a lump sum is governed by Policy 44.100.10 Lump Sum Commutations. Section 2 of the policy provides that:

The WCB will approve a worker's request for commutation except under certain limited circumstances. These are:

a) when the worker's life expectancy is clearly affected by a serious illness: or

b) when, in the opinion of the WCB, it is likely that the worker would suffer future financial hardship as a result of the commutation.

Section 4 of the policy provides that:

If there is no serious illness, the WCB will approve the request and will not attempt to determine whether there is a likelihood of future financial hardship if:

a) the worker is under 65 and the pension is less than $250 per month; or

b) the worker is 65 or over and the worker's pension is less than the basic monthly Old Age Security Pension…

Section 5 of the policy deals with workers who are in receipt of PPD and SAC. It provides that :

If the worker's pension is above the amounts established in this policy and the worker is in receipt of Special Additional Compensation or long-term wage loss, the WCB has already recognized that the pension is a "significant amount of the worker's future income" and the commutation will not be granted.

In this appeal, the worker's pension is $252.02 per month and he is in receipt of SAC. Applying the policy to the worker's claim, his pension is greater than the $250.00 per month provided in the policy. The worker also continues to be in receipt of SAC, and accordingly he is not entitled to have his PPD paid as a lump sum at this time. The panel also notes the worker's SAC benefits will cease when the worker reaches the age of 65 years and Section 5 of the policy will no longer apply at that time.