Seasonal Adjustment in Workers’ Compensation Benefits Now More than Just Summer
By Sarita Shipe
House Bill 2600, passed by the 77th Legislature in 2001, made changes to the way the average weekly wage (AWW) is calculated for school district employees who sustain an on-the-job injury. The legislation also allowed a carrier to adjust a school district employee’s AWW as often as necessary to more appropriately reflect the wages the employee reasonably could expect to EARN during the period that Temporary Income Benefits (TIBs) are paid. School district employees do not earn wages during school holidays, such as summer, Thanksgiving, winter, and spring breaks. Thus, injured employees that are receiving TIBs during those periods may or may not be entitled to them.
For example:
- Teacher gets hurt on 5/1
- TIBs begin 5/2
- Teacher did not work last summer
- Last day of school is 5/25
- No expectation of earnings 5/26 until school starts
- No TIBs due from 5/26 until school starts, if teacher is still disabled
In February 2009, the Fund board voted to make “seasonal” benefit adjustments only during the summer for fully-funded and aggregate deductible workers’ compensation members. However, the financial difficulties posed to districts caused them to continue to look for additional ways to reduce operating costs. As a result, Fund members began requesting that adjustments be made during other breaks in the school year, as the law allows. This option can potentially save members a great deal of money. For example, a larger member could save as much as a teacher’s salary if TIBs are not paid during holiday breaks.
To meet member needs, the Fund Board responded by voting to expand “seasonal” adjustments in TIBs at the April 2011 meeting. Effective September 1, 2011, these adjustments now include winter break, spring break, and Thanksgiving for all members.
For questions about this article, please contact Sarita Shipe at 800.482.7276, ext. 7221.
