As promised, we are back with another round of FAQs in terms of Lump Sum Payments. Are you ready to be a Lump Sum expert? We thought so!
FAQ #1: Will a Lump Sum affect any other claims an employee may have?
Answer: NO! A Lump Sum will never affect any other separate action or proceeding.
FAQ #2: Does Vocational Rehabilitation Services affect a Lump Sum?
Answer: Yes, it does. A Lump Sum cannot be approved unless specific requirements are met (or at least one.) Mass.gov includes a list of the requirements. They include:
• “You have returned to work for 6 or more months;
• You have completed the approved vocational rehabilitation program;
• You have received express written consent the Office of Education and Vocational Rehabilitation (OEVR);
• A judge overrides any of these requirements after appropriate notice and hearing.”
If you have any other concerns about Vocational Rehabilitation Services, do not hesitate to check out our past blog about it, here!
FAQ #3: What is there to consider when determining whether a Lump Sum is appropriate for a case?
Answer: As a business owner, you may want to learn how to answer this question when an employee asks. To be honest, there are a ton of things for your employees to consider. First and foremost, he or she should ask themselves if they will be able to return to work at all. They should also consider future finances. What is their current income and how much do they have saved? If there are future medical bills NOT covered by the Lump Sum, would they be able to pay out of pocket? It is important that you express that fact that they MUST consider if this settlement will affect their retirement rights in the event that they cannot return to work…
There is a lot at stake and there are a lot of financial concerns that may be worth looking into before any employee agrees on a Lump Sum.
If you have any other questions that you want answered, please do not hesitate to reach out to our agents at Wolpert Insurance. Besides being your Massachusetts workers compensation provider, we are also here to be your guide. We look forward to talking with you!