This week’s tip outlines How to Calculate Permanent Partial Disability (PPD) Benefits:
What does Permanent Partial Disability even mean??
- Permanent Partial Disability refers to disability that is partial in character but permanent in quality resulting from the loss or loss of use of body members or from the partial loss of use of the employee’s body.
What are Permanent Partial Disability Benefits?
- PPD benefits compensate employees for physical impairment NOT lost wages.
- To be eligible for PPD benefits, the employee must receive a permanent impairment rating from the authorized treating physician based on the American Medical Association (AMA) Guidelines, 5th Edition.
- PPD benefits can be paid in the form of weekly benefits or a lump sum – (feel free to call me to discuss the pros and cons of both options!)
Formula for Calculating Number of Weeks
- Multiple the rating percentage by the statutory number of weeks for the corresponding body part as listed in O.C.G.A. 34-9-263 (see chart).
EXAMPLE:
- Claimant has a Comp. Rate of $400.00 ($600.00 AWW) and is assigned a 5% PPD rating to upper extremity (Arm).
- 225 x .05 = 11.25 weeks of PPD benefits
- $400.00 x 11.25 weeks = $4,500.00 of total PPD benefits
Sincerely,
John Fennelly | Junior Partner