(a) Whenever the district director determines that it is in the
interest of justice, the liability for benefits or any part thereof as
determined by a final adjudication, may, with the approval of the
Director, be discharged by the payment of a lump sum equal to the
present value of future benefit payments commuted, computed at 4
percent true discount compounded annually.
(b) Applications for commutation of future payments of benefits
shall be made to the district director in the manner prescribed by the
district director. If the district director determines that an award of
a lump sum payment of such benefits would be in the interest of
justice, he or she shall refer such application, together with the
reasons in support of such determination, to the Director for
consideration.
(c) The Director shall, in his or her discretion, grant or deny the
application for commutation of payments. Such decision may be appealed
to the Benefits Review Board.
(d) The computation of all commutations of such benefits shall be
made by the OWCP. For this purpose the file shall contain the date of
birth of the person on whose behalf commutation is sought, as well as
the date upon which such commutation shall be effective.
(e) For purposes of determining the amount of any lump sum award,
the probability of the death of the disabled miner and/or other persons
entitled to benefits before the expiration of the period during which
he or she is entitled to benefits, shall be determined in accordance
with the most current United States Life Tables, as developed by the
Department of Health, Education, and Welfare, and the probability of
the remarriage of a surviving spouse shall be determined in accordance
with the remarriage tables of the Dutch Royal Insurance Institution.
The probability of the happening of any other contingency affecting the
amount or duration of the compensation shall be disregarded.
(f) In the event that an operator or carrier is adjudicated liable
for the payment of benefits, such operator or carrier shall be notified
of and given an opportunity to participate in the proceedings to
determine whether a lump sum award shall be made. Such operator or
carrier shall, in the event a lump sum award is made, tender full and
prompt payment of such award to the claimant as though such award were
a final payment of monthly benefits. Except as provided in paragraph
(g) of this section, such lump sum award shall forever discharge such
operator or carrier from its responsibility to make monthly benefit
payments under the Act to the person who has requested such lump-sum
award. In the event that an operator or carrier is adjudicated liable
for the payment of benefits, such operator or carrier shall not be
liable for any portion of a commuted or lump sum award predicated upon
benefits due any claimant prior to January 1, 1974.
(g) In the event a lump-sum award is approved under this section,
such award shall not operate to discharge an operator carrier, or the
fund from any responsibility imposed by the Act for the payment of
medical benefits to an eligible miner.
