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September 14, 1999
Notice No. 91
NOTICE TO INSURANCE CARRIERS, SELF-INSURED EMPLOYERS UNDER THE
LONGSHORE AND HARBOR WORKERS' COMPENSATION ACT, AND OTHER INTERESTED
PERSONS
SUBJECT: Maximum and Minimum Compensation Rates Under the Longshore
Act, Effective October 1, 1999; Adjustments of Permanent Total Disability and
Death Cases
Section 6(b)(3) of the Longshore and Harbor Workers' Compensation Act
provides that prior to October 1 of each year, based on the national average
weekly wage for the three calendar quarters ending June 30 of that year, the
Secretary of Labor shall determine the national average weekly wage (NAWW) to
be applicable for the 12-month period beginning October 1. It has been
determined that the applicable NAWW for the period beginning October 1, 1999,
and ending September 30, 2000, is $450.64.
Section 6(b)(1) provides that the maximum rate of compensation under
this Act shall not exceed 200 percent of the national average weekly wage.
Therefore, the maximum compensation rate for total disability and death is
$901.28 (200 percent of $450.64). Compensation for disability subject to this
maximum should be paid at 66 2/3 percent of the employee's average weekly wage,
as determined under Section 10, subject to the limitation of $901.28.
The minimum compensation rate payable for disability incurred after
October 1, 1999 is $225.32 per week, which is 50 percent of the NAWW. However,
if an employee's average weekly wage is less than this amount, he or she
receives his or her entire average weekly wage as compensation for total
disability.
In computing death benefits covered by this period, the average
weekly wage of the deceased employee shall not be less than $450.64 per week.
In addition, under the provisions of the 1984 Amendments, the total weekly
death benefits shall not exceed the lesser of (1) average weekly wages of the
deceased or (2) 200 percent of the NAWW. The 200 percent maximum benefit is
$901.28 per week, and is applicable to cases in which the death occurs during
the period October 1, 1999 through September 30, 2000, except for District of
Columbia Compensation Act (DCCA)1 cases which are not subject to
the 1984 amendments.
The above noted maximum and minimum rates for disability and death
also apply to employees covered by the Nonappropriated Fund Instrumentalities
Act (NFIA).
Under Section 10(f) and 10(h) of the amended Act, compensation or
death benefits payable for permanent total disability or death cases which were
incurred prior to October 1, 1999, are to be increased by the lesser of (1) a
percentage equal to the percentage by which the applicable national average
weekly wage for the period beginning October 1, 1999, exceeds the applicable
national average weekly wage for the preceding period, or (2) 5 percent. (DCCA
cases are always subject to the percentage increase in the NAWW without regard
to the 5 percent limitation.) The percentage increase in the NAWW is 3.39
percent. As this figure is less than 5 percent, compensation is to be increased
by 3.39 percent effective October 1, 1999.
Field or district offices of insurance carriers or self-insured
employers paying benefits under the Longshore and Harbor Workers' Compensation
Act and related Acts (DCCA, Defense Base Act, Outer Continental Shelf Lands
Act, and Nonappropriated Fund Instrument-alities Act) will soon receive
specific instructions from OWCP district offices and/or from the District of
Columbia Government for making the adjustments on Section 10(f) and 10(h)
cases, and should begin paying at the new benefit levels as soon as possible.
In case of questions about implementing these mandatory adjust-
ments, any district office or the OWCP National Office, Longshore Division
(Telephone: (202) 693-0038) may be contacted. For DCCA cases, contact the D.C.
Government, Department of Employment Services (Telephone: (202) 576-6265).
Michael Niss Director, Division of Longshore and Harbor
Workers' Compensation
1 District of Columbia Compensation Act of 1928 which is
applicable only to injuries which occurred prior to July 26, 1982.
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