Oregon Department of Consumer and Business Services, Workers' Compensation Division
Lump Sum Payment of Permanent Partial Disability Awards
(1) General. When an award for permanent partial disability is $6,000 or less, the insurer must pay the total amount of the award to the worker in a lump sum. When the award for permanent partial disability exceeds $6,000, the worker or worker’s attorney may request a lump sum payment of all or part of the award. The insurer may only deny the request for lump sum payment if any of the following apply:(a) The worker has not waived the right to appeal the adequacy of the award;(b) The award has not become final by operation of law;(c) The payment of compensation has been stayed pending a request for hearing or review under ORS 656.313 (Stay of compensation pending request for hearing or review); or(d) The worker is enrolled and actively engaged in an authorized training plan under OAR 436-120 . For dates of injury before January 1, 2005, the insurer may not approve a request for lump sum payment of unscheduled permanent disability. For dates of injury on or after January 1, 2005, the insurer may not approve a request for lump sum payment of work disability when the worker:(A) Has been found eligible for an authorized training plan under OAR 436-120 and will start the plan within 30 days of the date of the decision on the lump sum request;(B) Is actively enrolled and engaged in an authorized training plan under OAR 436-120; or(C) Has temporarily withdrawn from an authorized training plan under OAR 436-120.(2) Application for approval. When an insurer receives a request for a lump sum payment from the worker or the worker’s attorney, the insurer must send Form 1174, “Application for Approval of Lump-sum Payment of Award,” to the requestor within 10 business days.(3) Reopening of claims. For the purpose of this rule, each opening of the claim is considered a separate claim and any subsequent permanent partial disability award from a claim reopening is a new and separate award. Additional award of permanent partial disability obtained through the appeal process is considered part of the total cumulative award for the open period of that claim.(4) Approved requests. If the insurer approves the worker’s request for lump sum payment of a permanent partial disability award in excess of $6,000, the insurer must make the lump sum payment within 14 days of receipt of the signed application.(5) Denied requests. If the insurer denies the worker’s request for lump sum payment of a permanent partial disability award in excess of $6,000, the insurer must respond to the requestor within 14 days of receiving the request explaining the reason for denying the lump sum request.(6) Claim disposition agreements. A lump sum payment ordered in a litigation order or that is a part of a claim disposition agreement under ORS 656.236 (Compromise and release of claim matters except for medical benefits) does not require further approval by the insurer.(7) Partial payments. When a lump sum payment for only part of an award is approved by the insurer, it must be paid in addition to the regularly scheduled monthly payment. The remaining balance must be paid under ORS 656.216 (Permanent partial disability). Denial or partial approval of a request does not preclude another request by the worker for a lump sum payment of all or part of any remainder of the award, provided additional information is submitted.