{"data":{"id":"us-ky/krs-342.265","jurisdiction":"us-ky","citation":"KRS 342.265","heading":"Compensation agreement -- Approval by administrative law judge --","body":"Lump-sum payments -- Reopening as remedy for disagreement -- Abatement\nof application for resolution.\n(1) If the employee and employer and special fund or any of them reach an ag reement\nconforming to the provisions of this chapter in regard to compensation, a\nmemorandum of the agreement signed by the parties or their representatives shall be\nfiled with the commissioner, and, if approved by an administrative law judge, shall\nbe enforceable pursuant to KRS 342.305. Where all parties have not joined in the\nsettlement agreement, it shall not be approved unless it is certified that the party not\nparticipating in the settlement has been served with a copy of the agreement not less\nthan ten (10) days prior to submission of the agreement for approval. This provision\nshall not be construed to prevent the voluntary payment of compensation for the\nperiods and in the amounts prescribed by this chapter, but nothing shall operate as a\nfinal settl ement except a memorandum of agreement filed with the commissioner\nand approved by the administrative law judge. Upon claims settled after December\n12, 1996, the special fund shall have the option of settling its liability for income\nbenefits on the same t erms as those reached between the employee and employer.\nNotice of the special fund exercise of the option granted in this subsection shall be\nmade by letter of the director of the Division of Workers' Compensation Funds\nmailed to the parties within ten (1 0) days of receipt by the director of a copy of the\nagreement.\n(2) Settlement agreements concluded after July 14, 2000, providing for commuted\nlump-sum payment of future income benefits which would otherwise be payable in\namounts greater than one hundred d ollars ($100) per week shall not be approved\nunless there is reasonable assurance that the worker will have an adequate source of\nincome during disability. This subsection is remedial and applies to all pending and\nfuture claims.\n(3) Upon lump -sum settleme nt of future periodic payments, the discount rate used in\nthe calculation of the settlement amount shall be fixed by the commissioner. Before\nJanuary 1 of each year commencing in 2001, the commissioner shall fix the\ndiscount rate to be utilized in the succ eeding year based at one -half of one percent\n(0.5%) below the interest rate paid upon ten (10) year United States Treasury notes\nas of August 1 of the preceding year. However, upon lump-sum settlement of future\nperiodic payments in weekly amounts that are forty dollars ($40) or less, the\ncommissioner shall fix the discount rate used in the succeeding year based at the\ninterest rate paid upon ten (10) year United States Treasury notes as of August 1 of\nthe preceding year.\n(4) If the parties have previously f iled an agreement which has been approved by the\nadministrative law judge, and compensation has been paid or is due in accordance\ntherewith and the parties thereafter disagree, either party may invoke the provisions\nof KRS 342.125, which remedy shall be exclusive.\n(5) An application for resolution of claim shall be held in abeyance during any period\nvoluntary payments of income benefits are being made under any benefit sections of\nthis chapter to the maximum which the employee's wages shall entitle unless it shall\nbe shown that the prosecution of the employee's claim would be prejudiced by\ndelay.","path":["KRS Chapter 342"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=47618","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:31Z","sha256":"26e77b958ee85e41c0c0a5a4afea7208e03583ee7a7f6ddbcfaacf9a44a54904","source_id":"us-ky","stale":false,"prev":"us-ky/krs-342.262","next":"us-ky/krs-342.267"},"notice":"GroundRules: Original legal text. Not legal advice."}