### MEMORANDUM NO. 1998-12 (Attachment)

#### Average Weekly Wage, Maximum Compensation Rate, and Cost-of-Living Adjustments - Calculations & Tables

*October 27, 1998*

The following Cost-of-Living Adjustment (COLA) Calculations & Tables for 1998 accompany this year's Memorandum No. 98-12: AWW, Max Comp Rate & COLAs issued by the Commission on September 10, 1998. If you haven't read the memo, you may find it helpful to do so at this time.

**Calculating COLAs on Total Disability Benefits for injuries prior to 7/1/93**

(**Example:** Date of Injury - 1/5/87, Base Rate - $300.00)

- Find the date of the accident using the appropriate table based on the date of injury.

- Add the dollar COLA adjustments subsequent to that date, if applicable, to the original base rate. This figure represents the adjusted base compensation rate. (For injuries occurring on or after 10/1/90, there will be no dollar COLA adjustments.)

(**e.g.**base**$300**+ 10/1/87**$21**+ 10/1/88**$18**+ 10/1/89**$15**+ 10/1/90**$17**= $371)

- Divide the current maximum by the 10/1/90 maximum in order to obtain a COLA percentage for the years 1991-1998.

*For injuries on or after 10/1/91, use the maximum applicable on the date of injury.

(**e.g.**$628 ÷ $479 = 1.31 or a 31.0% increase)

- Multiply that % times the adjusted base compensation rate to get the COLA for 1991- 1998.

(**e.g.**Adjusted base compensation rate of $371 x 31% for the latest COLA = $115.01)

- Add this COLA to the adjusted base rate for the correct total.

(**e.g.**Adjusted base**$371**+ current**$115.01**=**$486.01**)

*** To calculate COLAs for injuries occurring before 10/1/69, you must add in the appropriate adjustment as provided by 31-307a(b):*

*-----For injuries between 10/1/68 and 9/30/69 add $4.00.*

-----For injuries between 10/1/67 and 9/30/68 add $6.00.

-----For injuries prior to 10/1/67 add $15.00.

**Calculating COLAs on Survivor’s Benefits for injuries prior to 7/1/93**

**For death benefits resulting from injuries on or after October 1, 1977 refer to and follow the above explanation for Total Disability Benefits.*

*For death benefits resulting from injuries which occurred before 10/1/77, Sec. 31-306(a)(2)(B) requires the following method be used:*

(**Example:** Date of Injury - 11/21/75, Base Rate - $100.00)

- Multiply the base rate by 25% to obtain the partial COLA.

(**e.g.**Base rate $100 x .25 = $25.00)

- Add together all the COLAs which "accrued" between 10/1/80 and 10/1/90 using the table on Page 1 for Injuries Prior to 12/31/78. Add these to the original base rate and the partial COLA to obtain the adjusted base rate.

(**e.g.**The accrued total is always going to be $146.00. Add this to $25.00 and the base rate of $100.00 to obtain a figure of $271.00.)

- Divide the current maximum by the 10/1/90 maximum in order to obtain a COLA % for the years 1991 through 1998.

(**e.g.**1998 Maximum for Injuries Prior to 12/31/78 = $419 divided by the 1990 Maximum for Injuries Prior to 12/31/78 = $320 which equals 1.31 or a 31.0% increase)

- Multiply that % times the adjusted base compensation rate to get the COLA for the years 1991 through 1998.

(**e.g.**Base rate $271 x .31 for the current COLA = $84.01)

- Add this COLA to the adjusted base rate to get the current compensation rate.

(**e.g.**Adjusted base**$271**+ current**$84.01**=**$355.01**)

**Calculating COLAs on Total Disability* and Survivor’s Benefits for injuries occurring on or after July 1, 1993**

**Example:**Date of Injury - 2/27/94, Base Rate - $450.00)

- Locate the date of the accident in the appropriate table (the last one on the chart)

- Divide the current maximum by the maximum weekly wage on the date of injury to obtain a COLA percentage.

(**e.g.**$764 ÷ $638 = 1.197 or a 19.7% increase.)

- Multiply that percentage by the base compensation rate to get the COLA for the years between the date of injury and 1998.

(**e.g.**$450 x .197 = $88.65.)

- Add the COLA to the base rate to obtain the claimant's current adjusted compensation rate.

(**e.g.**base $450 + COLA $88.65 = compensation rate of $538.65.)

** By statute this only applies to claimants who are permanently totally disabled or have been totally disabled for a period of five years or more.*

**TABLES:**

*Injuries Through 12 - 31 - 1978*

Effective Date | Maximum Rate | COLA | |

10 - 1 - 1969** |
$80.00 | — | |

10 - 1 - 1970 | $84.00 | $4 | |

10 - 1 - 1971 | $95.00 | $11 | |

10 - 1 - 1972 | $102.00 | $7 | |

10 - 1 - 1973 | $112.00 | $10 | |

10 - 1 - 1974 | $119.00 | $7 | |

10 - 1 - 1975 | $126.00 | $7 | |

10 - 1 - 1976 | $135.00 | $9 | |

10 - 1 - 1977 | $147.00 | $12 | |

10 - 1 - 1978 | $160.00 | $13 | |

10 - 1 - 1979 | $174.00 | $14 | |

10 - 1 - 1980 | $190.00 | $16 | |

10 - 1 - 1981 | $207.00 | $17 | |

10 - 1 - 1982 | $217.00 | $10 | |

10 - 1 - 1983 | $230.00 | $13 | |

10 - 1 - 1984 | $254.00 | $24 | |

10 - 1 - 1985 | $265.00 | $11 | |

10 - 1 - 1986 | $272.00 | $7 | |

10 - 1 - 1987 | $286.00 | $14 | |

10 - 1 - 1988 | $298.00 | $12 | % COLA |

10 - 1 - 1989 | $308.00 | $10 | Increase |

10 - 1 - 1990 | $320.00 | $12 | Since 1990 |

10 - 1 - 1991 | $328.00 | 2.5% | |

10 - 1 - 1992 | $342.00 | 7.0% | |

10 - 1 - 1993 | $353.00 | 10.3% | |

10 - 1 - 1994 | $379.00 | 18.3% | |

10 - 1 - 1995 | $390.00 | 21.8% | |

10 - 1 - 1996 | $393.00 | 22.9% | |

10 - 1 - 1997 | $404.00 | 26.2% | |

10 - 1 - 1998 | $419.00 | 31.0% |

*Injuries From 1 - 1 - 1979 Through 9 - 30 - 1979*

Effective Date | Maximum Rate | COLA | |

1 - 1 - 1979 | $204.00 | — | |

10 - 1 - 1979 | $222.00 | $18 | |

10 - 1 - 1980 | $242.00 | $20 | |

10 - 1 - 1981 | $263.00 | $21 | |

10 - 1 - 1982 | $277.00 | $14 | |

10 - 1 - 1983 | $293.00 | $16 | |

10 - 1 - 1984 | $324.00 | $31 | |

10 - 1 - 1985 | $338.00 | $14 | |

10 - 1 - 1986 | $347.00 | $9 | |

10 - 1 - 1987 | $365.00 | $18 | |

10 - 1 - 1988 | $380.00 | $15 | % COLA |

10 - 1 - 1989 | $393.00 | $13 | Increase |

10 - 1 - 1990 | $408.00 | $15 | Since 1990 |

10 - 1 - 1991 | $418.00 | 2.5% | |

10 - 1 - 1992 | $436.00 | 7.0% | |

10 - 1 - 1993 | $450.00 | 10.3% | |

10 - 1 - 1994 | $482.00 | 18.3% | |

10 - 1 - 1995 | $496.00 | 21.8% | |

10 - 1 - 1996 | $501.00 | 22.9% | |

10 - 1 - 1997 | $514.00 | 26.2% | |

10 - 1 - 1998 | $534.00 | 31.0% |

*Injuries From 10 - 1 - 1979 Through 9 - 30 - 1987*

Effective Date | Maximum Rate | COLA | |

10 - 1 - 1979 | $261.00 | — | |

10 - 1 - 1980 | $285.00 | $24 | |

10 - 1 - 1981 | $310.00 | $25 | |

10 - 1 - 1982 | $326.00 | $16 | |

10 - 1 - 1983 | $345.00 | $19 | |

10 - 1 - 1984 | $381.00 | $36 | |

10 - 1 - 1985 | $397.00 | $16 | |

10 - 1 - 1986 | $408.00 | $11 | |

10 - 1 - 1987 | $429.00 | $21 | |

10 - 1 - 1988 | $447.00 | $18 | % COLA |

10 - 1 - 1989 | $462.00 | $15 | Increase |

10 - 1 - 1990 | $479.00 | $17 | Since 1990 |

10 - 1 - 1991 | $491.00 | 2.5% | |

10 - 1 - 1992 | $513.00 | 7.0% | |

10 - 1 - 1993 | $529.00 | 10.3% | |

10 - 1 - 1994 | $567.00 | 18.3% | |

10 - 1 - 1995 | $584.00 | 21.8% | |

10 - 1 - 1996 | $589.00 | 22.9% | |

10 - 1 - 1997 | $605.00 | 26.2% | |

10 - 1 - 1998 | $628.00 | 31.0% |

*Injuries From 10 - 1 - 1987 Through 6 - 30 - 1993*

Effective Date | Maximum Rate | COLA | |

10 - 1 - 1987 | $643.00 | — | |

10 - 1 - 1988 | $671.00 | $28 | % COLA |

10 - 1 - 1989 | $693.00 | $22 | Increase |

10 - 1 - 1990 | $719.00 | $26 | Since 1990 |

10 - 1 - 1991 | $737.00 | 2.5% | |

10 - 1 - 1992 | $769.00 | 7.0% | |

10 - 1 - 1993 | $793.00 | 10.3% | |

10 - 1 - 1994 | $850.00 | 18.3% | |

10 - 1 - 1995 | $876.00 | 21.8% | |

10 - 1 - 1996 | $883.00 | 22.9% | |

10 - 1 - 1997 | $908.00 | 26.2% | |

10 - 1 - 1998 | $942.00 | 31.0% |

*Injuries On or After 7 - 1 - 1993 (COLAs as of 10 - 1 - 1997, including retroactive payment)*

Effective Date | Maximum Rate | COLA |

7 - 1 - 1993 | $628.00 | — |

10 - 1 - 1993 | $638.00 | 1.59% |

10 - 1 - 1994 | $660.00 | 5.10% |

10 - 1 - 1995 | $656.00 | — |

10 - 1 - 1996 | $678.00 | 7.96% |

10 - 1 - 1997 | $715.00 | 13.85% |

10 - 1 - 1998 | $764.00 | 21.7% |