worker compensation discount update

The Texas Department of Insurance, Division of Workers’ Compensation has determined, pursuant to the authority and direction given under the Texas Workers Compensation Act (Texas Labor Code, Section 401.023), that any interest or discount provided for in the Act shall he at the rate of 3.80%. This rate is computed by using the treasury constant maturity rate for one-year treasury bills (0.30%) issued by the United States Government, as published by the Federal Reserve Board on December 17, 2010 (the I5t1 day preceding the first day of the calendar quarter for which the rate is to be effective), plus 3.5% as required by Section 401.023. The rate shall be effective January 1, 2011 through March 31, 2011. The rate in effect for the previous period of October 1, 2010 through December 31, 2010 was 3.75%.

For more information regarding calculation of the Discount Rate and Interest Rate, contact Dareld Morris III, Texas Department of Insurance, Financial Services, at 512-305-7274.
Issued in Austin, Texas on the 2/day of December, 2010.

Rod Bordelon
Commissioner of Workers’ Compensation

No comments:

Medical Billing Popular Articles