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During the 2000 legislative session, Minnesota law (Minnesota Statutes 176.101, subp. 2b) was amended to permit the lump-sum payment of permanent partial disability (PPD) awards at the request of the claimant.

Effective Oct. 1, 2000, the lump-sum payment allowed is the present value of the PPD award using a discount rate up to 5 percent. The present value of a PPD award is calculated using information about the award (the total award, the size of a single payment and the frequency of payments) and the identified discount rate. Given this information, the lump-sum payment calculated is the amount the claimant would need to invest today at the identified interest rate to earn an amount equal to the PPD benefit flow.

Workers' compensation lump-sum calculator image