Can You Receive Benefits in a Lump Sum Payment in Minnesota
Picture of osterbauerlaw


Can You Receive Benefits in a Lump Sum Payment in Minnesota?

If you are seeking Minnesota workers’ compensation benefits, you may wonder if the insurance company can pay you benefits in a lump sum. Lump sum payments can help employees for several reasons, and you sometimes can receive them if requested.

Lump Sum Permanent Partial Disability Benefits

In Minnesota, employees who receive permanent partial disability (PPD) benefits can request payment of all the benefits in a lump sum rather than getting checks over time. The law says: “If the employee requests payment in a lump sum, then the compensation must be paid within 30 days.” Minn. Stat. § 176.101, subd. 2(b). The insurance company can discount the lump sum payment to account for appreciation had the payments been made over time. This discount can be up to five percent.

If an employee can receive PPD but does not request the lump sum payment, then the insurance company will pay benefits in regular installments at the same intervals as the employee received temporary total disability benefits previously. Usually these intervals are every two weeks, twice a month, or once a month.

Note that an employee wanting a lump sum payment must specifically “request” it from the insurance company. If you have just been awarded PPD benefits and are interested in the lump sum, contact the insurance company immediately to make a request.

Lump Sum Settlement Payments

Further, an employee can receive a lump sum benefits payment by reaching a settlement with the workers’ compensation insurance company. To settle a claim for benefits, the employee usually agrees to receive a specific sum of money (often less than available lifetime benefits) in exchange for releasing his or her workers’ comp claim. The employee gets an immediate lump sum of money without having to wait years for benefits, while the insurance company can close out the case without worrying about future liability.

Not all employees can receive workers’ compensation settlements. The insurance companies negotiate them on a case-by-case basis directly with employees or their lawyers. It could be tricky to figure out whether taking a particular settlement makes sense. When you work with a lawyer to obtain a settlement, your lawyer can advise you on your options. If you do decide to accept a settlement offer, read the agreement over carefully before you sign it.

Need help getting workers’ compensation for your injury? Joe Osterbauer, Esq. and the Osterbauer Law Firm stand up for injured Minnesota workers’ rights. Joe’s 27 years of workers’ compensation experience and his team’s speedy service combine to get clients the results they need. To schedule a free consultation, visit Osterbauer Law Firm online or call Joe’s office at (612) 334-3434.