When determining the TD rate for a payment made in a later year, the rate used is the rate in effect on which date?

When determining the TD rate for a payment made in a later year, the rate used is the rate in effect on which date?

• A. The date of injury
• B. The date of payment
• C. The end of the year
• D. The start of the year

Answer: (B)

Temporary disability payments are calculated using the rate in effect on the date the payment is issued. In California, the TD rate can change over time as the rate schedule and the state’s average weekly wage are updated. So when a payment is made in a later year, you apply the current rate for that payment date, not the rate from the injury date. Using the payment date ensures each payout reflects the then-current rules (including any updates to the maximums/minimums and the two-thirds calculation of the AWW). If you used the injury date, you’d lock in an older rate that may no longer apply, which is not how ongoing TD benefits are administered.

Temporary disability payments are calculated using the rate in effect on the date the payment is issued. In California, the TD rate can change over time as the rate schedule and the state’s average weekly wage are updated. So when a payment is made in a later year, you apply the current rate for that payment date, not the rate from the injury date. Using the payment date ensures each payout reflects the then-current rules (including any updates to the maximums/minimums and the two-thirds calculation of the AWW). If you used the injury date, you’d lock in an older rate that may no longer apply, which is not how ongoing TD benefits are administered.