The Workers Compensation Act provides WorkSafeNB with the discretion to determine the frequency of compensation payments.
While compensation payments are intended to provide a regular and reliable source of income, similar to employment earnings, WorkSafeNB recognizes that there may be instances where providing a lump-sum payout of compensation benefits would better support a worker or their surviving spouse.
WorkSafeNB may provide a lump-sum payout of the following benefits due to their stable nature:
All other periodic compensation benefits and medical aid benefits are excluded from eligibility for a lump-sum payout.
Payout requests for pre-1982 pension benefits or surviving spouse benefits as stipulated above are considered on a case-by-case basis.
1. When considering a request for a lump-sum payout of benefits eligible under this policy, WorkSafeNB weighs all relevant facts and circumstances including but not limited to the following:
2. Lump-sum payouts do not affect the worker’s entitlement to medical aid benefits. Workers remain entitled to medical aid for as long as deemed necessary as a result of the compensable injury.
3. In the case of pre-1982 pension benefits, WorkSafeNB may later adjust the lump-sum payout if there is an increase in the disability level.
Financial advice
4. When a worker or their surviving spouse requests a lump-sum payout of compensation benefits, WorkSafeNB requires written confirmation from a WorkSafeNB-approved independent financial advisor that the lump-sum payout will not adversely affect their long-term financial situation.
5. WorkSafeNB pays a rate, up to a maximum of $500, for services provided by the independent financial advisor.
Acknowledgement
6. WorkSafeNB requires a signed acknowledgement from the worker or surviving spouse that the lump-sum payout is a final payment in lieu of any future periodic benefits.
7. An acknowledgement is not required when a subsequent payout related to a pre-1982 pension benefit is being provided because of an increase in the worker’s disability level.
Financial advisor – an individual, with a recognized designation or certification in accounting or finance, who provides advice on financial matters (e.g., officer of a bank, investment councillor, accountant, etc.).
Payout – payment of a specific lump sum of money in lieu of future benefit entitlement.
Spouse – a person who, at the time of the death of the worker,
a) was married to and was cohabiting with the worker; or
b) was not married to but was cohabiting with the worker in a conjugal relationship and had, immediately before the death of the worker, been cohabiting:
i) for not less than three years; or
ii) for not less than one year if a child of whom the person and the worker are the natural parents had been or is to be born (Workers Compensation Act).