How Do I Calculate My Scheduled Disability Under the Defense Base Act?
If you are a civilian contractor working overseas for the U.S. government, you may be eligible for compensation under the Defense Base Act (DBA) if you are injured or become ill on the job. The DBA provides benefits including medical care, disability compensation, and death benefits to eligible workers. If you have been injured or become ill on the job, you may be wondering how to calculate your scheduled disability benefits under the DBA. Here is a guide to help you understand how to calculate your scheduled disability benefits.
Step 1: Determine if you have a permanent impairment.
To be eligible for scheduled disability benefits under the DBA, you must have a permanent impairment caused by your work-related injury or illness. A permanent impairment is defined as a “loss, loss of use, or derangement of any body part, system, or function.” In other words, if your injury or illness has caused a lasting or permanent loss of function in a body part or system, you may be eligible for scheduled disability benefits.
Step 2: Calculate your impairment rating.
Once you have determined that you have a permanent impairment, you must calculate your impairment rating. Your impairment rating is a percentage that reflects the severity of your permanent impairment. The higher your impairment rating, the more severe your impairment and the more compensation you may be eligible to receive.
To calculate your impairment rating, you will need to undergo a medical evaluation by a qualified medical professional. The medical professional will assess the nature and severity of your impairment and assign a rating based on the American Medical Association (AMA) Guides to the Evaluation of Permanent Impairment. The AMA Guides provide a standardized way to assess and rate permanent impairments, and are commonly used in workers’ compensation cases.
Step 3: Determine your compensation rate.
Once you have your impairment rating, you can use it to calculate your scheduled disability benefits. The amount of compensation you are eligible to receive will depend on your impairment rating and your compensation rate.
Your compensation rate is determined based on your average weekly wage at the time of your injury or illness. Your average weekly wage is calculated by taking your total earnings over the 52 weeks immediately preceding your injury or illness, and dividing that total by 52.
Your compensation rate is typically two-thirds of your average weekly wage, up to a maximum amount set by the DBA. For injuries or illnesses that occurred on or after January 1, 2021, the maximum weekly compensation rate is $1,550.33.
Step 4: Use the DBA compensation chart to calculate your benefits.
Once you have your impairment rating and your compensation rate, you can use the DBA compensation chart to calculate your scheduled disability benefits. The compensation chart provides a schedule of benefits based on the body part or system that is impaired, and the severity of the impairment.
For example, if you have a 30% impairment rating for your hand, you would look at the compensation chart to find the corresponding benefit rate. According to the chart, a 30% impairment rating for the hand corresponds to 83 weeks of compensation at your compensation rate.
Here are some examples of how to use the compensation chart to calculate scheduled disability benefits:
- If you have a 40% impairment rating for your lower leg, you would be entitled to 144 weeks of compensation at your compensation rate.
- If you have a 50% impairment rating for your neck, you would be entitled to 205 weeks of compensation at your compensation rate.
- If you have a 60% impairment rating for your hearing loss, you would be entitled to 288 weeks of compensation at your compensation rate.
Step 5: Understand your options for lump-sum settlements.
In some cases, you may be eligible for a lump-sum settlement instead of ongoing scheduled disability payments. Lump-sum settlements can provide a larger, one-time payment that can help you pay off debt, invest in your future, or make other important financial decisions.
However, lump-sum settlements can also be risky, as they typically require you to give up your right to future benefits. You should carefully consider your options and consult with an experienced DBA attorney before accepting a lump-sum settlement.
Calculating your scheduled disability benefits under the DBA can be a complex and confusing process. It is important to work with an experienced attorney who understands the DBA and can help you navigate the system. An attorney can help you understand your rights and options, and can help you negotiate for the best possible outcome for your case.