Discount Rate and Interest Rate Determined for July 1, 2016, through September 30, 2016

The Texas Department of Insurance, Division of Workers’ Compensation has determined, pursuant to the authority and direction given under the Texas Workers’ Compensation Act (Texas Labor Code, §401.023), that any interest or discount provided for in the Act shall be at the rate of 4.03 percent. This rate is computed by using the treasury constant maturity rate for one-year treasury bills (0.53 percent) issued by the United States Government, as published by the Federal Reserve Board on June 16, 2016 (the 15th day preceding the first day of the calendar quarter for which the rate is to be effective), plus 3.5 percent as required by Texas Labor Code, §401.023. The rate shall be effective July 1, 2016, through September 30, 2016. The rate in effect for the previous period of April 1, 2016, through June 31, 2016, was 4.14 percent.

For more information regarding calculation of the Discount Rate and Interest Rate, contact Dylan McCoy, Texas Department of Insurance, Financial Services, at 512-676-6195.