DWC Posts New Interest Rate
The Division of Workers’ Compensation has announced the interest rate and discount rate applicable for October 1, 2021 through December 31, 2021. That rate, 3.57% reflects a minimal reduction from the rate applicable in the third quarter—3.58%
The Texas Department of Insurance, Division of Workers’ Compensation determines the interest or discount rates provided for in the Texas Workers’ Compensation Act on a quarterly basis. The rates are computed by using the treasury constant maturity rate for one-year treasury bills issued by the United States Government, as published by the Federal Reserve Board on the 15th day preceding the first day of the specified quarter, plus 3.5 percent. Texas Labor Code §401.023.
Rule 126.12 (d) provides: “The rate of interest to be paid on accrued but unpaid income benefits by carriers will be the rate calculated in accordance with the Texas Labor Code, §401.023 and in effect on the date the payment was made.”
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