• Menu
  • Skip to main content
  • Skip to secondary navigation
  • Skip to primary sidebar
  • Skip to footer

Before Header

  • Search
  • About
  • Contact
  • Privacy
 
CHOOSE BROADSPIRE

Amaxx Workers Comp Blog

Reduce Workers Compensation Costs By 20-50%

Header Right

  • Home
    • Training Center
  • Get Started
    • Newcomers Class for WC Professionals
    • Subscribe to Free Newsletter
    • Free Training Center Account
    • Return to Work Resources
    • WC Claims Mgmt. Resources
    • Insurance Advisor Resources
  • Membership
    • Insider (free account)
    • WC Mastery
    • Teams & Managers Mastery
    • Training Partners
  • Products
    • On-Demand Courses
    • Specialty Courses
    • Certifications & Mastery Courses
    • Ultimate Guidebooks
  • Blog
    • Video Blogs
    • COVID-19 / Coronavirus Pandemic
  • Login

Mobile Menu

Choose Broadspire

CHOOSE BROADSPIREBroadspire Delivers Meaningful Results to Our Clients and Their Claimants
  • Home
    • Training Center
  • Get Started
    • Newcomers Class for WC Professionals
    • Subscribe to Free Newsletter
    • Free Training Center Account
    • Return to Work Resources
    • WC Claims Mgmt. Resources
    • Insurance Advisor Resources
  • Membership
    • Insider (free account)
    • WC Mastery
    • Teams & Managers Mastery
    • Training Partners
  • Products
    • On-Demand Courses
    • Specialty Courses
    • Certifications & Mastery Courses
    • Ultimate Guidebooks
  • Blog
    • Video Blogs
    • COVID-19 / Coronavirus Pandemic
  • Login
  • Search
  • About
  • Contact
  • Privacy
You are here: Home / Litigation Management / Older Workers And The Retirement Presumption

Older Workers And The Retirement Presumption

August 5, 2016 By //  by Michael B. Stack Leave a Comment

There are many factors in the United States forcing workers to continue to work into their traditional retirement years.  Although this provides a source of dedicated workers, the downfall is that injuries tend to result in prolonged periods of disability and missed time following an injury.  It is important for members of the claim management team and attorneys defending these claims to coordinate efforts and evaluate the use of a retirement presumption defense.

Misconceptions about the Aging American Workforce 

People are living longer in the United States.  The result is people are staying in the workforce well into their “retirement years.”  A recent survey noted that 37% of non-retired American say they expect to retire after age 65, and 26% at age 65.  This is steady increase for past years when Americans were planning to retire at an earlier age.  This trend is having the following impact on workers’ compensation and other disability programs:

Click Link to Access Free PDF Download

“How To Avoid, Manage, And Win Workers’ Comp Claim Litigation”

  • Increasing pressure and underfunding of the Social Security system = decreased benefits;
  • Increasing dependence on other social “safety net” programs; and
  • Increasing severity in injuries resulting in higher benefit awards.

Failing to Prepare for the Aging American Workforce

The aging American workforce has caught employers and other interested stakeholders by surprise.  The results of a recent DMEC & Cornell University study titled State of the Field: Absence and Disability Management Practices for an Aging Workforce should serve as a wake-up call.

  • 6% of employer respondents “very” to “somewhat” concerned about an aging workforce. The transportation industry had the highest level of concern, and the financial/banking/insurance industry had lowest level of concern;
  • 64% of employer respondents have not considered the aging in absence and disability programs. It was also noted that “many organizations are concerned about the implications of an aging workforce, but relatively few have considered an aging workforce in designing integrated absence and disability management programming.”

Effectively Defending Disability Claims with Dealing with Older Employees

The proper defense of every workers’ compensation claim starts with treating the injured worker with dignity and respect.  This is especially the case when dealing with persons who have worked for an employer for a majority of their working career.

One defense available in many jurisdictions is the “retirement presumption.”  This defense is typically codified in a workers’ compensation act.  Under this presumption, a certain age or receipt of Social Security Retirement Insurance Benefits creates the conclusion that a person is retired and not entitled to workers’ compensation disability benefits.  This would include Temporary Total, Temporary Partial and Permanent Total Disability benefits.

FREE DOWNLOAD: “How To Avoid, Manage, And Win Workers’ Comp Claim Litigation”

Successfully Using the Retirement Presumption Defense

Not all jurisdictions have a “retirement presumption” codified in statute or recognized under case law.  In all instances where such presumption exists, it is important to remember the defense rebuttable.  This means the employee can present evidence to demonstrate they are not retired or do not intend to retire, and thus entitled to future wage loss benefits.

When trying to employ this defense, it is important to evaluate the following factors based on medical and vocational evidence, as well as the actions or testimony of the employee.

  • Express intention to retire at a certain age, or implicit actions on their part that suggest a departure from the labor market;
  • Actions by the employee to apply for Social Security retirement benefits;
  • Information concerning the financial status of the employee. This includes other sources of income, investments, pensions and 401K plans;
  • Discussions of retirement by the employee with the employer and their representatives. Information about the employee’s intentions to retire can also be found in medical and vocational records;
  • Diligent (or lack thereof) job search efforts by the employee; and
  • Testimony from other lay witnesses regarding the employee’s intentions to retire. 

Conclusion

Dealing with an aging workforce entails a number of challenges for stakeholders in the workers’ compensation system.  When claims occur with these parties, it is important to evaluate all possible defenses, including the retirement presumption defense.

Author Michael Stack, Principal, COMPClub, Amaxx LLC. He is an expert in workers’ compensation cost containment systems and helps employers reduce their work comp costs by 20% to 50%.  He works as a consultant to large and mid-market clients, is co-author of Your Ultimate Guide To Mastering Workers Comp Costs, a comprehensive step-by-step manual of cost containment strategies based on hands-on field experience, and is founder of COMPClub, an exclusive member training program on workers compensation cost containment best practices. Through these platforms he is in the trenches on a working together with clients to implement and define best practices, which allows him to continuously be at the forefront of innovation and thought leadership in workers’ compensation cost containment. Contact: mstack@reduceyourworkerscomp.com.

©2016 Amaxx LLC. All rights reserved under International Copyright Law.

Do not use this information without independent verification. All state laws vary. You should consult with your insurance broker, attorney, or qualified professional.

FREE DOWNLOAD: “How To Avoid, Manage, And Win Workers’ Comp Claim Litigation”

Filed Under: Litigation Management

Related Articles

Key Steps to Avoid and Manage Workers’ Comp Litigation

Identify And Correct Workers’ Comp Litigation Drivers

Identify And Correct Workers’ Comp Litigation Drivers

Avoid Workers’ Comp Litigation

Avoid Workers’ Comp Litigation

Overcoming Covid-19 Workers’ Comp Litigation Barriers

Overcoming Covid-19 Workers’ Comp Litigation Barriers

Using an Ombudsman to Reduce Work Comp Costs

Using an Ombudsman to Reduce Work Comp Costs

You’re Fired! Employment Releases in Work Comp

You’re Fired! Employment Releases in Work Comp

Develop Defense Attorney Relationships to Settle Work Comp Claims

Develop Defense Attorney Relationships to Settle Work Comp Claims

3 Strategies To Reduce Workers Comp Legal Costs

3 Strategies To Reduce Workers Comp Legal Costs

Important Factors In Workers Comp Defense Attorney Selection

Important Factors In Workers Comp Defense Attorney Selection

Control Defense Council Costs With Alternative Fee Arrrangements

Control Defense Council Costs With Alternative Fee Arrrangements

WCRI Annual Conference And Top 3 Reasons For Work Comp Litigation

WCRI Annual Conference And Top 3 Reasons For Work Comp Litigation

5 Shots Of Tequila Does Not Always Equal Denied Work Comp Claim

5 Shots Of Tequila Does Not Always Equal Denied Work Comp Claim

Five Ways Employers Reduce Attorney Fees and Legal Costs in Workers Compensation Cases

Five Ways Employers Reduce Attorney Fees and Legal Costs in Workers Compensation Cases

Train to Succeed

BECOME CERTIFIED IN WORKERS’ COMPENSATION

Proven Course Catalog & WC Toolbox Give You The Power To Achieve Lower Costs and Better Injured Worker Outcomes

VISIT WORKERS' COMP TRAINING CENTER

Free Download

How To Avoid, Manage, And Win Workers' Comp  Claim Litigation - FREE Download Click Here Now!

Previous Post: « WCIRB: 2015 California Written Premium Approximately $17.6B
Next Post: The Secret To Success In Workers’ Compensation »

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

FREE DOWNLOAD

How To Avoid, Manage, And Win Workers' Comp  Claim Litigation - FREE Download Click Here Now!

Our Sponsors

Ametros

Post-Settlement Administration
 

Broadspire

Workers’ Comp 3rd-Party Administrator
 

Medicare Secondary Payer Services
 

Medcor

Injury Triage, Onsite Clinics

Read Our Award-Winning Blog

Blog Categories

Search Our Archive

Subscribe to Our FREE Newsletter

Footer

Search Our Archive

Search our continually growing archive of over 2500 articles about Workers' Comp issues.

Quiclinks

  • Calculators
  • Terms & Abbreviations
  • Glossary of WC Premium Terms
  • WC Resources
  • Best Practices
  • Industries

RSS Recent Blog Posts

  • 20 Unfair Claim Practices For Your Adjuster To Avoid
  • Use Vocational Coordination When Employees Are Unable To Return to Work
  • Implement These Safety Training Guidelines
SUBSCRIBE TO OUR FEE NEWSLETTER
Let Us Help You Stomp Down the High Cost of Workers' Comp!
Top of Page ↑
  • Home
  • Training Center
  • Get Started
  • Membership
  • Products
  • Blog
  • About
  • Contact
  • Subscribe
  • Login
Copyright © 2021 Amaxx, LLC. All Rights Reserved. · Privacy Policy / Legal Notice