The Honorable Cue D. Soykin 

Chairman 

Opinion No. H-862 

Texas Industrial Accident Board Re: Whether the statutory 

L.B.J. State Office Building discount should be allowed 

Austin, Texas 78701 when a lump sum payment 

under article 8306, section 

8(b), V.T.C.S., is paid to 

a widow or widower entitled 

to survivor's workmen's 

compensation benefits. 

Dear Chairman Boykin: 

You have requested our opinion regarding the applicability 

of the statutory discount to a lump sum payment to a widow 

or widower under section 8(b) of article 8306, V.T.C.S., the 

workmen'5 compensation law. That statute, after declaring 

that "weekly benefits payable to the widow or widower of a 

deceased employee shall be continued until the death or 

remarriage of the beneficiary," states further: 

In the event of remarriage a lump sum 

payment equal in amount to the benefits 

due for a period of two (2) years shall 

be aid to the widow or widower. 

Zak 

(Emphasis 

Article 8306a, V.T.C.S., which requires a discount for 

present payment in certain instances, provides, in pertinent 

part: 

In all cases when the payments of weekly 

compensation due an injured employee or 

beneficiary coming within the provisions 

of the Workmen's Compensation Act are 

accelerated by increasing the amount of 

p.3634 
The Honorable Cue D. Boykin - page 2 (H-862) 

compensation by correspondingly decreasing 

the number of weeks for which the same is to 

be paid, and when the liability of the 

insurance company is redeemed by the payment 

of a lump sum, by agreement of parties 

interested, or as a result of an order made 

by the Industrial,,Accident Board or a 

judgment rendered by a court of competent 

jurisdiction, and when advanced payments of 

compensation are made, and in all cases when 

compensation is paid before becoming due, 

discount shall be allowed for present payment 

at four (4%) per cent, compounded annually. 

you ask whether the lump sum payment established by article 

8306, section 8(b), falls within one of the four categories 

of article 8306a to which that statute is applicable. We 

may summarize those categories as follows: 

1. Where payments of weekly compensation 

"are accelerated by increasing the amount 

of compensation by correspondingly decreasing 

the number of weeks"; 

2. where a lump sum payment is made as the 

result of an agreement of the parties, an 

order of the Industrial Accident Board, or 

a judgment of a court; 

3. where "advanced payments of compensation 

are made"; and 

4. where "compensation is paid befcre 

becoming due." 

A5 to the first category, section 8(b) does 

to direct the kind of payment by virtue of which 

not appear 

the amount 

of compensation is increased and tne number or weeks is 

correspondingly decreased. In our opinion, this provision 

contemplates a situation in which, for example, a claimant 

who was entitled to the sum of $50 per week for 200 weeks 

accepts in lieu thereof the sum of $200 per week for 50 

weeks. The amount of compensation paid to a remarrying 

p. 3635 
The Honorable Cue D. Boykin - page 3 (H-862) 

widow may or may not represent an increase in the amount she 

would have received had she not remarried, depending entirely 

upon the length of her life. The number of weeks is indeed 

decreased, but there is no correspondence between the two 

factors, as is required by the statute. 

The second category, is likewise inapplicable. The lump 

sum payment made to the beneficiary is not the result of the 

parties' agreement, or of an order of a court or the Industrial 

Accident Board, but is totally the result of the statutory 

directive. Neither do we believe that payment in the event 

of remarriage constitutes an "advanced payment of compensation." 

The statute clearly indicates that the lump sum payment is due at 

the time of the beneficiary's remarriage. As a result, it 

cannot be characterized as an "advanced payment." The same 

reasoning is applicable to the fourth category. The lump 

sum payment does not represent compensation "paid before 

becoming due," because it is in fact due at the time of the - 

remarriage. 

Thus, since none of the four categories to which the 

statutory discount is applicable include the kind of lump 

sum payment provided in article 8306, section 8(b), it is 

our opinion that payments under that provision are not subject 

to the statutory discount of article 8306a. Consequently, 

a lump sum payment to a widow or widower under section 8(b) 

of article 8306 should be made without discount. 

SUMMARY 

Lump sum payments of workmen's compensaticn 

benefits to a widow or widower who remarries 

are not subject to the statutory discount of 

article 8306a, V.T.C.S. 

Very truly yours, 

Attorney General of Texas 

8.3636 
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The Iionorable Cue D. Boykin - page 4 W-862) 

Opinion Committee 

W 

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