The Honorable Cue D. Soykin

Chairman Opinion No. H-862 Texas IndustrialAccident Board Re: Whether the statutory L.B.J. State Office Building discount shouldbe 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'sworkmen's compensationbenefits. Dear Chairman Boykin:
You have requestedour opinion regarding the applicability of the statutorydiscount 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 "weeklybenefitspayable to the widow or widower of a deceased employee shallbe continueduntil 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. 

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Article 8306a,V.T.C.S., which requires a discount for present payment in certain instances,provides, in pertinent part: In all caseswhen the payments of weekly

compensationdue an injured employee or beneficiary comingwithin the provisions of the Workmen's CompensationAct are acceleratedby increasing the amount of

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compensationby correspondinglydecreasing the number of weeks for which the same is to be paid, and when the liabilityof the insurance company is redeemed by the payment of a lump sum, by agreement of parties interested,or as a result of an ordermade by the Industrial,,Accident Board or a judgmentrendered by a court of competent jurisdiction,and when advancedpayments of compensationare made, and in all caseswhen compensation is paid before becomingdue, discount shall be allowed for present payment at four (4%)per cent, compoundedannually.
you ask whether the lump sum payment establishedby article 8306, section 8(b), fallswithin 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 acceleratedby increasing the amount of compensationby correspondinglydecreasing 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 IndustrialAccident Board, or a judgmentof a court; **3.** where "advancedpayments of compensation are made"; and
**4.** where "compensationis 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 increasedand tne number or weeks is correspondinglydecreased. **In** our opinion, this provision contemplatesa situation inwhich, for example, a claimant who was entitled to the sum of $50per week for 200weeks accepts in lieu thereof the sum of $200per week for 50 weeks. The amount of compensationpaid to a remarrying

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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 correspondencebetween the two factors,as is requiredby the statute. The second category, is likewise inapplicable. The lump sum paymentmade 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 constitutesan "advancedpayment of compensation." The statute clearly indicates that the lump sum payment is due at the time of the beneficiary'sremarriage. As a result, it cannot be characterizedas an "advancedpayment." The same reasoning is applicable to the fourth category. The lump sum payment does not represent compensation "paidbefore becoming due,"because it is in fact due at the time of the - remarriage. Thus, since none of the four categories to which the statutorydiscount is applicable include the kind of lump sum payment provided in article 8306, section 8(b), it is our opinion thatpayments under that provision are not subject to the statutorydiscount 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 statutorydiscount of article 8306a,V.T.C.S. Very trulyyours,

Attorney General of Texas

8.3636, .

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

Opinion Committee 

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