Example 2. Section 10(h) (1) cases currently being paid at the
highest rate: .

$407.00 (Weekly compensation payment)

$407.00 x 2.63% (.0263) = $10.704 ($10.70 rounded to the
nearest cent)

$407.00 + $10.70 = $417.70 or $418.00 rounded to the nearest
dollar

Example 3. Cases in which no adjustment is to be made:

$37.83 (Weekly compensation payment)

$37.83 x 2.63% (.0263) = $.9949 ($.99 rounded to the nearest
cent)

Section 10(g) states in such case that there is no
adjustment in compensation. This example indicates that in
any case where the weekly award is $37.83 or less there
shall be no adjustment to compensation. If the award is
greater than $37.83, then there will be an adjustment.

Disposition: This Bulletin should be retained until the
ndicated expiration date or until the necessary changes have
been made to the Longshore (LHWCA) Procedure Manual.

Weill la.

MICHAEL NISS
Director, Division of
Longshore and Harbor
Workers' Compensation

Attachments

Distribution: List No. 1
(Regional Directors, OWCP; District Directors,
DLHWC; All Claims Examiners; Rehabilitation
Specialists; Mail and File Section; National
Office DLHWC Professional Staff; Director, OWCP;
Director, DFEC; Director, DCMWC, Rehabilitation
Division; Director, DEEOIC, Rehabilitation
Division; Solicitor's Office, Division of Black
Lung and Longshore Legal Services)


U.S. Department of Labor Office of Workers’ Compensation Programs
Divsion of Longshore and

Harbor Workers’ Compensation
Washington, D.C. 20210

File Number:

LHWCA BULLETIN NO. 11-01

Issue date: October 1, 2010

Expiration Date: September 30, 2011

Subject: National Average Weekly Wage, Minimum/Maximum Rates,
and Annual Adjustment Under Section 10(f), Effective October 1,
2010.

Background: Under Section 6(b) (3) of the LHWCA, the Secretary
fas determined that the National Average Weekly Wage (NAWW) for
the three consecutive calendar quarters ending June 30, 2010 is
$628.42. This amount is the applicable NAWW for the period
October 1, 2010, through September 30, 2011.

In accordance with Section 2(19) of the Act, the NAWW of $628.42
is based on the national average earnings of production or
nonsupervisory workers on private nonagricultural payrolls. Such
earnings during the three consecutive calendar quarters ending
dune 30, 2010, as obtained from the Bureau of Labor Statistics,
are $625.79, $624.93 and $634.53. The average of these three
quarterly figures is $628.42.

Under Section 6(b) (1) of the Act, the maximum compensation for
disability or death is "200 per centum of the applicable national
average weekly wage." Given the NAWW of $628.42, the maximum
compensation rate for the 12-month period beginning October 1,
2010, is $1,256.84 per week.

The minimum compensation rate under Section 6(b) (2) is "50 per
centum of the applicable national average weekly wage," or
$314.21 per week for the period October 1, 2010, through
September 30, 2011.

Section 10(f) provides that, effective October 1 of each year,
compensation for permanent total disability or death shall be
increased by (1) a percentage equal to the percentage by which
the current NAWW exceeds the preceding NAWW or (2) 5 percent,
whichever is less. The NAWW of $628.42 exceeds the preceding
NAWW of $612.33 by 2.63 percent. Therefore, the increase
provided by Section 10(f) for October 1, 2010, is 2.63 percent.

In summary, the following amounts and percentage are applicable
during the period October 1, 2010, through September 30, 2011:


National Average Weekly Wage. ......- +. + + $628.42

Maximum Compensation Rate ........+ .-.+ + $1,256.84
Minimum Compensation Rate ..........-- +. $314.21
Adjustment Under Sections 10(f) and 10(h) ... . . 2.63%

P ose: To provide the national average weekly wage, the
minimum and maximum compensation rates, and the percent of
adjustment under Section 10(f) applicable to the period beginning
October 1, 2010, and to provide information and guidance on their
application.

References: Chapters 3-202 and 3-203 of the Longshore (LHWCA)
Procedure Manual.

Applicability: All District Directors, Claims Examiners, and
Claims Clerks in the DLHWC District Offices.

Action:

1. Effective October 1, 2010, compensation for disability
incurred during the period 10/1/2010 - 9/30/2011 is to be
computed at 66 2/3% of the employee's average weekly wage as
determined under Section 10, subject to the maximum compensation
rate of $1,256.84. The minimum compensation rate in total
disability cases is $314.21. However, if an employee's average
weekly wage is less than this amount, compensation should be paid
at 100% of the employee's average weekly wage.

2. In computing death benefits, the average weekly wage of the
deceased employee should not be less than $628.42, and the total
weekly death benefit should not initially exceed the maximum
compensation rate of $1,256.84. Death benefits can subsequently
exceed the initial maximum limitations by virtue of Section 10(f)
adjustments.

3. Form LS-557, copy attached, has been revised to reflect the
current minimum and maximum limitations applicable where the
injury occurred on or after October 1, 2010. Form LS-557 is also
being sent as an attachment in Microsoft Word for Windows XP
format to the District Directors. Each district office may print
the forms as needed. No supply of the form will be provided by
the National Office unless specifically requested. A small
supply of the previous edition of the LS-557 should be retained
for use in those cases where the injury occurred prior to October
1, 2010.


4. In accordance with the provisions of Section 10(f£) of the
LHWCA, the compensation being paid in cases of permanent total
disability or death arising out of injuries subject to the Act
which existed prior to October 1, 2010, is to be increased by
2.63 percent.

The adjusted weekly amount will be fixed at the nearest dollar.
Figures ending in $.50 or more will be raised to the next whole
dollar; figures ending in less than $.50 will be rounded to the
preceding dollar amount. No adjustment of less than $1.00 will
be made. Therefore, in any case where the weekly award is $37.83
per week or less, there will be no adjustment of compensation.

If the award is greater than $37.83, then there will be an
adjustment.

5. Form LS-521, copy attached, has been revised to reflect the
percentage of adjustment for October 1, 2010. Form LS-521 is
also being sent in electronic form via e-mail in Microsoft Word
for Windows XP format. Offices should use the automated LS-521
process available in the Longshore Case Management System (LCMS).
Those offices using word processing or other programs to generate
the LS-521 should make appropriate revisions to that document.
Any previous editions of the form are obsolete and should be
destroyed.

6. Examples of computations of Section 10 adjustments for
October 1, 2010, are as follows:

Example 1. Cases currently being paid at the maximum

compensation rate:
$1,224.66 (Weekly compensation payment)

$1,224.66 x 2.63% (.0263) = $32.208 ($32.21 rounded to the
nearest cent)

$1,224.66 + $32.21 = $1,256.87 which would be $1,257.00
rounded to the nearest dollar.

NOTE: Since application of the Section 10 adjustment this
year results in compensation above the maximum amount
because of rounding to the nearest dollar, the compensation
must be reduced to the maximum rate of $1,256.84.