ALRI Projects ALRI Projects Discount Rates Discount rates are percentage figures used to calculate the present value of damage awards that compensate for future losses.
Some jurisdictions use discount rates established by statute.
Alberta does not. In Alberta cases, either the parties agree on a discount rate, or they call expert evidence on the subject and leave the court to decide what the discount rate should be. We originally considered whether or not to recommend that Alberta should adopt a statutory rate, but we determined that the question was too complex for such a solution. The Institute has prepared background research on the methods by which discount rates for the current value of future payments may be determined. If there is a further request for the implementation of such a proposal, the research will be updated and recommendations developed.