Opinion ID: 848951
Heading Depth: 4
Heading Rank: 1

Heading: Maximum and Minimum Benefits

Text: Recall that an element of the calculation for a partial dependent is the benefit that would be paid if the survivor had been wholly dependent on the decedent (BWD). If one were determining the benefit for a wholly dependent person, the first sentence of M.C.L. § 418.321 instructs that it might be necessary to reduce the benefit in light of the maximum benefit of M.C.L. § 418.355(2) or to raise it to reach the minimum benefit specified by M.C.L. § 418.356(2). The majority in Weems held that no separate adjustment should be made after the benefits for a partially dependent person are calculated. The majority said that a partially dependent person's weekly benefits are inherently subject to the maximum and minimum rates of compensation because the calculation of a wholly dependent person's weekly benefit is included in the partially dependent person's calculation. 448 Mich. at 684-685, 533 N.W.2d 287. We agree. The minimum or maximum benefit language in M.C.L. § 418.321 is located in the sentence discussing benefits for wholly dependent persons, not the calculation for partially dependent persons. [15] Therefore, where the maximum or minimum is applicable, it is to be inserted at the step where (BWD) is determined. For that reason, when (BWD) is more than the maximum or less than the minimum, it will be necessary to substitute the minimum or maximum for (BWD), which is calculated using the formula stated ante at page 7. That change would mean that the usual value of (BWD), which is (.80)(WWAT) or 80% of the decedent's weekly wage after taxes, would be replaced by the statutory maximum or minimum (SM) under M.C.L. § 418.355(2) or M.C.L. § 418.356(2). This change would be necessary because in such cases the benefit level of a partial dependent is tied by the language of M.C.L. § 418.321 to the benefits that would be provided a wholly dependent person. Ordinarily, a wholly dependent person would be entitled to 80% of the deceased employee's after-tax earnings, but that is not the case in situations in which such a wholly dependent person's benefits would be subject to the maximum or minimum benefit restrictions. Thus, where the minimum or maximum applies, as the law existed in 1982, the statutory formula would be: BPD = (C)(SM)/(AE), or Benefit = (decedent's contribution)(statutory maximum or minimum) (decedent's annual earnings) In a case arising under the amended language of 1985 PA 103 and currently applicable, it would be: BPD = (.80)(C)(SM)/(AE), or Benefit = (.80)(decedent's contribution)(statutory maximum or minimum) (decedent's annual earnings)