Permanent partial disability (PPD)

I recently received a Notice of Closure and I was awarded permanent partial disability (PPD). What is PPD?

Permanent partial disability is the permanent loss of use or function of any portion of your body resulting from your accepted conditions. PPD is based on a formula set by law and administrative rule and is not a settlement of your claim.

How does the insurer determine the amount of permanent partial disability I was awarded?

When your accepted conditions are determined to be medically stationary, the insurer can close your claim. An examination is conducted to determine if you have a permanent loss of use or function of any portion of your body as a result of your accepted conditions. The medical provider describes your permanent loss of use or function and the insurer uses these findings to rate your permanent disability using the standards set by law and the administrative rules.

The award of permanent disability is comprised of an impairment rating and work disability if you cannot return to your regular work due to the accepted conditions.

       Impairment measures your loss of use or function (e.g., strength loss, decreased range of motion, amputation, surgery, or sensory loss) of your accepted conditions. 


       Work disability is only awarded when you cannot return to your regular work due to the accepted conditions. Work disability is based on your age, education, and vocational factors, including your job skills and nature of your regular work. 

What if I disagree with the permanent partial disability (PPD) award?

If you disagree with the PPD award, you have the right to appeal the closure by asking the Workers' Compensation Division for “Reconsideration” within 60 days from the mailing date printed in Box 1 on the front of the Notice of Closure. If you do not appeal within 60 days, you will lose all rights to appeal your claim closure. Your appeal rights and the mailing address to send your appeal are printed on the back of the Notice of Closure.

What is "Reconsideration"?

Reconsideration is a Workers' Compensation Division review of the Notice of Closure. WCD will review the claim documents the insurer used to rate your permanent partial disability and may schedule an arbiter examination to obtain an additional medical opinion regarding your accepted conditions. We encourage you to seek legal representation when requesting Reconsideration. See Need an attorney.

Can my permanent partial disability (PPD) award be lowered by the reconsideration?

Yes. Reconsideration is a review of the information used to close your claim. This would include a review of the insurer's rating of your impairment, when applicable. This review may result in your PPD award going up, down or staying the same.

Yes. Reconsideration is a review of the information used to close your claim. This would include a review of the insurer’s rating of your impairment, when applicable. This review may result in your PPD award going up, down, or staying the same.

When will I receive payment of the PPD award?

The insurer must begin making PPD payments no later than the 30th day after the Notice of Closure (NOC) was issued.

       If the PPD award is less than $6,000, the insurer must pay the entire award to you in a lump sum no later than the 30th day after the NOC was issued.


       If the PPD award exceeds $6,000, the insurer may pay the award in monthly installments. The monthly installments should be equal to 4.35 times your current time-loss rate, but no less than $108.75 per month. Additional payments should be made monthly until the entire PPD award has been paid.

You may request a lump-sum payment of any PPD award greater than $6,000. To request a lump-sum payment, you must complete and submit Application for Approval of Lump-sum Payment of Award (Form 1174) to your insurer. By applying for and accepting a lump-sum payment, you will give up your right to appeal the adequacy of the PPD award.

If I request Reconsideration of my permanent partial disability (PPD) award, can I still cash my PPD check?

Yes. Even if you request Reconsideration of the PPD award the insurer must begin making PPD payments within 30 days of issuing your Notice of Closure.