Keep in mind that from the time you are discharged from treatment to the time the ICA issues its ”Findings and
Award for Unscheduled Permanent Partial Disability,” the carrier is not required to continue compensation.
They may voluntarily continue to pay. If the amount is larger than what is found in the award issued by the
ICA, the carrier will take a credit against future payments, if it is smaller, the carrier will make up the
difference. Once the award is issued by the ICA, the carrier is required to pay the amount on the award, even
if it disagrees, until the amount of permanent compensation is finalized through the hearing process. Once the
amount of permanent compensation has been finalized, that amount will be paid monthly by the carrier.
Each year, on the anniversary date of the award, the carrier will send you a form entitled “Annual Report of
Income.” You must report on that form how much you earned as wages during the past 12 months. The form
must be sent to the carrier, not the ICA. If you fail to return the form, your permanent compensation payments
may be suspended until you file the form. Your unscheduled permanent compensation benefits can only be
stopped by: (1) Your death, (2) Failure to file an “Annual Report of Income”, or (3) Rearrangement of your
benefits by the ICA following a petition by the employer or the carrier, of which you will be notified.
PETITIONS FOR REARRANGEMENT OR READJUSTMENT OF COMPENSATION
If you have sustained a permanent injury where a Findings and Award for Unscheduled Permanent Partial
Disability has been issued and later on your earning capacity increases or decreases a petition for
rearrangement or readjustment of compensation could be filed by you or by the carrier. The petition requests
the ICA review your award and determine whether your monthly benefits should increase, decrease or cease.
The burden of proving the change in earning capacity is the responsibility of the person filing the petition.
If your earning capacity decreases due to a change in your physical condition arising out of the injury or where
you can show a reduction in your earning capacity when there is no change in your physical condition you may
file a Petition for Rearrangement or Readjustment of Compensation.
You should not file a Petition for Rearrangement or Readjustment of Compensation if your earning capacity
decreases due to a deterioration of a non-industrial condition, the aging process, a rising cost of living, moving
to an area where work is not available or a change in the economic condition which affects work availability.
The carrier may file a Petition for Rearrangement or Readjustment of Compensation if they can show that your
earning capacity has increased since the “Findings and Award for Unscheduled Permanent Partial Disability”
was issued.
When the ICA receives a Petition for Rearrangement or Readjustment of Compensation an acknowledgment
letter is sent to the filing party with copies of the petition and the injured worker is sent a questionnaire to
obtain current employment information.
The ICA will review the file and the petition and issue an award either approving or disapproving the
rearrangement of the monthly benefits. If approved, your monthly benefits could decrease or cease entirely.
If you, the employer, or the carrier disagrees with this award, a request for hearing must be filed within 90
days from the issuance date of this award.
LUMP SUM COMMUTATIONS
Arizona Workers’ Compensation Law requires that permanent benefits be paid on a monthly basis. The law
allows awards to be commuted to a lump sum at the discretion of the Commissioners. A lump sum
commutation on a scheduled award cannot exceed $25,000.00 and does not require the carrier’s approval. A
lump sum commutation on an unscheduled award cannot exceed $150,000.00 and does require the approval
of the carrier, or the ICA is without jurisdiction to consider the request. The value of the commutation is
determined on the day you file the request, considering payments you were due to receive, advances and
payments made after your request are subtracted from the commutation. The value of the award is also
discounted .06% per annum.