Tag Archives: N.J.S.A. 34:15-25

When Commutation of Payments is Available in New Jersey

Simply stated, a commutation is the legal term for a petitioner asking the court to accelerate the payment of an award to answer some pressing need of the claimant.

Commutation reduces exposure in two ways:

  1. Any commuted payment made is discounted 5%. Therefore, payments of compensation which are made under Order For Commutation save the insured money. (So, a commutation reduces the amount the respondent has to pay).
  2. The payment of commutation is deemed to shorten the period of overall benefits. A claimant, under the New Jersey Workers’ Compensation Act, has two years to re-open a claim from the time the last payment was paid. By commuting payments, the period for re-opener is shortened.

So, when is commutation available in New Jersey workers’ compensation cases? It turns out that it is only available in specific circumstances. Continue reading When Commutation of Payments is Available in New Jersey