28 Tex. Admin. Code § 126.12 - Payment of Interest on Accrued but Unpaid Income Benefits
(a) Accrued but unpaid income benefits are
those benefits which either:
(1) have accrued
during a period of dispute over insurance carrier (carrier) liability for the
claim or injured employee entitlement to the benefits; or
(2) have not been paid by the date the
carrier was required to pay them.
(b) Carriers shall include simple interest in
all payments for accrued but unpaid income benefits.
(c) Income benefits accrue in either weekly
or monthly pay periods, as otherwise provided by the Texas Workers'
Compensation Act and this title, and interest shall be calculated separately
for each pay period based on the length of time the benefits for that pay
period remained accrued and unpaid.
(1) For
pay periods in which benefits accrued while in dispute as provided in
subsection (a)(1) of this section, the carrier shall pay interest for number of
days between the seventh day after the day the benefits accrued and the day the
payment was made.
(2) For pay
periods in which benefits accrued and were paid late by the carrier as provided
in subsection (a)(2) of this section, the carrier shall pay interest for the
number of days between the due date for the payment and the date the payment
was made.
(d) The rate
of interest to be paid on accrued but unpaid income benefits by carriers will
be the rate calculated in accordance with the Texas Labor Code, §
401.023 and in effect on
the date the payment was made.
(e)
The following method shall be used to calculate the simple interest to be paid:
(1) multiply the rate of interest by the
amount in question (to create annual amount of interest);
(2) divide the annual amount of interest by
365 (to create daily interest amount); then
(3) multiply daily interest amount by the
number of days of interest that are owed.
Notes
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