Under the Workers’ Compensation Reform Legislation of 2007 insurance carriers are required to make significant deposits, in certain circumstances, in the Aggregate Trust Fund.

The Legislation specifically requires that all non-self insured employers and their carriers, other than the State Insurance Fund, make lump sum payments to the Aggregate Trust Fund upon a finding of a permanent partial disability on or after07/01/07.

The Aggregate Trust Fund is administered by the New York State Insurance Fund, but again, self-insures are not required to make this payment.

The practical relevance of this provision is that many insurance companies are very interested in entering into Section 32 settlements in order to avoid permanent partial disability classification and the resulting deposit into the Aggregate Trust Fund.

If you have work related injury that you believe may result in a permanent disability, take the time to learn your rights and responsibilities and feel free to consult with our office.