287.530. Commission or division may commute compensation, when and how. - Missouri Statutes

Commission or division may commute compensation, when and how.

287.530. 1. The compensation provided in this chapter may becommuted by the division or the commission and redeemed by the payment inwhole or in part, by the employer, of a lump sum which shall be fixed bythe division or the commission, which sum shall be equal to the commutablevalue of the future installments which may be due under this chapter,taking account of life contingencies, the payment to be commuted at itspresent value upon application of either party, with due notice to theother, if it appears that the commutation will be for the best interests ofthe employee or the dependents of the deceased employee, or that it willavoid undue expense or undue hardship to either party, or that the employeeor dependent has removed or is about to remove from the United States orthat the employer has sold or otherwise disposed of the greater part of hisbusiness or assets.

2. In determining whether the commutation asked for will be for thebest interest of the employee or the dependents of the deceased employee,or so that it will avoid undue expense or undue hardship to either party,the division or the commission will constantly bear in mind that it is theintention of this chapter that the compensation payments are in lieu ofwages and are to be received by the injured employee or his dependents inthe same manner in which wages are ordinarily paid. Therefore, commutationis a departure from the normal method of payment and is to be allowed onlywhen it clearly appears that some unusual circumstances warrant such adeparture.

(RSMo 1939 § 3736, A.L. 1965 p. 397, A.L. 1998 H.B. 1237, et al.)

Prior revision: 1929 § 3346

(1971) Industrial Commission was without authority to delegate duty of determining amount of lump sum settlement and expressing it in terms of a money award as this was judicial function of the commission. American Oil Co. v. Pierce (A.), 472 S.W.2d 458.