HB 34: WORKERS’ COMPENSATION AMOUNT FOR PPI

A bill pertaining to increasing the Permanent Partial Impairment (PPI) amount from $177,000.00 to $252,420.00.

WCCA Position & Talking Points:

The Committee does not entirely oppose increasing the PPI amount given that the last time it was increased was 2000, however, the Committee opposes the rate of the increase – over 40%, if the employers could get a reduction in benefits to counter an increase in PPI benefits. PPI is paid to an employee regardless of whether there are any physical limitations due to the injury and the employee remains able to work. This benefit is not a wage replacement benefit and shouldn’t be adjusted for inflation. Furthermore, NCCI figures reveal that PPI in Alaska averages $39,700, exceeding both regional and national benchmarks by an average of $6,700.00. This is one area where the legislature has an opportunity to realign Alaska with the regional and national trends.