New Mexico § 52-5-12 - Payment; periodic or lump sum; settlement

§ 52-5-12. Payment; periodic or lump sum; settlement

A. It is stated policy for the administration of the Workers' Compensation Act and

the New Mexico Occupational Disease Disablement Law that it is in the best interest

of the injured worker or disabled employee that the worker or employee receive benefit

payments on a periodic basis. Except as provided in this section, lump-sum payments in exchange for the release

of the employer from liability for future payments of compensation or medical benefits

shall not be allowed. B. With the approval of the workers' compensation judge, a worker may elect to receive

compensation benefits to which the worker is entitled in a lump sum if the worker

has returned to work for at least six months, earning at least eighty percent of the

average weekly wage the worker earned at the time of injury or disablement. If a worker receives the benefit income in a lump sum, the worker is not entitled

to any additional benefit income for the compensable injury or disablement and the

worker shall only receive that portion of the benefit income that is attributable

to the impairment rating as determined in Section 52-1-24 NMSA 1978 . In making lump-sum payments, the payment due the worker shall not be discounted

at a rate greater than a sum equal to the present value of all future payments of

compensation computed at a five-percent discount compounded annually. C. After maximum medical improvement and with the approval of the workers' compensation

judge, a worker may elect to receive a partial lump-sum payment of workers' compensation

benefits for the sole purpose of paying debts that may have accumulated during the

course of the injured or disabled worker's disability. D. The worker and employer may elect to resolve a claim for injury with a lump-sum

payment to the worker for all or a portion of past, present and future payments of

compensation benefits, medical benefits or both in exchange for a full and final release

or an appropriate release of the employer from liability for such compromised benefits. The proposed lump-sum payment agreement shall be presented to the workers' compensation

judge for approval, and a hearing shall be held on the record. The workers' compensation judge shall approve the lump-sum payment agreement if

the judge finds that: (1) a written agreement describing the nature of the proposed settlement has been

mutually agreed upon and executed by the worker and the employer; (2) the worker has been fully informed and understands the terms, conditions and consequences

of the proposed settlement; (3) the lump-sum payment agreement is fair, equitable and provides substantial justice

to the worker and employer; and (4) the lump-sum payment agreement complies with the requirements for approval set

forth in Sections 52-5-13 and 52-5-14 NMSA 1978 . E. The workers' compensation judge shall approve a lump-sum payment agreement pursuant

to Subsection D of this section by order. Once the agreement has been approved and filed with the clerk of the administration,

any further challenge to the terms of the settlement is barred and the lump-sum payment

agreement shall not be reopened, set aside or reconsidered nor shall any additional

benefits be imposed. F. If a worker and employer elect to enter into a lump-sum payment agreement pursuant

to Subsection D of this section, the limit on attorney fees pursuant to Subsection I of Section 52-1-54 NMSA 1978 shall apply. G. If an insurer pays a lump-sum payment to an injured or disabled worker without

the approval of a workers' compensation judge and if at a later date benefits are

due for the injured or disabled worker's claim, the insurer alone shall be liable

for that claim and shall not in any manner, including rate determinations and the

employer's experience modifier, pass on the cost of the benefits due to the employer. H. If the compensation benefit to which a worker is entitled is less than fifty dollars

($50.00) per week, any party may petition the workers' compensation judge to consolidate

that payment into quarterly installments.