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§ 9-638. Cost of living adjustment

West's Annotated Code of MarylandLabor and EmploymentEffective: July 1, 2019

West's Annotated Code of Maryland
Labor and Employment
Title 9. Workers' Compensation (Refs & Annos)
Subtitle 6. Benefits (Refs & Annos)
Part V. Permanent Total Disability (Refs & Annos)
Effective: July 1, 2019
MD Code, Labor and Employment, § 9-638
§ 9-638. Cost of living adjustment
In general
(a)(1) A covered employee under this section includes an individual who:
(i) is entitled to compensation for claims arising from events occurring after January 1, 1988; or
(ii) 1. is entitled to compensation from the Chesapeake Employers' Insurance Company, as successor to the Injured Workers' Insurance Fund, for claims arising from events occurring on or before January 1, 1988; and
2. was not an employee of a county or municipal corporation when the claim was filed.
(2) Compensation paid to a covered employee under this Part V of this subtitle is subject to an annual cost of living adjustment.
Report of change in consumer price index
(b) On or before June 30 of each year, the Department of Commerce shall determine and report to the Commission the rate of change in the Consumer Price Index in the preceding calendar year, using as the Consumer Price Index the lower of:
(1) the Consumer Price Index (all urban consumers, all item index) published by the United States Department of Labor for the Washington Metropolitan Area; or
(2) the United States city average consumer price index (all urban consumers, all item index).
Publication of cost of living adjustment
(c)(1) On or before July 31 of each year, the Commission shall publish the amount of the cost of living adjustment that shall become effective on January 1 of the following year.
(2) The cost of living adjustment may not exceed 5%.
Determination of adjustment
(d) The compensation payable to a covered employee under this Part V of this subtitle shall be adjusted by:
(1) multiplying the initial rate of compensation by the cost of living adjustment; and
(2) adding the product to the compensation, as adjusted, paid during the prior year.
Reduction due to Social Security benefits
(e)(1) If a covered employee who is entitled to compensation under this Part V of this subtitle also receives federal Social Security disability insurance benefits, the adjusted annual compensation paid shall be reduced to the extent necessary to avoid a diminution of the federal Social Security disability insurance benefits.
(2) If federal Social Security law on disability insurance benefits no longer imposes a diminution in the payment of the adjustment in compensation, payments of compensation shall be made to the full extent allowed under this section.


Added by Acts 1991, c. 8, § 2, eff. Oct. 1, 1991. Amended by Acts 1995, c. 120, § 5, eff. July 1, 1995; Acts 1999, c. 136, § 1, eff. June 1, 1999; Acts 2000, c. 280, § 1, eff. July 1, 2000; Acts 2007, c. 446, § 1, eff. Oct. 1, 2007; Acts 2014, c. 45, § 1, eff. April 8, 2014; Acts 2015, c. 22, § 5; Acts 2016, c. 8, § 5; Acts 2019, c. 5, § 1, eff. July 1, 2019.
Formerly Art. 101, § 36.
MD Code, Labor and Employment, § 9-638, MD LABOR & EMPLY § 9-638
Current through legislation effective through May 9, 2024, from the 2024 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
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