(1) If
the injury or occupational disease causes disability, a disability indemnity shall be
payable as wages pursuant to section 8-42-105 (2)(a) subject to the following
limitations:
(a) If the period of disability does not last longer than three days from the
day the employee leaves work as a result of the injury, no disability indemnity shall
be recoverable except the disbursement provided in articles 40 to 47 of this title
for medical, surgical, nursing, and hospital services, apparatus, and supplies, nor in
any case unless the division has actual knowledge of the injury or is notified thereof
within the period specified in said articles.
(b) If the period of disability lasts longer than two weeks from the day the
injured employee leaves work as the result of the injury, disability indemnity shall
be recoverable from the day the injured employee leaves work.
(c) (I) In cases where it is determined that periodic disability benefits granted
by the federal Old-Age, Survivors, and Disability Insurance Amendments of 1965,
Pub.L. 89-97, are payable to an individual and the individual's dependents, the
aggregate benefits payable for temporary total disability, temporary partial
disability, and permanent total disability pursuant to this section shall be reduced,
but not below zero, by an amount equal as nearly as practical to one-half the
federal periodic benefits; but, if the federal Old-Age, Survivors, and Disability
Insurance Amendments of 1965, Pub.L. 89-97, is amended to provide for a
reduction of an individual's disability benefits thereunder because of compensation
benefits payable under articles 40 to 47 of this title, the reduction of compensation
benefits provided in said articles shall be decreased by an amount equal to the
federal reduction. Upon request of the insurer or employer, the employee shall
apply for such federal periodic disability benefits and respond to requests from the
insurer or employer as to the status of such application. Failure to comply with this
section constitutes cause for suspension of benefits.
(II) In cases where it is determined that periodic benefits granted by the
federal old-age, survivors, and disability insurance act or employer-paid retirement
benefits are payable to an individual and the individual's dependents, the aggregate
benefits payable for permanent total disability pursuant to this section shall be
reduced, but not below zero:
(A) By an amount equal as nearly as practical to one-half such federal
benefits; except that this reduction for the periodic benefits granted by the federal
old-age, survivors, and disability insurance act shall not exceed the reduction
specified in subparagraph (I) of this paragraph (c) for the periodic disability benefits
payable to an individual;
(B) By an amount determined as a percentage of the employer-paid
retirement benefits, said percentage to be determined by a weighted average of the
employer's contributions during the period of covered employment divided by the
total contributions during the period of covered employment; except that in
permanent total disability cases all contributions made by the employer pursuant to
a collective bargaining agreement with the employee's representative shall be
considered to have been made by the employee.
(II.5) In cases where an employer does not participate in federal old-age,
survivors, and disability insurance, and it is determined that employer-paid
retirement benefits are payable to an individual and the individual's dependents,
the aggregate benefits payable for permanent total disability pursuant to this
section shall be reduced, but not below zero by an amount determined as a
percentage of the employer-paid retirement benefits, said percentage to be
determined by a weighted average of the employer's contributions during the
period of covered employment divided by the total contributions during the period
of covered employment.
(III) Notwithstanding sub-subparagraph (A) of subparagraph (II) of this
paragraph (c), if the federal Old-Age, Survivors, and Disability Insurance
Amendments of 1965, Pub.L. 89-97, is amended to provide for a reduction of an
individual's periodic benefits thereunder because of compensation benefits payable
under articles 40 to 47 of this title, the reduction of compensation benefits
provided in said articles shall be decreased by an amount equal to the federal
reduction.
(IV) The provisions of subparagraphs (II) and (III) of this paragraph (c) shall
apply only if the injury on which the award for permanent total disability was based
occurred after the claimant reached forty-five years of age.
(V) The reductions or offsets in this subsection (1)(c) apply only if the
employee was not receiving the periodic disability benefits or retirement benefits
granted by the federal Old-Age, Survivors, and Disability Insurance Amendments
of 1965, Pub.L. 89-97, as amended, or employer-paid retirement benefits at the
time of the work-related injury.
(d) (I) In cases where it is determined that periodic disability benefits are
payable to an employee under a pension or disability plan financed in whole or in
part by the employer, hereinafter called employer pension or disability plan, the
aggregate benefits payable for temporary total disability, temporary partial
disability, and permanent total disability pursuant to this section shall be reduced,
but not below zero, by an amount equal as nearly as practical to the employer
pension or disability plan benefits, with the following limitations:
(A) Where the employee has contributed to the employer pension or
disability plan, benefits shall be reduced under this section only in an amount
proportional to the employer's percentage of total contributions to the employer
pension or disability plan.
(B) Where the employer pension or disability plan provides by its terms that
benefits are precluded thereunder in whole or in part if benefits are awarded under
articles 40 to 47 of this title, the reduction provided in this paragraph (d) shall not
be applicable to the extent of the amount so precluded.
(II) Upon request of the insurer or employer, the employee shall apply for
such periodic disability benefits and respond to requests from the insurer or
employer as to the status of such application. Failure to comply with this section
shall be cause for suspension of benefits.
(III) The provisions of this paragraph (d) shall apply to a disability pension
paid pursuant to article 30.5 or 31 of title 31, C.R.S.; except that said reduction shall
not reduce the combined weekly disability benefits below a sum equal to one
hundred percent of the state average weekly wage as defined in section 8-47-106
and applicable to the year in which the weekly disability benefits are being paid.
(IV) If the disability benefits awarded pursuant to articles 40 to 47 of this
title are paid in a lump sum pursuant to section 8-43-406, the weekly benefit
attributed to such workers' compensation benefits, for the purpose of calculating
the combined weekly disability benefit specified in subparagraph (III) of this
paragraph (d), shall be calculated by assuming that the employee is receiving the
weekly disability benefits payments such employee would have received had such
weekly disability payments not been reduced and paid as a lump sum.
(e) In cases where it is determined that periodic disability benefits are
payable to an individual and said individual's dependents pursuant to a workers'
compensation act of another state or of the federal government, the aggregate
benefits payable for temporary total disability, temporary partial disability,
permanent partial disability, and permanent total disability pursuant to this section
shall be reduced, but not below zero, by an amount equal to the benefits payable
pursuant to such other workers' compensation act.
(f) In cases where it is determined that unemployment compensation
benefits are payable to an employee, the aggregate benefits payable for
permanent total disability pursuant to this section shall be reduced, but not below
zero, by an amount equal as nearly as practical to such unemployment
compensation benefits. In cases where it is determined that unemployment
insurance benefits are payable to an employee, compensation for temporary
disability shall be reduced, but not below zero, by the amount of unemployment
insurance benefits received, unless the unemployment insurance amount has
already been reduced by the temporary disability benefit amount and except that
temporary total disability shall not be reduced by unemployment insurance benefits
received pursuant to section 8-73-112.
(g) In cases where it is determined that a temporarily disabled employee is
responsible for termination of employment, the resulting wage loss shall not be
attributable to the on-the-job injury.
(h) Unless the offset provisions of section 29-5-403 (10) have already been
taken, in cases where it is determined that a firefighter has received an award of
benefits for a cancer diagnosis pursuant to section 29-5-403 (3)(b) to (3)(k), the
aggregate benefits payable for temporary total disability, temporary partial
disability, permanent partial disability, and permanent total disability shall be
reduced, but not below zero, by an amount equal to the total amount of such cancer
diagnosis benefits. In cases where it is determined that a covered individual has
received cosmetic disfigurement benefits pursuant to section 29-5-403 (4)(b),
benefits for disfigurement payable pursuant to section 8-42-108 shall be reduced,
but not below zero, by an amount equal to such cosmetic disfigurement benefits.
(2) Within fifteen days after receipt of written notice by the employer or, if
insured, the employer's workers' compensation insurance carrier or third-party
administrator of the termination of a fringe benefit or advantage enumerated in
section 8-40-201 (19)(b), and the effective date of the termination and cost of
conversion, the employer or, if insured, the employer's workers' compensation
insurance carrier or third-party administrator shall recalculate the applicable
average weekly wage and begin payment of benefits in accordance with the
recalculation with interest beginning on the date the benefit was terminated.