Policy:

When a compensable accident results in permanent disability, the WCB provides permanent disability benefits to the worker for any measurable permanent clinical impairment and for any permanent impairment of earning capacity attributable to the compensable injury.

This policy is effective July 1, 2003, unless noted otherwise.  Any exceptions are noted within the specific policy sections.

Interpretation

1. Permanent Disability

A worker is considered to have a permanent disability when a work injury results in:

• a permanent measurable clinical impairment, or
• an impairment of earning capacity due to compensable permanent work restrictions, or
• both.

2. Measurable Permanent Clinical Impairment

A permanent clinical impairment is determined by a physician, and is expressed as a percentage of total impairment.  It is considered measurable if it is equal to or greater than 0.4%, based on the approved WCB rating schedule.  (See Appendix D (pdf, 835KB), Alberta Permanent Clinical Impairment Guide, for further details. 

For the purpose of this policy, the approved WCB rating schedule is the Alberta Permanent Clinical Impairment Guide dated June 1, 1996 ("the Alberta Guides"), with amendments up to and including the date of the permanent clinical impairment assessment.

If, in the WCB's opinion, the Alberta Guides are silent as to the impairment, the physician may rely on the most current edition of the American Medical Association Guides for the Evaluation of Permanent Impairment ("the AMA Guides").  When a new edition is published, the WCB will designate an effective date, as close as practicable to the date of publication, for use of the new edition (see Addendum B).

The most current edition of the AMA Guides applies regardless of the date of accident or whether the evaluation of permanent impairment is the result of a reconsideration or an appeal.

This policy applies to all permanent clinical impairment decisions made on or after July 6, 2001.  The WCB will not reassess a permanent clinical impairment simply because a different rating guide was used previously.

3. Permanent Impairment of Earning Capacity

The WCB determines a permanent impairment [loss] of earning capacity by assessing the impact permanent compensable work restrictions will have on the worker's ability to earn in any suitable employment (see Application 1, Question 3).

4. Permanent Disability Benefits

The method of calculating permanent disability benefits was revised effective January 1, 1995, and depends on whether the date of accident was before January 1, 1995, or on or after January 1, 1995.

Injuries Occurring On or After January 1, 1995

When an accident occurs on or after January 1, 1995, the WCB provides the following permanent disability benefits:

• a Non-Economic Loss Payment (NELP), which is a lump sum payment based on the measurable clinical impairment
• an Economic Loss Payment (ELP), which is a periodic payment based on the permanent loss of earning capacity caused by the disability. The ELP is subject to reconsideration under s.17 of the Act. The WCB exercises its discretion to reconsider ELP decisions by scheduled and ad hoc reviews of the worker's impairment of earning capacity. ELPs will be adjusted to reflect changes to impairment of earning capacity and will end if the impairment of earning capacity ends (See Application 3).

Injuries Occurring Before January 1, 1995
When an accident occurred before January 1, 1995, the WCB provides the following permanent disability benefits:

1. when there is a permanent clinical impairment,
• a permanent disability award in the form of a pension, to compensate the worker for the permanent clinical impairment and assumed loss of earnings, and
• consideration of an earnings loss supplement if the actual loss of earning capacity due to compensable permanent work restrictions exceeds the value of the permanent disability award.
2. when there are compensable permanent work restrictions with no measurable permanent clinical impairment,
• consideration of an earnings loss supplement if the compensable permanent work restrictions impair the worker's earning capacity.

Injuries Occurring From January 1, 1985 to December 31, 1994 Inclusive
When an accident occurred during the period of January 1, 1985 to December 31, 1994 inclusive, the worker may also be eligible for a Permanent Injury Award (PIA).

A PIA is intended to provide compensation for accidents resulting in serious and permanent disfigurement or other permanent injury that, in the WCB's opinion, the worker is not already appropriately compensated for, and for which the WCB has no other means to compensate the worker.  In most cases, it is paid as a lump sum.

Please see Part II for additional information on the following subjects:

Application

1. Determining Permanent Impairment of Earning Capacity
2. Non-Economic Loss Payment - Injuries on or after January 1, 1995
3. Economic Loss Payment - Injuries on or after January 1, 1995
4. Injuries prior to January 1, 1995
5. Earnings Loss Supplements
6. Enhancement Factor
7. Lump Sum Commutations
8. Permanent Disability Benefit Advances
9. Permanent Injury Award - Injuries from January 1, 1985 to December 31, 1994 Inclusive

Addendum

Addendum A - Maximum Non-Economic Loss Payments
Addendum B - Effective Date for use of New Editions of the AMA Guides