Wednesday, December 11, 2002

The Commonwealth Court ruled in February that an insurer liable for the payment of compensation cannot take a credit under Section 204(a) of the Act for a severance benefit paid by the employer. Kramer v. WCAB (Rite Aid Corp.) The Court just revisited Kramer by reviewing another case involving the same severance benefit. In Hulmes v. WCAB (Rite Aid Corp.) the Court remanded to the Board to determine whether a retrospective premium arrangement, a minimum premium plan or some other device exists which would support a finding that the Employer was directly liable for the payment of compensation. Under these circumstances, the Court would allow the credit.

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