What is a PPD Advance?

A permanent partial disability (PPD) advance is partial settlement money before a claim closes. This article is about PPD advances, but first they should be distinguished from a PPD lump sum.

What is a PPD lump sum?

A PPD lump sum is different. It contemplates a normal claim; one which is closed after medical and vocational is completed. An L&I order awards PPD, and sets out a normal and usual payment schedule with monthly PPD payments. A PPD lump sum is converting that payment schedule to a lump sum, pursuant to RCW 51.32.080 (6).  More info.

When will L&I authorize a PPD advance?

The adjudicator may consider granting an advance only when all four of the following statements are true:

1. At the time the request is considered, the file contains medical documentation supporting an anticipated PPD award.
2. The worker has provided documented evidence of extreme hardship. Extreme hardship includes situations such as, the death or emergency hospitalization of an immediate family member or financial loss as the result of a natural disaster documented by insurance statements, police reports, FEMA or Red cross damage assessments reports. According to L&I policy, extreme hardship does not include basic living expenses that time-loss compensation is to cover.
3. The worker has explored all other resource options (Red Cross assistance, bank loan, etc.).
4. The claim is at least one year old.

What are the limits for granting PPD advances?

Think that's bad? It gets worse:

• The worker should receive no more than one PPD advance per claim.
• The amount of the advance must be no more than 5 percent of the maximum allowed for unspecified disabilities (total bodily impairment) or 25 percent of the anticipated PPD award, whichever amount is LESS.
• The amount of the advance should be no more than the amount the worker requested, within the limits described above.

Are there any exceptions?

There may be very rare situations such as terminal illness of the recipients, when L&I will grant an exception to the above award advance limits. The claims manager must complete the "Recommendation to Grant an Exception on a PPD Award Advance" form and give it to their supervisor. The operations manager must give final approval to exceptions.

There is no legislative authority for the department to grant an advance for an anticipated PPD award, nor does the worker have a legal right to receive an advance. However, the department has historically granted advances in cases of extreme hardship and where the worker appears competent to handle this money.

What is the department's position on granting advances?

The department discourages PPD award advances because it is not usually in the best interest of the worker. In the event of a pension, an advance may result in a permanent lowering in the amount of money the worker receives as a monthly pension. In other cases, workers have received so much in advances they receive very little PPD award (or have an overpayment) at claim closure and then the worker has less monetary incentive to have their claim closed.

When will L&I deny a request for a PPD award advance?

L&I will usually not grant a PPD award advance if any one of the following is true.

1. The worker has not provided documented evidence of extreme hardship.
2. There is a potential for pension. PPD award advances can have an adverse affect on the monthly pension benefits.
3. The department has already given a PPD award or PPD award advance for this or another claim.
4. There is a third party lien against the claim.
5. There is a Division of Child Support (DCS) lien against the claim.
6. There is an overpayment on this claim or any other claim for this worker.
7. The file contains documentation of substance abuse.
8. The money is to supplement retraining, pre-job accommodation or job modification funds. (A worker should not use a PPD award to pay for vocational training that the department has authorized.)
9. There is a pre-existing impairment to the part of the body allowed under this claim.
10. The claim is less than one year old.
11. The department has not paid Accident Fund benefits (time-loss or loss of earning power compensation) under this claim.
12. Information in the file causes the claims manager to be concerned that the advance may not be used for its intended purpose or that the worker will not use it in a responsible manner.

Nobody said getting a PPD advance would be easy

And it's not. If you really need one and still think you qualify, talk to your claims manager or contact us.