In Workers’ Compensation, there are many ways upon which an Injured Worker can settle their case. In California Workers’ Compensation Law, there is the provision to allow Injured Workers to settle their cases via a Compromise and Release; structured settlements. In lay terms, it is commonly referred to as a “buy-out” or a “cash out.”
Many Injured Workers, during settlement negotiations, are asked whether they wish to have their settlements paid out in the form of a structured settlement. Sometimes, an Injured Worker, without knowing, may attend a settlement negotiation in which a Structured Settlement Broker is present.
A Structured Settlement implies that rather than one lump sum payment, the Injured Worker will receive payments over time. Structured Settlements serve many purposes within workers’ compensation. Sometimes, Structured Settlements are used to fund Medicare Set-Aside Trusts. The Federal Government allows for Medicare Set-Aside Trust to be funded over time via structured payments.