,,ii  #aaf? ,,congress  #b;d ,session   
,s4 #dgcd  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,septemb] #bd1         
#bjbj,mr4 ,portman 7= himself & ,mr4    
,c>d97 introduc$ ! foll[+ bill2 :i* 0   
read twice & ref]r$ to ! ,committee on  
,f9ance  ,a ,,bill  ,to am5d title      
,,xviii ( ! ,social ,security ,act to   
provide = ! application ( ,m$ic>e       
second>y pay] rules to c]ta9 work]s'    
comp5sation settlem5t agreem5ts &       
qualifi$ ,m$ic>e set-aside provisions4  
#a4 ,%ort title ,?is ,act may be cit$ z 
! ,coord9ation ,( ,m$ic>e ,paym5ts &    
,work]s' ,comp5sation ,act or ! ,,comp  
,act4  #b4 ,application ( ,m$ic>e       
second>y pay] rules to c]ta9 work]s'    
comp5sation settlem5t agreem5ts  7a7    
,second>y pay] provisions = work]s'     
comp5sation settlem5t agreem5ts ,section
 #ahfb ( ! ,social ,security ,act 7#db  
,u4,s4,c4 #aciey7 is am5d$-- 7#a7 9     
subsection 7b77#b77;,a77ii71 by ins]t+  
subject to subsection 7p71 aft] 7ii72 & 
7#b7 by add+ at ! end ! foll[+ new      

subsection3  7p7 ,def9itions ,= purposes
 ( ?is subsection & subsection 7q73 7#a7
 ,compromise agreem5t ,! t]m compromise 
agreem5t means a work]s' comp5sation    
settlem5t agreem5t t-- 7,a7 applies to a
 work]s' comp5sation claim t is d5i$ or 
conte/$1 9 :ole or 9 "p1 by a work]s'   
comp5sation pay] involv$ "u ! work]s'   
comp5sation law or plan applicable to ! 
jurisdiction 9 :i* ! agreem5t has be5   
settl$2 &  7,b7 does n provide = a      
paym5t ( ! full am\nt ( b5efits s\ght or
 t may be payable "u ! work]s'          
comp5sation claim4  7#b7 ,work]s'       
comp5sation claimant ,! t]m work]s'     
comp5sation claimant means a work] :o-- 
7,a7 is or may be cov]$ "u a work]s'    
comp5sation law or plan2 &  7,b7 submits
 a claim or accepts b5efits "u su* law  
or plan = a "w-relat$ injury or illness4
  7#c7 ,work]s' comp5sation law or plan 
7,a7 ,9 g5]al ,! t]m work]s' comp5sation
 law or plan means a law or program     
adm9i/]$ by a ,/ate or ! ,unit$ ,/ates  
to provide comp5sation to work]s = a    

"w-relat$ injury or illness 7or =       
disability or dea? caus$ by su* an      
injury or illness71 includ+ ! ,long%ore 
& ,h>bor ,work]s' ,comp5sation ,act 7#cc
 ,u4,s4,c4 #ija-idd1 #idh-iej71 *apt]   
#ha ( title #e1 ,unit$ ,/ates ,code     
7kn[n z ! ,f$]al ,employees ,comp5sation
 ,act71 ! ,black ,lung ,b5efits ,act    
7#cj ,u4,s4,c4 #ica et seq471 & "p ,c ( 
title #d ( ! ,f$]al ,coal ,m9e & ,safety
 ,act 7#cj ,u4,s4,c4 #ija et seq471 b n 
includ+ ! ,act ( ,april #bb1 #aijh 7#de 
,u4,s4,c4 #ea et seq47 7popul>ly ref]r$ 
to z ! ,f$]al ,employ]s' ,liability     
,act74  7,b7 ,inclusion ( simil>        
comp5sation plan ,su* t]m includes a    
simil> comp5sation plan e/abli%$ by an  
employ] t is fund$ by su* employ] or !  
insurance c>ri] ( su* employ] to provide
 comp5sation to a work] ( su* employ] = 
a "w-relat$ injury or illness4  7#d7    
,work]s' comp5sation pay] ,! t]m work]s'
 comp5sation pay] means1 ) respect to a 
work]s' comp5sation law or plan1 a      
work]s' comp5sation insur]1 self-insur]1

 employ]1 individual1 or any o!r entity 
t is or may be liable = ! paym5t (      
b5efits to a work]s' comp5sation        
claimant pursuant to ! work]s'          
comp5sation law or plan4  7#e7 ,work]s' 
comp5sation settlem5t agreem5t ,! t]m   
work]s' comp5sation settlem5t agreem5t  
means an agreem5t betwe5 a claimant & "o
 or m work]s' comp5sation pay]s t-- 7,a7
 =ecloses ! possibility ( future paym5t 
( "s or all work]s' comp5sation b5efits 
involv$2 &  7,b7 7i7 comp5sates !       
claimant = a "w-relat$ injury or illness
 z provid$ = by a work]s' comp5sation   
law or plan2 or  7ii7 elim9ates cause = 
litigation involv+ issues 9 dispute     
betwe5 ! claimant & pay]4  4  7b7       
,satisfaction ( second>y pay]           
obligations ,section #ahfb ( ! ,social  
,security ,act 7#db ,u4,s4,c4 #aciey71 z
 am5d$ by subsection 7a71 is am5d$ by   
add+ at ! end ! foll[+ new subsection3  
7q7 ,treatm5t ( ,m$ic>e set-,asides "u  
work]s' comp5sation settlem5t agreem5ts 
7#a7 ,satisfaction ( second>y pay]      

obligations  7,a7 ,full satisfaction (  
claim obligations  7i7 ,9 g5]al ,if a   
work]s' comp5sation settlem5t agreem5t1 
relat$ to a claim ( a work]s'           
comp5sation claimant1 includes a ,m$ic>e
 set-aside 7z def9$ 9 subp>agraph       
7,b77i771 su* set-aside %all satisfy any
 obligation ) respect to paym5ts        
reasonably expect$ to be made "u        
subsection 7b77#b77;,a77ii7 ) respect to
 su* claim4  7ii7 ,rule ( con/ruction   
,no?+ 9 ?is section %all be con/ru$ z   
requir+ ! submission ( a ,m$ic>e        
set-aside to ! ,secret>y4  7,b7 ,m$ic>e 
set-aside & ,m$ic>e set-aside am\nt     
def9$ ,= purposes ( ?is subsection3 7i7 
,m$ic>e set-aside ,! t]m ,m$ic>e        
set-aside means1 ) respect to a work]s' 
comp5sation settlem5t agreem5t1 a       
provision 9 ! agreem5t t provides = a   
paym5t ( a lump sum1 an annuity1 a      
comb9ation ( a lump sum & an annuity1 or
 o!r am\nt t is 9 full satisfaction ( ! 
obligation describ$ 9 subp>agraph 7,a7 =
 items & s]vices t ! work]s' comp5sation

 claimant "u ! agreem5t receiv$ or is   
reasonably expect$ to receive "u !      
applicable work]s' comp5sation law4     
7ii7 ,m$ic>e set-aside am\nt ,! t]m     
,m$ic>e set-aside am\nt means1 ) respect
 to a ,m$ic>e set-aside1 ! actual doll> 
am\nt provid$ = 9 clause 7i74  7#b7     
,m$ic>e set-aside  7,a7 ,satisfaction ( 
,m$ic>e set-aside ,= purposes ( ?is     
subsection1 a ,m$ic>e set-aside meets   
,m$ic>e second>y pay] obligations if !  
,m$ic>e set-aside am\nt reasonably takes
 into acc\nt ! full paym5t obligation   
describ$ 9 p>agraph 7#a77;,a71 :ile     
meet+ ! requirem5ts ( subp>agraphs 7,b7 
& 7,c7 & is det]m9$ bas$ on ! foll[+3   
7i7 ,! illness or injury giv+ rise to ! 
work]s' comp5sation claim involv$4  7ii7
 ,! age & life expectancy ( ! claimant  
involv$4  7iii7 ,! reasonabl5ess (1 &   
necessity =1 future m$ical exp5ses =    
treatm5t ( ! illness or injury involv$4 
7iv7 ,! duration ( & limitation on      
b5efits payable "u ! work]s' comp5sation
 law or plan involv$4  7v7 ,!           

regulations & case law relevant to !    
,/ate work]s' comp5sation law or plan   
involv$4  7,b7 ,items & s]vices includ$ 
,a ,m$ic>e set-aside-- 7i7 %all include 
paym5t = items & s]vices t are cov]$ &  
o!rwise payable "u ?is title z ( !      
effective date ( ! work]s' comp5sation  
settlem5t agreem5t & t are cov]$ by !   
work]s' comp5sation law or plan2 &  7ii7
 is n requir$ to provide = paym5t =     
items & s]vices t are n describ$ 9      
clause 7i74  7,c7 ,paym5t requirem5ts   
7i7 ,requir$ application ( work]s'      
comp5sation law & fee s*$ule  7,i7 ,9   
g5]al ,except 9 ! case ( an optional    
direct paym5t ( a ,m$ic>e set-aside made
 "u p>agraph 7#e77;,a71 ! set-aside     
am\nt %all be bas$ ^u ! paym5t am\nt =  
items & s]vices "u ! work]s' comp5sation
 law or plan & applicable fee s*$ule    
7effective z ( ! date ( ! agreem5t74    
7,,ii7 ,work]s' comp5sation fee s*$ule  
def9$ ,= purposes ( ?is subsection1 !   
t]m work]s' comp5sation fee s*$ule      
means1 ) respect to a work]s'           

comp5sation law or plan ( a ,/ate or a  
simil> plan applicable 9 a ,/ate1 !     
s*$ule ( paym5t am\nts ! ,/ate has      
e/abli%$ to pay provid]s = items &      
s]vices furni%$ to work]s :o incur a    
"w-relat$ injury or illness z def9$ "u  
su* law or plan 7or 9 ! abs5ce ( su* a  
s*$ule1 ! applicable m$ical reimbursem5t
 rate "u su* law or plan74  7ii7        
,optional proportional adju/m5t =       
compromise settlem5t agreem5ts ,9 ! case
 ( a compromise settlem5t agreem5t1 a   
claimant or work]s' comp5sation pay] :o 
is p>ty to ! agreem5t may elect to      
calculate ! ,m$ic>e set-aside am\nt ( ! 
agreem5t by apply+ a p]c5tage r$uction  
to ! ,m$ic>e set-aside am\nt = ! total  
settlem5t am\nt t c\ld h be5 payable "u 
! applicable work]s' comp5sation law or 
simil> plan involv$ _h ! d5i$1 disput$1 
or conte/$ portion ( ! claim n be5      
subject to a compromise agreem5t4 ,!    
p]c5tage r$uction %all be equal to !    
d5i$1 disput$1 or conte/$ p]c5tage ( su*
 total settlem5t4 ,su* election may be  

made by a p>ty to ! agreem5t only ) !   
writt5 cons5t ( ! o!r p>ty or p>ties to 
! agreem5t4  7#c7 ,optional process =   
approval ( ,m$ic>e set-asides  7,a7     
,optional prior approval by ,secret>y ,a
 p>ty to a work]s' comp5sation settlem5t
 agreem5t t includes a ,m$ic>e set-aside
 may submit to ! ,secret>y ! ,m$ic>e    
set-aside am\nt = approval4  7,b7       
,notice ( det]m9ation ( approval or     
disapproval ,n lat] ?an #fj days aft] ! 
date on :i* ! ,secret>y receives a      
submission "u subp>agraph 7,a71 !       
,secret>y %all notify ! p>ties to !     
work]s' comp5sation settlem5t agreem5t 9
 writ+ ( ! det]m9ation ( approval or    
disapproval4 ,if ! det]m9ation          
disapproves su* submission1 ! ,secret>y 
%all include ) su* notification !       
specific reasons = ! disapproval4  7#d7 
,appeals  7,a7 ,9 g5]al ,a p>ty to a    
work]s' comp5sation settlem5t agreem5t t
 is dissatisfi$ ) a det]m9ation "u      
p>agraph 7#c77;,b71 ^u fil+ a reque/ =  
reconsid]ation ) ! ,secret>y n lat] ?an 

#fj days aft] ! date ( notice ( su*     
det]m9ation1 %all be entitl$ to-- 7i7   
reconsid]ation ( ! det]m9ation by !     
,secret>y 7) respect to su*             
det]m9ation72  7ii7 a he>+ be=e an      
adm9i/rative law judge !reon aft] su*   
reconsid]ation2 &  7iii7 judicial review
 ( ! ,secret>y's f9al det]m9ation aft]  
su* he>+4  7#e7 ,adm9i/ration ( ,m$ic>e 
set-aside provisions  7,a7 ,optional    
direct paym5t ( ,m$ic>e set-aside am\nt 
7i7 ,election = direct paym5t ( ,m$ic>e 
set-aside am\nt ,effective #cj days aft]
 ! date ( enactm5t ( ?is subsection1 )  
respect to a claim = :i* a work]s'      
comp5sation settlem5t agreem5t is or has
 be5 e/abli%$1 a claimant or work]s'    
comp5sation pay] :o is p>ty to !        
agreem5t may elect1 b is n requir$1 to  
transf] to ! ,secret>y a direct paym5t (
 ! ,m$ic>e set-aside am\nt4 ,! p>ties   
involv$ may calculate ! ,m$ic>e         
set-aside am\nt ( su* set-aside us+ any 
( ! foll[+ me?ods3 7,i7 ,9 ! case ( any 
,m$ic>e set-aside ( a compromise        

settlem5t agreem5t "u p>agraph          
7#b77;,c77ii71 ! am\nt calculat$ 9      
accordance ) su* p>agraph4  7,,ii7 ,9 ! 
case ( any ,m$ic>e set-aside1 ! am\nt   
bas$ ^u ! paym5t am\nt = items & s]vices
 "u ! work]s' comp5sation law or plan & 
fee s*$ule 7effective z ( ! date ( !    
agreem5t7 9 accordance ) p>agraph       
7#b77;,c77i77,i74  7,,iii7 ,9 ! case (  
any ,m$ic>e set-aside1 ! paym5t am\nt   
applicable to ! items & s]vices "u ?is  
title z 9 effect on ! effective date ( !
 agreem5t4  ,su* transf] %all be made   
only ^u writt5 cons5t ( ! o!r p>ty or   
p>ties to ! agreem5t4  7ii7 ,election   
satisfy+ liability ,an election made "u 
clause 7i71 ) respect to a qualifi$     
,m$ic>e set-aside1 %all satisfy any     
paym5t1 9 relation to ! und]ly+ claim ( 
! relat$ work]s' comp5sation settlem5t  
agreem5t1 requir$ "u subsection 7b77#b7 
to be made by ! claimant or pay] to !   
,secret>y4  7,b7 ,election ( pr(essional
 or b5efici>y self-adm9i/ration (       
,m$ic>e set-aside paym5ts ,no?+ 9 ?is   

subsection or subsection 7p7 prohibits  
an individual f elect+ to utilize       
pr(essional adm9i/ration s]vices or to  
self-adm9i/] paym5ts ( _! ,m$ic>e       
set-aside 9 accordance ) exi/+ law4     
7#f7 ,treatm5t ( ,/ate work]s'          
comp5sation law ,= purposes ( ?is       
subsection & subsection 7p71 if a       
work]s' comp5sation settlem5t agreem5t  
is accept$1 review$1 approv$1 or o!rwise
 f9aliz$ 9 accordance ) ! work]s'       
comp5sation law ( ! jurisdiction 9 :i*  
su* agreem5t w be effective1 su*        
acceptance1 review1 approval1 or o!r    
f9alization %all be deem$ f9al &        
conclusive z to any & all matt]s )9 !   
jurisdiction ( ! work]s' comp5sation    
law1 includ+-- 7,a7 ! det]m9ation (     
reasonabl5ess ( ! settlem5t value2  7,b7
 any allocations ( settlem5t funds2     
7,c7 ! projection ( future indemnity or 
m$ical b5efits t may be reasonably      
expect$ to be paid "u ! ,/ate work]s'   
comp5sation law2 &  7,d7 9 ! case ( a   
compromise agreem5t1 ! total am\nt t    

c\ld h be5 payable = a claim :i* is !   
subject ( su* agreem5t 9 accordance )   
p>agraph 7#b77;,c77ii74  4  7c7 ,con=m+ 
am5dm5ts ,section #ahfb7;b7 ( ! ,social 
,security ,act 7#db ,u4,s4,c4 #aciey7b77
 is am5d$-- 7#a7 9 p>agraph             
7#b77;,b77ii71 by /rik+ p>agraph 7#i7 & 
ins]t+ p>agraph 7#i7 & subsections 7p7 &
 7q72  7#b7 9 p>agraph 7#b77;,b77iii7-- 
7,a7 9 ! fir/ s5t5ce1 by /rik+ ,9 ord]  
to recov] paym5t & ins]t+ ,subject to   
subsection 7q71 9 ord] to recov] paym5t2
 &  7,b7 9 ! ?ird s5t5ce1 by /rik+ ,9   
addition & ins]t+ ,subject to subsection
 7q71 9 addition2 &  7#c7 9 p>agraph    
7#c77;,a71 by /rik+ ,!re is e/abli%$ a  
private cause ( action & ins]t+ ,subject
 to subsection 7q71 !re is e/abli%$ a   
private cause ( action4  7d7 ,mod]niz+  
t]m9ology = purposes ( ,m$ic>e second>y 
pay] provisions ,section                
#ahfb7;b77#b77;,a7 ( ! ,social ,security
 ,act 7#db ,u4,s4,c4 #aciey7b77#b77;,a77
 is am5d$ by /rik+ workm5's comp5sation 
law or plan & ins]t+ work]s' comp5sation

 law or plan ea* place x appe>s4  7e7   
,limitation on liability ,! p>ties to a 
work]s' comp5sation settlem5t agreem5t  
:i* met ! provisions ( section #ahfb7;b7
 ( ! ,social ,security ,act 7#db        
,u4,s4,c4 #aciey7b77 on ! effective date
 ( settlem5t %all be accept$ z meet+ !  
requirem5ts ( su* section not)/&+ *anges
 9 law1 regulations1 or adm9i/rative    
int]pretation ( su* provisions aft] !   
effective date ( su* settlem5t4  7f7    
,effective date ,! am5dm5ts made by ?is 
section1 unless o!rwise specifi$1 %all  
apply to a work]s' comp5sation settlem5t
 agreem5t ) an effective date on or aft]
 ,janu>y #a1 #bjba4