dojW000266.xml

dojW000266.xml

born-digital

email

yes

no

2001-11-08

Thursday, November 08, 2001 8:15 PM
Comments on proposed regulations

Sirs/Madams:

My comments for consideration are as follows:

1.) Collateral source deductions: New York State Worker's Compensation Law provides that any party who is receiving Worker's Compensation must report an intention to initiate any third party suit for liabilities attendant to injuries suffered at work. The majority of the persons in the WTC were on the job and hence entitled to Worker's Compensation benefits. However, the general rule is that the Worker's Compensation insurer is allowed to suspend payments for a period of time equal to the benefit derived by the party in the third party lawsuit or claim. If this rule is allowed to apply to benefits provided by the Sept. 11 fund, then there will be a double deduction from benefits. The sum payed by Worker's Compensation will be deducted from the Sept. 11 fund, and additionally the person will forfeit Worker's Compensation benefits to the extent that they receive further benefits from the Sept. 11 fund. In order to avoid this result the regulations should specifically provide that worker's and their estates should receive Worker's Compensation benefits without offset, by a declaration of federal intent to supersede any state, particularly NY to the contrary.

2.) Life insurance deductions: Collateral offsets should apply to life insurance proceeds only to the extent that the policy is payable to a dependent of the victim. If the life insurance is payable to a trust for the benefits of the decedent's spouse and children, the proceeds should not be considered collateral sources because the affected persons are not the direct beneficiaries and do not have the ability to control the corpus of the trust. Many persons set up trusts such as these for the purpose of protecting their immediate heirs and paying out money over time. To deduct these sums from recovery unfairly penalizes this fully allowed and recognized tax planning device, more commonly known as a life insurance trust.

3.) Third party suits: The regulations should allow the initiation of third party lawsuits against the terrorists, their countries and those who were directly for intentional acts, as opposed to negligence. To do otherwise is to give them a free pass and makes our country subsidize liabilities attendant to their actions. The frozen assets should be marshalled to pay resulting judgments directly to the victims, without offset from the fund to the extent that the government fund is first reimbursed from the frozen assets for all money paid out to victims.

Individual Comment
Skaneateles, New York

2001-11-08