Section 8 AAC 45.138 - Cost-of-living adjustment(a) The cost-of-living adjustment provided in AS 23.30.175 applies only to payments related to injuries occurring on or after July 1, 1988.(b) the department will identify an organization it selects to perform the cost-of-living surveys that determine the cost-of-living adjustment applicable to a recipient's compensation rate when the recipient does not reside in this state.(c) The results of the cost-of-living survey for this state, various areas in other states and the District of Columbia will be published annually in the Workers' Compensation Manual,published by the department. The cost of living for this state will be the averaged cost of living for Anchorage, Juneau, and Fairbanks.(d) If the cost-of-living adjustment under AS 23.30.175 and this section results in a compensation rate that exceeds the maximum weekly rate provided in AS 23.30.175, the recipient's compensation rate must be reduced to the maximum weekly rate in effect under AS 23.30.175 at the time of injury.(e) If the recipient does not reside in this state but resides in the United States, the cost-of-living ratio must be determined by using the ratio of the published cost of living for the area nearest where the recipient resides and the cost of living for this state. If the recipient resides an equal distance between two areas for which cost-of-living surveys have been published, the ratio that results in the highest compensation rate must be used.(f) If the recipient does not reside in the United States, the department will obtain a cost-of-living survey for the largest city in the country in which the recipient resides. The cost of living for that city must be used to obtain the ratio for purposes of this section and AS 23.20.175.(g) The cost-of-living ratio obtained under this section is presumed to fairly reflect the cost of living difference between this state and the area where the recipient resides. In accordance with AS 23.30.110 and 8 AAC 45.070, a hearing may be requested for board review of the cost-of-living ratio for a particular recipient. If a hearing is requested,(1) the issue at hearing will be limited to whether there is a substantial difference between the actual cost of living in the area where the recipient resides and the cost of living published by the commissioner for that area;(2) the board will refuse to accept, at the hearing, evidence of a particular recipient's actual cost of living;(3) if a party presents evidence of a substantial difference between the cost of living for a particular recipient's area and the cost of living determined by the board's survey, the board will, in its discretion, adjust the ratio accordingly.(h) If the cost-of-living ratio calculated under AS 23.30.175 and this section is from 98 percent through 102 percent, the cost-of-living ratio will be rounded off to 100 percent, and the employer need not adjust the employee's weekly compensation benefits under AS 23.30.175 and this section.Eff. 7/1/88, Register 107; am 10/28/88, Register 108; am 3/16/90, Register 113; am 12/2/2012, Register 204The department's bulletins and Workers' Compensation Manual, giving the cost-of-living survey results and organizations selected to perform cost-of-living surveys as described in 8 AAC 45.138, are available upon request from the Department of Labor and Workforce Development, Division of Workers' Compensation.
As of register 204 (January 2013), the regulations attorney made a technical revision under AS 44.62.125(b)(6), to 8 AAC 45.138(c).
Authority:AS 23.30.005
AS 23.30.175