State of Alaska

Department of Administration

Violent Crimes Compensation Board

Alaska Department of Administration, Violent Crimes Compensation Board

Lost Wages

Short Description

The current standard calculation for lost wages will now be set at 0.85. Board awards are not taxable. Therefore, the Board found the reduction reasonable as a labor equivalent taxation rate.  The Board previously set the standard calculation at 0.667 or 0.80 for reimbursement of documented lost wages incurred as a direct result of a violent crime.

Policy

Adopted 12-4-08

The Board formally adopted the standard of reducing lost wage awards by twenty (20) percent. The standard calculation is 0.80 for reimbursement of documented lost wages incurred as a direct result of a violent crime.

The Board reviewed current tax rates and concluded that the vast majority of claimants
fell within the 15% or lower tax bracket. Therefore the Board amends its policy to
reduce lost wage awards by fifteen (15) percent.

Amended 2-13-13