Commutation of Benefits


The WSIB may commute a worker's Future Economic Loss (FEL) benefit to a lump sum when

  • the worker's FEL benefit represents 10% or less of the amount of compensation payable for full loss of earnings
  • the WSIB has completed its review of the FEL benefit in the 60th month following the date of the initial determination, and
  • the worker does not choose to continue to receive the FEL benefit in monthly payments.


Time-frame of election

Following the 60-month review of the FEL benefit, the WSIB informs the worker that the FEL benefit may continue to be paid monthly or may be paid as a lump sum.

The WSIB allows for two further monthly payments in order for the worker to reach a decision as to the method of payment. If the worker does not make an election by the end of the two month period, the WSIB automatically commutes the FEL benefit to a lump sum.

Effective date of commutation

The commutation is effective following the expiry of the two month payment period.

Nature of lump sum payment

If the worker receives payment in a lump sum, the WSIB ensures that the worker understands that the commutation is a one-time-only payment.

The WSIB does not convert lump sums back to monthly payments.

Election irrevocable

If the worker elects to receive the FEL benefit in monthly payments instead of a lump sum payment, this election cannot be changed. This means that the worker cannot elect to receive the FEL benefit in a lump sum at a later date if the initial election was to receive the FEL benefit in monthly payments.

Multiple FEL benefits

If a worker has multiple FEL benefits, each representing 10% or less of compensation payable for full loss of earnings, the WSIB may commute all of the benefits based on the principles set out in this policy.

Application date

This policy applies to all FEL decisions made on or after January 1, 1998, for accidents from January 2, 1990, to December 31, 1997.

Document History

This document replaces 18-04-08 dated June 15, 1999.

Previously, this document was published as:

  • 7.7* dated January 1, 1998
  • 05-05-09* dated September 4, 1991.

* Documents were replaced by 18-04-08 dated June 15, 1999.


Legislative Authority

Workplace Safety and Insurance Act, 1997, as amended
Sections 102, 107(3)

Workers' Compensation Act, R.S.O. 1990, as amended
Section 43(15)


#17, June 23, 2004, Page 377