COLA is a cost-of-living adjustment program that falls under § 34B and provides for the adjustment of weekly benefits for dependant spouses, § 31, and permanently and totally disabled employees, § 34A.
§§ 65(2)(a) and 34(B) call for the Workers Compensation Trust Fund to reimburse an insurer 100% of all supplemental COLA benefits paid to claimants with dates of injury before October 1, 1986. After October 1, 1986 insurers are entitled to reimbursement only to the extent the supplemental benefits are due to an increase greater than 5% in the Average Weekly Wage (AWW), however, after December 23, 1991, the change in the AWW (as it pertains to COLA) is capped at 5% and therefore extinguishes COLA reimbursement for injuries occurring there after.
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