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FAQ: Adjustment to Compensation Payments

Adjustment to Compensation Payments

Why was $5,000 held back from my disease Level 2 fixed payment and what was the outcome of the June 2002 hearings with respect to releasing this holdback?

Since the inception of the administration of the 1986-1990 compensation plans, a $5,000 sum payable under disease level 2 was held in trust in accordance with Section 7.03 of the Transfused Plan (Schedule A) and Hemophiliac Plan (Schedule B).

This $5,000 holdback was created as a temporary safeguard to ensure a minimum level of benefits to all claimants.

In June 2002, a motion for directions was heard by the three Courts having jurisdiction over the 1986-1990 Hepatitis C Settlement Agreement for directions with respect to the payment of the holdback. On the recommendation of the Joint Committee coupled with the advice of actuaries and medical experts, the Courts decided that the $5,000 holdback is to be paid to claimants so entitled.

What about the 70% and $75,000 limitations on loss of income or loss of support compensation?

Under s. 7.03 of the Transfused Plan (Schedule A) and Hemophiliac Plan (Schedule B), the Joint Committee may bring a motion every third anniversary of June 30, 2002 asking the Courts to determine "whether...the restriction on the payment should be amended or removed in whole or in part" with respect to the 70% and $75,000 limitations both applicable in sections 4.02 (loss of income) and 6.01 (loss of support) of the Transfused Plan (Schedule A) and Hemophiliac Plan (Schedule B).

On October 19, 2004, the Courts removed the 70% limitation and have increased the $75,000 limitation to $300,000.

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