N002678
VICTIM FUND TOTAL COMPENSATION CALCULATION FORMULA
Start with victim's age and income.
Determine work-life expectancy based on victim's age using charts in checks article.
Calculate, for each year, the annual gross projected income, starting with 2001 and continuing until end
of work-life expectancy, using inflation/promotion increases for each year as year as set forth in the
"Presumed Economic and Non-Economic Loss Tables Explanation".
Calculate the projected taxes for each year based on the effective tax rate applied to the annual gross
projected income.
Calculate the projected consumption for each year based upon the consumption factor in the Bureau of
Labor Statistics tables, except for housing, health, education, cash contributions, insurance and pension,
as indicated in the "Presumed Economic and Non-Economic Loss Tables Explanations". (N.B.: The
consumption factor changes over time as household size changes.)
Subtract from the annual gross projected income for each year both the projected taxes and the
projected consumption to determine the annual net projected income.
Calculate, for each year, the present value of the annual net projected income based upon the discount
rate of 5.13% as set forth in the "Presumed Economic Loss Tables Explanation".
Add the present values for each year to determine the total present value expenses, including but not
limited to medical expenses, burial expenses, etc.
Add the total present value income loss and the total present value expenses to determine the TOTAL
PRESENT VALUE ECONOMIC LOSS.
Determine, based upon individual information (or, if no individual information provided, using the
"Presumed Non-Economic Loss"), the TOTAL NON-ECONOMIC LOSS.
Determine the past collateral source compensation received.
To the extent that future mandated collateral source payments are known, determine for each year the
projected future annual collateral source compensation.
Calculate, for each year, the present value of the projected future annual collateral source
compensation, based upon the discount rate of 5.13% as set forth in the "Presumed Economic and Non
-Economic Loss Tables Explanation", to determine the total present value future collateral source
compensation.
Add the past collateral source compensation and the total present value future collateral source
compensation to determine the TOTAL PRESENT VALUE COLLATERAL SOURCE
COMPENSATION.
TOTAL PRESENT VALUE ECONOMIC LOSS plus TOTAL NON-ECONOMIC LOSS minus
TOTAL PRESENT VALUE COLLATERAL SOURCE COMPENSATION equals TOTAL
COMPENSATION.
COMMENT BY:
ELIOT SPITLER
ATTORNEY GENERAL
STATE OF NEW YORK
ALBANY, NY