An Employer’s Confirmation Form (OCF-2) is, as the name states, filled out by the employer to confirm the insured’s work history. It provides employment dates, basic income details, and information on the potential availability of other income replacement assistance (collaterals). All of this information would be used in the calculation of the Income Replacement Benefit (IRB).
It is, however, grossly deficient in outlining the information required from an employer in light of arbitration decisions over the years. Part of this is likely due to the OCF-2 having not been updated since 2004.
Deficiencies with the Form
Right off the bat, we can see this form presents a few issues as it pertains to relying on this information to calculate an IRB.
As we mentioned in our blog post on common errors and deficiencies found in the OCF-2 form, there are ways to make the form work better for you.
By requesting not only the correct supporting documentation, but asking the right questions, as well, you can ensure a correct Income Replacement Benefit (IRB) calculation every time.
Let’s start with the documentation. Why are these so important?
As noted in our previous blog post, the people completing the OCF-2, don’t always have the requisite knowledge to correctly and completely provide answers to the questions they are asked. As such, supporting documentation helps to support the amounts noted on the OCF-2, and ensure it has been completed correctly. Continue reading
Summary: Allocate it to the date or period in which it was earned, not when it was received.
It has been our experience that these sources of income are often a source of error in the gross income calculation for income replacement benefits…both in the pre and post-accident periods.
How do I allocate this income?
Employees can receive bonuses (and commissions) in addition to their regular wages, and most often they are received after the period in which they were earned. In general, this income should be included in the calculation of gross income as discussed in section 4 of the SABS. However, which period to include the income in usually requires some consideration. Continue reading