Structured settlements are well known to personal injury practitioners for their role in providing long-term, reliable, tax-free compensation to seriously injured plaintiffs. What is less frequently considered in British Columbia is the extent to which structured settlements can preserve entitlement to PWD assistance, thereby materially increasing their value in a personal injury settlement.
PWD assistance in British Columbia is governed by the BC Employment and Assistance (BCEA) framework. Historically, this framework has most often been discussed in the context of trusts. However, the same principles are applied when reviewing structured settlement payments arising from personal injury claims. From a PWD eligibility perspective, structured settlement payments are treated in the same manner as trust payments. The policy framework informing this analysis is outlined in the province’s guidance on trusts and eligibility under BCEA.
Structured settlements align naturally with the principles applied by the Ministry when reviewing long-term arrangements for PWD recipients. They are established at the time of settlement, provide payments according to a defined schedule, and are designed to address the ongoing consequences of serious injury. From a policy perspective, these characteristics mirror those of other accepted arrangements used in PWD cases. For counsel, this means structured settlements are an alternative to trusts for clients receiving PWD and remove the requirement for costly trust fees and administration.
Maintaining access to PWD assistance can represent a significant financial benefit over the course of a plaintiff’s lifetime. Monthly income support, supplementary health benefits, and ancillary supports all contribute meaningfully to long-term security. When structured settlement payments allow a plaintiff to retain access to these benefits, the effective value of the settlement increases, even though the settlement amount itself may be unchanged.
For counsel acting in cases involving permanent disability, structured settlements should be considered as part of prudent settlement planning—not only for their traditional benefits, but for their interaction with British Columbia’s social assistance framework. McKellar Structured Settlements works with plaintiff and defence counsel across British Columbia to design structured settlement solutions that align with BCEA principles and PWD eligibility considerations.