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Pecuniary damages – Ontario rates for 2013

September 13, 2012

The discount rates for the calculation of awards for future pecuniary damages in Ontario with a 2013 year of valuation will be -0.50% per year for the first 15 years and 2.50% per year thereafter.  (They are currently 0% and 2.5%, respectively, for 2012 valuations.)

 Two illustrations of the impact of a lower select rate: 

1. The present value of future indexed annual payments over the next 15 years to a 50 year old male or female will be 3.8% greater based on the 2013 rates than the 2012 rates.  
2.  
3. The present value of future indexed annual payments over the next 30 years to a 35 year old male or female will be 5.6% greater based on the 2013 rates than the 2012 rates.

 The longer the duration of the payments, the greater the impact.

 A history of the discount rates and gross up rates since year 2000 are available on the website of the Ontario Ministry of the Attorney General at the following link:

http://www.attorneygeneral.jus.gov.on.ca/english/courts/civil/pecuniary_damages.php