Under Rhode Island rules, when should a retired employee not collect indemnity benefits?

• A. If the injury occurred after retirement
• B. If the injury occurred more than 5 years before retirement
• C. If the injury was sustained less than 2 years prior to retirement
• D. If the injury was minor

Answer: (C)

Indemnity benefits are meant to replace wage loss from a work-related disability while you are actively employed. In Rhode Island, there’s a specific rule that stops paying these benefits if the injury is sustained within two years of retirement. The idea is that once you retire, you’re no longer earning wages from that job, so there isn’t the same ongoing wage loss to indemnify. Paying indemnity in that near-retirement window would duplicate retirement income rather than compensate for actual, ongoing work-related disability. So, when the injury occurs less than two years before retirement, indemnity benefits should not be collected.