DI 52170: Manual Computations for Workers' Compensation/Public Disability Benefit (WC/PDB) Offset
BASIC (09-08)
There are rounding rules to consider when manually computing benefit amounts in workers’ compensation (WC) and public disability benefit (PDB) offset cases. Different rules apply to periods before 06/1982 and periods beginning 06/1982. It is critical to use the rounding rules correctly to ensure accurate benefit amounts. For more information, see RS 00601.020 - Rounding of Benefits.
A. Rounding benefit amounts payable after offset
1. Before June 1982
Round up to the next higher multiple of $.10 for monthly benefit amounts payable after offset.
2. June 1982 or later
Round down to the next lower multiple of $.10 for monthly benefit amounts payable after offset.
B. Example: Worker and 3 auxiliaries entitled to disability (DIB)
HA DOED |
05/1981 |
WC Offset Date |
07/1981 |
Monthly WC |
$250.00 |
80 percent Average Current Earnings (ACE) |
$675.00 |
05/1981 |
PIA: $316.40 FMAX: $474.80 Aux MBA (3 children) $52.80 |
06/1981 |
PIA: $351.90 FMAX: $528.00 Aux MBA (3 children) $58.70 |
06/1982 |
PIA: $377.90 FMAX: $377.90 Aux MBA (3 children) $62.90 |
07/1981 80 percent ACE |
$675.00 |
Monthly WC |
-$250.00 |
|
$425.00 |
PIA payable to HA |
-351.90 |
|
$ 73.10 (Divided by 3 auxiliaries = $24.40 (24.36 rounded up.) |
In 06/1982, WC increases to $290.00 per month. Recompute the amounts payable from the first month of offset, rounding up for intermediate steps prior to 06/1982.
07/1981 80 percent ACE |
$675.00 |
Monthly WC |
-290.00 |
|
$385.00 |
PIA payable to HA |
- 351.90 |
|
$ 33.10 (Divided by 3 auxiliaries =$11.03 (which is rounded to 11.10 because this intermediate step was for a month prior to June 1982) |
|
+ 4.20 (COLA) |
|
$ 15.30 payable to each auxiliary |
In 09/1982 one auxiliary terminates.
You can use the Expedient method to redistribute the amounts previously payable after offset to three auxiliaries to the remaining two auxiliaries:
Step 1: FMAX = $566.60 minus PIA $377.90 yields an adjusted MAX of $188.70.
Step 2: $15.30 payable after offset to each auxiliary, times three auxiliaries = $45.90.
Step 3: $188.70 minus $45.90 = $142.80 total offset to three auxiliaries.
Step 4: Subtract the total offset ($142.80) from the adjusted MAX ($188.70) and divide by two to arrive at the new amount payable after offset for the two remaining auxiliaries: $22.90 each (22.95 rounded down). See DI 52150.070 for more information about using the Expedient method to compute offset.