Pennsylvania Code › Title 34 - LABOR AND INDUSTRY › Part VIII - Bureau of Workers' Compensation › Chapter 123 - GENERAL PROVISIONS-PART II › Subchapter A - OFFSET OF UNEMPLOYMENT COMPENSATION,SOCIAL SECURITY (OLD AGE), SEVERANCE ANDPENSION BENEFITS › Section 123.9 - Application of offset for pension benefits

Current through Register Vol. 54, No. 28, July 13, 2024
(a) Offsets of amounts received from pension
				  benefits shall be achieved on a weekly basis. If the employe receives the
				  pension benefit on a monthly basis, the net amount contributed by the employer
				  and received by the employe shall be divided by 4.34. The result is the amount
				  of the weekly offset to the workers' compensation benefit.
(b) When an employe receives a pension
				  benefit in the form of a lump-sum payment, the actuarial equivalent of the
				  lump-sum with respect to the annuity options (qualified joint and survivor
				  annuity or life annuity) available at the time of the employe's receipt shall
				  be used as the basis for calculating the offset to the workers' compensation
				  benefit. The monthly annuity equivalent shall be divided by 4.34. The result
				  shall be the offset to the workers' compensation benefit on a weekly
				  basis.
(c) Pension benefits which
				  are rolled over into an IRA or other similarly restricted account may not
				  offset workers' compensation benefits, so long as the employe does not withdraw
				  or otherwise utilize the pension benefits from the restricted account while
				  simultaneously receiving workers' compensation benefits from the liable
				  employer.
(d) If the employe, while
				  receiving workers' compensation benefits from the liable employer, withdraws or
				  otherwise utilizes pension benefits from the IRA or other similarly restricted
				  account, when the IRA or account is funded in whole or in part by the liable
				  employer's contributions, the insurer is entitled to an offset to workers'
				  compensation benefits.
(1) If the employee
				  begins receiving a monthly payment from the IRA or other similarly restricted
				  account, the insurer shall receive an offset to the workers' compensation
				  benefit equal to the offset the insurer would be entitled to if the employee
				  were receiving a monthly pension benefit under subsection (a).
(2) If the employee withdraws or otherwise
				  utilizes an amount from the IRA or other similarly restricted account which is
				  greater than the actuarial equivalent of the lump sum with respect to the
				  annuity options (qualified joint and survivor annuity or life annuity)
				  available at the time of the employee's receipt, the insurer shall be entitled
				  to an offset against future payments of workers' compensation benefits in an
				  amount equal to the amount of the pension benefit withdrawn or otherwise
				  utilized by the employee. The amount of the pension benefit withdrawn or
				  otherwise utilized by the employee shall be divided by the weekly workers'
				  compensation rate. The result shall be the number of weeks, and fraction
				  thereof, the insurer may offset against future payments of workers'
				  compensation benefits.