§ 123.10. Multiemployer pension fund offsets.
(a) When the pension benefit is payable from a multi-employer pension plan, only that amount which is contributed by the employer directly liable for the payment of workers’ compensation shall be used in calculating the offset to workers’ compensation benefits.
(b) To calculate the appropriate offset amount, the portion of the annuity purchased by the liable employer’s contributions shall be as determined by the pension fund’s actuary. The ratio of the portion of the annuity purchased by the liable employer’s contributions to the total annuity shall be multiplied by the net benefit received by the employee from the pension fund on a weekly basis. The result is the amount of the offset to be applied to the workers’ compensation benefit on a weekly basis.
(c) If the employee receives the multi-employer pension benefit on a monthly basis, the net amount received by the employe shall be multiplied by the ratio of the liable employer’s contribution to the pension plan on behalf of the employee and that product shall be divided by 4.34. The result is the amount of the offset to be applied to the workers’ compensation benefit on a weekly basis.
(d) If the employee receives the multi-employer pension benefit in a lump sum, 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 of the benefit shall be used as the basis for calculating the offset to the workers’ compensation benefit. The ratio of the employer’s contribution to the pension plan shall be multiplied by the monthly annuity value of the pension benefit. The result shall be divided by 4.34 to achieve the offset to the workers’ compensation benefit on a weekly basis.
Notes of Decisions Nonmunicipal Contributions
In determining the correct calculation of an offset, the Commonwealth was not the ‘‘employer directly liable’’ for compensation under section 204(a) and third-party contributions to the pension fund should not be used for calculation of a pension setoff. The employer was entitled to a credit only to the extent it directly contributed to the pension. Lower Merion Township v. Workers’ Compensation Appeal Board, 783 A.2d 878 (Pa. Cmwlth. 2001), appeal denied 568 Pa. 745, 798 A.2d 1294 (Pa. 2002).
Cross References This section cited in 34 Pa. Code § 123.1 (relating to purpose); and 34 Pa. Code § 123.5 (relating to offset for benefits already received).
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