§ 121.18. Subrogation.
(a) If an employee obtains a third-party recovery under section 319 of the act (77 P. S. § 671), a Third Party Settlement Agreement, Form LIBC-380, shall be executed by the parties.
(b) If credit is requested against future compensation payable, a Supplemental Agreement for Compensation for Disability or Permanent Injury, Form LIBC-337, may also be filed with the Bureau, including the amount and periodic method of pro rata reimbursement of attorney fees and expenses.
Source The provisions of this § 121.18 amended August 3, 2007, effective August 4, 2007, 37 Pa.B. 4181. Immediately preceding text appears at serial pages (305090) to (305091).
Notes of Decisions Determination
Where there is no opportunity for the Fund to participate or be heard, an agreement of parties other than the Fund will not be a determination, but only an agreement on which to base a claim, under § 121.18. Bureau of Worker’s Compensation v. Workmen’s Compensation Appeal Board (Insurance Company of North America), 516 A.2d 1318 (Pa. Cmwlth. 1986).
Gross Method
It is well settled that the ‘‘gross method’’ and not the ‘‘net method’’ is the accepted means of calculating payments under employer’s subrogation interest. Mrkich v. Workers’ Compensation Appeal Board (Allegheny Youth and Children’s Services), 801 A.2d 668 (Pa. Cmwlth. 2002).
It is well settled that the ‘‘gross method’’ and not the ‘‘net method’’ is the accepted means of calculating payments under employer’s subrogation interest. Budd Co. v. Workers’ Compensation Appeal Board (Settembrini), 798 A.2d 866 (Pa. Cmwlth. 2002).
Party
The Department of Labor and Industry cannot be deemed to be a party to an agreement to terminate proceedings before a referee or on notice of the agreement merely by complying with its regulations and therefore the Commonwealth is not bound by the determination or by the appeal time limit. Bureau of Worker’s Compensation v. Workmen’s Compensation Appeal Board (Insurance Company of North America), 516 A.2d 1318 (Pa. Cmwlth. 1986).
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