If the PDB plan is based on a period of service that was used both to establish eligibility
to the PDB and to compute the amount of the PDB, and that period of service is at least 85 percent
covered service, the PDB is not offset.
However, if the PDB plan is based on one period of service to establish eligibility
to the PDB, and a different period of service to compute the amount of the PDB, either period can exclude the PDB from offset if at least 85 percent of the period used
is covered. In these situations, take the following steps to determine if the PDB
is offsettable:
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•
Evaluate the first period of service (e.g., the period of service used to establish
eligibility to the PDB). If this period is based on at least 85 percent covered service,
the PDB is excluded from offset.
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•
If the first period of service does not satisfy the 85 percent test, look at the second
period of service (e.g., the period of service used to compute the amount of the PDB).
If the second period of service (evaluated on its own and without regard to the first
period) satisfies the 85 percent test, the PDB is excluded from offset.
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•
If the second period also does not satisfy the 85 percent test (i.e., neither period
satisfies the 85 percent test), the PDB is offset.
NOTE: The 85 percent must be satisfied by one of the periods considered alone. Do not add
the separate percentages from the two periods. See DI 52125.010, Determining When a Public Disability Benefit (PDB) is Based on Covered Service,
for more information and examples on determining when a PDB is offsettable.