Do not offset VR payments that are paid in addition to WC if the NH is participating or
required to participate in a VR plan. This applies to both periodic WC payments and
NOTE: In the Interactive Computation Facility (ICF), show VR payments not subject to offset as special amounts deducted from the gross not as excludable expenses. If the payments
are input as expenses, ICF will not compute the offset correctly. See DI 52165.000 - WC/PDB Computations through Interactive Computation Facility (ICF).
EXAMPLE 1: Periodic WC.
An injured worker receives weekly Temporary Partial (TP) WC of $275. He agrees to
participate in a VR program. The carrier pays a VR payment of $75 in addition to the
TP of $275 per week. Offset does not apply to the $75 VR payment because the worker
is participating in a VR program and the VR payment is in addition to WC.
EXAMPLE 2: WC lump sum (LS).
NH receives a $100,000 WC LS. The compromise and release papers show $20,000 of the
settlement is for VR. The FO/PC confirms the NH is participating in a VR plan. Process
the case as a $100,000 LS and list the $20,000 VR payment in ICF as a special amount
to deduct from gross. Annotate action in ICF Remarks section.
EXAMPLE 3: WC LS involves periodic VR payments.
The NH received a permanent partial (PP) WC rating and negotiated a LS settlement
with a cash payment of $51,000 and periodic VR payments of $185 per week in return
for participating in an approved VR program. The cash payment was prorated at the
previous WC periodic payment rate of $365 per week and may cause offset.
Offset does not apply because the VR payments are in addition to the WC cash settlement.
For ICF input, annotate in the Remarks section why the VR is not subject to offset.
The $185 weekly VR is not part of the input.