BASIC (09-08)

DI 52170.025 Rounding Rules for Offset Computations

There are rounding rules to consider when manually computing benefit amounts in workers’ compensation (WC) and public disability benefit (PDB) offset cases. Different rules apply to periods before 06/1982 and periods beginning 06/1982. It is critical to use the rounding rules correctly to ensure accurate benefit amounts. For more information, see RS 00601.020 - Rounding of Benefits.

A. Rounding benefit amounts payable after offset

1. Before June 1982

Round up to the next higher multiple of $.10 for monthly benefit amounts payable after offset.

2. June 1982 or later

Round down to the next lower multiple of $.10 for monthly benefit amounts payable after offset.

B. Example: Worker and 3 auxiliaries entitled to disability (DIB)

HA DOED

05/1981

WC Offset Date

07/1981

Monthly WC

$250.00

80 percent Average Current Earnings (ACE)

$675.00

05/1981

PIA: $316.40 FMAX: $474.80

Aux MBA (3 children) $52.80

06/1981

PIA: $351.90 FMAX: $528.00

Aux MBA (3 children) $58.70

06/1982

PIA: $377.90 FMAX: $377.90

Aux MBA (3 children) $62.90

07/1981 80 percent ACE

$675.00

Monthly WC

-$250.00

 

$425.00

PIA payable to HA

-351.90

 

$ 73.10 (Divided by 3 auxiliaries = $24.40 (24.36 rounded up.)

In 06/1982, WC increases to $290.00 per month. Recompute the amounts payable from the first month of offset, rounding up for intermediate steps prior to 06/1982.

07/1981 80 percent ACE

$675.00

Monthly WC

-290.00

 

$385.00

PIA payable to HA

- 351.90

 

$ 33.10 (Divided by 3 auxiliaries =$11.03

(which is rounded to 11.10 because this intermediate step was for a month prior to June 1982)

 

+ 4.20 (COLA)

 

$ 15.30 payable to each auxiliary

In 09/1982 one auxiliary terminates.

You can use the Expedient method to redistribute the amounts previously payable after offset to three auxiliaries to the remaining two auxiliaries:

Step 1: FMAX = $566.60 minus PIA $377.90 yields an adjusted MAX of $188.70.

Step 2: $15.30 payable after offset to each auxiliary, times three auxiliaries = $45.90.

Step 3: $188.70 minus $45.90 = $142.80 total offset to three auxiliaries.

Step 4: Subtract the total offset ($142.80) from the adjusted MAX ($188.70) and divide by two to arrive at the new amount payable after offset for the two remaining auxiliaries: $22.90 each (22.95 rounded down). See DI 52150.070 for more information about using the Expedient method to compute offset.