Exercise caution when manually determining the WC/PDB rate to use in computing offset.
The newly derived WC/PDB rate for the adjustment month may sometimes be higher than
the monthly equivalent for the higher weekly rate or lower than the monthly equivalent
for the lower weekly rate. Where this is true, base the new WC/PDB rate in the month
of change on these comparisons:

•
Compare the monthly equivalent for the higher weekly rate to the new rate computed
for the midmonth adjustment, using whichever rate is lower. The change cannot result
in a monthly rate higher than the monthly equivalent for the higher weekly rate. or

•
Compare the new rate computed for the midmonth adjustment to the monthly equivalent
for the lower weekly rate, using the higher of the two. The change cannot result in
a rate less than the monthly equivalent for the lower weekly rate.
NOTE: ICF WC/PDB automatically performs the equivalency comparison.
EXAMPLE 1:
The weekly WC rate increased from $50 to $60 effective 03/04/2008. Compute the monthly
WC rate for 03/2008 as follows:
$50 divided by 7 days = $7.14 (daily rate) x 3 days = $ 21.42
$60 divided by 7 days = $8.57 (daily rate) x 28 days = $239.96
Total =
$261.38
Round down the final monthly amount in 03/2008 to $261.30
02/2008 monthly equivalent: $50 x 13/3 = $216.60
04/2008 monthly equivalent: $60 x 13/3 = $260.00
The monthly WC/PDB rate for offset in 03/2008 is the 04/2008 monthly equivalent for
the higher monthly rate of $260.00.
EXAMPLE 2:
The weekly WC rate increased from $50 to $70 effective 02/25/2007. Compute the monthly
WC rate for 02/2007 as follows:
$50 divided by 7 days = $ 7.14 (daily rate) x 24 days = $171.36
$70 divided by 7 days = $10.00 (daily rate) x 4 day = $ 40.00
Total
= $211.36
Round down the final monthly amount in 02/2007 to $211.30.
01/2007 monthly equivalent: $50 x 13/3 = $216.60
03/2007 monthly equivalent: $70 x 13/3 = $303.30
The monthly WC/PDB rate for offset in 02/2007 is the 01/2007 monthly equivalent for
the lower monthly rate of $216.60.