If a periodic WC/PDB benefit paid through the day before the LS award had the same
weekly rate as that determined for the LS, there will be no midmonth adjustment;
otherwise, you must compute a midmonth adjustment for the start date month. See DI 52150.040 – Changes in Workers’ Compensation/Public Disability Benefits (WC/PDB) Paid.
Step 1: Divide the gross amount of the LS by the weekly rate. The quotient will be the number
of weeks the proration will last. There is usually a decimal remainder. Do not round,
just drop the decimal remainder and multiply the integer (number of whole weeks) by
the weekly rate. Subtract the result from the gross amount of the LS. The result is
the LS remainder.
Step 2: Divide the whole number of weeks by 52. The quotient will be the number of years
the proration will last. The remainder will represent additional weeks.
Apply the following rules to count years:

•
Drop 2 days for the first year. If the first year is a leap year and the beginning
date is prior to February 29, drop 3 days.

•
Drop 1 day for each succeeding year. If the year is a leap year and you pass February
28, drop 2 days.
EXAMPLE:
Beginning date (Sunday)

01/11/1976

First year (drop 3 daysleap year)

01/08/1977

Second year (drop 1 day)

01/07/1978

Third year (drop 1 day)

01/06/1979

After you determine the ending date for the full years of proration, add the number
of weeks for any partial year remaining. The result will be the lump sum ending date.
Step 3: Determine the LS end date by counting these years and weeks beginning with the start
date. NOTE: Begin counting with the start date – not the day after.
Step 4: Add the LS remainder from step 2 to the amount of WC computed for the last month
of the proration. If the partial monthly payment is higher than the previously determined
monthly WC/PDB rate, use the previously determined rate and carry the excess over
to the following month.
EXAMPLE: On March 17, 2006, the worker received a LS of $49,000. There is no proration rate
specified in the settlement. The prior periodic rate was $275 per week, which comes
to $1191.60 per month. Development showed there were no excludable expenses.
Step 1: Compute the number of weeks of proration and the LS remainder.
Formula

Result

Description

$49,000 LS
$275.00 weekly rate

178.18

178 weeks of proration, plus a remainder

178 weeks x
$275.00 weekly rate

48,950.00

Total amount of full weekly proration

$49,000 LS
48,950.00 charged off in full wks.

50.00

LS remainder

Step 2: Determine ending date of proration
Formula

Result

Description

178 weeks of proration
52 weeks/year

3.42 years
(3 yrs. 22 weeks)

Proration length

03/17/2006 + 1 year

03/15/2007

Drop 2 days

03/15/2007 + 1 year

03/13/2008

Drop 2 days (2008 is a leap year)

03/13/2008 + 1 year

03/12/2009

Drop 1 day

03/12/2009 + 22 weeks

08/13/2009

LS end date

Step 3: Compute the WC amount for the last month of proration (August 2009) including the
LS remainder.
Formula

Result

Description

$275.00 weekly rate
7

$39.29

Daily rate

$39.29 daily rate x 13 days (08/01 – 08/13)

$510.77

First part of the computation

$510.77 + $50.00 LS remainder

$560.70

August 2009 WC (round to next lower dime)

Since $560.70 is less than the monthly proration rate of $1,191.90, there is no need
to carry the proration into September 2009.