Offset may be imposed retroactive to the resumption of the WC payments without additional
notice (since the worker has been continuously entitled to WC) if the WC rate is the
same or lower than the WC rate before WC payments were suspended.
However, if the resumption of WC payments includes an increase in the WC rate, the
date of the notice affects offset as follows:
If notice of an increase in the WC rate was received 04/22/1971 or earlier, the increased
WC rate cannot be used to reduce the amount payable after offset below the amount
payable in the first possible month of offset (plus any protected increases).
If notice of an increase in the WC rate was received between 04/23/1971 and 01/31/1978,
adjust offset retroactive to the effective date of the change, but not prior to 04/1971.
EXAMPLE: Notice is received 04/23/1971 regarding a WC rate increase effective 12/13/1970.
DIB payable 12/1970 on is less than what was payable before we received notice of
the WC rate changes. Offset is computed effective 12/13/1970, the effective date of
the WC rate increase. We must leave the old rate payable after offset for 12/1970-03/1971
but we can pay the new rate payable after offset effective 04/1971.
If notice of an increase in the WC rate was received 02/01/1978 or later, use the
old rate to calculate offset through the month we received notice of the resumption
of WC payments. Use the new increased rate to calculate offset beginning with the
month after the month notice was received.
If there is a change from one type of WC payment to another, e.g., temporary to permanent
payments, and it is clear the temporary payments were stopped pending a permanent
disability rating (i.e., additional payments are contemplated), there is no break
in entitlement and no new “notice” is required. However, if the resumption of WC payments
includes an increase in the WC rate payable, follow the instructions in DI 52170.040D.1. in this section.