POMS Reference

GN 02603: Readjustment Procedures

TN 7 (12-11)

A. General information on deductions and WC and PDB offset

Apply the reduction under the family maximum provision before withholding under the offset provision. This step provides a real benefits reduction due to the WC or PDB offset. For WC or PDB procedures, see DI 52150.070 Procedure for applying WC or PDB offset

Follow these steps when WC or PDB offset applies:

Step Action

Step 1

Reduce benefits for the family maximum.

Step 2

Apply WC or PDB offset to determine the amount of offset that applies to each beneficiary.

Step 3

Apply events subject to deductions listed in GN 02603.040.

Step 4

Apply deduction before reduction procedure in GN 02603.050.
Subtract WC or PDB offset amount from step 2 above, for the deductee from the PTAP or TTAP.
Subtract WC or PDB offset amount for non-deductees from the benefit amount determined using the formula.