PA Workers' Compensation Benefit Offsets, Credit & Subrogation

If you suffer a work injury in Pennsylvania and begin receiving wage loss benefits along with medical benefits, will you always receive the same amount of benefits? The answer could be “no” if you received unemployment compensation benefits, severance benefits, social security retirement benefits, or pension benefits. You, as the injured worker, must actually receive these benefits — not just be eligible for them — and must report receipt of these to the workers’ compensation carrier.

How do you report receipt of these benefits while you are also receiving workers’ compensation benefits? The workers’ compensation carrier issues what are called LIBC forms that you, as the injured worker, must complete, sign, and send back within thirty (30) days of receipt. One of these LIBC forms is referred to as the “Employee’s Report of Benefits.” It is on this form that you report any receipt of unemployment compensation, pension benefits, severance benefits, or social security retirement benefits. Not only must you report the receipt of these benefits, you must report the net amount received, as opposed to the gross. The workers’ compensation carrier is permitted to send out these LIBC forms to you as the injured worker once every six (6) months. If the forms are not completed within the requisite thirty (30) days, the carrier can suspend your wage loss benefits until the forms are returned. So, if you receive these forms — whether or not you have received any of the benefits noted on the form — it is in your interest to get the forms filled out as soon as possible and send them back.

If the workers’ compensation carrier for your employer is entitled to take an offset, it is required to notify you twenty (20) days before actually deducting it from your workers’ compensation benefits. However, if evidence is presented to a Workers’ Compensation Judge that an offset is necessary, the Judge will issue an Order, and the workers’ compensation carrier is then not bound by the twenty (20) day rule.

In this segment, the offsets were briefly mentioned for general awareness. The offsets, credits, and subrogation can be confusing, and it is best to obtain legal advice from an experienced workers’ compensation lawyer to find out what your obligations are under the Pennsylvania Workers’ Compensation Act.