(a) As used in this section the term ``State or Federal benefit''
means a payment to an individual on account of total or partial
disability or death due to pneumoconiosis only under State or Federal
laws relating to workers' compensation. With respect to a claim for
which benefits are payable for any month between July 1 and December
31, 1973, ``State benefit'' means a payment to a beneficiary made on
account of disability or death due to pneumoconiosis under State laws
relating to workers' compensation (including compensation for
occupational disease), unemployment compensation, or disability
insurance.
(b) Benefit payments to a beneficiary for any month are reduced
(but not below zero) by an amount equal to any payments of State or
Federal benefits
received by such beneficiary for such month.
(c) Where a State or Federal benefit is paid periodically but not
monthly, or in a lump sum as a commutation of or a substitution for
periodic benefits, the reduction under this section is made at such
time or times and in such amounts as the Office determines will
approximate as nearly as practicable the reduction required under
paragraph (b) of this section. In making such a determination, a weekly
State or Federal benefit is multiplied by 4\1/3\ and a biweekly benefit
is multiplied by 2\1/6\ to ascertain the monthly equivalent for
reduction purposes.
(d) Amounts paid or incurred or to be incurred by the individual
for medical, legal, or related expenses in connection with this claim
for State or Federal benefits (defined in paragraph (a) of this
section) are excluded in computing the reduction under paragraph (b) of
this section, to the extent that they are consistent with State or
Federal Law. Such medical, legal, or related expenses may be evidenced
by the State or Federal benefit awards, compromise agreement, or court
order in the State or Federal benefit proceedings, or by such other
evidence as the Office may require. Such other evidence may consist of:
(1) A detailed statement by the individual's attorney, physician,
or the employer's insurance carrier; or
(2) Bills, receipts, or canceled checks; or
(3) Other evidence indicating the amount of such expenses; or
(4) Any combination of the foregoing evidence from which the amount
of such expenses may be determinable. Such expenses shall not be
excluded unless established by evidence as required by the Office.