Under the Two Year Rule (4661.5), what happens to permanent disability payments when there is a good faith issue?

• A. They continue with full benefits
• B. They are temporarily paused and resume later
• C. They are increased
• D. They are 0 PD payments

Answer: (D)

Two Year Rule concerns what happens to permanent disability benefits when there is a genuine dispute about whether or how much permanent disability exists. If there’s a good faith issue, the ongoing permanent disability payments are suspended after two years from the injury date, effectively making them zero while the dispute is unresolved. The worker can still pursue medical treatment and other benefits, but the PD stream stops at that two-year point until the issue is settled. If a determination later awards PD, back or adjusted payments may follow the resolution, but the ongoing payments themselves are not paid during the dispute period.