Section 36. All sums of money payable under the provisions of sections 31, 34, 34A, 35 and 35A of chapter 152 directly to a retired member of the Massachusetts Bay Transportation Authority retirement system or to the legal representative or dependents of a deceased member on account of his death, including so much of the amount of any lump sum settlement payable under the provisions of such sections directly to any such persons as is allocable to the period following the retirement or death of such member, but excluding any payments for or amounts allocable to any period to the date his retirement allowance became effective, shall be offset against and payable in lieu of any pension payable on his account by reason of the same injury, but not against his accumulated total deductions or any annuity derived therefrom. If any such pension exceeds the compensation payable on account of such member under such provisions of chapter 152 when both are reduced to the same periodical basis, the excess only shall be paid as a pension so long as such compensation continues. If any such pension is less than or equal to such compensation, no pension shall be paid so long as such compensation continues to be equal to or greater than such pension.

In all cases where a member or a beneficiary receives delayed compensation payments or an amount of any lump sum settlement payable directly to him under the provisions of sections 31, 34, 34A, 35 or 35A of chapter 152 subsequent to his receipt of payments under any pension granted under the provisions of the Massachusetts Bay Transportation Authority retirement system by reason of the same injury, no further pension payments shall be made unless and until such time as the total amounts which by then would have been payable as compensation and pension together, if there had been no delay in making such compensation payments, shall exceed the total amounts of compensation and pension actually paid by them after due allowance in either case for the allocation of any such lump sum settlement.

If a member or a beneficiary entitled to a pension under the provisions of the Massachusetts Bay Transportation Authority retirement system, and also having a right to compensation under the provisions of chapter 152 by reason of the same injury or death of such member, as the case may be, neglects or fails to prosecute fully such right or to cooperate with the Massachusetts Bay Transportation Authority retirement system in its prosecution thereof, as provided for by the provisions of section 73 of such chapter, said board may, during the period of such neglect or failure, suspend such member's or beneficiary's right to further payment. Under the circumstances set forth in the said section 73, the duty of the board to prosecute shall be mandatory.