2. The pension reserve on account of a pension so payable shall be reduced by the amount of the lump sum workers' compensation benefits. In such case the pension thereafter payable shall be the actuarial equivalent of the pension reserve as so reduced.
No such reduction shall be made, however, for the amount of medical, surgical, or other attendance or treatment, nurse and hospital service, medicine, crutches or apparatus and of any funeral expense provided under the workers' compensation law in addition to regular compensation benefits, or of any legal fees awarded under the workers' compensation law.