No, it's evil.

Another person replied with a real story where it happened. They also did this to the guy wrongfully imprisoned 25 years

He explained that his compensation was also calculated on the assumption that he would never have worked and would have received benefits.

https://www.bbc.co.uk/news/articles/cwy31pk1w0lo

Edit: And I could see maybe its hard to assume he'd become a lawyer or Dr with high wages, but no job with only benefits, and then room and board subtracted? Savage.