A receiver and method are provided. The receiver includes a detector configured to receive polarization multiplexed coded orthogonal frequency division multiplexing input sequences and generate estimates of unknown transmitted symbols in the input sequences for x- and y-polarization channels with respect to laser phase noise and PMD. A demapper coupled to the detector is configured to partially cancel polarization mode dispersion (PMD) in the input sequences by computing symbol probabilities for the estimates with respect to the laser phase noise, and averaging the symbol probabilities with respect to the laser phase noise. One or more low-density parity-check (LDPC) decoders coupled to the demapper are configured to receive bit probabilities derived from the averaged symbol probabilities and output code words based at least on the bit probabilities. The one or more LDPC decoders iteratively provide extrinsic soft information feedback to the demapper to compensate for the PMD.