Dated: August 24, 2016
Contact: Benefits Manager - Ext. 0649
PIM 5 – Leave Without Pay
Your Retirement Benefits - Teachers’ and State Employees’ Retirement System, Disability Income Plan of North Carolina (Employee Handbook
TThe Disability Income Plan of North Carolina (DIP) provides eligible employees with 365 days of salary continuation after a period of 60 continuous calendar days from the onset of a disability (medical condition and/or illness). The purpose of this memorandum is to provide guidance to employees who may be disabled and supervisors administering the benefits made available by this plan.
What the Disability Income Plan of North Carolina Allows
Short-Term disability benefits may be paid up to 365 days after a period of 60 continuous days of absence as long as the qualifying disability remains continuous. Monthly certification by the treating healthcare professional will be required to verify that the employee remains disabled.
Eligibility for Short-Term Disability Benefits
Employees may be eligible for Short-Term Disability Benefits if the the employee has at least one year of contributing membership service in the Retirement System earned within 36 calendar months preceding the disability; if the employee is determined to be mentally or physically disabled for the further performance of his/her usual occupation; if the disability was incurred during the time when the employee was actively employed; and if the disability has been continuous.
Payment for Short-Term Disability Benefits
An employee’s monthly short-term disability benefit (“Monthly Benefit”) paid while on short-term disability will equal 50% of 1/12th of the annual base rate of compensation last payable to the employee prior to the beginning of the short-term benefit period plus 50% of 1/12th of the annual longevity payment, if applicable, to a maximum of $3,000.00 per month. The monthly benefit amount will be reduced by any monthly payments received as a Worker’s Compensation benefit and by any compensation for a period of trial rehabilitation or part-time work that exceeds the amount of salary continuation under the Disability Income Plan.
Employees may elect to use any remaining balance of sick, vacation or bonus leave as a source of income instead of receiving a benefit during the short-term disability period not to exceed 365 days from the 61st day of absence.
Periods of trial rehabilitation are allowed while receiving a monthly benefit. If an employee returns to work and works more than 40 continuous days, the 60-day waiting period to receive short-term disability benefits starts over if the employee becomes unable to work again due to the same, or a different disability.
Long Term Disability
Employees who are not able to return to work following the initial period of Short-Term Disability (365 days) may be eligible for Long-Term Disability benefits. Such employees are encouraged to contact the Benefits Office prior to their expiration of Short Term Disability benefits to determine if they are eligible. Employees must resign their current position to receive payment of Long-Term Disability benefits, if approved.