North Carolina SB 292: Disability Income Corrections.

Bill Text

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 1991

CHAPTER 779
SENATE BILL 292

AN ACT TO MAKE TECHNICAL CORRECTIONS IN THE DISABILITY INCOME
PLAN OF NORTH CAROLINA.

The General Assembly of North Carolina enacts:

Section 1. G.S. 135-101(3) reads as rewritten:
"(3) 'Benefits' shall mean the monthly disability income payments made
pursuant to the provisions of this Article. In the event of death on or
after the first day of a month, or in the event the short-term disability
benefit ends on or after the first day of a month where the beneficiary
is eligible and applies for an early service or a service retirement
allowance the first of the following month, the monthly benefit shall
not be prorated and shall equal the benefits paid in the previous
month."
Sec. 2. G.S. 135-104(a) reads as rewritten:
"(a) A participant shall receive no benefits from the Plan for a period of 60
continuous calendar days from the onset of disability determined as the last actual day
of service, the day of the disabling event if the disabling event occurred on a day other
than a normal workday, or the day succeeding at least 365 calendar days after service as
a teacher or employee, whichever is later. These 60 continuous calendar days may be
considered the waiting period before benefits are payable from the Plan. During this
waiting period, a participant may be paid such continuation of salary as provided by an
employer through the use of sick leave, vacation leave or any other salary continuation.
Any such continuation of salary as provided by an employer shall not include any
period a participant or beneficiary is in receipt of Workers' Compensation benefits."
Sec. 3. G.S. 135-105(d) reads as rewritten:
"(d) The provisions of this section shall be administered by the employer and
further, the benefits during the first six months of the short-term disability period shall
be the full responsibility of and paid by the employer; Provided, further, that upon the
completion of the initial six months of the short-term disability period, the employer
will continue to be responsible for the short-term benefits to the participant, however,
such employer shall notify the Plan on a quarterly basis Plan, at the conclusion of the
short-term disability period or upon termination of short-term disability benefits, if
earlier, of the amount of short-term benefits paid and the Plan shall reimburse the
employer the amounts so paid."
Sec. 4. G.S. 135-106 reads as rewritten:
"§ 135-106. Long-term disability benefits.

Page 2 S.L. 1991-779 Senate Bill 292
(a) Upon the application of a beneficiary or participant or of his legal
representative or any person deemed by the Board of Trustees to represent the
participant or beneficiary, any beneficiary or participant who has had five or more years
of membership service may receive long-term disability benefits from the Plan upon
approval by the Board of Trustees, commencing on the first day succeeding the
conclusion of the short-term disability period provided for in G.S. 135-105, provided
the beneficiary or participant makes application for such benefit within 180 days after
the short-term disability period ceases ceases, or after salary continuation payments
cease, or after monthly payments for Workers' Compensation cease, whichever is later;
Provided, that the beneficiary or participant withdraws from active service by
terminating employment as a teacher or State employee; Provided, that the Medical
Board shall certify that such beneficiary or participant is mentally or physically
incapacitated for the further performance of duty, that such incapacity was incurred at
the time of active employment and has been continuous thereafter, that such incapacity
is likely to be permanent; Provided further that the Medical Board shall not certify any
beneficiary or participant as disabled who is in receipt of any payments on account of
the same incapacity which existed when the beneficiary first established membership in
the Retirement System. The Board of Trustees may extend this 180-day filing
requirement upon receipt of clear and convincing evidence that application was delayed
through no fault of the disabled beneficiary or participant and was delayed due to the
employers' miscalculation of the end of the 180-day filing period. However, in no
instance shall the filing period be extended beyond an additional 180 days.
The Board of Trustees may require each beneficiary who becomes eligible to receive
a long-term disability benefit to have an annual medical review or examination for the
first five years and thereafter once every three years after the commencement of benefits
under this section. However, the Board of Trustees may require more frequent
examinations and upon the advice of the Medical Board shall determine which cases
require such examination. Should any beneficiary refuse to submit to any examination
required by this subsection or by the Medical Board, his long-term disability benefit
shall be suspende