Disability & Workers’ Compensation

 

Disability Income Plan of North Carolina
Supplemental Disability Benefits
Workers’ Compensation

 

 

Disability Income Plan of North Carolina (DIPNC)

The Disability Income Plan of North Carolina (DIPNC) is administered by the Department of State Treasurer for North Carolina public employees. The DIPNC provides monthly replacement income to eligible individuals in the form of short-term, extended short-term, and long-term disability benefits if an employee becomes disabled while actively employed and is enrolled in either the UNC Optional Retirement Program (ORP) or the Teachers’ and State Employees’ Retirement System (TSERS).

All permanent or time-limited employees regularly scheduled to work 30 hours or more per week will automatically be enrolled in this plan at no cost. The University pays the full cost of this program.

What is a disability?

Under the DIPNC, a disability is defined as the mental or physical incapacity for the further performance of an employee’s usual occupation, provided that such disability was not the result of terrorist activity, active participation in a riot, committing or attempting to commit a felony or an intentional self-inflicted injury.

Short-Term Disability Benefits

How to Apply for Short Term and Preliminary Short Term

An employee is covered under the Short-Term Disability plan after one year of membership service in the Teachers’ and State Employees’ Retirement System (TSERS) or participation in the Optional Retirement Plan (ORP).

Short-Term disability benefits are payable after the conclusion of the 60-day waiting period, and therefore, generally begin on the 61st day of disability.  Short-term disability benefits are paid to an eligible employee for up to 365 calendar days provided the employee meets all of the following requirements:

  • The employee applies within 365 days following the first day of the 60-day waiting period.
  • The employee has a least one year of TSERS or ORP membership service earned within the 36 calendar months immediately preceding the disability.
  • The employee is determined to be mentally or physically disabled for the further performance of his or her usual occupation.
  • The employee’s disability was incurred at the time of active employment.
  • The employee’s disability has been continuous.

If the employee’s membership service within the 36-calendar month immediately preceding the date of disability was interrupted for military service, the employee would be eligible for short-term disability benefits, provided he or she meets all other requirements.

Short-Term disability benefits are paid by the University and processed through the HR Benefits Office; therefore, an employee should contact the HR Benefits Office to apply for benefits, or with questions about health coverage. The determination of disability and eligibility for short-term benefits is generally made by your employer and physician. However, either the employee or the University may request determination of disability by the Retirement Systems’ Medical Board.

The monthly short-term benefit amount is equal to 50 percent of 1/12 of the employee’s annual base salary that was received prior to the short-term benefit period. This benefit amount includes longevity and local supplements, if any, and is subject to a monthly maximum of $3,000. These benefits are also subject to certain offsets or reductions for benefits received from other disability programs.

Extended Short-Term Disability Benefits

How to Apply for Extended Short Term or Long Term Disability

Short-Term disability benefits may be extended for a maximum of 365 days beyond the short-term disability period in cases where the Retirement Systems’ Medical Board finds the disability ongoing but is likely to end during the extended period. Extended short-term disability benefits are paid by the Retirement Systems Division.

The same eligibility requirements, benefit calculations, offsets and earnings restrictions that apply to short-term disability benefits also apply to extended short-term disability benefits.

The monthly extended short-term benefit amount is equal to 50 percent of 1/12 of the employee’s annual base salary that was received prior to the short-term benefit period. This benefit amount includes longevity and local supplements, if any, and is subject to a monthly maximum of $3,000. These benefits are also subject to certain offsets or reductions for benefits received from other disability programs.

Long-Term Disability Benefits

How to Apply for Extended Short Term or Long Term Disability

Long-Term disability benefits are payable after the conclusion of the short-term disability period or after salary continuation payments cease, whichever is later. Long-Term benefits may be payable for as long as an employee is permanently disabled, provided the employee meets all of the following requirements:

  • The employee has at least 5 years of TSERS or ORP membership service earned within the 96 calendar months immediately before the end of the short-term disability period, or the completion of salary continuation payments, which is later.
  • The employee applies to receive long-term disability benefits within 180 days after the conclusion of the short-term disability period, after salary continuation payments cease, or after monthly payments for Workers’ Compensation cease (excluding monthly pay for permanent partial benefits), whichever is later.
  • The employee is certified by the Retirement Systems’ Medical Board to be mentally or physically disabled for the further performance of the employee’s usual occupation.
  • The employee’s disability has been continuous, is likely permanent, and was incurred at the time of active employment.
  • The employee terminates employment as a permanent employee.
  • For TSERS Members only: The employee does not meet the eligibility requirements to receive an un-reduced TSERS service retirement benefit.
  • For ORP Participants only: You have not reached the date when a service retirement benefit would be first available to you had you elected to be a TSERS member.

Long-term disability benefits are paid by the Retirement Systems Division.  The determination of disability and eligibility for long-term benefits will be made by the Retirement Systems’ Medical Board.

The monthly long-term disability benefit before any offsets is equal to 65 percent of 1/12 of the annual base salary that was received right before the long-term benefit period, including longevity and local supplements, if any. The maximum monthly long-term benefit is $3,900. Long-term disability benefits are subject to certain offsets or reductions for Social Security benefits and for disability benefits receive from other programs. There required offsets will cause your DIPNC long-term benefit to be reduced.  The minimum monthly long-term benefit is $10.

NOTE: If an employee has less than 5 years of TSERS or ORP membership service as of July 31, 2007, the long-term disability benefits will end after the employee receives 36 long-term disability benefit payments unless the employee has been approved for Social Security disability benefits.

Helpful Resources

For questions about eligibility or how to apply, contact your HR Benefits Consultant.

 

Supplemental Disability Benefits

The University offers voluntary Supplemental Disability programs through Lincoln Financial for employees enrolled in the Teachers’ and State Employees’ Retirement System (TSERS) and through the Standard for employees enrolled in the Optional Retirement Plan (ORP).  These plans are designed to fill the gap of the Disability Plan of North Carolina (DIPNC) for the first year of employment and provide a supplement during the short-term and long-term benefit periods of the DIPNC. An employee pays the full cost of the premium if he or she elects to enroll in coverage.

All permanent or time-limited employees regularly scheduled to work at least 30 hours or more per week are eligible to enroll in the Supplemental Disability Plans. If an employee enrolls in coverage, deductions will be calculated retroactive to your eligibility date (for new hires that is your hire/eligibility date; for late enrollees it is the date you are approved for coverage by the disability insurance company). This may result in retroactive deductions being held from an employee’s pay depending on when the enrollment form is completed.

An employee’s deductions will cease under these plans in the month the employee elects to cancel coverage or once employment or benefit eligibility ends.

 

Lincoln Financial Group Long-Term Disability (For TSERS Members Only)

This supplemental long-term disability insurance, offered by Lincoln Financial Group, was designed to provide coverage for those employees who are not yet eligible for the State’s plan, or who wish to supplement the State’s disability benefits. The plan is available, at a nominal cost, only to employees who are participating in Teachers’ and State Employees’ Retirement System (TSERS).

After a 60-day waiting period, employee’s may receive a benefit equal to 66-2/3% of their monthly salary up to a maximum monthly benefit of $10,000. New employees may enroll within sixty days without completing a medical questionnaire.

This plan coordinates with benefits received from Social Security, Workers’ Compensation, and DIPNC (once the employee becomes eligible for the State’s short- and/or long-term benefits). Premiums are reduced after five years of contributing membership to the State Retirement System.

Premium amounts are determined by the employee’s monthly salary multiplied by an age-based rate factor. Once an employee attains five years of creditable service with the Retirement System, the employee moves to rate table two in that month, which represents lower rates. Calculate the Lincoln Financial disability premium here.

Additional Resources

 

The Standard Long-Term Disability (For ORP Members Only)

This supplemental long-term disability insurance plan, offered at a nominal cost by The Standard, is available only to members in the Optional Retirement Plan (ORP). Designed to help fill the gaps left by the State’s plan, this program replaces up to 66-2/3% of the employee’s monthly wage base up to a maximum of $15,000 per month.

In addition, the plan protects the employee’s retirement by providing a contribution equal to the monthly employee and employer retirement contribution (currently a combined total of 12.84%). New employees may enroll within sixty (60) days without completing a medical questionnaire.

This plan coordinates with benefits received from Social Security, Workers’ Compensation, and DIPNC (once the employee becomes eligible for the State’s short- and/or long-term benefits).

Premium amounts are determined by the employee’s monthly salary multiplied by predetermined rate factors for both the disability income and retirement income protection components of the plan. Calculate the Standard monthly disability premium here.

Additional Resources

 

Workers’ Compensation

The Workers’ Compensation Program for East Carolina University is administered by the Office of Environmental Health and Safety in accordance with the provisions of the North Carolina Workers’ Compensation Act, the North Carolina Industrial Commission Rules and Regulations, and the North Carolina State Government Workers Compensation Handbook.

A Workers’ Compensation Manager has been designated in the Office of Environmental Health and Safety to be responsible for the effectiveness of processing and monitoring the workers’ compensation claims. The University is responsible for accepting employer liability for the State and paying claims. It is the intent of East Carolina University to provide uniform and consistent application of the rules and regulations to be followed in processing workers’ compensation claims and ensure entitled benefits are provided to all affected employees.

The program is periodically reviewed by the North Carolina Office of State Human Resources to measure and evaluate the effectiveness of the program and recommend changes to achieve optimum results. Our third-party administrator that reviews all claims for compensation purposes is CorVel Corporation.

For additional information regarding Workers’ Compensation, refer to Office of Environmental Health and Safety.

Continuation of Benefit Eligibility

While on an approved Workers’ Compensation Leave, an injured employee is eligible for continuation of the following benefits:

Vacation/Sick Leave

Eligible employees continue to accumulate vacation and sick leave, which is to be credited for use upon return to work. If an employee does not return to work, vacation and sick leave accumulated during the first 12 months of leave will be paid in a lump sum along with other unused vacation/bonus leave earned prior to the injury at the time of separation.

Health Insurance

Employees remain eligible to continue coverage under the State Health Plan coverage. Premiums owed by the employee for their portion of coverage, including any dependent coverage (if applicable), must be paid directly by the employee to continue coverage. Employees have the option to cancel their benefits within 30 days of the date their leave of absence begins. Employees on leave of absence due to Workers’ Compensation must contact their HR Benefits Consultant to make arrangements to pay their portion of premiums.

NCFlex Supplemental Insurance

Employees remain eligible for coverage under certain NCFlex benefit plans. Premiums owed by the employee for their portion of coverage, including any dependent coverage (if applicable), must be paid directly by the employee to continue coverage. Employees have the option to cancel their benefits within 30 days of the date their leave of absence begins. Employees on leave of absence due to Workers’ Compensation must contact their HR Benefits Consultant to make arrangements to pay their portion of premiums.

Longevity

Eligible employees continue to receive longevity credit, and if eligible, annual payments.

Retirement Service Credit

Employees do not receive retirement service credit. However, employees may purchase credit for the time period on workers’ compensation leave. Upon request, after returning to work, the Retirement System will provide a statement of the cost and the date by which purchase must be made.

Disability Income Plan of North Carolina

Eligible employees who become temporarily or permanently disabled and are unable to perform their regular work duties may receive partial replacement income on short-term or long-term basis through the Disability Plan of North Carolina. For detailed information about these benefits, employees may access the Disability Income Plan of North Carolina Member Handbook.

Helpful Resources