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 for up to 365 calendar days, provided you meet all of the following requirements:
- You must apply within 365 days following the first day of the 60-day waiting period.
- You have at least one year of TSERS or ORP membership service earned within the 36 calendar months immediately preceding your disability.
- You are determined to be mentally or physically disabled for the further performance of your usual occupation.
- Your disability was incurred at the time of active employment.
- Your disability has been continuous.
If your membership service within the 36 calendar months immediately preceding the date of disability was interrupted for military service, you will be eligible for short-term disability benefits, provided you meet all other requirements.
Short-term disability benefits are paid by your employer; therefore, you should contact your employer 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.
The monthly short-term benefit is equal to 50 percent of 1/12 of your annual base salary that you received right before the short-term benefit period. This includes longevity and local supplements, if any, and may be increased by any permanent across-the-board salary increase granted to employees of the State by the General Assembly. This benefit is subject to a monthly maximum of $3,000 and also subject to certain offsets or reductions for benefits received from other disability programs.
Example of Short-Term Disability Amount
| Annual Base Salary | $36,000.00 |
| 50% of Base Salary / 12 (36,000 x .50) | $18,000.00 |
| Monthly Benefit Amount (if no offsets apply) | $1,500.00 |
Any short-term disability benefits paid during the first six months after the date of disability are subject to FICA (Social Security) taxes. Short-term disability payments made more than six months after the last calendar month you worked are not subject to FICA taxes. For example, if you last worked in December 2017, any short-term disability payments made before June 30, 2018, would be subject to FICA taxes.
Instead of receiving short-term disability benefits, you may choose to use all of your accumulated sick leave, vacation leave or any other salary continuation provided by your employer. If you choose this option, it will not extend the 365-day duration of the short-term benefit period. If you elect to receive salary continuation for any part of a given day, this election will take the place of any short term benefit that would have been payable for that day. An election to receive a lump-sum payout for vacation leave is treated as if you had exhausted the leave.
Your DIPNC benefit may be subject to an offset. An “offset” is a reduction in the amount of your DIPNC benefit based on the amount of another benefit that you are receiving or that you may be eligible to receive. State law requires your DIPNC short-term and extended short-term benefits be reduced by:
- An amount equal to your Workers’ Compensation Temporary Monthly Total Disability Benefits, if you are receiving this workers’ compensation benefit due to a disability incurred during the same period of state employment as the disability related to your DIPNC benefit.
- An amount equal to your Veterans Administration benefit if based on the same disability as your DIPNC benefit.
- An amount equal to other federal disability benefits or certain North Carolina military benefits if based on the same disability as your DIPNC benefit.
- Excess monthly earnings.
- Severance pay as a result of reduction-in-force from the state.
While receiving short-term disability benefits, on a monthly basis, you may earn up to the same amount as your short-term benefit amount from any public or private employer without affecting your short-term benefit. If you earn more than this amount, your short-term benefit will be reduced dollar for dollar by the amount of your excess earnings.
Trial rehabilitation during the short-term period is defined as a return to service in the same capacity that existed prior to the disability. Short-term disability benefits stop if you return to your usual occupation. If you return to service for trial rehabilitation during the short-term period, a new waiting period will not begin unless your return to service exceeds 40 continuous days or a different disability occurs. Any period of rehabilitative employment will not extend the short-term disability period.
preliminary long-term disability determination by the Retirement Systems Division’s Medical Board may be requested by you or your employer to obtain approval for up to the entire 365 days of your short-term disability period if your disability is likely to be permanent. Preliminary long-term approval by the Medical Board does not represent approval for long-term disability benefits. You must later apply for, and be approved for, long-term disability benefits even if the Medical Board approved you for preliminary long-term disability benefits.
This page was last modified on 02/28/2025